Sustainable Development and Risk Management

Management Approach (MA) for Material Topics

Risk Management System

FPCC continues to observe trends in global risks to achieve sustainable development. The Board of Directors passed the Risk Management Regulations on December 10, 2020, in which FPCC's risk management is mainly carried out by the Sustainable Development Committee. The committee identifies potential business risks and jointly evaluates the probability and impact of the risks together with related business departments based on the nature of the risks,  appropriately informing management to adjust the Company's business strategy.

Pursuant to the Risk Management Regulations, our risk management system shall include risk identification, risk analysis and assessment, risk management and response, risk management and response, and risk information communication and reporting.

The Sustainable Development Committee uses the President's Office as its staff department, and has set up a Sustainability and Risk Management Task Force with the President as the convener. Each functional team is responsible for different functional areas, and collectively they are responsible for promoting the Company's risk management, corporate social responsibility, climate change adaptation and other sustainability-related work. The work results are compiled in the Sustainability Report, and once a year it is reviewed by the Sustainable Development Committee and submitted to the Board of Directors for approval. The results are then published for better stakeholder engagement.

The Sustainability and Risk Management Task Force also serves as the Company's IFRS Sustainability Disclosure Standards Introduction Project Task Force. The introduction plan has been set out according to the schedule stipulated by the FSC, and it is expected that the introduction will be completed in 2026. During the introduction period, the implementation progress is reported to the Board of Directors every quarter.

Sustainability and Risk Management Task Force Organizational Chart

Note: The internal audit function is independent in the execution of internal audit-related affairs due to the characteristics of its duties, and answers directly to the Board of Directors.