The Company conducted the education and training on climate-related risks for directors, supervisors and senior management on December 30, 2022, for the senior management to be equipped with enough and appropriate capabilities to face climate-related risks and make the best decisions for the company. There were 2 sessions of employee education and training in 2022, providing more in-depth training to staff in charge of identifying, managing, measuring, and reporting on climate-related risks.
Chunghwa Post makes comprehensive considerations of the climate change risks and opportunities in the internal and external environment, designs risk events, uses a two-dimensional assessment framework composed of the “probability of occurrence” and “degree of impact”, and adopts the qualitative and quantitative assessment methods to identify and assess the level of climate risks, prioritize the risks, and define material climate risks.
Adopts the qualitative and quantitative assessment methods to identify and prioritize the climate risks
The Company identified the physical risk and transition risk of climate change risks, and there are a total of 13 risk events. The “degree of impact” served as the standard for the materiality prioritization among the risk assessment results, and there are three material risk events. 1. Changes of regulations and policies: The governments have strengthened their supervision on carbon emissions, resulting in the loss of profits of the investment target issuers due to carbon taxes (fees) or increased risk of default, leading to the drop of the value of securities invested by the Company or the decrease in the credit rating of the issuers. 2. Low-carbon investment environment: The market is making transition to low-carbon economy, and the original risk assessment method for investment targets may gradually become inapplicable, which further brings about the risk of investment losses. 3. Risk of asset loss in self-owned operating sites: Flooding disasters and slope disasters caused by extreme weather result in the loss of the value of the real estate of the self-owned operating sites.
In the sustainable environment of climate change, besides the climate risks, there are also climate opportunities the Company can develop based on its own business and corporate & social positioning so that Chunghwa Post can play the role as a promoter of green transition and supporter of the country’s policy of net zero transition.