Risk and Opportunity
At ASEH, climate-related risks and opportunities are identified across our entire value chain, encompassing upstream suppliers, internal operations, and downstream customers. This year, the scope of analysis was expanded to cover 110 global consolidated subsidiaries, enabling a comprehensive understanding of overall climate risks and opportunities. Based on a time-frame* analysis of potential impacts, in response to these findings, we will continue to formulate more forward-looking and effective strategies to enhance climate resilience and seize potential opportunities for driving sustainable and transformative growth.
Climate Change Risks
Timeframe of Impact
- Short-term
- Mid-term
Scenario Description
Failure to meet customers' low-carbon transition requirements.
Scenario Description
Market competitiveness
Location in The Value Chain
- Directly operated by the company
- Upstream or supply chain
- Downstream or end user
Potential Financial Impact
- Increase direct costs
- Loss of existing customers
- Decline market demand
Financial Impact Assessment (USD Million)
751.85 ~ 1,452.66
Management Approach
- A renewable energy procurement platform has been established, with the Taiwan site fulfilling its obligations as a major electricity user
- Renewable energy usage across subsidiaries is monitored quarterly, with ongoing efforts to increase adoption and improve sustainability performance
Management Cost (USD Million)
1.66
Timeframe of Impact
- Short-term
- Mid-term
- Long-Term
Scenario Description
Ineffective management of energy efficiency
Scenario Description
Increase in operational expenses
Location in The Value Chain
- Directly operated by the company
- Downstream or end user
Potential Financial Impact
- Increase direct costs
Financial Impact Assessment (USD Million)
27.66 ~ 29.90
Management Approach
- Production processes are being optimized to enhance energy efficiency and reduce operational impact
- Subsidiaries are required to adopt the ISO 50001 Energy Management System, with ongoing efforts to improve energy performance and reduce reliance on conventional energy sources
Management Cost (USD Million)
13.14
Climate Change Opportunities
Timeframe of Impact
- Short-term
- Mid-term
- Long-Term
Scenario Description
- Low-carbon energy transition helps mitigate the risk of energy price fluctuation
- Energy efficiency management enhances operational resilience
Impact Explanation
- Acquire low-cost resources or generate investment returns
- Reduce energy consumption and operating costs
- Enhance corporate sustainability image
Location in The Value Chain
- Directly operated by the company
- Upstream or supply chain
- Downstream or end user
Potential Financial Impact
- Reduced operating costs through climate change adaptation measures
- Energy diversification
- Enhancing competitive capability
Financial Impact Assessment (USD Million)
28.78 ~ 32.38
Management Approach
- Renewable energy procurement is being gradually implemented across multiple sources—including solar, wind, and hydro—to diversify energy inputs and support sustainability goals
- The ISO 50001 Energy Management System is being implemented to enhance energy efficiency and reduce reliance on conventional energy sources
- Supply chain transformation is actively driven by engaging suppliers to improve manufacturing processes, adopt energy-saving technologies, and participate in performance tracking and evaluation programs
Management Cost (USD Million)
24.36
Timeframe of Impact
- Short-term
- Mid-term
- Long-Term
Scenario Description
Set carbon reduction targets and actively promote emission reductions
Impact Explanation
- Achieving carbon reduction goals can lower financial risks
- Enhance corporate reputation
Location in The Value Chain
- Directly operated by the company
- Upstream or supply chain
- Downstream or end user
Potential Financial Impact
- Reduced carbon pricing costs
- Improved competitiveness
Financial Impact Assessment (USD Million)
74.41 ~ 297.63*
Management Approach
- The company has committed to Science Based Targets initiative (SBTi) net-zero goals, with action plans developed around five strategic pillars to ensure progressive realization of its net-zero pledge
- Efforts are underway to expand product carbon footprint assessments and drive emissions reductions, enabling the delivery of low-carbon products and services to customers
Management Cost (USD Million)
24.64
Water Risks
Time Scale
- Short-term
Scenario Description
Production sites face growing water risks as droughts become more frequent and rainfall events more concentrated.
Impact Explanation
Some manufacturing processes that rely on ultrapure water and cooling water may face temporary suspension or capacity constraints due to drought-related risks.
Location in The Value Chain
- Directly operated by the company
- Upstream or supply chain
- Downstream or end-user
Potential Financial Impact
- Increased indirect costs
- Increased capital expenditures
- Overall revenue decreased
Financial Impact Assessment (USD Million)
100 ~ 177
Management Approach
- Promote water recycling, adopt water-saving technologies, and continuously optimize processes to reduce reliance on third-party water sources, improve water efficiency, and lower overall consumption
- Establish real-time water monitoring and alert systems, along with a platform for drought risk assessment and management
- Simulate drought and water rationing scenarios in advance to develop response mechanisms and ensure operational resilience
Management Cost (USD Million)
11
Time Scale
- Mid-term
Scenario Description
Due to geographical conditions, certain facilities rely on groundwater as a primary or backup water source. However, challenges in securing groundwater extraction rights have constrained water supply availability.
Impact Explanation
A reduction in water supply could lead to a decline in production capacity, ultimately impacting revenue.
Location in The Value Chain
- Directly operated by the company
Potential Financial Impact
- Increased indirect costs
- Increased capital expenditures
- Overall revenue decreased
Financial Impact Assessment (USD Million)
141 ~ 707
Management Approach
- Establish water recovery systems and implement water-saving control measures to reduce dependence on raw water sources
- Develop contingency plans to share process water resources among facilities or nearby industrial parks
Management Cost (USD Million)
47
Water Opportunities
Time Scale
- Short-term
Scenario Description
Water from manufacturing processes or domestic wastewater is being recycled and reused.
Impact Explanation
Improve the reuse rate of process and domestic wastewater to strengthen drought resilience and optimize water resource allocation, while reducing water consumption and wastewater treatment costs.
Location in The Value Chain
- Directly operated by the company
Potential Financial Impact
- Climate change adaptation
- Reduced operating costs
- Enhanced brand value
Financial Impact Assessment (USD Million)
3.5
Management Approach
- Continue implementing process water recovery projects to reduce raw water intake, enhance water efficiency and drought resilience, and lower adaptation costs
- Implement water recycling and reuse technologies in tandem with environmental education to promote sustainability awareness and enhance social capital
- Identify and develop alternative potential water sources
Management Cost (USD Million)
12
Time Scale
- Short-term
Scenario Description
Enhancing Resilience to Climate Change Impacts
Impact Explanation
Recycling process water can reduce freshwater costs, improve water use efficiency, and decrease dependence on freshwater sources. These efforts help prevent operational disruptions, strengthen competitiveness, and create opportunities for revenue growth and investment.
Location in The Value Chain
- Directly operated by the company
- Upstream or supply chain
- Downstream or end-user
Potential Financial Impact
- Climate change adaptation
- Improved competitiveness Seized
- Investment opportunities
Financial Impact Assessment (USD Million)
299 ~ 498
Management Approach
- Recycle wastewater into production processes to reduce dependence on freshwater and enhance resilience against operational impacts from water scarcity
- Improve water resource management to strengthen climate resilience and gain competitive advantages with less time and resource input
Management Cost (USD Million)
87.6
Other topics
Other topics
