Climate Risks and Opportunities

After identifying climate risks and opportunities, risk indicators are evaluated based on the degree of impact and probability. After determining the level of risk and opportunity, short-, mid-, and long-term goals are set for mitigation, transfer, control, and acceptance. Since the Company is applying the IFRS Sustainability Disclosure Standards for the first time, there is no qualitative or quantitative information on the progress of the plan for the previous reporting period.

Analysis Process for Climate Change Risks/Opportunities

Climate Physical and Transition Scenario Analysis

Global climate change is intensifying. FPCC is deeply aware of its potential impact on the petrochemical industry, therefore the Company has identified potential risks and opportunities that it may face through scenario analysis of opportunities, transition risks, and physical risks.
In order to actively respond to climate transition risks, the Company has adopted low-carbon technologies, improved energy efficiency, and adjusted its supply chain to reduce its carbon footprint. Furthermore, the company has strengthened its climate resilience to address physical risks, enhance infrastructure disaster resistance, optimize water resource management, and establish climate risk monitoring mechanisms to ensure stable operations.

Summary of Climate Change Physical Risk Scenario Analysis
As extreme temperature events gradually increase in frequency, physical risk analysis shows that Yunlin County potentially faces a significant increase to its overall risk of flood disasters and flooding. However, the Company's Mailiao Industrial Park has not yet observed a significant increase to related physical risks. In order to ensure that the Company's future operations remain unaffected by climate change, we will continue tracking the impact of climate change and regularly review risk assessment results.