Risk Identification

 

No.

Item

Risk Topics

Time

1

R2

Investors' favor may lost because of the failure to take positive and sustainable actions.

Medium

2

R1

Customers' favor may lost because of the failure to take positive and sustainable actions.

Medium

3

R12

Rising temperatures may increase the power consumption of the facility's cooling equipment, which in turn increases operating costs.

Medium

4

R3

In response to requirements of regulations, customers and international initiatives, operating costs may increase due to increased use of renewable energy.

Long

5

R8

In response to the booming trend of smart process, the introduction of emerging technologies may increase operating costs.

Medium

6

R7

In response to the trend of low-carbon development, the energy efficiency standards of various assets may be upgraded, which further increases the operating costs.

Short

7

R5

Influenced by changes in power structure and policies, electricity rates may increase, which in turn raises operating costs.

Medium

8

R4

Influenced by global warming, the domestic demand for electricity may increases rapidly, resulting in unannounced power outages, which further increases operating costs.

Medium

9

R13

Operating pressure and impact may be caused by the shortage of water resources.

Medium

10

R9

Increased frequency and severity of heavy rainfall and flooding may result in equipment inoperability and service interruptions.

Medium

11

R10

Customers are affected by climate change, which may delay the delivery of goods to Ardentec and affect its operations.

Medium

12

R11

Inundation of low-lying coastal areas due to global sea level rise may result in asset damage.

Long

13

R6

Owing to the tightening of the policy, Ardentec has to pay carbon price, which may further increase the operating cost.

Long

 Top 3 Risks   Other Risks

 

 

Climate Change Risk Metrics

 

 

 

Opportunity Identification

No.

Item

Opportunity Topics

Time

1

O5

Investors' recognition may be gained because of adopting active sustainable actions.

Medium

2

O4

Customers' recognition may be gained because of adopting active sustainable actions.

Medium

3

O2

Introduction of smart manufacturing processes, improvement of efficiency in production and distribution, and reduction of environmental impact may further reduce operating costs.

Medium

4

O6

When the frequency and severity of extreme weather (e.g., floods or droughts) increase, establishing an effective contingency plan to return to normal operating standards faster than the industry may gain the favor of customers and increase orders.

Medium

5

O3

Rising demand in the green consumer market and continued provision of low-carbon services may lead to higher market share.

Medium

6

O1

Reducing the risk of greenhouse gas emissions may improve resilience to changes in carbon prices.

Long

 Top 3 Opportunities   Other Opportunities

 

 

 

Climate Change Opportunity Metrics

 

 

Climate Change Risk and Opportunity Timeline

Term

Time Duration

Timeline

Instruction

Short-term

0-2 years

2022 to 2023

Short-term goals are from 2022 to 2023.

Medium-term

3-10 years

2024 to 2030

We set up medium-term goals through analyzing transformation risks of climate change according to IEA World Energy Outlook 2020 report instructed energy transformation and carbon reduction route.

Long-term

11-30 years

2031 to 2050

To achieve net-zero carbon emissions goals in 2050.

 

 

Strategy and Program

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