Climate-Related Risks and Opportunities the Organization Has Identified Over the Short-, Medium-, and Long-term

 

Risks arising from climate change and natural disaster issues are included in LITEON's identified categories of sustainability risks. For the potential impact on business activities, LITEON has the climate change risk task force in place to identify real and transformation risks and opportunities, assess possibilities, and analyze the degree of impact. The task force is also responsible for devising appropriate countermeasures.

The company conducts climate risk assessment according to the "ISO 31000 risk management system and guidelines" and converts the PDCA cycle, converts relevant climate risks into financial figures, and considers projects that may cause an annual financial impact of more than NT$10 million as impactful risks and opportunities, which are prioritized according to likelihood and severity, and corresponding countermeasures are formulated. A climate scenario analysis is additionally performed for risks with higher assessment results, and the current operational layout is considered to calculate its potential financial impact. Risk assessments are also submitted to the Sustainability Committee and the Audit Committee for supervision. The chairman of the Audit Committee regularly reports to the Board of Directors based on the risk management and assessment results.

LITEON identifies climate-related factors through ongoing improvement management practices. Measurements are formulated to convert climate risks into financial data, and countermeasures are devised to reduce the probability and severity of these risks. The operation management and results will be submitted to the risk management team to be reported to the Corporate Sustainability Committee and the Audit Committee. The chairman of the Audit Committee will in turn present a report to the board of directors. Regarding challenges in climate and opportunities, LITEON actively performs climate scenario analysis specifically targeting higher climate risk factors and calculating potential financial impacts on an ongoing basis. The practice makes climate risk management part of business operations.

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  • Climate Risk Identification

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  • Climate Opportunity Identification

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  • Climate Risk Management and Financial Impact Assessment

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