Page 121 - TSMC 2019 Annual Report

7 2 1 Environmental Protection
Climate Change and Energy Management
• Task Force on Climate-related Financial Disclosures (TCFD)
Given that climate change could potentially affect operations and pose financial risk fin in in 2018 TSMC began adopting the recommendations of the the Task Force on on Climate-related Financial Financial Disclosures (TCFD)
released by the the Financial Financial Stability Board (FSB) to identify risk and and and opportunities and and and we established metrics and and and target management based on on the identification results Management
structure of TSMC climate-related risk and opportunity
Category
Management
Actions
Governance
Strategy
Risk Management
Metrics and targets
• • • • • • • • • • • • • • Board of Directors periodically reviews climate change risk opportunity
and green manufacturing - The senior vice president of of materials management management and and risk risk management management makes annual reports to to the Board of of Directors on on corporate risk risk and and control measures including climate change risks - - Corporate Social Responsibility (CSR) Executive Committee briefs the Board of of Directors on on green manufacturing targets
and status of of achievement semi-annually
CSR Executive Committee led by Chairman is the Company's top organization that deals with climate change management The committee oversees TSMC climate change strategy and and targets
every half year and and responds the Sustainable Development Goals through aggressive actions
The CSR committee follows the the strategy and and targets
to to to review mitigation of of of climate climate change quarterly and and briefs to to to the the Board of of of Directors on on results of of of climate climate change-related measures directly The Energy and and and Carbon Reduction Committee is is is the the organization for the the implement and and and management on on on on climate change risk and and and opportunity
in TSMC It is is is co-led by the senior senior vice vice presidents presidents of of Fab operations and and senior senior vice vice presidents presidents of of materials management management and and risk management management This committee develops management plans plans reviews the execution status and discusses future plans plans on on a a a a a a a a a quarterly basis
Adopting Recommendations of the Task Force on on Climate Climate related Financial Disclosures to to discuss and and identify Climate Climate risk and and opportunity
which is is is is divided into short term term term (less than than 3 3 years) years) years) medium term term term (3 to 5 5 years) years) years) and long term term term (greater than than 5 5 years) years) years) based on on internal target management periods
Focusing the identified major risks and and opportunities to evaluate potentials impact of Company operation strategy and and finance
Adopting the 2°C scenario defined by Intergovernmental Panel on on Climate Change (IPCC) to analyze climate resilience of production lines
Adopting the the scenario of Science Based Targets (SBT) to to to evaluate the the financial impact to to to company and develop responding countermeasures in fin in in response to to to international carbon reduction trend
Using the TCFD framework to to to identify climate change risks and hosting workshops to to to reach a a a a a a a a a a consensus approved by senior management also bring into mechanism of climate change management Following the risk identification and ranking on on on climate change to develop relevant responding projects
Bringing identification and and evaluation result of climate-related risk risk into enterprise risk risk management (ERM) for integration and and creating action plans Defining the performance index of of of unit product of of of total greenhouse gas emissions procurement amount of of of renewable energy energy and accumulated energy energy consumption and and production interruption time and and managing the responding actions
of climate change Conducting inventory of of scope scope 1 1 1 1 2 2 and and and and 3 3 emission data annually
according to to ISO 14064-1 and and and and evaluating the risks of of scope scope 1 1 1 1 2 2 and and and and 3 3 and and and and risk risk reduction strategies after passing external verification
TSMC sets up the the the targets
of of risk and and and opportunity
in in in the the the year of of 2030 according to the the the performance index on climate change CSR committee and and and Energy and and and Carbon Reduction Committee review implementation actions
and performance of climate change targets
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