Formosa Plastics, Nan Ya Plastics, Formosa Chemicals & Fibre, and Formosa Petrochemical announced today that they have issued a TCFD report for the first time, revealing relevant information in response to climate change from four key aspects including the replacement of gas boilers and the introduction of biomass raw materials, waste-derived fuels and other low-carbon technologies, building renewable energy such as solar energy, hydropower and wind power, and conducting research on technologies such as carbon capture, storage, utilization, and hydrogen energy.
In order to let investors understand the impact of climate change faced by companies and their response strategies, after countries signed the Paris climate agreement in 2015, the Financial Stability Board established the Task Force on Climate-related Financial Disclosures (TCFD). Companies are recommended to disclose relevant information according to four aspects: governance, strategy, risk management, and goals and indicators.
The TCFD recommended guidelines are the most widely used climate issue disclosure guidelines in the world. Therefore, 9 listed companies, Formosa Plastics, Nan Ya Plastics, Formosa Chemicals & Fibre, Formosa Petrochemical, Nanya Technology, Nan Ya PCB, Formosa Sumco, Formosa Taffeta and Formosa Advanced Tech, signed up to support the TCFD initiative in 2021 in order to increase the transparency of the companies’ information on climate change.
Formosa Plastics’ subsidiaries issued a TCFD report for individual companies for the first time this year. With reference to the above-mentioned TCFD recommendations, it explained the company's supervision and promotion of sustainable governance organization identified climate-related risks and opportunities, and formulated response strategies and risk management mechanisms accordingly. The companies established carbon reduction targets and metrics to mitigate the impact on the companies’ business and finances and increased resilience to climate change.
Taking the TCFD reports of petrochemical and plastic-related industry companies such as Formosa Plastics, Nan Ya Plastics, Formosa Chemicals and Fibre, and Formosa Petrochemicals as examples, the key content of its four major aspects, first of all, in terms of governance, the companies have set up a "sustainable development committee" under their board of directors to oversee the company’s implementation of sustainable issues such as addressing climate change.
Secondly, in terms of strategy and risk management, after evaluating the government's carbon fee policy as a major risk facing the companies, they will continue to promote the circular economy and introduce AI technology to optimize processes, including the replacement of gas boilers, the introduction of biomass raw materials, the introduction of waste derivatives, low-carbon technologies such as fuels, renewable energy such as solar energy, hydropower, and wind power, and research on technologies such as carbon capture, storage and utilization, and hydrogen energy.
In response to the global trend of carbon reduction and the needs of market customers to increase low-carbon production, companies have already actively developed low-carbon green products for recycling and reuse, developed new markets such as green power equipment materials, and deployed various development opportunities in advance. These companies are moving forward towards the transition to a low-carbon economy and has set carbon reduction targets for 2025 and 2030, with a long-term vision of achieving carbon neutrality by 2050.
(Image: Formosa Plastics)