As a major player in the energy industry, CPC has been tasked with the responsibility to reduce carbon emissions and therefore contributes proactively to the nation’s net
zero goal. Out of concern for the risks and opportunities of climate change, CPC assembled a Climate Change Response Task Force to consolidate international management systems such as TCFD and TNFD into a low-carbon, green energy transformation strategy with "High-value Petrochemical, Low-Carbon Emission and Lean-Renewable Energy" being the three main emphases. CPC currently leads the industry in the development of prospective technologies such as lithium-titanium oxide materials for energy storage, and actively searches for opportunities to lower carbon emissions and promote circular economy through construction of smart green energy fuel stations, establishment of advance catalyst center, full-scale product carbon survey, and introduction of internal carbon pricing. Meanwhile, CPC responds proactively to the claims of environmental protection organizations by taking actions to protect the algal reef ecosystem near where the Third LNG Terminal is being built. CPC even founded the first ecosystem preservation
fund in Taiwan to support preservation efforts, taking progressive steps to cater for sustainability of the ecosystem and economic growth at the same time.
Climate change governance
CPC places great emphasis on the possible risks and opportunities of climate change, and everyone from the board of directors to risk management teams of various departments are committed to enforcing risk supervision, governance, and management practices. A Sustainable Operations Promotion Committee and a Risk Management Committee have been assembled at the executive level to make and approve decisions, and to coordinate climate-related task forces within CPC (such as the Climate Change Response Task Force, Energy and Carbon Reduction Task Force, and Renewable Energy Development Act Response Task Force) toward carrying out interdepartmental actions. These measures are indicative of the completeness and depth of CPC’s climate change governance and risk control efforts.
Procedures for identifying major climate change-related risks and opportunities
Impacts of and responses to major climate risks
CPC observes the TCFD framework and guidelines by distinguishing climate change risks between transition risks and physical risks, which are further broken down into sub-categories including: policy, regulation, technology, market, and reputation under transition risks, and immediate, and long-term under physical risks. CPC conducts climate change risk assessments generally at least once a year, and the assessment covers existing business locations and part of its supply chain.
Climate change goals, indicators, and management performance
As a support to the national carbon reduction goals outlined in the Climate Change Response Act, CPC designated 2005 as the baseline year, in which it measured greenhouse gas emission at 11.58 million MT (carbon dioxide equivalent). CPC has since surveyed Scope 1 and Scope 2 greenhouse gas emissions on a yearly basis, and made calculations by following the Ministry of Environment’s Greenhouse Gas Emission Coefficient Sheet for guidelines, or using proprietary coefficients as a priority. GWP values are adopted according to Ministry of Environment’s rules. CPC’s greenhouse gas surveys are conducted using the operational control approach, and survey outcomes are presented in carbon dioxide equivalent terms. Total greenhouse gas emission in 2023 had reduced by 454,000 MT carbon dioxide equivalent (CO2e) compared to 2022, as CPC made adjustments to the production strategy in line with market demand. Greenhouse gas emission intensity had reduced for 3 consecutive years between 2021 and 2023. Emission intensity for 2023 was reported at 0.058%.
Use and management of energy
Being Taiwan’s largest oil and gas supplier, CPC responds to the call for low-carbon transformation around the world and supports the nation’s net zero emission goals. We are well-aware of our responsibilities with regards to environmental protection and sustainability, which is why we actively take part in carbon reduction, introduce carbon neutral LNG, and explore ways to improve energy efficiency. We consume electricity, natural gas, steam, fuel gas, petroleum gas, and fuel oils. The total 2023 energy consumption was 79.9 million GJ, with the highest heating value from fuel gas. Output of CPC products totaled 141.79271 million kL in 2023; energy intensity was calculated at 0.563 GJ/ kL in 2023, and compared to the 0.551 GJ/ kL energy intensity reported for 2022, this represented a 2.13% increase.
Pursuant to “Regulations for the Management of Setting up Renewable Energy Power Generation Equipment of Power Users above a Certain Contract Capacity,” a sub-law of the Renewable Energy Development Act, CPC has six units that are subject to governance, and the mandatory capacity of renewable energy for each unit is explained in the following chart.
CPC actively sources suitable land for the construction of solar power systems. The Company invested NT$135.3 million into the development of photovoltaic technology in 2023, and by the end of 2023, it had completed 254 photovoltaic (PV) sites with rated capacity of 12.946 MW (excluding 709 kW that were leased out) located throughout Taiwan and offshore areas, including the rooftops of fuel stations, oil supply centers, refineries, petrochemical plants, and rooftops of office buildings. These PV stations generated 146.02 million kWh of renewable energy in 2023; the energy used to be sold to Taiwan Power Company, but in 2023 most of which was self-consumed. As of the end of 2023, CPC had 252 PV stations that generated energy for self-consumption; 20 of which had obtained renewable energy site certifications, and 7,260 renewable energy certificates were generated. In the future, CPC plans to expand renewable energy capacity to 12.132 MW in 2024 and to 25.078 MW in 2025.
Water consumption and management
CPC has developed a comprehensive water resource management system and adopted a diversified water resource utilization strategy to address the impact of climate change on water resources from two perspectives:“water recycling and reuse” and “access to water resources.” Following the implementation of water resource management, all uses of water are subject to water impact assessment and do not pose any material impact on the water source.
SDGs