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.
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.
Climate Change Risks of CPC
Aspect
Items
Impacts on CPC
Countermeasures
Physical
risks
Instant
Flood
Climate change leads to an increase in the occurrence and intensity of heavy rainfall, which may cause damage to some operational facilities.
Evaluate the vulnerability of the facilities and assess the strategies such as raising equipment and setting up suction pumps
in response.
Strong wind
Climate change leads to an increase in the intensity of typhoons, which may cause damage to some operational facilities.
Evaluate the vulnerability of the facilities and assess the strategies such as strengthen infrastructure and provide mitigation equipment in response.
Droughts
Production disruption due to output reduction or facility shutdown as a result of water rationing.
Long- term
Climate change has increased the frequency and intensity of heavy rainfall, which may cause damage to some operational facilities.
CPC will take an inventory of the vulnerability of the facilities and develop an adaptation strategy through the guidance of ITRI.
Climate change has l ed to an increase in the intensity of typhoons, which may cause damage to some operational facilities.
Transition
Policies
and laws
Amendments to the Greenhouse Gas Reduction and Management Act proposed to include a Carbon pricing options for Taiwan
The new carbon pricing will have an impact on operating costs.
Improve energy efficiency, implement energy saving and carbon reduction, and express industry views at public hearings in a timely manner.
Market
The Shift of boiler fuel from oil to natural gas or fuel gas; fuel oil consumption decreased.
Enhance fuel oil export.
Opportunities in Climate Change of CPC
Effects on CPC
Implementation Performance
Energy and Resources Integration
Promote regional energy-resources integration such as the use of nitrogen, steam, fuel gas, hydrogen, caustic soda, and fuel oil
Enhance energy and resource efficiency and reduce site pollution to effectively reduce environmental impact and improve environmental quality.
Product, market, and service
High-value Petrochemical products
Make optimal use of oil by-products and turn low-value fuel into high-value materials.
Turn viable contents of pyrolysis gasoline into materials for livelihood necessities.
Additional electric
vehicle (motorcycle) recharging stations at gas stations
Smart & Green e-Stations to provide
diversified services and create new
green business opportunities.
A total of 558 recharging stations and 4 Smart & Green e-Stations were completed in accordance with the “Smart Electric Motorcycle Energy Recharging Station Plan".
Low carbon transition of energy and resources
Expansion of natural gas supply
Expand the use of natural gas to replace oil market demand and create a clean energy supply chain for CPC.
Construction (expansion) of LNG receiving terminals to enhance natural gas import, storage and supply capacity.
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