Climate Change Response

In recent years, affected by climate change, the world has experienced rising average temperatures, increased frequency of extreme weather events such as storms, blizzards, and droughts. They bring a range of challenges to corporations by affecting business operations and production activities, causing property losses and threatening the health and safety of employees. Faced with climate-related challenges, enterprises around the globe as well as their supply chains need to confront climate issues more seriously and enhance their resilience and ability to respond to climate change.

Climate-Related Financial Disclosures (TCFD)

Following the introduction of the TCFD framework in 2021, WNC added its signature to the TCFD official website in 2022. In addition to urging the industry, companies, and the public to focus on climate change issues, WNC is also committed to the continued improvement of the quality of information disclosure on its handling of climate related issues. WNC regularly convenes working groups to review changes in climate risks and opportunities relating to climate risks.

Based on the framework guidelines, we categorize issues into five main areas: energy resources, administration and assets, markets and business, products and technology, and supply chain management to identify potential climate risks and opportunities related to each topic and their materiality, and formulate management strategies for major climate risks and opportunities. Through scenario analysis, we quantify the financial impact to the company of these risks and opportunities, evaluating their effect on company strategy under different scenarios. For details, please refer to WNC’s 2023 TCFD Report.

Governance

Board of Directors

The highest climate governance unit, responsible for overseeing the implementation of climate-related policies and providing strategic guidance to the executive team

Sustainable Development Steering Committee

The committee is composed of the President & CEO as well as top-tier managers from all units, responsible for managing and making decisions on issues related to the company’s sustainable development.

Sustainable Development Committee

The committee is composed of top-tier managers from all units, responsible for reviewing climate-related regulations and aligning internal and external initiatives and resources to strengthen overall operational mechanisms.

TCFD Working Group

The Sustainable Development Center coordinates units to identify climate-related risks and opportunities across all operational aspects based on factors such as climate conditions, environmental changes, and market fluctuations.

Strategy

Through impact analysis, significant risks and opportunities are identified by ranking them based on two determining factors: likelihood of occurrence and degree of impact.
The process involves dividing into short term (1–2 years), medium term (2–5 years) and long term (5–10 years) phases, while considering eight major categories of risk and the scope of the upstream, midstream, and downstream value chain. It entails estimating potential financial impacts and formulating corresponding short, medium, and long-term management measures.
We utilize scenarios including the government’s net-zero emissions pathway, IPCC AR6 SSP1-1.9 pathway, and scenario estimation based on the Science-Based Targets for Net-Zero (SBT-NZ), to analyze potential risks.

Risk Management

Identification and Evaluation Process

The Working Group collects internal and external issues related to macroeconomics, industry and technology, customers and markets, supply chains, internal personnel, and operational processes to conduct a risk and opportunity identification and assessment process based on the members’ duties, expertise and experience, ranking them based on two determining factors: likelihood of occurrence and degree of impact.

Integration with the Organizational Risk Management Mechanism

Manage risks related to corporate operations in accordance with the existing organizational structure, internal controls and management mechanisms. Each business unit and functional unit are responsible for identifying risks in their respective areas and formulating management strategies and response measures for prevention, reduction, or transfer of risks.

Metrics and Targets

Scope 1, 2 and
3 GHG Reduction Goals

Reduction goals are set according to the Science-Based Targets (SBT), aiming to align with the Paris Agreement and be consistent with net-zero goals by 2050. Additionally, Scope 3 emissions accounting is included to further expand WNC’s emissions reduction scope, thus achieving more comprehensive sustainability goals.

Energy Conservation and Renewable Energy Usage Goals

Joining the RE100 initiative, we aim to enhance energy efficiency and increase the proportion of renewable energy use annually.

Other Climate-related Management Goals

We have established management objectives for aspects such as water resource use, waste management, biodiversity, and green product design to ensure comprehensive management of the impacts of climate change on our business and supply chain. We promote practices that contribute to sustainable development and environmental protection.