Climate Change
Global warming causes climate change, threatening the existence of species and human being. With regard to this, FTC implements various energy saving projects, manages the energy transition demands, replaces old equipment to improve its energy efficiency and reduce GHG emissions to mitigate the climate change.
Framework of Climate Change Management
FTC became a TCFD supporter in December, 2021 and discloses the opportunities and risks according to the framework of Task Force on Climate-related Financial Disclosures (TCFD), announced by Financial Stability Board (FSB), to reasonably and efficiently allocate the capital, aiming to reach the view of transition to low carbon economy.
| Governance |
- Board of Directors is the highest unit of decision-making and management on climate risks and opportunities and relevant issues regarding to climate change.
- Sustainable Development Committee is to review the sustainable development strategies and guidelines and monitor the progress of each sustainable projects.
- Sustainable Promotion Organization consists of three groups, environmental sustainability, social prosperity, and corporate governance. The Environmental sustainability group is teamed up with supervisors of each division to carry out measures in response to climate changes. The performance is reported to the President in ESG meeting, held once a month.
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| Strategy |
- Launch the transition of low carbon energy such as replacing old fuel boilers and usage of natural gas.
- Set up the solar panel system to boost the renewable energy usage.
- Introduce Artificial Intelligence technology to improve production and energy use efficiency.
- Implement other carbon reduction measures: To develop low carbon products with recycled materials.
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| Risk Management |
- Regularly review the Acts amendments, collect and analyze climate issues, as well as identify the risks and opportunities in line with risk identification processes of ISO 14001.
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| Targets and Index |
- FTC commits to reduce scope 1+2 GHG emissions 26.3% by 2027 from a base year 2019, and reduce scope 3 GHG emissions 20% within the same timeframe, which has been approved by the Science Based Targets initiative (SBTi).
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Risks and Opportunities of Climate Change
| Category |
Items |
Issues related to Climate Change |
Impact Time |
Potential Finance Risk |
Measures |
| Transition |
Policy and Regulations |
Carbon Fee |
Short-Term |
The charge of carbon fee will cause the increase in operating costs. |
Set up short, mid-, and long term carbon reduction targets and implement energy saving and carbon reduction plans. |
| Renewable Energy Policy and Net Zero |
Mid-and Long Term |
Operating costs will increase due to the process of low carbon transition. |
| Market |
Renewable Energy Policy and Net Zero |
Mid-Term |
If unable to meet customers’ demands for environmental or low carbon products, it may impact sales. |
Continuously develop renewable and low carbon products. |
| Physical |
Acute |
Extreme weather such as cloudburst, flood, typhoon |
Short-Term |
Flooding results in equipment damage and manufacturing process, increasing the capital expenditure of production equipment. |
Strengthen the emergency response and regularly review the drainage system. |
| Chronic |
Extreme weather such as drought |
Mid-Term |
Extreme weather causes drought, influencing the manufacturing process, which would have an impact on revenues. |
Invest in reclaimed water project. |
| Category |
Opportunities |
Description |
| Resource Efficiency |
Factory AI Project |
Reduce the electricity, water consumption and raw material costs. |
| ISO 50001 Energy Management Project |
Reduce the electricity costs and uncertainty of GHG reduction Acts. |
| Market |
Opportunity to change fossil fuels |
Continuously remodel the equipment with low carbon fuels to cut down the GHG emissions. |
| Product and Service |
Environmental and low carbon products |
Collaborate with supply chain to create recycled and low carbon products with recycled materials. |
Science Based Targets initiative
The Company commits to reduce scope 1+2 GHG emissions 26.3% by 2027 from a base year 2019, and reduce scope 3 GHG emissions 20% within the same timeframe, which has been approved by the Science Based Targets initiative (SBTi) in March, 2023.
Carbon Disclosure Project (CDP)
In 2023, based on the responses to CDP's questionnaires, what FTC received are as follows:
- Climate Change: FTC received "A" List Rating for consecutive two years.
- Water security: FTC received "A-" (leadership), higher than the global average of “C” (Awareness).
FTC has long been dedicated to implementing various energy saving and carbon reduction plans and managing the strategy and opportunities of climate change. The results show that the recognition for our efforts on climate change and water management.
| Year |
2023 |
2022 |
2021 |
2020 |
2019 |
| Climate Change |
A |
A |
A- |
A- |
A- |
| Water Security |
A- |
A- |
A- |
A |
B |
