To establish an integrated risk management framework, the Company has incorporated climate change risk into its risk management approach and developed a Climate-Related Risk and Opportunity Management Guidelines. This guide assesses climate-related risks and opportunities within its business, measures their impact on finance, business planning, and strategy, and formulates mitigation and adaptation actions in response to climate change. Furthermore, the Company has established "Key Points for Responsible Investment Management" to integrate climate risk into its investment operations.
The Company utilizes a three-line internal control framework, defining climate risk management responsibilities and management mechanisms within each line. The climate risk and opportunity identification and management process includes compiling a list of climate risks and opportunities, identifying risk/opportunity issues, developing a climate risk/opportunity matrix, identifying risks/opportunities, proposing mitigation or adaptation measures, and disclosing and communicating these risks to external parties.
| Role | Responsible Unit | Climate Risk Management Measures | Description |
|---|---|---|---|
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First Line of Defense |
Business units and investment units |
The responsible units should assess climate risks and incorporate climate-related risks into their business operations when conducting relevant business. |
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Second Line of Defense |
Risk Management Division Legal Compliance Division |
The responsible units effectively monitor the implementation of climate risk management by the first line of defense and ensure that related operations comply with legal regulations. |
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Third Line of Defense |
Audit Division |
Evaluate the effectiveness of climate risk monitoring by the first and second lines of defense and provide recommendations for improvement as appropriate. |
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