Climate Risk

Bont Biotechnology closely monitors global sustainability issues and development trends across industries. In response to climate change, the Company has implemented greenhouse gas (GHG) inventory and verification and discloses climate-related information in accordance with the core framework of the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, covering four key areas: Governance, Strategy, Risk Management, and Metrics and Targets. The Company publicly discloses the financial impacts of climate change and its future response strategies.

Four Key Areas and Response Strategies Response Strategies
Governance The ESG Sustainability Promotion Task Force reports to the Board of Directors on a regular annual basis, reviewing climate change–related risks and opportunities. It proposes short-, medium-, and long-term plans, measures, and targets, consolidates the implementation results of various functional task forces, and evaluates the effectiveness of climate response strategies.
Strategy Through cross-departmental discussions and consideration of environmental policy trends in Europe and the United States, the Company assesses potential financial impacts on its operations. Resources are integrated and prioritized, and response strategies are formulated based on the Company’s technological strengths to meet end-customer ESG requirements, thereby enhancing corporate reputation and increasing sales.
Risk Management Climate risk items are incorporated into the existing risk management framework. Response measures and targets are defined for each item and are continuously monitored and managed by the ESG Sustainability Promotion Task Force, which regularly reports implementation progress to the Board of Directors to strengthen the overall strategic approach.
Metrics and Targets Carbon reduction targets are established, and greenhouse gas emissions across various scopes are regularly managed. For details, please refer to Section 5.3 Greenhouse Gas Inventory. In addition, the Company conducts ISO 14064-1 greenhouse gas inventory and verification annually to review progress toward achieving its carbon emission reduction targets.
Risk Type Transition Risk Physical Risk
Risk Aspect Policies & Regulations Market Acute Chronic
Climate Risks Energy and greenhouse gas regulations Increased capital expenditures and higher operating costs Disasters caused by extreme weather events Rising temperatures
Potential Financial Impacts Constraints on capacity expansion and increased operating costs Increased capital expenditures and higher operating costs Financial losses and revenue decline due to production disruptions Increased electricity consumption leading to higher carbon emissions and operating costs
Climate Opportunities Adoption of green buildings and planning feasible solutions for renewable energy applications Development of environmentally friendly products Planning plant facilities and production capacity deployment to enhance resilience to natural disasters Promotion of optimized low-carbon production
Potential Financial Impacts Deployment and operation of renewable energy based on production capacity planning Development of environmentally friendly products to meet customer needs and increase revenue Building a resilient supply chain, securing customer orders, and increasing revenue Reducing energy losses, lowering operating costs, and increasing profits
Management Approach Review energy-saving plans and carbon reduction targets; conduct regular ISO 14064-1 inventories to identify carbon emission hotspots and implement improvements Incorporate green design concepts into product development to reduce energy consumption during manufacturing and use phases Regularly review on-site energy management status and implement energy-saving projects Introduce low-carbon technologies and equipment to mitigate climate impacts and reduce energy consumption during manufacturing and use phases