Climate Change Management
With its advantage in mobile technology and our effort in product innovation, HTC includes the issue of climate change into our VIVERSE vision, providing a completed solution for corporations and the society, and creates a better life experiences. To strengthen the HTC climate change governance and mitigate the threats posed by climate change, HTC has implemented the Task Force on Climate-related Financial Disclosures (TCFD) framework in 2022, in which designated members of the ESG committee participated in the project to identify relevant risk and opportunity factors, analyze the possible transition and physical risks/ opportunities, and actively respond to the impacts. We build a risk framework according to four core elements: governance, strategy, risk management, and metrics & targets.
HTC has also developed a Climate Change Management Policy and conducted a full-scoped carbon emissions analysis, calculation, and assessment based on SBTi methodology, and planned a net-zero carbon pathway, as well as formulated corresponding short-, medium-, and long-term decarbonization strategies and management indicators.
In addition, HTC officially became a supporter of the TCFD at the end of the year. To date, there are over 4,000 organizations globally supporting the TCFD, and over 110 companies or organizations in Taiwan have joined as TCFD supporters. HTC, together with many other well-known Taiwanese companies, supports the TCFD initiative with concrete actions to disclose climate-related financial information, and will publish its first independent TCFD report, which has been ranked as "Practitioner" by SGS's TCFD performance evaluation in 2023.
( TCFD Report )
Governance
The Board of Directors is responsible for the final decision-making and deliberation of HTC's climate change governance and management structure. An ESG Committee is established under the Board of Directors to implement relevant topics and resolutions regarding climate change management. Led by the Chief Sustainability Officer, the ESG Committee is responsible for implementing climate
change management policies and major resolutions deliberated by the Board of Directors, integrating resources and progress of climate actions in different departments, and comprehensively evaluating climate change risks alongside other corporate risks. Several work groups have been set up under the committee to respond to ESG topics across multiple areas and collect sustainable development topics from each department to continually promote corporate social responsibility with the aim of implementing corporate sustainable management with equal consideration across the economy, environment, and society.
Relying on clear organization and labor division, relevant departments are included in the management actions in cross-departmental meetings to drive the sustainable development and innovation of HTC as a whole, and to ensure the inclusion of relevant policies and measures in daily operations of the company. Designated members of the ESG Committee have established a TCFD risk management group to participate in the projects together.
The ESG Office was set up under the committee to continually track and review the fulfillment status of each climate change related program, and to regularly review domestic and international climate governance policies and industry practices to adjust climate risk assessments accordingly. The ESG Officer reports these actions to the Board of Directors regularly, and the trends, impacts, and performance on relevant ESG topics to the ESG Committee.
Strategy
Adhering to the corporate vision and sustainability responsibility, HTC includes climate change related risks in the scope of evaluation and tracking, and continues to pay attention to the climate risks that impact operations, including international regulatory norms and extreme weather conditions. Furthermore, based on the climate change risk and opportunity evaluation framework recommended by the TCFD, the setting of climate change scenarios, and the risks and opportunities derived therefrom, HTC evaluates the risks and opportunities of climate change in operations, and further discusses relevant responsive strategies as well as metrics and targets regarding high-impact risks and opportunities, and specific measures for climate management.
Risk Management
In order to strengthen corporate governance, promote stable operation and sustainable development, HTC has formulated relevant "risk management policies" as the criteria for risk management according to various types of risks, and has set up a full-time unit to be responsible for the company's related risk management and risk measurement execution operations. To establish a sound risk management mechanism. The ESG Office is responsible for the company's climate change and ESG-related risk management and coordinating the TCFD risk management team to carry out risk measurement and execution operations. The risk management organizational structure takes the board of directors as the highest decision-making unit for risk management, and has an ESG committee under it, which is responsible for reviewing risk management policies and reviewing Management report on major risk issues. When identifying risks, HTC conducts qualitative or quantitative management of various risks by analyzing its operating environment and covering various businesses and operating activities.
Three high-risk factors and three high-opportunity factors in HTC have been identified. The climate change risks matrix and climate change opportunities matrix are shown in the following diagram.
Climate change risk matrix
Climate change opportunity matrix
Metrics & Targets
HTC introduced SBT, established a net-zero pathway suitable for its own operations, submitted relevant materials for review, and passed the SBT commitment this year. It also established future reduction targets, linked the targets to the core business, and constructed a definite carbon reduction pathway from a global and quantified management perspective. This pathway covers five major carbon reduction strategies and integrates multiple aspects to march towards the goal of Net Zero by 2050. HTC has established reduction targets in scope 1 and scope 2 in accordance with the SBT Net-Zero goal, specifically, carbon emissions will be reduced by 42% in 2030 and 90% in 2050 compared with the base year (2021). For more details on carbon reduction metrics and targets, please refer to the
TCFD Report
