Conference of Parties 25 (COP 25) hosted by United Nations Climate Change Conference in 2015 passed the Paris Agreement, which was signed by 171 countries to curb the trend of global warming together. The common goal is to limit the temperature increase of global warming within 1.5°C or 2°C by the end of the century. Thereby, countries stand together to mitigate the impact of climate change. Nations around the world have enacted regulations to set net zero targets, while corporations have also set short and long term carbon reduction targets to mitigate climate-related impacts. CPC has set its phased and long-term goals of to 30% and 56.7% emission reduction target compare with the 2005 by 2030 and 2050 respectively, and will continue monitoring climate change risk and opportunity.
Risks and Opportunities from Climate Change
CPC pays constant attention to the latest global trends and development as a response to climate change and related impacts. Meanwhile, TCFD (Task Force on Climate-related Financial Disclosures), published by the Financial Stability Board (FSB) in June 2017, is progressively being incorporated into the management system for information disclosure. CPC's original risk management policy has been integrated with the climate risk and opportunity framework proposed by TCFD. An inventory of climate risks and opportunities has been conducted for policy, regulation, market, physical risks, and R&D of low-carbon product to formulate an adaptation strategy.
Governance
The risk of climate change has been incorporated into the risk assessment of CPC's operations. The Risk Management Committee holds regular meetings every year to review the effectiveness of risk management of each unit. The risk management team of each unit has formulated its own "Risk Management Standard Operating Procedures" according to its business attributes. Meanwhile, CPC also established an energy conservation organization to address climate change issues.
Strategy
Each year, through interdepartmental discussions and identification of climate risks and opportunities, each department evaluates the risks and opportunities it faces and presents them to the management for a material assessment. CPC formulates strategies to address the major climate risks and opportunities. In response to the risk of climate change, CPC is currently actively investing in the low-carbon transformation of its operations. Although the investment cost has increased, it has helped CPC to meet the future trend of the energy industry.
Risk management
The TCFD framework integrates the operational risk management process of CPC to establish the climate risk identification process. Based on the results of climate risk identification and risk matrix ranking, it is able to establish the response plan related to climate change. The climate risk identification and assessment are incorporated into the enterprise risk management (ERM) process.
Indicators and Objectives
Based on the results of risk identification, CPC sets management indicators related to climate change and regularly reviews the progress. CPC also regularly checks the GHG emissions in accordance with ISO 14064-1 to review the impact of operations and potential impacts.
Please see Related Picture(s) below: Climate Change Risks of CPC
Please see Related Picture(s) below: Opportunities in Climate Change of CPC
Since 2018, CPC signed up to the “Climate Change Adaptation Strategy and Guidance Program for Energy Sector” by the Bureau of Energy to conduct risk and resilience assessment for strong winds, rainfall, flooding and other risk factors according to refinery plant’s locations and elevations. CPC also simulated the impact of a disaster and finally integrated the occurrence probability and impact assessment results to risk matrix and identify the climate change risk of CPC. CPC have completed climate risk inventories for 24 energy supply regions (covering refineries, LNG receiving stations, oil supply centers, and gas supply centers) within the period from 2018 to 2020 with a total of 5,344 operating facilities inventoried. Among these, 212 were identified as medium-high to high risk facilities. CPC will continue to improve and enhance the facilities each year and will propose adaptation strategies to strengthen the high-risk facilities.
CPC’s Ecological Conservation
Adhering to sustainable co-existence, CPC spare no effort to maintain and implement ecological conservation and environmental protection education. CPC hopes to maintain the sustainable development of society, nature, and business altogether. In order to fulfill the commitment of the environmental assessment of Guantang Industrial Park (Port) development project, the "Guantang Industrial Park (Port) Ecological Conservation Committee" was established in 2018 to actively carry out ecological conservation measures in the Guantang area. The committee fulfills the corporate responsibility to maintain coastal cleanliness and regularly conduct coastal cleanup in the Datan area. Through community participation, CPC actively engage communities, experts, scholars and government agencies to establish ecological conservation partnerships in order to realize ecological and environmental conservation. At the same time, through the education of the next generation, the concept of environment and ecological conservation is passed on to the next generation. Both CPC Kaohsiung Refinery Environmental Education Park and Taiwan Oil Field Exhibition Hall provide a learning channel for future generations.
Target Groups and Relevant Objectives and Actions of Ecological Conservation
SDGs