Climate Change Mitigation and Adaptation
Climate Change Mitigation and Adaptation
Faced with global warming, extreme weather, increased awareness of environmental protection, energy conservation, occupational safety and health, and conservation, CT has incorporated climate change into its corporate sustainability agenda and closely monitors global climate change trends and international response directions. It conducts statistics on GHG emissions, water usage, and waste generation and formulates policies for GHG reduction and other waste management operations as climate‑related response measures to reduce and prevent the impacts of climate change. It continuously analyzes and controls these factors and is committed to GHG adaptation and mitigation.
Risk and Opportunity Management Process
n Short-term: 1 to 3 years; Mid-term: 3 to 7 years; Long-term: over 7 years
(I) Climate Risk
Risk Prioritization | Risk Type | Risk Content | Risk Scope | Timing | Likelihood of Occurrence | Degree of Financial Impact |
1 | Regulatory Risk | Carbon fee mechanism was implemented in 2024 | The Company | Mid-term | Medium | Increased operating costs (How to allocate costs) |
2 | Actual Risks | Extreme climate events such as typhoons and floods have increased in frequency, increasing the likelihood of flooding at the plant sites | The Company | Short-term | Medium | Increased operating costs (Increased infrastructure damage costs) |
(II) Climate Opportunities
Opportunity Prioritization | Opportunity Type | Opportunity Content | Opportunity Scope | Timing | Likelihood of Occurrence | Degree of Financial Impact |
1 | Resource Efficiency | Adopt high efficiency manufacturing processes and transportation methods | The Company | Mid-term | High | Reduce Expenditures |
2 | Market | Increased demand for low-carbon energy across various industries | The Company | Mid- to long-term | High | Increase income |
Scenario Analysis of Climate Risk and Opportunity Issues
n Use scenario analysis to evaluate climate change risks
Scenario Description | Description of Potential Financial Impacts | |
Extreme Climate | 1. Extreme weather events such as typhoons and floods 2. Changes in rainfall patterns and extreme variations in climate patterns 3. Sea level rise | 1. Capacity reduction or disruption (such as production stoppages, transportation difficulties, or supply chain interruptions) 2. Impact on labor management and planning 3. Write-off and early retirement of existing assets 4. Increased operating costs 5. Increased infrastructure costs (such as facility damage) 6. Higher insurance premiums and difficulty insuring assets located in “high risk” areas |
Transformation Actions | 1. Supportive energy incentives 2. Participate in carbon trading markets 3. Energy security and the transformation to decentralization | 1. Reduce operating costs 2. Reduce the risk of future energy price increases 3. Reduce GHG emission risks, thereby reducing sensitivity to carbon trading price fluctuations. 4. Increase in available capital (more investors favor low-emission manufacturers) 5. Increase in corporate reputation |
n Scenario Analysis 1:
In the context of the SSP5‑8.5 scenario in the IPCC’s 6th Assessment Report (AR6), climate change will bring a series of acute and chronic physical risks due to high emissions and rapid economic growth.
Types of Risks and Opportunities | Scenario for Evaluating Strategies | Financial Impact Assessment |
Actual Risks
| Frequent and intense extreme weather events (hurricanes, tropical storms, storms, high waves, etc.) | Increased wind speeds may cause product damage, while infrastructure damage will lead to higher costs If the roof of the plant is damaged due to a strong typhoon, and/or the plant area is flooded causing equipment damage, this may result in losses of up to NTD 43.6 million, seriously impacting the Company’s finances. |
Actual Risks
| Rising seawater temperatures and acidification accelerate corrosion of underwater structural foundations, requiring the use of materials resistant to high temperatures and corrosion | Using different materials can affect quality and requires re‑evaluation of inspections to ensure compliance with high temperature and corrosion resistance standards. Multiple inspections will extend the construction schedule and increase costs, and employees’ learning curves must also be evaluated, which may result in the company incurring losses of NTD 43,753 thousand. |
n Scenario Analysis 2:
The RCP2.6 scenario represents a global low carbon transition, with the goal of limiting global warming to within 2°C. In this scenario, the Company will face a series of transition risks arising from the impacts of policy, technological innovation, and social and market changes.
Types of Risks and Opportunities | Scenario for Evaluating Strategies | Financial Impact Assessment |
Transformation Risks
| Strengthen carbon pricing and emission limits (Carbon tax, carbon trading system) | The government will impose a carbon tax in 2025 at a general rate of NTD 300 per ton. Although the Company is not yet within the scope of the carbon tax, after future policy adjustments it is highly likely that it will need to pay the tax. In the worst case scenario, it may have to pay taxes exceeding NTD 1,000,000. |
Opportunity
| The government’s strong support for renewable energy (such as subsidies, tax incentives, and green finance support) will accelerate the construction of wind power projects and thereby increase demand for underwater foundation equipment. | If production capacity allows, it may secure a large number of orders and, due to future policy factors, may receive assistance from various parties and obtain government subsidies. |
Opportunity
| Emerging markets (such as Southeast Asia) are experiencing rapid growth in demand for renewable energy, and underwater foundation equipment manufacturers can seize this market opportunity to expand their global market share. | Climate change is a global issue, and other countries are expected to face energy challenges as well. We can proactively invest in countries with potential to improve financial performance. |
Climate Change Reduction Targets, Strategies and Specific Action Plans
Goals | GHG inventory Scopes 1 and 2: Reduce by 4% annually |
Strategies |
Note: Since the GHG inventory data for the 2024 annual report has not yet been verified by a third party, 2023 is used as the base year for setting carbon reduction targets. This sustainability report reassesses the GHG emission data verified by a third party and uses 2024 as the base year for carbon reduction targets. |
Specific Action Plan | 1. The Company integrates carbon management into its operational strategy by implementing an energy management system to comprehensively review the current energy situation, formulate strategic energy conservation plans, and continuously improve energy performance. It conducts comprehensive oversight of multiple GHG reduction initiatives, including enhancing energy efficiency, purchasing energy‑saving equipment, considering the procurement of green electricity, and evaluating the installation of solar power generation systems as references for carbon reduction management and planning. 2. In recent years, the ISO 50001 energy management system has been continuously implemented, and energy-saving improvement plans have been proposed. Lighting fixtures have been gradually replaced with energy-saving lamps, and an energy-saving-labelled water cooled packaged unit with an energy efficiency rating of Level 1 has been purchased. Energy conservation and carbon reduction topics are regularly promoted to colleagues, thereby reducing energy consumption, achieving the target average annual electricity savings rate of 1%, improving energy efficiency, and ensuring that energy-saving measures are effectively implemented. 3. The plant’s outdated equipment with excessive energy consumption includes welding machines, flame cutting machines, and 4-axis drilling machines, and an energy-saving plan to replace these old units with new ones has been initiated. |
GHG Management
To address global warming and effectively mitigate the impacts of climate change, the Company actively promotes energy conservation and carbon reduction and fully supports and contributes to environmental protection efforts. CT implements the ISO 14064‑1 GHG Organizational Inventory System. It identifies GHG emitted from January to December of the year, collects activity data, calculates emission quantities, and finally prepares a GHG inventory report mainly based on the requirements of the ISO 14064‑1: 2018 standard, recording the current status of GHG emissions at this plant. Since 2021, the GHG inventory results have been verified annually by an impartial third party verification body, and ISO 14064-1: 2018 verification certificates have been obtained.
Due to the sale of CT’s Jinhu Plant No. 1 to Century Wind Power in October 2024, the base year has been adjusted to 2024, and the organizational boundary includes the Taoyuan, Yunlin, and Taipei Port plants. The Company’s GHG emissions can be divided into direct emissions (Scope 1), energy indirect emissions from purchased electricity (Scope 2), and other indirect GHG emissions (Scope 3)
To ensure the effective operation of the greenhouse gas inventory, the General Manager serves as convener and organizes the GHG Inventory Implementation Committee to conduct GHG inventory and management. The Plant Manager serves as the management representative, and department heads assist in establishing the working group.
GHG Emissions
This plant is classified as Category 1. The main source of direct GHG emissions is process emissions, with total direct GHG emissions of 1,358.9664 metric tons of CO2e. Among the 5 emission sources, process emissions account for the highest proportion, at 1,054.9327 metric tons of CO2e, representing 77.63 % of direct GHG emissions. The primary emission type is CO2.
CT’s Direct GHG Emission Type Statistics Table | |||||
Types of GHG Emission Sources | Fixed Emissions | Mobile Emissions | Fugitive Emissions | Process Emissions | Land Use Emissions |
Emission Equivalent (Metric tons of CO2e/Year) | 1358.9664 | ||||
13.1997 | 258.5742 | 1,054.9327 | 32.2598 | 0.0000 | |
Percentage (%) | 0.1309% | 2.5643% | 10.4618% | 0.3199% | 0.0000% |
n GHG Inventory
Scope | GHG Emissions | 2022 | 2023 | 2024 |
Scope 1 | Direct GHG Emissions | 1,082.7738 | 1,364.5560 | 1358.9664 |
Scope 2 | Energy Indirect Emissions | 2,211.9570 | 4,576.8971 | 3096.6031 |
Total Emissions | 3,294.7308 | 5,941.4531 | 4455.5695 | |
Other Indirect Emissions (Scope 3) Category 3: 271.1048 metric tons of CO2e Category 4: 5356.9899 metric tons of CO2e | ||||
Unit: Metric tons of CO2e/Per NTD million
of revenue
Scope | GHG Emissions and Intensity | 2022 | 2023 | 2024 |
Scope 1 | Direct GHG Emissions | 0.1492 | 0.1685 | 0.2618 |
Scope 2 | Energy Indirect Emissions | 0.3048 | 0.5652 | 0.5965 |
Total Emissions Intensity | 0.4540 | 0.7338 | 0.8583 | |
