Climate Action-ESG Sustainability, Taiwan International Ports Corporation, Ltd.

2025 Performance Highlights (E)

In accordance with the TCFD framework, TIPC completed a climate risk assessment, identifying three climate-related risks and one climate-related opportunity. The Company also implemented targeted protection and risk management measures for critical infrastructure and operations, including wharves and breakwaters. Quantitative analyses were conducted for hazards such as strong winds, storm surges, and extreme heat, and corresponding response strategies were developed. TIPC also reviewed the implementation status of these strategies.
A cumulative total of three climate-resilient wharves have been constructed across TIPC’s ports.
On September 16, 2025, the Company and the Central Weather Administration (CWA) of the Ministry of
Transportation and Communications jointly held a signing ceremony for the “Safeguarding Navigational Safety: Creating State-of-the-Art Smart Ports and Meteorological Capabilities Together” Memorandum of Understanding (MOU) on port-area microclimate development. The MOU formally established an interagency cooperation mechanism to integrate meteorological expertise with practical port operational needs, strengthen the collection, analysis, and application of meteorological data in port areas, and advance the development of microclimate monitoring and early warning technologies. These efforts enhance the application of meteorological information in port operations management, navigational safety decision-making, and disaster prevention planning while progressively building a smarter and more resilient port operating environment.

Comply with the SDGs

SDG9【SDG 9.1】
SDG13【SDG 13.1；SDG 13.2；SDG 13.3】

Management Policy

Covered material topics

Climate change risks and opportunities

Policy

Climate Goals and Indicator Management【Net-Zero Carbon Reduction Policy Goals】
Climate Goals and Indicator Management【Climate Risk Mitigation Measures】

Management Evaluation System

Risk Management and Financial Impact【Risk Flowchart for Climate-Related Risks and Opportunities】
Climate Goals and Indicator Management【Climate Risk Mitigation Measures】

Climate Governance

Governance of Climate-Related Risks and Opportunities

In response to the growing impacts of global climate change and the evolving policy landscape, TIPC continues to closely monitor climate-related risks. According to the World Economic Forum’s Global Risks Report 2026, the most significant risks over the next decade include environmental challenges such as extreme weather events, biodiversity loss, and critical changes to Earth systems. In Taiwan, the government approved its Nationally Determined Contribution (NDC 3.0) in 2025, setting a target to reduce greenhouse gas emissions by 38 ± 2% by 2035 compared with the baseline year.

To address these climate- and policy-related challenges, TIPC advances climate risk management through its sustainability governance framework. The Sustainable Development Steering Committee is responsible for formulating climate strategies and regularly reporting to the Board of Directors, while the Company continues to strengthen mechanisms for identifying, assessing, and continuously monitoring climate-related risks. For details on the sustainability governance framework, please refer to 2025 ESG Report Section 1.1.2 Sustainable Governance Framework.

Risk Management and Financial Impact

Management of Climate-Related Risks and Opportunities

TIPC has established an Internal Control System and an Internal Audit System, along with related operating procedures and guidelines, to ensure the effective implementation of its governance framework and operational processes. For material topics related to climate risks and ESG, the Company leverages its internal control mechanisms to strengthen risk assessments and the management of performance indicators, ensuring that information disclosures comply with the latest regulatory requirements and the principles of ethical governance and integrity.

Assessment of Climate-Related Risks and Opportunities

TIPC implements its risk management and internal control systems in accordance with the “Operating Principles for Risk Management and Crisis Handling of the Executive Yuan and Its Affiliated Agencies,” the “Handbook for Risk Management and Crisis Handling of the Executive Yuan and Affiliated Agencies,” and the “Highlights of Government Internal Control and Surveillance Operations.” Each department establishes operational objectives based on its responsibilities and scope of operations, assesses the significance and potential risks of its operations, identifies and evaluates risks, analyzes their significance and likelihood, and establishes appropriate risk assessment criteria and internal control procedures. TIPC implements its Risk Management and Internal Control System procedures accordingly. For details, please refer to 2025 ESG Report Section 2.2.1, “Risk Management and Internal Control System,” under Internal Control.

In response to the global transition toward net-zero emissions and the 2050 net-zero target established under the Climate Change Response Act, TIPC has further strengthened its climate risk management framework and conducted physical climate risk assessments covering both Headquarters and all branch offices. The assessments draw on the Shared Socioeconomic Pathways (SSPs) presented in the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report (AR6) and adopt the SSP5-8.5 scenario. They also incorporate data and projections from the Taiwan Climate Change Projection Information and Adaptation Knowledge Platform (TCCIP) and the National Science and Technology Center for Disaster Reduction (NCDR) to assess potential climate-related hazards, including flooding, drought, extreme heat, strong winds, extreme precipitation, landslides, and sea-level rise. In addition, TIPC collaborates with external experts to identify port-specific climate risks and vulnerabilities, thereby strengthening the resilience of its port operations and supporting informed climate adaptation planning.

Climate-related risks and opportunities

Scenario Used for Assessment

Scenario Description

Transition Risk

Opportunity

1.5°C Scenario
Taiwan's Pathway to Net-Zero Emissions in 2050 and Strategies

Achieving net-zero emissions by 2050 has become a global priority. In March 2022, Taiwan released the “Taiwan’s Pathway to Net-Zero Emissions in 2050 and Strategy,” which is built on four major transition strategies—energy transition, industrial transition, lifestyle transition, and societal transition—and supported by two governance foundations: technological research and development and climate legislation. These policy developments and associated greenhouse gas reduction measures may have implications for the Company’s operations and value chain.

Entity Risk

IPCC AR6 High-Emissions Scenario (SSP5-8.5)

Under the very high greenhouse gas emissions scenario (SSP5-8.5) presented in the IPCC Sixth Assessment Report (AR6), climate change is projected to intensify shifts in average temperatures, extreme heat events, annual total precipitation, maximum one-day precipitation intensity, maximum consecutive dry days, and the proportion of intense typhoons. These climate-related hazards may have material impacts on the Company’s operations and value chain.

Identification of Climate-Related Risks and Opportunities

The working groups under the Sustainable Development Steering Committee, in collaboration with external experts, plan to define the corresponding short-, medium-, and long-term time horizons for climate-related risks and opportunities and establish a process for prioritizing material risks and opportunities. Scenario analysis and quantitative assessments will then be conducted to evaluate the material impacts on the Company’s operations and financial performance. Based on the assessment results, climate resilience and adaptation measures will be developed to address physical risks, while low-carbon transition targets and mitigation measures will be established to address transition risks.

Time Horizons	Short term (0-3 years): 2025-2028 Mid-term (3-10 years): 2028-2037 Long term (10-20 years): 2037-2046
Risk and Opportunity Metrics	Likelihood of Occurrence Degree of Financial Impact
Risk and Opportunity Categories	Transition Risk: Policy and Legal, Technology, Market, Reputation Physical Risk: Acute, Chronic Opportunity: Resource Efficiency, Energy Source, Products and Services, Markets, Resilience
Climate Scenario Settings	IPCC Sixth Assessment Report (AR6) Worst-case global warming scenario (SSP5-8.5)

Matrix chart of Risk and Opportunity Identification

Table of Risks and Opportunities

Physical Risk	Opportunity	Transition Risk
Strong winds may impair vessel maneuverability and obstruct navigation channels, preventing vessels from entering or leaving the port. Swell conditions may impair vessel maneuverability and obstruct navigation channels, preventing vessels from entering or leaving the port. Storm surge-induced flooding may cause physical damage or impair the functionality of port facilities, resulting in disruptions to port operations. Extreme heat may damage cargo-handling equipment, disrupting cargo loading and unloading operations. Heavy rainfall and flooding may cause physical damage or impair the functionality of port facilities, resulting in disruptions to port operations. Drought-related water shortages may disrupt the water supply within the port area, increase environmental management challenges (e.g., road dust and dust accumulation in wharf and operational areas), and increase port maintenance and operating costs. Dense fog may prevent vessels from entering or leaving the port, resulting in temporary disruptions to port operations. Strong winds may damage cargo-handling equipment, disrupting cargo loading and unloading operations. Swell conditions may damage wharf facilities, preventing vessels from berthing. Swell conditions may cause vessels to collide with wharves, preventing safe berthing. Strong winds may cause vessels to collide with wharves, damaging port infrastructure and preventing vessels from berthing. Strong winds may cause vessels to collide with wharves, preventing safe berthing. Swell conditions may damage wharves, breakwaters, and other structures, resulting in structural damage and disruptions to port operations.	*Implement smart energy management systems across port areas and buildings to improve energy efficiency and support the Company’s transition toward net-zero emissions. Explore low-carbon services and assess the infrastructure required to support low-carbon fuels, creating opportunities to strengthen collaboration with environmentally conscious shipping companies. Promote rainwater harvesting and water reuse initiatives to enhance water resource resilience and mitigate the impacts of drought.	Failure to implement the PAS 2080 Carbon Management in Buildings and Infrastructure standard and Engineering Carbon Footprint Quantification and Reduction measures, as required by regulatory authorities, may result in penalties and adverse impacts on revenue. Failure to meet decarbonization commitments may result in reputational damage and increased exposure to greenwashing-related risks. *Low-carbon transition policies may increase costs and affect asset values. The deployment of low-carbon technologies and infrastructure (e.g., shore power) may introduce implementation and operational risks.

TIPC identified and assessed climate-related risks based on their likelihood of occurrence and potential impact. Following panel discussions, three risks and one opportunity were identified as priority climate-related topics requiring the Company’s response.

Risk Type	Risk Scenario Description	Existing Controls and Mitigation Measures	Operational Impact Analysis (e.g., Personnel, Facilities, ICT Infrastructure, Transportation)	Financial Impact Assessment	Response Measures / 4T Risk Management Strategy: ①Terminate、②Treat、③Transfer、④Tolerate	Financial Assessment of Response Measures
Physical Risk	Swell conditions may damage wharves, breakwaters, and other structures, resulting in structural damage and disruptions to port operations.	Breakwaters, seawalls, and revetments are inspected at least once per quarter, with special inspections completed within 24 hours after a natural disaster event.	Increased maintenance costs and heightened structural risks. Reduced harbor tranquility, resulting in vessel motion and disruptions to cargo-handling operations.	[Hualien Port case study]: (Short term) Typhoon Kong-Rey in October 2024 damaged the wave-dissipating parapet wall and roadway surface of the East Breakwater at the Port of Hualien. Although no structural damage was identified, repair and reinforcement work was planned to restore functionality and enhance resistance to waves and strong winds without altering the original energy-dissipation design. The project is scheduled for completion between Q3 2025 and Q1 2027, with an estimated cost of approximately NT$380 million. (Mid-term) Based on historical experience, repair costs over the next 3–10 years are estimated at approximately NT$380 million. (Long term) Under an IPCC scenario in which the frequency of intense typhoons doubles, repair costs over the next 10–20 years are estimated at approximately NT$760 million.	②Treat 1. Allocate funding for the repair and rehabilitation of damaged wharves and breakwaters. 2. Conduct routine inspections in accordance with TIPC’s inspection guidelines, including weekly inspections of wharves and quarterly inspections of breakwaters, seawalls, and revetments. ④Tolerate 3. Wharves, breakwaters, and revetments are currently not covered by the Company’s commercial property insurance program, and no related insurance coverage is available.	(Short term) Hualien Port budgeted approximately NT$24.6 million in 2025 and NT$28.6 million in 2026 for inspection and repair activities. (Medium- and long-term) Future budgets will continue to be allocated based on the impacts of abnormal weather conditions. Regular inspections of critical infrastructure, including breakwaters and seawalls, will be maintained.
Physical Risk	Strong winds may cause vessels to collide with wharves, preventing safe berthing.	The Marine Weather Information System of Taiwan International Ports provides real-time hydrological, wave, tidal, and visibility information to support early warning and risk mitigation. TIPC has established a Disaster Prevention and Response Plan, which includes disaster-specific contingency plans, standard operating procedures, and operational guidelines, to ensure that personnel clearly understand their roles and responsibilities and are able to respond effectively to disaster events.	Personnel: Responsible units conduct routine inspections and maintenance in accordance with the TIPC Guidelines for Inspection, Examination, and Maintenance Responsibilities for Various Facilities. Facilities: Port wharves and breakwaters are designed in accordance with the Design Standards of Port Structures, incorporating climate change factors such as wave conditions and wave forces. ICT Infrastructure: The Port Facility Maintenance Management System is utilized to initiate special inspection procedures following typhoon events. Transportation: If an operational wharf unexpectedly loses service functionality, alternative operational wharves will be coordinated on an emergency basis to maintain port services.	(Short term) Commercial ports have established navigational safety requirements, including vessel entry and departure control standards, to ensure the safe movement of vessels within port waters. Recently there have been no cases within TIPC-operated ports where strong winds caused vessels to collide with wharves, resulting in the inability to berth, disruption of port operations, or damage to wharf facilities. Accordingly, no associated financial losses from such incidents have been recorded. (Mid-term) Commercial ports have established navigational safety requirements, including vessel entry and departure control standards, to ensure the safe movement of vessels within port waters. Recently there have been no cases within TIPC-operated ports where strong winds caused vessels to collide with wharves, resulting in the inability to berth, disruption of port operations, or damage to wharf facilities. Accordingly, no associated financial losses from such incidents have been recorded. (Long term) In response to climate change trends, TIPC will continue to review and strengthen relevant control measures and implement additional preventive actions.	②Treat 1. Continue to review and strengthen port safety measures in response to emerging climate trends, and incorporate relevant actions into the Disaster Prevention and Response Plan for implementation. 2. Continuously review and enhance disaster mitigation and maintenance management measures for port infrastructure and port construction projects in response to changing climate conditions. 3. Strengthen disaster monitoring facilities and data collection capabilities, including marine and meteorological information systems, to enhance situational awareness and emergency response capabilities. 4. Continue to enhance disaster prevention and response drills, exercises, and personnel training programs to strengthen organizational preparedness and response capacity.	(Short term) Continue to implement existing control measures, strengthen personnel's use of meteorological information systems, and ensure compliance with relevant operating procedures. (Mid-term) Management measures will be reviewed and updated on an ongoing basis to enhance personnel competency, preparedness, and familiarity with assigned responsibilities. (Long term) Climate change considerations will continue to be incorporated into disaster prevention and response planning to strengthen port resilience under extreme weather conditions.
Transition Risk	Low-carbon transition policies may increase costs and affect asset values.	Conduct regular greenhouse gas inventories and promote the deployment of renewable energy.	No impact.	TIPC has no single operating site with annual greenhouse gas emissions exceeding 10,000 metric tons of CO₂e; therefore, the associated short-, medium-, and long-term risk impacts are expected to be limited. (Short term) No impact. (Mid-term) Annual greenhouse gas emissions at all operating sites are projected to remain below 10,000 metric tons of CO₂e after 2030, with no significant impact anticipated. (Long term) No significant impact identified.	②Treat Continue conducting greenhouse gas inventories in accordance with applicable policy and regulatory requirements.	Greenhouse gas inventories are currently being conducted. Future reporting and disclosure activities will be carried out in accordance with applicable policy and regulatory requirements. (Short term) 1 million (Mid-term) 1 million (Long term) 1 million Please disclose the associated costs and expenditures in monetary terms.

Risk Type

Risk Scenario Description

Existing Controls and Mitigation Measures

Implementation Strategy

Financial Assessment of Response Measures

Opportunity

Implement smart energy management systems across port areas and buildings to improve energy efficiency and support the Company's transition toward net-zero emissions

Under the overall framework of the Energy Management System (EMS), each branch company develops and implements energy management solutions tailored to the operational needs of its respective port.

At present, all branch companies have deployed smart energy-related infrastructure and systems.

Smart Energy Management System:

Water Consumption Management (Smart Water Meters)
Electricity Consumption Management (Smart Meters)
Security and Power Distribution Management (Substations)
Lighting Management (LED Lighting Systems)
Water Resource Management
Renewable Energy Generation Management (Solar Power Systems)
Air Conditioning Management
Energy Storage Management (Kaohsiung Port and Hualien Port)

The Smart Energy Management Systems implemented by the Keelung Branch, Taichung Branch, Kaohsiung Branch, and Hualien Branch include the following initiatives:

1. Completed the deployment of renewable energy generation and energy storage facilities at Kaohsiung Port, as well as the installation of additional smart water and electricity meters across all branch companies.

2. Renewable energy generation and energy storage deployment: Kaohsiung Port and its subsidiary ports completed the installation of 3,375 kW of solar photovoltaic (PV) capacity.

3. Additional smart water and electricity meters installed:

(1) 2025: 99 smart water meters and 489 smart electricity meters

(2) 2026: 42 smart water meters and 84 smart electricity meters

(Short term)

1. Investment in Energy Management Systems by Port (Unit: NT$ thousand): Estimated annual investment: NT$271,158 thousand per year^Note

Keelung Branch (including Taipei Port, and Suao Port): Approximately NT$312,500 thousand for the period 2023–2027.
Taichung Branch : Approximately NT$170,000 thousand for the period 2022–2027.
Kaohsiung Branch (including Anping Port, Budai Port, and Penghu Port): Approximately NT$666,900 thousand for the period 2022–2025.
Hualien Branch: Approximately NT$68,000 thousand for the period 2023–2027.

Note: Estimated annual investment is calculated as: Total project investment ÷ project implementation period.

2. Estimated Electricity Cost Savings from Solar PV Installations by Port (Unit: NT$ thousand): Estimated annual electricity cost savings: NT$24,880 thousand per year

Keelung Branch : Upon completion in Q4 2026, solar PV systems with a combined installed capacity of approximately 812 kW at Warehouse No. 27 (West) of Keelung Port, the Taipei Port Administration Building, and Warehouse No. 15 of Suao Port are expected to generate annual electricity cost savings of approximately NT$4.66 million (3.5 hours x 365 days x 812kW x NT$4.5/kWh).
Taichung Branch : Upon completion in Q2 2027, solar PV systems with a combined installed capacity of approximately 1,276 kW at the water station reservoir rooftop and the Huangang South Road greenbelt area are expected to generate annual electricity cost savings of approximately NT$7.33 million (3.5 hours × 365 days × 1,276 kW × NT$4.5/kWh).
Kaohsiung Branch : Upon completion in Q4 2027, solar PV systems with a combined installed capacity of approximately 1,914 kW at Kaohsiung Port Wharf No. 79 Transit Shed, Wharf No. 47 Bulk Grain Warehouse, Wharf No. 116 Transit Shed, and the Anping Port Operations Office Building are expected to generate annual electricity cost savings of approximately NT$11.00 million (.5 hours × 365 days × 1,914 kW × NT$4.5/kWh).
Hualien Branch: Upon completion of the Green Energy Innovation Base in Q1 2027, with an installed capacity of approximately 330 kW, annual electricity cost savings are expected to reach approximately NT$1.89 million (3.5 hours × 365 days × 330 kW × NT$4.5/kWh).

3. Hardware assets are covered by insurance, while intangible assets are currently not insured.

(Medium- and long-term)

The second phase of the Smart Energy Management System is scheduled for completion by 2027. Thereafter, TIPC will continue to optimize and enhance the system based on the performance and benefits achieved by each management module.

Climate Goals and Indicator Management

Net Zero Carbon Reduction Policy Goals

In 2023, TIPC proposed Scope 1 and Scope 2 targets of “reducing greenhouse gas emissions by 50% by 2030 and achieving net-zero emissions by 2050” to the Sustainable Development Executive Committee. Using 2020 as the base year and referencing the Science Based Targets initiative (SBTi), TIPC also established an annual carbon reduction target of 4.2%. In 2025, TIPC reduced its greenhouse gas emissions by 1,801.84 metric tons of CO₂e, representing a 7.35% year-over-year decrease, through measures including the replacement of existing equipment with energy-efficient alternatives, the adoption of electric official vehicles, and the use of renewable energy.

TIPC completed a preliminary greenhouse gas inventory for 2023 in 2024. In 2025, the Company obtained dual certification under ISO 14064-1 and the GHG Protocol, becoming the first state-owned enterprise in Taiwan to obtain both certifications.

Climate Risk Adaptation Measures

Given the unpredictable nature of disasters and the need to strengthen its disaster prevention and response system, TIPC has developed a “Disaster Prevention and Response Plan.” For details on the measures outlined in the Plan, please refer to Section 5.4, Port Operation Safety Management.

TIPC has engaged National Taiwan Ocean University to assess the impacts of extreme weather events on breakwaters, wharves, and revetments at Taiwan’s international and domestic commercial ports. The study evaluates how changes in natural conditions at the nine commercial ports under TIPC’s jurisdiction may affect existing port infrastructure under extreme weather conditions. It analyzes the potential impacts on breakwaters, wharves, and revetments and proposes adaptation and improvement measures to address climate-related risks. Using advanced numerical simulation tools for in-depth analysis, the project develops improvement strategies based on the simulation results to enhance the resilience and safety of port facilities, ultimately providing a critical reference and baseline for the future design of port facilities.

To fulfill its financial management responsibilities and address port operational risks, TIPC transfers property loss and operational liability risks through insurance coverage. Under TIPC’s Fire and Property All Risks Insurance policy, coverage includes losses resulting from natural disasters. The indemnity limit for each natural disaster event is capped at 20% of the total insured value. TIPC should complete the centralized insurance procurement process for the following year before the current insurance policy expires on December 31, 2025, to avoid any lapse in coverage, thereby ensuring adequate property protection and reducing operational liability risks.

Insurance type
Fire and Property All Risks Insurance	Operational equipment overview	Comprehensive artwork	Vessel	Marine pollution liability
Liability of shipping operators	Passenger injury	Passenger accident	Responsibility for operating remote-controlled drones	Public liability for premises
Note： 1. TIPC's 2026 property insurance was successfully bid on December 16, 2025, with the insurance period from January 1, 2026, to December 31, 2026, and the insurance premium is approximately NT$55.30 million. 2. Complete the property insurance procurement for the following year before the end of the insurance year.

Climate Risk Adaptation Measures

In managing transition risks, TIPC places a strong emphasis on achieving its carbon reduction and sustainability objectives. Because the Company’s direct greenhouse gas emissions account for a relatively small proportion of total emissions within port areas, TIPC focuses on internal carbon reduction initiatives, including the deployment of energy-efficient facilities, the electrification of equipment, the adoption of low-carbon fuels, and the development or procurement of renewable energy. These initiatives are reviewed and updated annually.
From an external management perspective, TIPC actively collaborates with shipping and port operators to mitigate potential reputational risks arising from inadequate carbon reduction efforts or environmentally harmful practices and to ensure that the overall development of port areas aligns with stakeholder expectations. Specific measures related to TIPC’s climate risk management, energy conservation, carbon reduction, and environmental performance in 2025 are detailed in 2025 ESG Rport Chapter 4, “Transition to Low-Carbon and Green Port Group.