Management of Climate and Water Risks and Opportunities
Climate Change & Water
As our world advances toward sustainability, the role of corporations is no longer limited to economic growth. We must take the initiative in addressing risks and opportunities presented by climate change. As a leading player in the global Electronics Manufacturing Services (EMS) sector, Wistron fully recognizes the profound impacts of climate change on our operating environment, supply chain stability, and customer demand. Therefore, we not only integrate climate-related risks into our enterprise risk management framework but also actively formulate response strategies to reduce our carbon footprint and enhance climate resilience.
The management process of risks and opportunities associated with climate and water resources have been integrated into our ERM planning. Results from ERM investigations help identify and manage material risks, with management measures including whether to transfer risks (if applicable) or leveraging mitigation activities to control risks.
Identification of Climate and Water Risks & Opportunities
At Wistron, we also refer to the TCFD framework and risk items on CDP's climate change and water safety surveys. Each year, we conduct site-specific identification of transition and physical risks at all operating sites and factories around the world. All results are then sent to headquarters for compilation and analysis of the scale and scope of global impacts, which then guide corresponding strategies and actions. In line with our ERM risk management procedures, we also use a Risk Map to help analyze the likelihood and impact level of any potential risks and emerging risks. Across a timeline from the reporting year to the end of this century, we assess short-, medium-, and long-term risks (short-term: 1-3 years; medium-term: 4-5 years; long-term: 6-10 years) and opportunities, based on factors such as asset lifespan, potential climate risks, and operational sectors and regions. This evaluation covers potential threats to our future operations (including upstream and downstream activities and our own operations). We then assign risk and opportunity ratings, identify their priorities, and present the results in a risk and opportunity matrix. Risks associated with climate and water risks include transition risks such as existing regulations, emerging regulations, litigations, markets, goodwill, and technologies, while physical risks include immediate and long-term physical risks. Opportunities associated with climate and water risks include resource efficiency, energy sources, products and services, and market and resilience. Those identified as medium or high risk are listed as significant risks that require prevention measures and mitigation plans.
Climate and Water Risks & Opportunities Matrix
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Financial Impact Analysis of Climate Risks
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Financial Impact Analysis of Climate Opportunities
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Financial Impact Analysis of Water Risks
Financial Impact Analysis of Water Opportunities
