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.
| Category | Risk Factor | Expected Risk | Financial Impact | Response Strategy | Timeframe | |
|---|---|---|---|---|---|---|
| Physical Risk |
Acute | Rising frequency of in extreme weather events | Loss of business sites and infrastructure caused by natural disasters | Losses from production delays due to site damage |
Establish emergency protocols and conduct routine safety audits Develop flexible production plans to adapt to changing conditions |
Short-Term |
| Chronic |
Rising temperatures Depletion of resources, including water shortages Rising carbon pricing due to new GHG regulations and carbon taxes |
Rising energy costs from the increased load on cooling and ventilation systems in industrial operations Rising costs of emission allowances driven by increasing carbon credit prices |
Rising Production Costs driven by increased power consumption | Establish a system to manage climate risks Invest in energy-efficient and low-carbon technologies Enhance monitoring systems to ensure sustainable resource management |
Mid/Long-Term | |
| Transition Risk |
Policy and Regulation | Increased scope and rigor in mandatory disclosure of GHG emissions data | Risk to data accuracy arising from the expanded disclosure obligations including scope 3 beyond scope 1 and 2 | Rising business costs due to investments in emissions reduction technologies | Enhance energy efficiency through production process optimization | Mid/Long-Term |
| Tightening of environmental regulations | Stricter environmental regulations on-site and externally | Rising costs for setting up data collection infrastructure | Implement a Scope3 emissions management system to ensure transparency | Mid/Long-Term | ||
| Penalties imposed upon detection of unlawful activities | Conduct legal reviews and integrate relevant policies within the ESG management framework | Short-Term | ||||
| Market and Technology | Establishing and executing strategies to reduce carbon footprint | Market share loss from failing to meet demands | Increased expenses from adopting low-carbon energy sources | Calculate product carbon footprints to identify major emission sources and define targeted reduction strategies | Mid/Long-Term | |
| Reputation | Demands for compliance from global environmental initiatives | Negative impact on internal and external perceptions of corporate performance | Potential loss of investors and customers | Strengthen responses to global initiatives such as CDP and TCFD by increasing transparency in ESG disclosures | Short-Term | |