Risk assessment for climate change
By referring to the recommended content for climate-related financial disclosure, we have conducted a three-dimensional quantitative assessment of our potential vulnerabilities, impacts and the likelihood of occurrence for each risk before classifying and ranking the risks based on the results of the analysis, thereby allowing us to identify potential opportunities and how we ought to respond. In 2021, senior executives again evaluated the risks of climate change, identifying the five major risks of increase in raw material costs, the increase in greenhouse gas emission pricing, the cost of low-carbon technology transformation, the strengthening of emission disclosure obligations, and the uncertainty of market information.
Note: Vulnerability: YOKE’s preparedness or adaptability to this risk (along the X-axis, greater indicates lower preparedness and adaptability)
Impact: the degree of operational impact on YOKE when this risk occurs (along the Y-axis, greater indicates the higher impact on operation)
Probability: the likelihood of this risk occurring within ten years (the size of the bubble is directly proportional to the chance of occurrence)
After conducting a climate change risk assessment in 2021, we focused our management efforts on five areas: strengthening supply chain management, efficient production and sales processes, developing new low-carbon technologies, implementing carbon emissions inventory and disclosure, and continuing to pay attention to the market demand for carbon management. This helps to strengthen our response and resilience to climate change.
After conducting a climate change risk assessment in 2021, we focused our management efforts on five areas: strengthening supply chain management, efficient production and sales processes, developing new low-carbon technologies, implementing carbon emissions inventory and disclosure, and continuing to pay attention to the market demand for carbon management. This helps to strengthen our response and resilience to climate change.
YOKE shall conduct further analysis on various risks and opportunities to formulate response strategies at the next level while striving for more extensive information disclosure that includes the potential financial impact that relevant risks and opportunities may have on our operation, revenues and expenditures.
