Climate change risk opportunities and related climate issue response measures

1. Description of climate change

In order to respond to the operational risks of climate change on Shangpin Integrated Industries Co., Ltd. and strengthen climate change governance, the company has identified potential climate change risks and opportunities. Through inventory and identification, transformation and For other risks and opportunities caused by the company's operating activities, risk management strategies should be formulated for major risks as the core of actions to respond to climate change. For example, in order to manage the risks caused to the company due to climate change, amend relevant policies or principles to reduce relevant risks. It can also be used to estimate management costs and financial impacts, and systematically evaluate financial relationships to reduce risks and seize business opportunities.

In response to this change, Shangpin Company is committed to significantly reducing product energy consumption, reducing environmental impact, and making customers more satisfied with Shangpin products. In order to respond to the core values ​​of an enterprise of integrity, equality, responsibility, and cooperation, we also evaluate risks and potential opportunities related to energy conservation and carbon reduction management, including regulations, entities, and other aspects, as follows:

Project Risk Project Risk/Opportunity Description Future strategies/actions
Legal aspects The Taiwan Environmental Protection Agency has issued relevant regulations on "greenhouse gas reduction" and green product specifications and certification projects in various countries Risk: Specific objects should report greenhouse gas emissions, which may cause risks that enterprises cannot respond to
Risk: Increase in raw material/parts cost and design/verification cost will increase overall production cost
Opportunities: In response to the formulation of energy taxes/carbon taxes in various countries, the market demand for renewable energy will increase in the future, providing opportunities for companies to develop or invest in renewable energy
Shangpin Company has not yet been regulated by laws and regulations, so it is important to understand regulatory trends and international norms early to prepare for the future
Solid surface Direct impact under extreme climate, such as floods/droughts/winds
Indirect impacts from abnormal climate, such as increased energy costs and rapid spread of disease vectors
Risks: supply chain disruption, production capacity reduction or shutdown, loss of life and property, reconstruction costs
Opportunity: Changes in rainfall patterns make companies aware of the importance of water resources management
Find other alternative parts supply sources to avoid affecting product shipments
Promote energy conservation and carbon reduction, water resource management, and enhance risk management awareness
Other Environmentally friendly products have become a market trend Risk: Low-carbon and environmentally-labeled products have become mainstream in the market. Choosing products that comply with low-carbon design and supply chain will increase operating costs
Opportunities: If companies do a good job in energy conservation and carbon reduction, it will help enhance their corporate image
Actively respond to relevant stakeholders’ strategies and actions in Shangpin’s energy conservation and carbon reduction management to fulfill corporate social responsibilities