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.
In climate change mitigation, we will continue to analyze and control internal energy use. Through the energy-efficient factory design, energy efficiency enhancement, and energy conservation, we proactively achieve our GHG reduction targets and address the climate change challenges. 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.
Based on our maturity in climate change management, in the future, we will conduct the response analysis of the “1.5°C scenario” announced in World Energy Outlook 2021 in 2021 by the International Energy Agency (IEA), an autonomous intergovernmental organisation of Organization for Economic Co-operation and Development (OECD).
In consideration of the climate-related risks and opportunities for the short, medium and long-term, we will progressively incorporate various risk issues in our operational plans in the future and keep track on the government regulations, international trends, and practices of benchmark companies. In 2022, we reduced the impact and influence of climate change on us through measures for energy conservation and for product carbon emissions management with action plans such as implementing the ISO 50001 energy management system and the ISO 14067 CFV. We already passed the SGS certification for the ISO 50001 EnMS in November 2022. Additionally, we have selected three items for the ISO 14067 product CFV and expect to pass third-party verification in 2023.
| Risk / Opportunity | Type | Risk / Opportunity item | 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⬇︎ | ||
| 客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⬆︎ |
