CPC pays constant attention to the latest global trends and development as a response to climate change and related impact. Meanwhile, TCFD (Task Force on Climate-related Financial Disclosures), published by the Financial Stability Board (FSB) in June 2017, are progressively being incorporated into the management system and information disclosure.

Based on the climate risk and opportunity framework proposed by TCFD, CPC has identified transformation risk, physical risk and climate opportunities and made appropriate responses. CPC also takes part in “Climate Change Adaptation Strategy and Guidance Program for Energy Sector” of the Bureau of Energy, and proposes adaptation strategies to facilitate improvement of high-risk facilities identified.

Aspect		Item	Impact on CPC	Countermeasures
Physical risk	Instant	Heavy rainfall events	Slow drainage may cause flooding in plant premise, and affect equipment function and personnel activities	Set up pressured-water pumps
	Instant	Droughts	Production disruption due to output reduction or facility shutdown as a result of water rationing	1. Increase the capacity of intermediate tank 2. Monitor dynamic water consumption change
	Long-term	Rising sea level	Affect waterfront storage and transportation facilities	Assess possibility to relocate facilities to new port areas above the sea level
Transformational risks	Policies and laws	Cap and trade on GHG emission	Limit GHG emissions of our production facilities to increase operating costs	1. Increase energy efficiency 2. Enforce GHG reduction measures
	Policies and laws	Prohibition selling of gasonline/diesel vehicles	The government may prohibit selling of gasonline/diesel vehicles in the future, and impact CPC's revenues	Actively transform gas stations into smart green gas station by installing battery charging and switching stations and investing on battery materials R&D
	Market	Transition of boiler fuel from oil to natural gas	Shift of boiler fuel from oil to natural gas or fuel gas; fuel oil consumption decreased	Enhance fuel oil export

Aspect	Item	Impact on CPC	Countermeasures
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	1. Purchase steam, nitrogen from China Steel Co. and caustic soda to reduce energy consumption 2. Sell fuel gas, hydrogen, and fuel oil, and enhance resource efficiency
Product, market and service	High-value petrochemical products	Make optimal use of oil byproducts and turn low-value fuel into high-value materials	Turn viable contents of pyrolysis gasoline into materials for livehood necessities

Green CPC-Ecological Conservation - Habitat restoration for little terns

In response to the government's energy transformation policy to minimize greenhouse effect and reduce air pollution, we have built the third LNG Receiving Terminal to supply natural gas required by TPC's Datan Power Plant. However, there remains dispute over how the LNG terminal may pose a threat to algal reef, coral (polycyathus chaishanensis) and little terns (a rare and valuable species). Motivated by a green, co-existing philosophy, CPC assembled its “Guantang Industrial Park (Port) Ecosystem Preservation Committee” and tasked the committee with the mission of conducting ecological survey, monitoring and preservation. Through this committee, CPC hopes to contribute to the preservation of ocean environment and sustainability of the community. The committee held a total of 6 meetings by the end of 2019, and after careful evaluation, the committee decided to adopt an “Avoidance Solution” that not only reduces the development area by a significant extent (from 232 hectares to 23 hectares), but also commits to protect the natural habitat and preserve biodiversity.

Habitat restoration for little terns

Guantang Industrial Park is situated in close proximity to the habitat of little terns (a rare and valuable species). Since 2019, CPC has been cooperating with Taoyuan City Wild Bird Association to plan and design the construction of habitat for little terns, and by April 2019, habitats had been constructed at Datan, Guantang, and Zhuwei Fishing Ports. One of the keys to successful habitat restoration was the placement of “dummy birds” at sand beach and shingle beach, which little terns mistook as live birds and nested near them.