Climate & Carbon Management

The latest “Global Risk Report” published by the World Economic Forum indicates tha environmental risks will account for half of the world's top 10 risks in the next 10 years, including: "extreme weather events", "tremendous changes in the earth system" and "biodiversity loss and ecosystem collapse",etc. Climate change has inevitably affected the daily life and economic activities of the human beings. As a corporate citizen, we continue improving the corporate resilience to overcome the challenges in the climate issues and build a low-carbon and sustainable homeland.

In order to establish a more complete climate change risk management mechanism, the Company refers to the “Task Force on Climate-related Financial Disclosures”(TCFD) published by the Financial Stability Board (FSB) as a framework for the management of climate change issues and the disclosure of related information, and for further description of the management mechanism, the countermeasures adopted, and their implementation.

The Board of Directors serves as the governing and oversight body for climate-related issues for the Company (including its consolidated subsidiaries). The Board has authorized the establishment of the Sustainability Development Steering Committee, which is composed of Board members and the President who possess professional knowledge and expertise in corporate sustainability. The Committee is responsible for reviewing management policies and specific action plans proposed by the Sustainability Development Executive Committee and convenes at least once a year.

Under the Sustainability Development Steering Committee, the Sustainability Development Executive Committee has been established, comprising the Integrated Promotion Team and the Environmental Safety and Supply Chain Management Team. The Integrated Promotion Team (Sustainability Development Office) is responsible for coordinating the operation of the Risk Management Team under the Audit Committee, ensuring that climate risks are incorporated into the Company's overall risk management system. The team also monitors climate-related regulations and risk issues, and collaborates with relevant departments to assess climate-related risks and opportunities. Assessment results are consolidated into the Company's overall risk management framework, and responsible departments are required to develop corresponding strategies and action plans. Following Board approval, these plans are implemented accordingly.

The Sustainability Development Executive Committee reports to the Board of Directors on a quarterly basis, enabling the Board to oversee the implementation of climate-related initiatives and provide timely guidance and feedback. The final report in 2025 was presented on October 31.