Strategies to climate change
Response to climate change issues calls for long-term monitoring of both our internal and external environments as well as continuous evaluation of YOKE’s adaptability so that we can respond with versatility. And as such, YOKE will integrate climate related issues into its operating strategies to manage relevant issues both qualitatively and quantitatively in accordance with the management’s familiarity with each issue.
With regards to mitigation of climate change, we will continue to analyze and control our internal energy use. Through energy-saving designs implemented at our factories, improved energy utilization and power conservation, we shall proactively achieve our GHG reduction targets and overcome the challenges from climate change. In addition, we will continue to pay close attention to relevant international research reports and industrial trends to analyze the potential risks and opportunities that may arise from climate change. Through the TCFD’s recommended disclosure structure as the framework we incorporate into our operational planning for our internal response and adjustment, we shall contribute to mitigating climate change and adapting to the potential impact that climate changes may bring.
Depending on YOKE’s management experience with responses to climate change, we shall conduct a relevant analysis of responses under the hypothetical scenario of “beyond 2 degrees Celsius” (B2DS). The concept of B2DS was first mentioned in the Energy Technology Perspectives 2017 (ETP 2017) published by the International Energy Agency (IEA) - a self-governed agency operating under the umbrella of the Organization for Economic Co-operation and Development (OECD).
In light of relevant risks and opportunities attributed to climate change over the short, medium and long-term, YOKE will gradually incorporate various risk issues in our operational plans in the future while continuing to pay attention to pertinent government regulations, international trends and practices of benchmark companies. In 2022, we plan to implement the ISO 50001 energy management system and start planning the ISO 14067 carbon footprint verification and other action plans. We aim to reduce the impact and influence of climate change on YOKE through energy-saving measures and relevant measures to manage carbon emissions from products.
| Risk/Opportunity | Type | Risk/Opportunity | Potential financial impact |
|---|---|---|---|
| Risk | Policies and regulations | Increased carbon pricing for GHG emission | Cost expenditure ⬆︎ |
| Technology | Replacement of existing products /services by low-carbon alternatives | Operating revenue ⬇︎, capital expenditure ⬆︎ | |
| Failure of new technology investment | Cost expenditure ⬆︎ | ||
| Market | Increase in raw material costs | Cost expenditure ⬆︎, capital expenditure ⬆︎ | |
| Uncertainty in market information | Operating revenue ⬇︎, Inventory value⬇︎ | ||
| Change in customer behavior | Operating revenue ⬇︎ | ||
| Reputation | Stigmatization of the industry | Operating revenue ⬇︎ | |
| Shift in consumer preferences | Operating revenue ⬇︎ | ||
| Extreme climate | Incidents caused by extreme climates | Cost expenditure ⬆︎ | |
| Extreme climate patterns | Cost expenditure ⬆︎, capital expenditure ⬆︎ | ||
| Opportunity | Resource efficiency | Efficient production and distribution processes | Operating revenue ⬆︎, Cost expenditure ⬇︎, capital expenditure ⬆︎ |
| Energy source | Introduction of new technologies | Operating revenue ⬆︎, Cost expenditure ⬇︎, capital expenditure ⬆︎ | |
| Market | Access to new markets | Operating revenue ⬆︎ | |
| Tenacity | Adopting energy-saving measures | Cost expenditure ⬇︎, capital expenditure ⬆︎ |
