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Climate Change

Climate Change

In pursuit of comprehensive disclosure and strategic management of climate-related financial matters, we have adopted the Task Force on Climate-related Financial Disclosures (TCFD) framework since 2022. Welhunt has proactively engaged various departments to conduct a rigorous assessment of climate change-related risks and opportunities. Subsequently, based on the outcomes of this assessment, the company has devised strategic goals and action plans for both mitigation and adaptation. These measures aim to fortify the resilience of our operations while concurrently exploring nascent business prospects. This initiative aligns with our commitment to the TCFD, demonstrated through our endorsement in May 2023.

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In 2022, we formally embraced the TCFD for the inaugural time. In an orchestrated effort, various departments within the organization, including Finance, Documentation, Commercial, Data and IT, CS, Administration, Human Resources, and ESG, undertook a comprehensive examination of climate change-related risks and opportunities pertinent to their respective spheres of operation. Following this assessment, these departments meticulously devised a set of meticulously planned response measures to address the identified issues.

The collaborative efforts of both the Chairman and the Chief Financial Officer (CFO) are integral to the process of identifying these impacts and validating the identified issues. In the forthcoming period, we are committed to further fortifying its climate risk management practices, instituting an upward reporting mechanism, and refining the delineation of responsibilities at each hierarchical level.

Governance

In 2023, with the expert guidance of external advisors, we officially introduced the Climate-related Risks and Opportunities Recognition Mechanism (please refer to the following section on Risk Management for detailed information about this Mechanism). We assessed and Identified risks and opportunities that could significantly impact Welhunt’s operations based on three dimensions: the time of occurrence (short-term: 1 year, medium-term: 3 to 5 years, and long-term: 5 to 10 years), the likelihood of occurrence, and the degree of impact. The Table below illustrates these findings, and we have formulated initial mitigation strategies accordingly.

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Risk Management

To comprehend the influence of climate change on the Company’s operations, we progressively focus on and manage significant risks and opportunities through the identification mechanism:

  1. Gathering data on climate-related risks and opportunities within the energy trade and the mining sectors.
  2. Examination and assessment of climate-related risks and opportunities.
  3. Confirmation of significant climate risks and opportunities.

According to the results of the assessment, the top two priority risks that we need to address are "changes in customer preferences" and "increase in stakeholder concerns and negative feedback," which are classified as transformation risks. Meanwhile, the top two potential opportunities identified are “development or broadening of low-carbon goods and services" and "expansion into additional sectors.". We have integrated the identification of climate-related risks and opportunities into our overall risk management framework and regularly monitor its effectiveness. Furthermore, we remain vigilant regarding emerging climate-related risks and opportunities to strengthening the Company's resilience to climate change and minimize our environmental impact.

Metrics and Targets

To comprehend the influence of climate change on the Company’s operations, we progressively focus on and manage significant risks and opportunities through the identification mechanism:

  1. Gathering data on climate-related risks and opportunities within the energy trade and the mining sectors.
  2. Examination and assessment of climate-related risks and opportunities.
  3. Confirmation of significant climate risks and opportunities.

We initiated a climate-related risk and opportunity identification mechanism in 2022, and as a result, specific quantitative targets have not been set yet. In 2022, we began to conduct the greenhouse gas inventory for 2021, extending its coverage from Taiwan to overseas sites. In the future, we will progressively define short-term and long-term objectives for reducing Categories 1 and 2 greenhouse gas emissions. Simultaneously, we are dedicated to enhancing our team's competencies by increasing staffing and collaborating closely with external experts. This approach enables us to stay informed about market trends in energy transition-related commodities, including biomass energy, liquefied natural gas, and carbon credits. We leverage this knowledge to engage in further business development discussions and related decision-making processes.

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