Our approach to building climate resilience has two aspects.
Climate Adaptation: We need to adapt to the climate change that is already underway by identifying and managing the risks it presents to our assets and operations.
Climate Mitigation: We need to make best efforts to reduce carbon emissions in our business, in order to alleviate our possible adverse impacts to the climate.
These two aspects correspond to the distinction between physical risks and transition risks under the framework recommended by the Task Force on Climate-related Financial Disclosures (TCFD). But we also see opportunities in advancing climate resilience in both aspects. In 2017, we began to streamline the management and communication of climate-related risks and opportunities across the different levels of our company, in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Starting from 2020, we are also disclosing our efforts to build climate resilience in alignment with the recommendations of TCFD.