Corporate Governance-Risk Management

Department	Duties
Board of Directors	As the highest decision-making unit for risk management, it approves risk management policies and structures, and supervises the effective operation of risk management mechanisms.
Risk Management Department	As the unit responsible for implementing risk management, the department head is assigned by the chairman. Responsible for coordinating relevant departments to carry out risk identification, assessment, control and supervision, and regularly report the implementation situation to the company's board of directors.
Relevant Departments	All relevant departments of the company evaluate the possibility of occurrence of various risk factors and the degree of impact according to their duties, formulate measures and implement them, and properly manage various risks.

1	2	3	4
Identify Risks	Assess Risks	Response	Monitor Risks
Use feasible analytical tools and methods to gather past experience and predict possible risks, as a reference for further measurement, monitoring and management of risks. At present, the risk management department uses risk identification questionnaires to the middle and senior management to collect the possible risks of the company.	Risk management should be measured by quantitative or other feasible qualitative methods according to different types of risks.	Consider risk tolerance and cost effectiveness, and select an appropriate risk control mechanism.	The heads of each department shall monitor and control the implementation of various risk managements in the scope of their duties and management processes at any time, and take necessary measures in a timely.

Rank	Category	Kind	Degree of risk
1	Business Risks	Rising prices of raw materials	Medium
2	Financial Risks	Fluctuation in exchange	Medium
3	Financial Risks	Inflation	Medium
4	Business Risks	Raw material supply chain (raw material shortages, transportation issues)	Medium
5	Financial Risks	Account receivable overdue	Medium
6	Financial Risks	Interest rate change	Medium
7	Business Risks	Market change	Medium
8	Business Risks	Product competition	Medium
9	Business Risks	R&D	Medium
10	Human Resource Risks	Rising labor costs	Medium
11	Business Risks	Marketing strategy	Medium
12	Business Risks	Investment risk	Medium-Low
13	Business Risks	Information security	Medium-Low
14	Human Resource Risks	Labor shortage	Medium-Low
15	Financial Risks	Credit risk	Medium-Low
16	Financial Risks	Financing risk	Medium-Low
17	Human Resource Risks	Labor loss	Medium-Low
18	Business Risks	Regulation Compliance	Medium-Low
19	Financial Risks	Endorsement risk	Medium-Low
20	Occupational Safety and Health	Business interruption due to disaster	Medium-Low
21	Occupational Safety and Health	Operation safety	Medium-Low
22	Occupational Safety and Health	Occupational Accident	Medium-Low
※For more information, please refer to the 2022 sustainable report.

Emerging Risk
Kind	Description	Response
Climate Change	1. Due to climate change, governments and enterprises at home and abroad are demanding energy management in organizations, and companies need to make responses to environmental issues. 2. The frequency of extreme weather events is gradually increasing, resulting in increased opportunities for company shutdowns and possible delays in supply.	For more information, please refer to the Climate Change Management webpage.
Notifiable disease	If an employee is infected with a notifiable disease, the company should cooperate with relevant measures, leading to an increase in the risk of operations being shut down.	1.Implement split work or remote work. 2.Promote knowledge related to epidemic prevention. 3.Establish a COVID-19 emergency response team.

董事會	為風險管理之最高決策單位，核定風險管理政策與架構，監督風險管理機制之有效運作，自氣候變遷議題納入風險管理中，將執行結果定期呈報董事會，以確保氣候相關風險管理制度有效推行。
風險管理部門及永續發展委員會工作小組	進行氣候變遷情境分析，收集氣候相關風險與機會因子，召開會議討論氣候變遷等議題，收集管理階層對於氣候變遷之因應及彙整公司對策，製成氣候風險管理報告呈報董事會。
管理階層	判斷各項氣候變遷議題對於公司之影響，提出公司因應氣候變遷相關政策及計畫。

多情境時序變化
參數	區域	比較年(基期)	推估時間	模式	時間尺度	情境
溫度改變量	高雄	1986-2005年	2021-2040年	最大	年平均	RCP 2.6:1.75℃ RCP 4.5:1.48℃ RCP 6.0:1.33℃ RCP 8.5:1.46℃
結論
不論在 RCP 2.6 或 RCP 8.5 情境下，在高雄營業據點皆遭遇溫度上升，這可能導致冷氣運轉需耗費更多能源，才能使工作場所達適宜溫度，而增加公司電費支出及溫室氣體排放，在未來設備購買及建築上，需考量能效問題。

Climate-related Risks
Category	Type	Climate-related Risks	Timeline	Degree of risk
Transition risk	Market Risk	Increased cost of raw materials and operation cost	Short-medium term	Medium-High
Transition risk	Policy and Legal Risks	Strengthening requirements for enterprises to reduce emissions	Short-medium term	Medium-High
Physical risk	Acute Risk	Increased severity of extreme weather events such as cyclones and drought, heat wave	Medium term	Medium-High
Physical risk	Chronic Risk	Rising mean temperatures	Medium term	Medium
Transition risk	Market Risk	Uncertainty in market signals	Medium term	Medium
Transition risk	Market Risk	Changing customer behavior	Medium term	Medium
Transition risk	Policy and Legal Risks	Enhanced emissions-reporting obligations	Short-medium term	Medium
Transition risk	Reputation Risk	Shifts in consumer preferences	Medium term	Medium
Transition risk	Reputation Risk	Stigmatization of sector	Medium term	Medium
Transition risk	Policy and Legal Risks	Increased pricing of GHG emissions	Medium term	Medium
Physical risk	Chronic Risk	Rising sea levels	Medium term	Medium
Transition risk	Technology Risk	Costs to transition to lower- emissions technology and Unsuccessful investment in new technologies	Medium term	Medium-Low
Transition risk	Technology Risk	Substitution of existing products and services with lower-emissions options	Medium term	Medium-Low
註：時間範疇，短-中期為1~3年，中期為4~6年。

類別	風險類型	氣候相關風險	潛在財務影響	因應做法
轉型風險	政策與法規	加強要求企業減排責任	導入相關管理系統及驗證，將增加約20~30萬元的費用。	公司導入 ISO14064-1 溫室氣體盤查，了減公司溫室氣體排放熱點，有利擬定節能減碳計畫。
		強化溫室氣體排放量報導義務	導入ISO 14064-1，將增加約20~30 萬元費用。 汰換耗能設備，將增加資本支出。	公司導入 ISO14064-1 溫室氣體盤查，並將相關資訊公布在公開資訊平台。
		碳定價制度及其價格愈趨高升	繳交國內外碳費，依國內預計每噸探費徵收 300 元，預估將增加 50~60 萬元成本。	導入 ISO14064-1，並實施節能減碳計畫。 購買使用綠電。
	技術	低碳技術的轉型的成本與投資失敗風險	投資低碳技術，增加營運成本。 技術投資失敗，增加營運成本。	與他家企業共同投資太陽能光電，分散風險。
		以低碳商品取代現有產品和服務	低碳產品開發，增加營運成本。 沒有提供低碳產品，減少銷售量，獲利減少。	找尋低碳原材料及改善產品製作流程，提高能效減少資源浪費。
	市場	原物料及營運成本之上漲	原物料須符合未來環境趨勢，可能導致營運成本增加。 廢棄物處理需配合法規，將使營運成本上升。	尋找多間能符合環境趨勢的供應商，或者與客戶供應商共同研發新環保材質。 目前原生紙廢料已難以回收，需再尋找能配合廠商。
		市場訊息不確定	多方面揭露公司資訊，編列公司預算。 資訊透明化，增加客戶訂單，增加營業額。	在公司官網、永續報告書等公開資訊揭露相關資訊。
		客戶行為改變	導入 ISO 14067 產品碳足跡，預計將增加20~30萬導入費用。 將產品投入低碳技術，將使營運成本上升。 提供低碳或碳足跡商品，增加銷售量，增加營業額。	評估客戶減碳以及碳足跡要求。 評估材料及製程能否投入低碳技術。
	名譽	消費者偏好轉變	公司產品獲得碳足跡認證（ISO14067），預計將增加 20~30 萬導入費用。	評估材料及製程能否投入低碳技術。 遵從國際規定。
		產業汙名化	法人投資減少，公司價值降低，銀行融資成本增加。	在公開資訊平台上，揭露公司節能減碳作法，及溫室氣體排放量。 加速轉型。 投資綠能設備與使用綠色產品。 紙類、塑料回收再利用。 遵從國際規定。
實體風險	立即性	暴雨、乾旱、熱浪等極端天氣事件頻度、嚴重度提高	依據暴雨型態建造防水設施，將導致增加資本支出。	擬定因應及預防災害發生應對計畫，減少損失。
	長期性	平均氣溫上升所造成的系統性影響	汰換一級節能空調設備，將增加約100 萬元的支出。 為減少氣體逸散，節省空調，將尋找環保隔熱塗料或隔間將導致增加資本支出。	汰換公司空調設備，購買節能機型空調。 製造冷房空間減少氣體逸散。
		海平面上升	設備基礎架高，增加營運成本。 增加防洪排水設施，增加營運成本。 依據暴雨型態建造防水設施，將導致增加資本支出。	擬定因應及預防災害發生應對計畫，減少損失。

Type	氣候相關機會鑑別	Timeline	Degree of Opportunity
Energy Source	Use of lower-emission sources of energy	Short-medium term	Medium-High
Resource Efficiency	Optimize production efficiency	Short-medium term	Medium-High
Resource Efficiency	Use of recycling	Short-medium term	Medium-High
Resource Efficiency	Use low-carbon transport	Short-medium term	Medium-High
Resilience	Participation in renewable energy programs and adoption of energy efficiency measures	Medium term	Medium-High
Products and Services	Development and/or expansion of low emission goods and services	Short-medium term	Medium
Market Risk	Access to new markets	Medium term	Medium
Resource Efficiency	Move to more efficient buildings	Medium term	Medium
註：時間範疇，短-中期為1~3年，中期為4~6年。

機會類型	氣候相關機會	潛在財務影響	因應做法
資源使用效率	優化生產效能	汰換能效較差設備，增加資本支出，降低營運成本。 透過能效佳之設備生產，減少耗損及增加產能，降低營運成本。	汰換公司老舊製程設備，採購能效較佳設備，減少材料耗損。
	回收再使用及再利用	回收再使用，減少資源耗費，降低採購成本。	公司產品產生之下腳料，有專門公司進行回收，進行再利用。
	選用低碳運輸工具	添置電動車，增加資本支出。	汰換公司公務車，主管配給之公務車採用電動車。
	轉用更高效率的建築物	建設綠建築，增加資本支出。 減少能源使用，降低營運成本。	廠區維護、汰換設備時，添置具有節能認證之設備等，減少能源耗損。
能源來源	使用低碳能源	施行節能減碳計畫，短期將增加營業成本。 建設太陽能光電設施，增加資本支出。	施行節能減碳計畫，短期將增加營業成本。
產品與服務	開發和/或增加低碳商品和服務	投入低碳技術開發，增加研發支出。 提供低碳產品，增加銷售量，增加營業額。	投入低碳技術開發，增加研發支出。
市場	進入新市場	進入低碳市場，增加銷售量，增加營業額。	找尋低碳原材料及改善產品製作流程，提高能效減少資源浪費。 汰換生產設備，採用能效較佳設備製造產品，減少能源消耗。
企業韌性	參與可再生能源項目並採用節能措施	實施節能減碳計畫，增加營運成本。	投資太陽能光電。 持續汰換舊型空調設備，減少能源消耗。

風險管理流程
風險及機會辨識	採用可行之分析工具及方法，透過討論、研析、彙整以往經驗並預測未來可能發生風險及機會之狀況，予以指認歸類、以作為進一步衡量、監控管理風險及機會之參考。
風險及機會鑑別	用可分析之工具評估重大氣候事件，辨識風險及機會事件的發生頻率與影響度鑑別優先關注的實體與轉型風險帶來的財務影響。
風險及機會因應	制定相關風險及機會應對計畫。
風險及機會監控	各部門主管對於職掌範圍及管理流程所面對之各項風險管理之執行情形，應隨時監督管控，並適時採取必要之措施。

item	content
Patent application	Fully know the development of industry trends and then apply for patents in response to market development trends.
Patent Layout Establishment	Based on the product orientation, examine the patents involved in the relevant technologies to understand the current status of the industry.
Periodic Maintenance Review	Examine the use of certified patents and their relevance to products to assess the need for continued maintenance.
Patent R&D Conference	Before each patent proposal proceeds to the official application process, discuss and communicate with multiple parties, including search, element review, preliminary review suggestion, final decision, etc., so as to effectively check the quality of the patent.
Patent Course & Information Sharing	Provide external courses to enhance the sensitivity of R&D personnel to the legal boundaries of patent applications.

item	content
Global brand layout	The company trademark had layout global market and increased exposure gradually, it will throughout major countries/regions in the world.
Periodic Maintenance Review	Review registered trademarks and evaluate those trademarks the necessity of continuation; and continue to evaluate the company's future planning and development, and apply for new trademark registration in advance.

item	content
Access Control	All employees of the company are equipped with access control cards, and are granted authority according to the attributes of the department; non-employees of the company must register their identities when entering and visiting, and they must be accompanied by employees of the company throughout the process.
Information Security Management	All computer equipment of the company is identified by the password of the employee's personal account, and the password must be changed regularly.
Department Exclusive Space	The company allocates exclusive file storage space for each department, which is independently planned and used by each department, and the physical space must keep the keys properly.
Protect Trade Secrets Disseminate	The new employee has to sign a non-disclosure agreement to ensure the company everyone knows Trade Secrets and establish risk awareness.