Tycoons pays close attention to global climate change trends, and incorporates climate change into the sustainable development of the company to identify risks and opportunities related to climate change, including impacts caused by extreme weather, regulations, technology, markets, resource efficiency, new energy, etc. Identify and evaluate the risks and opportunities caused by the company's operating activities. The evaluation results are included in management measures to strengthen the company's climate change governance to reduce risks and grasp business opportunities. Tycoons of 2021 climate change issues identification and evaluation content is as follows:

 

Climate risk	Potential financial impact	Climate opportunity	Potential financial impact	Response in 2021
Greenhouse Gas Total Control and Carbon Trading System	Limited capacity expansion and increased operating costs	Participate in renewable energy projects and participate in the carbon trading market	Early purchase of renewable energy and smooth expansion of production capacity	Continue to negotiate renewable energy purchases in Taiwan
Unstable water and electricity supply	Production has been impacted and operating costs have increased	Improve water resource efficiency and recycle water	Strengthen climate resilience, reduce the probability of operation interruption and possible loss	Water recovery rate> 70%
Increased cost of greenhouse gas emissions	Increase in carbon reduction equipment installation and operating costs	Obtain public sector awards and cooperation	Accumulate carbon rights for future needs	Improve equipment efficiency and achieve carbon reduction
Typhoon, flood, drought	Production has been impacted and operating costs have increased	Improve natural disaster resistance	Strengthen climate resilience and reduce the impact of disasters on production	Improve water resources management and reduce unnecessary waste
Temperature rise	Increasing electricity consumption, rising costs and carbon emissions	Promote low-carbon green production	Save electricity, save costs	Improve the efficiency of air conditioning equipment
Corporate image impact	Failure to meet the expectations of stakeholders, causing damage to the company’s reputation or image	Enhance investors' long-term investment willingness	Stabilize the shareholder structure and reduce the probability of substantial fluctuations in the value of stocks	Strengthen green manufacturing