The rise of green energy
Circular economy, sustainable future.
- 0 %
- Carbon emissions decreased
- 0 %
- Energy consumption reduced
- 0 %
- Total waste volume reduced
Approaches to Sustainable Development Goals
ESG ReportClimate change and environmental protection
◉ Climate change management
On January 15, 2025, the World Economic Forum (WEF) released the "2025 Global Risk Report". Environmental impacts are increasing in intensity and frequency, showing a worsening trend. "Extreme weather events" ranked first, the same as last year's survey results, and "biodiversity loss and ecosystem collapse" rose to second place. "Major changes in the earth system" and "natural resource shortages" ranked third and fourth, respectively, while "environmental pollution" ranked tenth. The above indicators show that the outlook for environmental risks is grim, and future challenges are becoming increasingly severe.
This coincides with the second anniversary of the amendment to the "Climate Change Response Act". The law is Taiwan’s core legislation for addressing climate change and promoting net-zero transformation. It regulates carbon reduction targets, carbon pricing and performance standards. In December 2024, the Ministry of Environment adjusted the 2030 "Nationally Determined Contribution" (NDC) target to 28±2%, and proposed the 2035 carbon reduction target (38±2%) at the Presidential Office Climate Change Countermeasures Committee on January 23, 2025.
The signatories of the Paris Agreement have pledged to limit global warming to "well below 2°C". In the face of the challenges of climate change, Everest designates the Board of Directors as its highest decision-making body and holds four meetings each year to review climate risk policies and management systems, regularly listen to sustainable development implementation results and future work plans, and supervise the promotion of sustainable development strategies.
The "ESG Global Promotion Organization" serves as the highest supervisory and advisory body for Everest's ESG management, promoting low-carbon transformation and climate risk management, mitigating the impact of climate change on operations, and exploring sustainability-related opportunities.
The organization is chaired by Chief Operating Officer Chen Yipeng, with Chief Executive Officer Li Xianzhong as Vice Chairman, and Vice President Lin Huangshan appointed as the Sustainability Director to lead the ESG Sustainability Team. The ESG Global Promotion Organization has established four major groups: "Climate and Environmental Protection", "Social Responsibility", "Corporate Governance" and "Overseas Factory Director" Group, which are responsible for climate strategy, carbon reduction targets and sustainable project promotion. Each unit summarizes sustainability performance every quarter and reports it to the Board of Directors, conducting risk identification and assessment in accordance with the TCFD framework to strengthen climate governance and corporate sustainable development.
◉ Climate Risk Scenario Setting
Everest refers to scientific reports published by the International Energy Agency (IEA) and the United Nations Intergovernmental Panel on Climate Change (IPCC) to better understand the climate risks and opportunities that may arise from future climate change. Based on transition and physical risks, the relevant scenarios are described as follows.
Regarding transition risks, the company referred to the World Energy Outlook (WEO) report released by the IEA in 2021. The report proposes three scenarios, including STEPS (stated policy scenario), APS (announced commitment scenario) and NZE (net zero emission path). The STEPS scenario explores existing climate policies and the challenges they may face; the NZE scenario aligns with the Chinese government's 2050 net-zero emission target. The company uses these two scenarios to simulate transition risks.
◉ Climate Risk Management System
In order to fully understand the impact of climate change-related risks on Everest[A1] , Everest Industrial has revised its "Risk Management Policy" to include climate change risks in the identification process and incorporate them into overall risk management.
The management system has established a bottom-up risk reporting system and implemented a top-down supervision mechanism to ensure the effectiveness of management. The company's climate risk management procedures are as follows: [A1]This is a recurring company name in this report. Is this intentional or is Everest meant here?
◉ Climate Risk Management System
◉ Risk and Opportunity Identification and Assessment Process
Everest follows the framework of the Task Force on Climate-related Financial Disclosures (TCFD), and the ESG Global Promotion Organization is responsible for organizing and coordinating relevant units and departments to conduct risk identification and assessment. During the identification process, the selected risk and opportunity events are divided into 1 to 5 levels from low to high according to the probability and frequency of risk occurrence, and the financial impact is rated on a scale of 1 to 5 levels from low to high. Based on when the risks and opportunities are expected to impact the company, they are divided into three categories: short-term (2024-2025), medium-term (2030) and long-term (2050). Finally, the five-point scale method is used to identify risk and opportunity events with high correlation.
TCFD Risk and Opportunity Assessment
Classification of risks and opportunities: Classification based on the four core elements of TCFD (governance, strategy, risk management, indicators and targets). Impact assessment: Quantitative or qualitative assessment of the potential financial impact of risks and opportunities. Through TCFD assessment, organizations can better understand the potential impact of climate change on their financial situation and establish a basis for future strategy formulation.
◉ Identification of highly correlated risks and opportunities
Based on the TCFD framework, the company identified four major climate change risks and three major climate change opportunities in 2024. The identification results of 24 topics show that the expected time intervals of various risk events are mainly concentrated in the short and medium term. Among them, three of the top four risks are transition risks and one is a physical risk. The expected time intervals of the top three opportunity events are all in the short term. The main risk and opportunity themes and their corresponding countermeasures, indicators/targets and financial impacts will be explained separately according to their identification results. Matrix grading guide for Everest Industrial's climate change-related risks and opportunities in 2024
◉ Environmental Protection Strategies
In the face of extreme climate that may directly impact a company's operations, transformation can help reduce physical and regulatory risks. Through Everest Industrial's three major strategies for responding to climate change, it is not only a response to international climate agreements and government policies, but also a primary strategy for environmental protection.
◉ 2024 Taiwan Factory Water Use Target: Not Met
In 2024, the fresh water usage of the Taiwan Factory of Everest was reduced to 162.9 t/t, and the total water recovery rate reached 37.4%. Although usage improved compared to the previous year, it still falls short of the original target (fresh water usage reduced to 100 t/t, total water recovery rate reached 50%). For the unmet part, an internal review has been conducted and the relevant bottlenecks have been analyzed. In the future, the water management system will be continuously optimized and the efficiency of the recycling equipment will be improved, in order to gradually achieve the predetermined goals and implement the commitment to sustainable water use.
