Climate Change Risk
Process of Risk Identification
Climate Change Risk Matrix
TCFD Guide Framework-Governance
Among the key climate change risks, the costs to transition to lower emissions technology includes the transmission of equipment that needs to be replaced in advance in response to the low-carbon transformation trend, improvement on GHG emissions management, development and cooperative research of energy-saving and low-carbon technologies. Uncertainty of energy policy and increased pricing of GHG emissions also have great impact on FET, such as failure to achieve national GHG reduction and renewable energy use targets could lead to the imposition of fines on FET or the need to buy carbon credits from other enterprises, impacting the image of the company. In addition, if FET adjusts its business model and is forced to forgo services with high levels of carbon emissions that will impact enterprise revenue, and If national renewable energy policy leads to an increase in electricity prices or unstable power supply, it could disrupt FET operations or services.
FET develop climate change adaptation plan for key transition risks, including roll out new renewable energy business and research renewable energy use targets and timetable, while increasing the installation capacity of renewable energy annually (including increasing the purchase of renewable energy certificates and self-certification capability) and plan to build solar energy base stations, and renewable energy next to newly constructed data centers should be included as part of evaluations. To effectively control and reduce GHG emissions created in FET operations and supply chain, proactively cultivating low carbon technology transformation talent and cooperating with upstream and downstream operators. Also, strengthen energy monitoring and management systems, while using equipment replacement and upgrades to improve the efficiency of energy use and reduce overall power consumption, to balance the cost of rising electricity prices. FET evaluate the impact and current implementation of important related laws, while conducting quarterly reviews of possible legal changes and planning countermeasures, and purchase related liability insurance and adopt other disaster prevention measures to improve business continuity management.
Adaptation plan of physical risks (increased frequency of severe typhoons and extreme rains) is indicated in the following table, all of the countermeasures cover 100% of existing and new operating site.