EGCO Group supports voluntary disclosure of climate information with reference to reporting framework of Task Force on Climate-Related Financial Disclosures (TCFD) and takes part in such disclosure (TCFD supporters) as detailed below.

  • Good governance

    TCFD Recommendations

    • Board of directors’ management of climate risk and opportunity.
    • Executives’ roles in assessment and management of climate risk and opportunity.

    Disclosures in Compliance with TCFD

    Climate change management is one of the responsibilities of EGCO Group’s Sustainability Committee. Environmental management working group, comprising executives of every power plant, is required to monitor and report working progress to Sustainability Committee. Targets have been set for executives and relevant staff as a part of annual performance evaluation.

    The above is referenced to sustainability management structure ‘Sustainable Business Operation’.

  • Strategy

    TCFD Recommendations

    • Short-term, medium-term, and long-term climate risk and opportunity identified by the organization.
    • Impacts of climate risk and opportunity on business, strategy, and financial planning of the organization.
    • Flexibility of corporate strategy in consideration of various climate situations including controlling the increase of world temperature to be less than 2 degree Celsius.

    Disclosures in Compliance with TCFD

    Scenario analysis has been conducted to identify and evaluate business impacts due to climate risk, comprising:

    • Assessment of financial risk and opportunity due to climate change e.g. opportunity for investment and business expansion through technology, innovation, or negative impacts such as damage compensation, insurance, and carbon tax expenses.
    • Qualitative and quantitative assessment of climate change physical risks including flood, local water shortage throughout the expected lifetime of the assets or activities covering upstream activities.
    • Qualitative and quantitative assessment of climate change transition risks i.e. carbon tax and cap & trade measures potentially commencing in 2030 which covers all company’s operations including upstream activities.

    EGCO Group has developed climate change risks adaptation plan continuously since 2019 for all existing operations to be completed within 5 years framework as well as all new operations.

    Risks related to both climate issues of concerns are incorporated into climate change strategy.

  • Risk Management

    TCFD Recommendations

    • Internal process to identify and evaluate climate risk.
    • Internal process to manage climate risk.
    • How to integrate climate risk identification, evaluation, and management process into corporate risk management?

    Disclosures in Compliance with TCFD

    Refer to ‘Risk and Crisis Management’ and 2021 One Report page 60.

  • Indicators and Targets

    TCFD Recommendations

    • Disclosure of indicators used for climate risk and opportunity assessment in compliance with risk management strategy and process.
    • Disclosure of greenhouse gas emission Scopes 1, 2, and 3 and related risks.
    • Targets of climate risk and opportunity management and effectiveness compared to the target.

    Disclosures in Compliance with TCFD

    EGCO Group has revealed corporate indicators to evaluate climate risk and opportunity in compliance with risk management strategy and process, and has set up climate related targets as detailed in ‘Climate Change Targets’.

    Greenhouse gas emissions data are also disclosed.