Climate Adaptation

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Climate Adaptation

Climate Adaptation

 

In signing support for TCFD, the Chairman & CEO of AUO specifically mentioned in the statement that

Facing climate emergency, the greatest challenge of sustainable development, AUO is proud to support climate-related financial disclosures and transparency, and strengthen stakeholder trust for the Company's sustainable development. That is why we would like to play a part in the low carbon economy, respond to the opportunities and the challenges of the energy transition by developing a solar energy business, and applying our core technologies to improve the resilience of the human lifestyle and value chain creation.
 
AUO TCFD Framework
 
Climate Risk and Opportunity Analysis Matrix
 
Quantification of Financial Impact of Climate Change Risk
 

Based on past climate risk identification results, AUO evaluated four major risks, including "product carbon footprint, market product competition, sustainable operations, and regulatory compliance," and conducted a quantitative assessment of financial impact with reference to the methodologies disclosed by domestic and foreign companies

 
Risk Financial quantification considerations Assessment methods
Reduction of product carbon footprint Impact on the European market, leading to revenue decline Set short, medium, and long-term goals until 2025, estimating carbon reduction from 5% to 10% to 20%. Continuously focus on material reduction, improving equipment efficiency to decrease electricity consumption, and utilizing low-carbon energy to achieve additional carbon reduction value.
Market product competition Impact on company orders, leading to revenue decline
  • Green leadership brands drive shipments of low-carbon products
  • Product environmental labeling verification requirements affect customer orders
  • Investment in the cost of green superior technologies and production
Continuous operations (e.g., Flood risk) Impact on production capacity and increased costs due to personnel attendance overtime/transportation costs and water truck dispatch costs
  • Pre-confirm water resource demand response plans and build capacity for inter-plant support and dispatch
  • Production line material shortage risks and management mechanisms (BCP), including backup material sources and alternative production sites
  • Optimize product quality control and return/exchange mechanisms
International initiatives and regulatory compliance Financial costs arising from compliance with international initiative targets and regulations under low-carbon transition
  • Additional production operating costs derived from carbon fees/taxes
  • Costs associated with investing in renewable energy to meet international initiatives
The results of climate risk and opportunity nancial impact assessments as a percentage of annual turnover
 
ESG
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