Strategies for climate change adaptation

Note I：Each scenario considers the rise of temperature in the middle of the 21st century.
II: The Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC)

Physical Risks ScenarioNote I Scenario Analysis Impact on CSC's operations CSC's Responses Metrics and Targets
Extreme weather events such as typhoons and floods (Raw materials) Temperature rises 2.7℃ (SSP2-4.5)/ Temperature rises 4.4℃ (SSP5-8.5)
  • IPCC AR6 Note II pointed out that the frequency and intensity of extreme weather events will increase at the place of origin for some raw materials (e.g. Australia)
  • Issues regarding the supply of raw materials caused by extreme weather events may result in interrupted supply chains or production.
  • Weather monitoring and continuous supply chain management are conducted regularly based on the concept of business continuity, in order to immediately respond to any potential risks; evaluates the climate of the origins of raw material and conducts material preparation and scheduling beforehand.
  • Considering the transportation risks of the supply chain, locations that are less likely to be impacted by the weather are selected as the transfer point during transportation of raw materials.
  • Maintain raw materials supply capacity and stability to ensure the balance between transportation and cost in the supply chain
Water shortages caused by changing climate patterns
  • According to the Taiwan Climate Change Projection Information and Adaptation Knowledge Platform (TCCIP), from medium- to long-term period, it is projected that the maximum consecutive days without rainfall in the watershed area of CSC's main industrial water sources will increase by 19.5% to 27.1%.
  • Extreme weather increases the risk of water shortage, therefore affects production processes of factories.
  • Continues to increase the percentage of process water being recycled, strives to diversify water sources, and increases the percentage of reclaimed water used.
  • Assesses the feasibility of seawater desalination to further mitigate risks of water shortage.
  • In 2027, CSC plans to increase the recovery rate of the wastewater purification plant, and reduce new water consumption by 58.4%.
  • In 2030, progress towards the goal of diversifying water sources by continuously evaluating the recycling and the reuse of wastewater within the factory, with the expectation of reducing new water consumption by 60.4%.