Risk management
To establish an integrated risk management framework, the Company has incorporated "climate change risks" into its "Risk Management Policy" and formulated the "Guidelines for Managing Climate-Related Risks and Opportunities." These guidelines aim to assess the risks and opportunities related to climate change within the company's business operations, evaluate their impact on financial performance, business planning, and strategy, and develop mitigation and adaptation actions in response to climate change. Additionally, the Company has established the "Responsible Investment Management Principles," integrating climate risks into its investment operations.
The Company utilizes a three-line defense framework for internal control to delineate the responsibilities and management mechanisms for climate risk management across each line of defense. The identification and management process for climate risks and opportunities includes the following steps: collecting a list of climate risks and opportunities, identifying risk/opportunity issues, creating a climate risk/opportunity matrix, assessing risks/opportunities, proposing mitigation or adaptation measures, and conducting external disclosures and communications.