Category |
Corporate Management Strategies & Actions |
2020 Enforcement Report |
---|---|---|
Governance |
The Board of Directors regularly reviews risks and opportunities related to climate change.
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Strategies |
Interdepartmental discussions and identifying short-, mid-, and long-term climate risks and opportunities |
According to interdepartmental discussions on climate risks and opportunities, the Committee identified 8 opportunities and 11 risks. For more details, please refer to the Climate Change Risk and Opportunity Matrix section of this report. |
Assess the potential financial impact on TSMC from major climate risks and opportunities |
Completed qualitative assessment on the financial impact of climate risk and opportunities and formulated risk mitigation measures accordingly (for more details, please refer to the Financial Impact Analysis of Climate Change section of this report); also implemented quantitative assessment of the financial impact from major climate risks. |
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Conduct scenario analysis and assess Net Zero Emission targets & actions |
Based on the 2-degree scenario of global warming set forth by the Intergovernmental Panel on Climate Change (IPCC), the committee analyzed climate risks in production & operation processes and formulated mitigation measures in compliance with the Climate Risk Adaptation Standards; also established TSMC's climate change strategy to strive towards Net Zero Emission. |
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Risk Management |
Use the TCFD framework to develop a process for identifying climate risks |
Held TCFD workshops and, through interdepartmental discussions, jointly identified, prioritized, and assessed the financial impact of climate risks/opportunities. |
Formulate response measures based on the risks/opportunities identified and prioritized |
Reported the assessment results of the climate risk/opportunities and relevant action plans to the ESG Committee Chair. |
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Integrate climate risks identification and assessment in the Enterprise Risk Management (ERM) process |
For more details, please refer to the 6.3 Risk Management section in the 2020 TSMC Annual Report. |
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Indicators and Targets |
Set management metrics related to climate change |
Established the following as climate change performance indicators: GHG emissions per unit product, environmental footprint per unit product, amount of renewable energy purchased, total amount of electricity saved, improved production efficiency, and days of production interruption due to climate disasters. For more details, please refer to the Climate Change and Energy Management Strategies, Goals, and Outcomes section of this report. |
Review impact on TSMC operations based on carbon inventory, carbon footprint, and life cycle analysis; also evaluated Scope 1, 2 & 3 risks and corresponding mitigation strategies |
In accordance with carbon inventory results, the risks of Scope 1 emissions were reduced effectively because of continuous implementation of carbon reduction actions; the risk of Scope 2 indirect GHG emissions due to electricity consumption and the risk of Scope 3 due to supplier indirect emissions continue to increase. For more details, please refer to the Greenhouse Gases (GHG) Inventory section of this report. |
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Set climate change management targets and review progress & performance |
Set climate change and energy management goals for 2030 in accordance with climate change performance indicators; senior executives performed regular reviews on implementation performance. For more details, please refer to the section entitled Climate Change and Energy Management Strategies, Goals, and Achievements and GHG Reduction Best Practices sections of this report. |