Climate Governance
Facing increasingly significant operational impacts and transformation opportunities brought by climate change issues, the Group has been managing and responding to climate change impacts and opportunities since 2021 according to the "Task Force on Climate-related Financial Disclosures (TCFD)" framework officially released by the Financial Stability Board (FSB) in June 2017, to enhance climate resilience adaptation capabilities, mitigate external impacts of greenhouse gas emissions from existing products and services, and further focus on new market demand industries in global net-zero transition, enhancing the company's ability to continuously create and maintain enterprise value under climate issues.
- Climate Governance Organization
The Group has established sustainable management organization and structure, with the Board of Directors as the company's highest sustainable performance management unit, with the Corporate Sustainability Task Force under its jurisdiction. For relevant authority and responsibility explanations, please see 1-1-2 Sustainability Governance Organization.
The Company reported to the Board of Directors on June 24, 2022, the establishment of a cross-business subsidiary "Greenhouse Gas Inventory Response Group" responsible for carbon management related planning matters and promotion of decision-making systems, formulating applicable management mechanisms, and reporting implementation progress to the Board of Directors quarterly. Four reports were submitted in 2024, and a carbon platform system was developed to assist subsidiaries in greenhouse gas data collection and quantitative calculation. Greenhouse gas inventory response group members are established in each company to regularly convene discussions, formulate, implement management policies, and review performance, such as execution of energy conservation targets and energy-saving carbon reduction projects. RADIUM LIFE and Rih Ding Water Enterprise completed 2021 greenhouse gas inventory and third-party verification operations in 2022. Consolidated financial statement subsidiaries have advanced to complete 2024 greenhouse gas inventory and disclosure by 2025 in the annual report, with greenhouse gas third-party verification operations scheduled for completion and approval by 2026.
To ensure the Group can immediately respond to potential operational and financial risks and impacts that may arise from sustainability issues, a cross-departmental TCFD climate governance working group was formed in 2022 to conduct climate risk and opportunity-related system construction and management affairs, referencing TCFD standards to explain climate governance, strategy, risk management, metrics and targets related actions.
- Strategy and Risk Management
The Group has established complete risk management procedures, with four major functional groups under the Corporate Sustainability Task Force - "Environmental Protection Group, Corporate Social Responsibility Group, Corporate Governance Task Force, InfoSec Task Force" - formulating risk lists for their respective managed businesses, with scope covering climate change risk identification, assessment, and management processes. In 2021, "Assessment Procedures for Improvement of Internal Control System Deficiencies and Abnormal Matters" was formulated to quickly respond to and improve internal control system deficiencies and abnormal matters. For related risk management processes, please see 3-2-1 Internal Control and Risk Management Process.
Furthermore, Radium Life has considered reference materials such as the TCFD recommendations on climate-related financial disclosures and the ISO 14090 Adaptation to climate change international standard, as well as other relevant literature. Based on these references, the Company has developed and implemented a five major rolling processes to progressively enhance its climate risk management mechanisms. This approach allows for phased execution and continuous improvement, ensuring long-term monitoring and management effectiveness.
According to the Financial Supervisory Commission's sustainable development roadmap for TWSE/TPEx listed companies, the Company belongs to companies with capital between NT$5-10 billion, and should prepare sustainability information according to IFRS standards by 2027 and file by 2028. During the transition period, RADIUM LIFE will follow GRI and TCFD related processes while considering IFRS S1/S2 standards for connection. This year, the TCFD analysis scope was initially expanded to operations of three companies: Radium Life, Rih Ding Water Enterprise, and Wan Da Tong. Future efforts will further deepen climate change risk-related financial impact assessment methodologies and specifically grasp cost and revenue information for transformation strategies, with related mechanisms scheduled for completion by 2027.
Climate Risk and Opportunity Management Procedures
- Climate Risk and Opportunity Assessment
Starting in 2021, the Group has promoted climate risk and opportunity assessment operations, referencing industry guidelines and peer risk and opportunity items to conduct topic relevance analysis, identifying climate risks and opportunities related to the Group. In 2022, the TCFD Climate Management Working Group reviewed the risk and opportunity items of the industry and upstream and downstream partners, and interviewed the current situation of each operations department to identify the possible climate risk and opportunity impacts of Radium Life's construction activities, which will serve as the basis for the analysis of the materiality of the risk and opportunity and the formulation of control measures. This year, referencing TCFD and IFRS S2 standards, based on the operational activity characteristics of each company business, Group sustainability vision, industry climate-related trends, and peer climate risk analysis situations, preliminary identification of the Group's climate risk opportunity topic list was conducted, including two physical risks, four transition risks, and four opportunities for material climate topic identification operations.
- Climate Risk and Opportunity Materiality Analysis
After evaluation by middle and senior management personnel from each business group in the TCFD working group, assessing the likelihood and impact level of each topic, three climate risks and three climate opportunity topics of importance to the Group were identified this year. In 2024, Radium Life identified three major risks: transition risk "Increased Raw Material and Fuel Costs," physical risks "Extreme Weather Events - Heavy Precipitation" and "Rising Average Temperatures and Extreme High Temperatures," and three major opportunities: "Improving Energy and Resource Use Efficiency," "Improving Building Use Efficiency," and "Government Incentive Mechanisms and Cooperation Opportunities."
Based on the results of the climate change risk and opportunity matrix, Radium Life analyzes the top three risk and opportunity topics with the most significant impact on the company, analyzing potential impacts to address material climate topics.
Response and Management of Material Climate Risks and Opportunities
- Physical Risk Scenario Simulation Analysis
To assess the Group's drought and flood risk conditions under climate change, Radium Life uses the "Public Water Supply (Dry Season) Drought Risk Map" and "Flood Disaster Risk Map" provided by the National Science and Technology Center for Disaster Reduction (NCDR) to analyze drought and flood risks for projects under development in 2024, operational projects, existing assets (houses and buildings), and right-of-use assets (buildings). The analysis scope includes Radium Life, Rih Ding Water Enterprise, and Wan Da Tong.
Drought Risk Analysis
NCDR's "Public Water Supply (Dry Season) Drought Risk Map" uses IPCC AR5 worst-case scenario RCP 8.5 to assess drought risk for public water supply during the baseline period (1979-2003) and end of 21st century (2075-2099). The 24 analyzed land holdings, fixed assets, and right-of-use assets had an average drought risk level of 2.42 during the baseline period, but the average drought risk level at the end of the century increased to 4.00, with two assets at Level 5, located in Beitou District, Taipei City and Luzhu District, Taoyuan City respectively.
Flood Risk Analysis
Based on NCDR's "Flood Disaster Risk Map" established using IPCC AR6 data, analyzing 24 land holdings, fixed assets, and right-of-use assets under a global warming level (GWL) of 4℃ scenario (likely occurring in 2081-2100), the average flood risk level is 3.79, with two assets at Level 5, located in Beitou District, Taipei City and Sanmin District, Kaohsiung City respectively.
Since most of the cases developed by Radium Life are jointly developed with the government and located in the core metropolitan areas, the adaptation to the future climate risk should be done in accordance with the government's disaster prevention infrastructure, and the maintenance of the building and disaster prevention functions after the client acquires ownership will be encouraged to ensure the durability and safety of the building. For new and future development projects, climate change issues will be incorporated into the overall planning and design assessment during the design evaluation phase based on the planning needs of the project.
Climate Metrics and Targets
According to a survey conducted by the International Energy Agency (IEA), the construction industry consumes about 40% of the world's total energy consumption and will play a key role in climate issues in the future. The challenge of net zero new construction in 2030 will be the focus of future industry development. To gradually build greenhouse gas management strategies, the Group established and introduced ISO 14064-1:2018 organizational greenhouse gas inventory in 2022, and will continue to expand greenhouse gas management scope to product carbon footprint and engineering carbon footprint management. In addition to greenhouse gas management, to more comprehensively develop environmental management performance, the Group simultaneously incorporates Home Builder industry indicators published by the Sustainability Accounting Standards Board (SASB) for management, formulating strategies and target directions using "Cross-industry Climate Metric Categories" listed in TCFD guidance, establishing environmental water resources and waste-related indicators, with the Corporate Sustainability Task Force regularly reviewing and reporting tracking indicator performance.
Greenhouse Gas Reduction Target Achievement
The Group has actively promoted Group carbon neutrality goals in recent years, using 2023 as the greenhouse gas reduction baseline year, setting a target to achieve net-zero emissions for the entire Group by 2050. Short, medium, and long-term targets are as follows:
• 2025: Category 1 and Category 2 emissions reduced by 2 compared to baseline year;
• 2030: Category 1 and Category 2 emissions reduced by 15 compared to baseline year;
• 2050: Aligning with national policies to move towards net-zero emissions;
Reduction strategies and action plans, see 4-1-3 Energy Conservation and Carbon Reduction Measures.
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Climate Risk Management
Climate Governance
Facing increasingly significant operational impacts and transformation opportunities brought by climate change issues, the Group has been managing and responding to climate change impacts and opportunities since 2021 according to the "Task Force on Climate-related Financial Disclosures (TCFD)" framework officially released by the Financial Stability Board (FSB) in June 2017, to enhance climate resilience adaptation capabilities, mitigate external impacts of greenhouse gas emissions from existing products and services, and further focus on new market demand industries in global net-zero transition, enhancing the company's ability to continuously create and maintain enterprise value under climate issues.
The Group has established sustainable management organization and structure, with the Board of Directors as the company's highest sustainable performance management unit, with the Corporate Sustainability Task Force under its jurisdiction. For relevant authority and responsibility explanations, please see 1-1-2 Sustainability Governance Organization.
The Company reported to the Board of Directors on June 24, 2022, the establishment of a cross-business subsidiary "Greenhouse Gas Inventory Response Group" responsible for carbon management related planning matters and promotion of decision-making systems, formulating applicable management mechanisms, and reporting implementation progress to the Board of Directors quarterly. Four reports were submitted in 2024, and a carbon platform system was developed to assist subsidiaries in greenhouse gas data collection and quantitative calculation. Greenhouse gas inventory response group members are established in each company to regularly convene discussions, formulate, implement management policies, and review performance, such as execution of energy conservation targets and energy-saving carbon reduction projects. RADIUM LIFE and Rih Ding Water Enterprise completed 2021 greenhouse gas inventory and third-party verification operations in 2022. Consolidated financial statement subsidiaries have advanced to complete 2024 greenhouse gas inventory and disclosure by 2025 in the annual report, with greenhouse gas third-party verification operations scheduled for completion and approval by 2026.
To ensure the Group can immediately respond to potential operational and financial risks and impacts that may arise from sustainability issues, a cross-departmental TCFD climate governance working group was formed in 2022 to conduct climate risk and opportunity-related system construction and management affairs, referencing TCFD standards to explain climate governance, strategy, risk management, metrics and targets related actions.
The Group has established complete risk management procedures, with four major functional groups under the Corporate Sustainability Task Force - "Environmental Protection Group, Corporate Social Responsibility Group, Corporate Governance Task Force, InfoSec Task Force" - formulating risk lists for their respective managed businesses, with scope covering climate change risk identification, assessment, and management processes. In 2021, "Assessment Procedures for Improvement of Internal Control System Deficiencies and Abnormal Matters" was formulated to quickly respond to and improve internal control system deficiencies and abnormal matters. For related risk management processes, please see 3-2-1 Internal Control and Risk Management Process.
Furthermore, Radium Life has considered reference materials such as the TCFD recommendations on climate-related financial disclosures and the ISO 14090 Adaptation to climate change international standard, as well as other relevant literature. Based on these references, the Company has developed and implemented a five major rolling processes to progressively enhance its climate risk management mechanisms. This approach allows for phased execution and continuous improvement, ensuring long-term monitoring and management effectiveness.
According to the Financial Supervisory Commission's sustainable development roadmap for TWSE/TPEx listed companies, the Company belongs to companies with capital between NT$5-10 billion, and should prepare sustainability information according to IFRS standards by 2027 and file by 2028. During the transition period, RADIUM LIFE will follow GRI and TCFD related processes while considering IFRS S1/S2 standards for connection. This year, the TCFD analysis scope was initially expanded to operations of three companies: Radium Life, Rih Ding Water Enterprise, and Wan Da Tong. Future efforts will further deepen climate change risk-related financial impact assessment methodologies and specifically grasp cost and revenue information for transformation strategies, with related mechanisms scheduled for completion by 2027.
Climate Risk and Opportunity Management Procedures
Starting in 2021, the Group has promoted climate risk and opportunity assessment operations, referencing industry guidelines and peer risk and opportunity items to conduct topic relevance analysis, identifying climate risks and opportunities related to the Group. In 2022, the TCFD Climate Management Working Group reviewed the risk and opportunity items of the industry and upstream and downstream partners, and interviewed the current situation of each operations department to identify the possible climate risk and opportunity impacts of Radium Life's construction activities, which will serve as the basis for the analysis of the materiality of the risk and opportunity and the formulation of control measures. This year, referencing TCFD and IFRS S2 standards, based on the operational activity characteristics of each company business, Group sustainability vision, industry climate-related trends, and peer climate risk analysis situations, preliminary identification of the Group's climate risk opportunity topic list was conducted, including two physical risks, four transition risks, and four opportunities for material climate topic identification operations.
After evaluation by middle and senior management personnel from each business group in the TCFD working group, assessing the likelihood and impact level of each topic, three climate risks and three climate opportunity topics of importance to the Group were identified this year. In 2024, Radium Life identified three major risks: transition risk "Increased Raw Material and Fuel Costs," physical risks "Extreme Weather Events - Heavy Precipitation" and "Rising Average Temperatures and Extreme High Temperatures," and three major opportunities: "Improving Energy and Resource Use Efficiency," "Improving Building Use Efficiency," and "Government Incentive Mechanisms and Cooperation Opportunities."
Based on the results of the climate change risk and opportunity matrix, Radium Life analyzes the top three risk and opportunity topics with the most significant impact on the company, analyzing potential impacts to address material climate topics.
Response and Management of Material Climate Risks and Opportunities
To assess the Group's drought and flood risk conditions under climate change, Radium Life uses the "Public Water Supply (Dry Season) Drought Risk Map" and "Flood Disaster Risk Map" provided by the National Science and Technology Center for Disaster Reduction (NCDR) to analyze drought and flood risks for projects under development in 2024, operational projects, existing assets (houses and buildings), and right-of-use assets (buildings). The analysis scope includes Radium Life, Rih Ding Water Enterprise, and Wan Da Tong.
Drought Risk Analysis
NCDR's "Public Water Supply (Dry Season) Drought Risk Map" uses IPCC AR5 worst-case scenario RCP 8.5 to assess drought risk for public water supply during the baseline period (1979-2003) and end of 21st century (2075-2099). The 24 analyzed land holdings, fixed assets, and right-of-use assets had an average drought risk level of 2.42 during the baseline period, but the average drought risk level at the end of the century increased to 4.00, with two assets at Level 5, located in Beitou District, Taipei City and Luzhu District, Taoyuan City respectively.
Flood Risk Analysis
Based on NCDR's "Flood Disaster Risk Map" established using IPCC AR6 data, analyzing 24 land holdings, fixed assets, and right-of-use assets under a global warming level (GWL) of 4℃ scenario (likely occurring in 2081-2100), the average flood risk level is 3.79, with two assets at Level 5, located in Beitou District, Taipei City and Sanmin District, Kaohsiung City respectively.
Since most of the cases developed by Radium Life are jointly developed with the government and located in the core metropolitan areas, the adaptation to the future climate risk should be done in accordance with the government's disaster prevention infrastructure, and the maintenance of the building and disaster prevention functions after the client acquires ownership will be encouraged to ensure the durability and safety of the building. For new and future development projects, climate change issues will be incorporated into the overall planning and design assessment during the design evaluation phase based on the planning needs of the project.
Climate Metrics and Targets
According to a survey conducted by the International Energy Agency (IEA), the construction industry consumes about 40% of the world's total energy consumption and will play a key role in climate issues in the future. The challenge of net zero new construction in 2030 will be the focus of future industry development. To gradually build greenhouse gas management strategies, the Group established and introduced ISO 14064-1:2018 organizational greenhouse gas inventory in 2022, and will continue to expand greenhouse gas management scope to product carbon footprint and engineering carbon footprint management. In addition to greenhouse gas management, to more comprehensively develop environmental management performance, the Group simultaneously incorporates Home Builder industry indicators published by the Sustainability Accounting Standards Board (SASB) for management, formulating strategies and target directions using "Cross-industry Climate Metric Categories" listed in TCFD guidance, establishing environmental water resources and waste-related indicators, with the Corporate Sustainability Task Force regularly reviewing and reporting tracking indicator performance.
Greenhouse Gas Reduction Target Achievement
The Group has actively promoted Group carbon neutrality goals in recent years, using 2023 as the greenhouse gas reduction baseline year, setting a target to achieve net-zero emissions for the entire Group by 2050. Short, medium, and long-term targets are as follows:
• 2025: Category 1 and Category 2 emissions reduced by 2 compared to baseline year;
• 2030: Category 1 and Category 2 emissions reduced by 15 compared to baseline year;
• 2050: Aligning with national policies to move towards net-zero emissions;
Reduction strategies and action plans, see 4-1-3 Energy Conservation and Carbon Reduction Measures.