Climate Risk Management | Risk Management and Actions | Climate Action | ASUS ESG website, ASUS ESG goal

Climate Risk Management

Climate Risk Management

ASUS has incorporated climate action into the BCM Sustainable Development Task Unit, which is liable for risk monitoring and prevention management. Through continuous review of business continuity management, ASUS dynamically adjusts major issues of concern and eectively integrates internal and external resources, to better predict, prepare, respond to and adapt to the continuous changes in the environment, thereby minimizing the relevant impacts and interruption periods.

Step1.

Risk Identification

  • Evaluate major climate events with a risk matrix to identify the frequency and impact of risk events
  • Identify the financial implications of prioritized physical and transition risks

Step2.

Risk Control / Mitigation

  • Incorporating climate risk as a key issue in continuous management
  • Develop response strategies and monitoring mechanisms for climate risks

Step3.

Risk Monitoring / Reporting

  • Continuous monitoring and management of climate risks through the Business Continuity Management (BCM) committee, combined with operational practices to demonstrate organizational resilience

Climate Risk and Opportunity Identification

ASUS identifies priority physical and transition risks based on the impact magnitude and frequency/probability of risk occurrences. These include:

There are two graphs, one is about ASUS' Transition Risk and Physical Risk, and the other is the matrix about the Impact Level and the Period of Occurrence of all Transition Risks, Physical Risks, and Opportunities.

Transition Risks

In order to respond to the complexity and impact of the market caused by climate change, we must adjust the supply and demand with various methods, including policy, law, technology, and market changes to mitigate and adapt to the needs of climate change prevention.

  • Increase in operation costs caused by carbon tax
  • Carbon Border Adjustment Mechanism (CBAM) of the European Union
  • Efficient product improvement and change in customer behavior

Physical Risks

The actual risks caused by long-term climate change and immediate extreme weather disasters would have a direct impact on the industry and supply chain disruptions.

  • Extreme weather event- assembly plant shutdown due to power outage
  • Extreme weather event- land transportation disruption

Opportunity

According to the IPCC AR6, the process of supporting sustainable development through mitigation and adaptation actions is referred to as "Climate Resilient Development." To address actual or anticipated climate impacts, ASUS evaluates potential opportunities under climate change by managing greenhouse gas reductions and adaptation measures.

Our carbon reduction opportunities mainly come from reducing the carbon footprint of our products and providing low-carbon products to customers. Our climate adaptation opportunities are from ASUS carbonneutral services that not only can help our customers reach their net zero goals, but also indirectly protect forests and slow down global climate change with our high-quality carbon credits.

Risk Reduction Opportunities

Reducing the sources of greenhouse gases (GHGs) through human efforts

  • Increase Revenue from Green Products

Risk Adaptation Opportunities

Propose ways to avoid climate impacts and create opportunities to improve climate change when adapting to actual or expected weather condition and its impacts

  • Provide carbon neutrality services