Risk management and actions | Risk Management and Actions | Climate Action | ASUS ESG website, ASUS ESG goal

Risk management and actions

Risk management and actions

Risk Identification

Risk Matrix - Identifying and Assessing Climate Risks

ASUS implements climate risk and opportunity identification based on the TCFD framework to assess the probability, frequency, and possible impact on ASUS. It evaluates its risk value and opportunity value and selects transition and physical risks that require prioritized attention.

Transition Risks

In order to respond to the complexity and impact of the market caused by climate change, we must adjust the supply and demand with various methods, including policy, law, technology, and market changes to mitigate and adapt to the needs of climate change prevention.

  • Increase in operation costs caused by carbon tax
  • Carbon Border Adjustment Mechanism (CBAM) of the European Union
  • Efficient product improvement and change in customer behavior

Physical Risks

The actual risks caused by long-term climate change and immediate extreme weather disasters would have a direct impact on the industry and supply chain disruptions.

  • Extreme weather event- assembly plant shutdown due to power outage
  • Extreme weather event- land transportation disruption

Opportunity

Considering that TCFD has not yet provided a suggested methodology for scenario simulation to address the opportunities brought about by climate change, ASUS refer to the IPCC's denition of reduction andadaptation to identify potential sources of opportunities that climate change may bring to ASUS.

Our carbon reduction opportunities mainly come from reducing the carbon footprint of our products and providing low-carbon products to customers. Our climate adaptation opportunities are from ASUS carbonneutral services that not only can help our customers reach their net zero goals, but also indirectly protect forests and slow down global climate change with our high-quality carbon credits.

Risk Reduction Opportunities

Reducing the sources of greenhouse gases (GHGs) through human eorts

  • Increase green product revenue

Risk Adaptation Opportunities

Propose ways to avoid climate impacts and create opportunities to improve climate change when adapting to actual or expected weather condition and its impacts

  • Provide carbon neutrality services