PI Advanced Materials connects people, society, and the world by realizing the potential of Polyimide
through creative innovation technology.
PI Advanced Materials is preemptively identifying risk factors caused by climate change and preparing response strategies by referring to the recommendations of TCFD (Task force on Climate-related Financial Disclosures). Risks are classified as 'transition risks' due to changes in laws, technology, markets, and reputation, as well as policies arising from the industrial transition process, such as a low-carbon economy, and 'physical risks' due to the physical effects of climate change. PI Advanced Materials plans to establish a sustainable management system by analyzing the financial impact and response direction of each risk and systematically manage the impact.
The ESG team at PI Advanced Materials assesses the risks of climate change at least once a year. Risks are assessed using criteria such as time of occurrence (short-term, medium-term, and long-term), risk, and opportunity size (financial impact, urgency of response, and future management impact). Following that, we establish a course of action to respond to risks in consultation with the working team, explore opportunity factors, and derive new strategies.
PI Advanced Materials has identified predictable risks and financial impacts related to climate change in future business activities. While taking preemptive responses to identified risks, we will also strive to seize new opportunities. Furthermore, we will continue to strive for PI Advanced Materials' sustainable growth through risk management that takes climate change into account.
| Division | Expected Risk | Potential Financial Impact | PI Advanced Materials’ Response Direction | Duration | |
|---|---|---|---|---|---|
| Physical Risk |
Typhoon, flood, etc. Natural disasters |
Damage to business sites and infrastructure due to natural disasters such as flooding due to typhoons, rainy seasons, etc. |
Economic and physical losses result from production delays caused by workplace damage |
Establishment of emergency response system and facility management Conduct regular safety inspections and training |
Short-term |
| Abnormal weather and increase in average temperature |
Increased power consumption at workplaces as the average temperature rises |
Increase in production costs due to increased power usage | Strengthening monitoring systems for energy management | Mid to long term | |
| Transition Risk |
Policies and regulations | Implementation of greenhouse gas reduction policies globally, such as carbon border tax (CBAM) and greenhouse gas emissions trading system |
Increased investment and business costs in greenhouse gas reduction technologies | Establishment of greenhouse gas emissions management and reduction strategy | Mid to long term |
| Increasing demand for improved energy efficiency and use of green energy |
Conversion costs incurred due to expanded use of low-carbon energy sources |
Installation of electric vehicle charging stations, review of new and renewable energy power generation facilities to improve energy efficiency |
Mid to long term | ||
| Strengthening environmental regulations | Fines and sanctions are imposed when illegal acts are detected | Legal review and policy reflection through ESG management system |
Short-term | ||
| Markets and Technology | Increased demand for eco-friendly and high-efficiency products, as well as products based on new and renewable energy sources |
Increased R&D costs to expand eco-friendly product portfolio |
Development of substitutes for hazardous chemicals Development of new and renewable energy materials Development of high-efficiency materials, etc. Sustainable product development |
Mid to long term | |
| Reputation | Call for global eco-friendly initiatives | Withdrawal of investment and loss of customers | Global initiatives such as TCFD Response and review of information disclosure |
Short-term | |