Climate Change Response – Mitigation & Adaptation
In the face of global climate change, businesses encounter severe challenges. Everlight, following the requirements of the Financial Supervisory Commission (FSC) and referencing the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), discloses the risks and opportunities brought by climate change based on four core elements: governance, strategy, risk management, and indicators and targets.
To align with the national net-zero carbon policy and the “Sustainable Development Action Plan for Listed Companies” released by the FSC in 2023, Everlight’s board of directors has approved the Group’s carbon reduction target for 2030, aiming for a 25% reduction based on 2021 carbon emissions levels. Everlight is committed to addressing mitigation and adaptation to climate change and believes that Everlight can jointly create a sustainable future through communication and collaboration with stakeholders.
2024 Execution Results
▍Climate Risk Assessment
To assess climate risks comprehensively, the Climate Change Task Force adopted the TCFD framework, referencing WBCSD chemical sector guidance, the CDP questionnaire, and industry-specific risk factors. A Climate Risk Matrix was used to identify, rank, and analyze risks, forming the basis for developing mitigation measures within the existing risk management system.
The Board of Directors serves as the highest governance body for climate-related issues, overseeing the effectiveness of overall risk management in collaboration with the Audit Committee. Under the Board’s supervision, the Risk Management Committee and the Sustainability Committee are responsible for assessing the impacts of climate change on the company’s operations and value chain.
To enhance the Board’s understanding of climate-related issues, all board members undergo regular climate training each year, ensuring that the potential impacts of climate change are incorporated into major decision-making processes.
Following the “TCFD Workshop” held in January 2024, the Group has begun systematically evaluating internal climate risks, trends, and market opportunities. This includes analyzing the potential effects of climate change on revenue, profit margins, and product portfolios, including electricity usage and carbon emissions. Starting from July 2024, scenario analyses of product portfolios across each business unit will be conducted to provide strategic direction and reference for the R&D department in developing sustainable products.
▼ Climate change governance organizational structure
The Board of Directors of Everlight Chemical has approved the 2030 carbon reduction target, aiming for a 25% reduction from the 2021 baseline, in alignment with the national goal of net-zero emissions by 2050. To drive low-carbon transformation, the Company has formulated operational strategies that include implementing an energy management system, phasing out high-energy-consuming equipment, and conducting carbon inventories and reduction roadmaps. For each production site, a timetable for the introduction of the energy management system has been established, with phased replacement of high-energy-consuming equipment and regular carbon inventories to ensure the achievement of reduction targets. In addition, leveraging years of experience in green chemistry, we will continue to develop green chemistry production technologies to advance sustainable products and the circular economy.
| Implementation Timeline |
2021-2025 Short-term |
2026-2030 Mid-term | 2031-2050 Long-term |
|---|---|---|---|
| Development of sustainable products | V | V | V |
| Development of green chemistry production technologies | V | V | V |
| Promotion of circular economy | V | V | V |
| Implementation of energy management system | V |
|
|
| Replacement of high-energy-consuming equipment | V | V | |
| Carbon inventory and carbon reduction roadmap | Execution of carbon risk management system | V | |
Note: The matrix’s vertical axis indicates impact severity: Very Severe – financial loss > NT$200 million; Severe – financial loss NT$50-200 million; Moderate – financial loss NT$5-50 million, Acceptable – financial loss < NT$5 million.
▍Climate Change Risk Management
Everlight refers to “ISO 31000:2018 Risk Management – Principles and Guidelines” to implement risk management processes. Based on different risk attributes and categories (market, political, environmental, legal, financial, operational, others) and the probability and severity of risks, we develop risk management principles and strategies.
- Climate change risk is part of environmental risk. In 2021, under the Environmental Group of the Sustainability Development Committee, a cross-departmental Climate Change Working Group was established to identify and assess climate change-related risks and opportunities.
- Climate risks are divided into two major categories: transition risks and physical risks. According to Everlight’s current risk management system, assessments of transition and physical climate risks include policies and regulations, technology, market, corporate reputation, as well as immediate and long-term climate risks that may impact Everlight.
- The assessment process includes Identifying risks → Risk ranking → Risk impact assessment → Risk adaptation and preemptive planning, integrated into the existing risk management system.
- When a climate risk issue is evaluated as a major risk, specific countermeasures are proposed according to the risk handling procedure.
- Risk reporting, response, and monitoring: All responsible units should continuously monitor risks related to operations, track disposed risks to confirm that residual risks are effectively controlled, and review by the Risk Management Committee or through various management system. The status of risks and risk handling results are reported as a reference for adjusting risk control mechanisms and operating strategies.
▍Indicators and Targets
Since 2005, the Company has passed ISO 14064-1:2006 third-party verification for six consecutive years (Plants I-III), and transitioned to the ISO 14064-1:2018 standard in 2022.
Recent GHG Emission Intensity & 2030 Target
