Climate change governance
As a major energy supplier in Taiwan, CPC has been actively monitoring possible risks and opportunities of climate change in recent years. As a response to the global sustainability development strategies, CPC conducted scenario analyses, quantified financial impacts, and devised response measures using the climate scenarios published by United Nations Intergovernmental Panel on Climate Change (IPCC) and International Energy Agency (IEA), so as to evaluate possible operational impacts as well as physical and transition risks to CPC. CPC also adopts the framework developed by TCFD (Task Force on Climate-related Financial Disclosures) for disclosure of climate resilience, and thereby ensures the sustainability of its practices.
Procedures for identifying major climate change-related risks and opportunities
Impacts of and responses to secondary climate risks
Responses to climate change opportunities
Climate change goals, indicators, and management performance
In response to domestic and international net-zero emission trends, CPC, under the guiding principles of "High-value Petrochemical," "Low-Carbon Emission," and "Lean-Renewable Energy," is actively developing technologies for hydrogen energy, geothermal energy, solar energy, and carbon capture, utilization, and storage, with the targets of reducing carbon emissions by 50.2% by 2032 compared to 2005 levels and achieving net-zero emissions by 2050.
Based on the outcomes of risk identification exercise and international trends, CPC introduces climate change action plans along with short-, medium-, and long-term performance indicators for greenhouse gas management, energy/resource management, water resource management, and pollution control, which are examined regularly for target attainment and progress. CPC also follows the “GHG Protocol” and surveys direct emissions (Scope 1) as well as indirect emissions (Scope 2) of greenhouse gases to determine the effect of its operations and any potential impacts. Outcomes of the greenhouse gas survey have been certified for ISO 14064-1.
Commitment, management framework, and Goals of natural governance
While CPC serves as the nation’s stable energy supplier, it is fully aware that its operational activities are closely connected to natural resources and heavily reliant on the stability of the natural environment. Therefore, CPC must carefully manage ecological impacts to ensure the sustainable use of resources. In light of this, CPC actively engages in biodiversity conservation and management, committing to minimizing its impact on the natural environment throughout its operational lifecycle in order to achieve the goal of coexisting with nature.
CPC follows the framework of the Taskforce on Nature-related Financial Disclosures (TNFD) to systematically identify and assess ecological risks and opportunities, integrating them into the Company’s risk management and decision-making processes. At the same time, CPC also uses the United Nations Sustainable Development Goals (SDGs) as an action guide, specifically aligning with Goal 14 “Conserve and sustainably use the oceans, seas and marine resources” and Goal 15 “Protect, restore and promote sustainable use of terrestrial ecosystems.” CPC promotes a diverse strategy covering conservation actions, educational outreach, research collaborations, and information disclosure to build an ecologically friendly operational environment, demonstrating its responsibility and action in safeguarding natural capital.
CPC’s biodiversity actions
Identification of Nature-related Risks and Opportunities
To strengthen the identification and management of dependencies and impacts on natural capital, CPC adopts the LEAP methodology (Locate, Evaluate, Assess, Prepare) proposed by the Taskforce on Nature-related Financial Disclosures (TNFD), using a systematic approach to assess the impact and related risks of CPC’s operational activities on biodiversity and ecosystem services.
Through the LEAP framework, CPC will carry out spatial localization and natural capital inventories for major operational sites, assess interactions with the natural environment, further identify biodiversity-related risks and opportunities, and propose concrete response measures. This aligns with the global disclosure needs for biodiversity risk and opportunity management and responds to TNFD’s principles of information transparency and actionability, highlighting CPC’s tangible efforts in advancing management and disclosure of natural capital issues.
Locate
CPC’s operational activities include crude oil exploration and refining, petrochemical feedstock production, and energy transition management. All activities along the value chain are highly dependent on natural resources and ecosystem functions. This year’s analysis focuses on three types of CPC’s major operational sites—fuel supply service centers, refineries, and LNG receiving terminals—and the areas within a 5 km radius around them. This covers CPC’s upstream, midstream, and downstream value chain activities and serves to identify CPC’s ecological hotspots.
Evaluate
CPC applied the ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure) tool, co-developed by the United Nations Environment Programme World Conservation Monitoring Centre (UNEP-WCMC) and the United Nations Environment Programme Finance Initiative (UNEP FI), to preliminarily screen the potential dependence and impact of supply centers, refineries, and receiving terminals on nature.
CPC Ecological Conservation Actions
To strengthen understanding of natural ecosystems and fulfill the Company’s environmental protection commitments, CPC continuously promotes ecological surveys covering terrestrial and marine areas. For key sites involved in refining, supply, and storage operations, CPC has launched an ecological inventory project that includes biodiversity monitoring, habitat environment assessment, and documentation of protected species. The goal is to gradually establish a science-based ecological database. This foundational data will also serve as a basis for future implementation of an “ecological audit mechanism” to verify whether operational activities pose risks of ecological degradation to nearby natural environments, thereby enhancing environmental risk identification and early warning capabilities in plant site management.
At the same time, in response to increasingly severe challenges facing marine ecosystems, CPC has promoted coral conservation actions in Yongan, Kaohsiung, focusing on the cultivation and restoration of protected species such as Polycyathus chaishanensis. In 2024, CPC successfully cultivated 220 coral specimens across 74 species, including three specimens of the protected species Polycyathus chaishanensis, demonstrating the Company’s concrete actions and long-term commitment to biodiversity preservation and marine sustainability.
Ecological Conservation Promotion and Social Engagement
In 2023, CPC obtained approval to establish an ecological conservation trust fund in accordance with the "Regulations for Permission and Supervision of Marine Public Welfare Trusts", and launched Taiwan’s first "Ecological Conservation Public Welfare Trust Fund." CPC also formulated the "Operational and Utilization Guidelines for CPC Corporation Ecological Conservation Public Welfare Trust Fund" to demonstrate its determination to protect ecology. It plans to allocate NT$200 million per year, totaling NT$1 billion over five years, to support various domestic ecological conservation actions and related research projects, further advancing ecological conservation progress in Taiwan.
In 2024, CPC completed the establishment of the Ecological Conservation Public Welfare Trust Fund Management Advisory Committee and signed an implementation contract for the Ecological Conservation Public Welfare Trust Fund with E.SUN Commercial Bank’s Trust Department, officially launching the fund’s operational procedures. At the same time, CPC has also applied for permission to establish the public welfare trust with the Ocean Conservation Administration under the Ocean Affairs Council. The fund may only be used to promote public marine conservation actions after receiving said permission.
Additionally, in accordance with the resolution of the Guantang Industrial Park (Port) Ecological Conservation Executive Committee, and to help the public understand CPC’s efforts in coral reef ecological conservation and the committee’s third-party oversight role in proposing and implementing various coral reef conservation measures, the Guantang Ecological Conservation Website (https://cpcguantang.tw/) has been established as a public outreach platform.
This website includes multiple sections such as information disclosure, monitoring records, ecological introductions, and live video streams. It helps the public understand the current status of coral reefs, mitigates conflict between conservation and development, and serves as a tool for environmental education.
SDGs