Category |
Corporate Management Strategies and Actions |
Safety and Health Efforts in 2021 |
---|---|---|
Governance |
The Board will regularly review risks and opportunities related to climate change.
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Strategies |
Interdepartmental discussions and identifying short-, medium-, and long-term climate risks and opportunities |
Planned and carried out 499 energy-saving measures across 8 major categories, saving an additional 700GWh in 2021. See "Increase Energy Efficiency" of 2021 Sustainability report for more information. See "Climate Change Risk and Opportunity Matrix" of 2021 Sustainability report for more information on how response measures were formulated and enforced according to interdepartmental discussions on climate risks and opportunities. |
Assess the potential financial and operational impact on TSMC from major climate risks and opportunities |
See "TSMC TCFD Report" for more information on how TSMC completed a qualitative assessment on the financial impact of major climate risk and opportunities and implemented quantitative assessment on the financial impact of major climate risk and opportunities. |
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Conduct scenario analysis and assess SBT and net zero emission targets and actions |
Based on the SSP1-1.9 scenario set forth by the Intergovernmental Panel on Climate Change (IPCC) in the IPCC AR6, TSMC the committee analyzed climate risks in production & operation processes and formulated mitigation measures and climate change strategies while also striving toward net zero emission targets. |
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Risk Management |
Use the TCFD framework to develop process for identifying climate risks |
Evaluate the qualitative and quantitative financial impact of major climate-related risks/opportunities discussed in the TCFD workshop by related departments. |
Formulate response measures based on the risks/opportunities identified and prioritized |
Reported assessment results of the climate risk/opportunities and response plans to the ESG Committee Chair. |
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Integrate climate risk identification and assessment in the Enterprise Risk Management (ERM) process |
See "6.3 Risk Management" of 2021 Annual report for more information. |
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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, amount of renewable energy purchased, total electricity saved, improved production efficiency, and days of production interruption due to climate disasters. See "Climate and Energy Strategies, Goals, and Outcomes" of 2021 Sustainability report for more information. |
Through ISO 14064-1 annual inventory and disclosure of greenhouse gas emissions, review the impact on the company's operations, and assess the risks of Scope 1, 2 and 3 and their mitigation strategies |
Based on carbon inventory and evaluation results, the risks of Scope 1 emissions were reduced effectively because of consistent carbon reduction actions; the risks of Scope 2 indirect GHG emissions due to electricity consumption and the risks of Scope 3 due to supplier indirect emissions continue to increase. See "Greenhouse Gases (GHG) Inventory" of 2021 Sustainability report for more information. |
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Set climate change management targets and review progress and performance |
Set climate change and energy management goals for 2030 in accordance with climate change performance indicators for senior executives to regularly review implementation performance. See "Climate and Energy Strategies, Goals, and Outcomes" and "GHG Reduction Best Practices" of 2021 Sustainability report for more information. |