Climate change

Infinite Finance focuses on sustainable development trends and the increasingly severe phenomenon of global warming while actively evaluating the possible risks and opportunities of climate change for enterprises. The Task Force on Climate-Related Financial Disclosures (TCFD) of the United Nations International Financial Stability Board (FSB) provides information related to climate change in four categories: governance, strategy, risk management, and indicators and targets. Infinite Finance has assessed possible impacts and developed response measures to enhance Infinite Finance’s resilience to climate change risks by identifying the risks and opportunities posed by climate change to the business.

Core Elements of the TCFD Main Categories

Climate Risk and Opportunity Issues

￭ Significant Risks and Opportunities

Infinite Finance uses the Task Force on Climate-related Financial Disclosures (TCFD) to examine industry trends for financial and leasing industries while aggregating eight climate change-related risks and eight opportunities. Internal executives at or above the director level have identified the relevance of each issue to its business one by one and assessed the possible impacts. As such, Infinite Finance’s climate risk matrix and climate opportunity matrix were obtained. The top three major risk issues were determined to be (1) market uncertainty, (2) impact on business activities such as employee attendance and travel, and (3) temperature rise. The top three significant opportunities are (1) improving sustainability/ESG index ratings, (2) digitization of product and service processes, and (3) enhancing corporate reputation. The short-, medium- and long-term risks of climate change that Infinite Finance faces were also summarized. However, climate change is a long-term global challenge. Long-term impacts may depend on several factors, including changes in policies and regulations, technological advances, market trends, and changes in social consciousness, among others. Infinite Finance focuses on the issues that have the greatest impact and likelihood of occurrence while outlining strategies and measures to address these issues.

The relevant risk information of the finance industry and the leasing industry in recent years has been collected, the possible risk events are identified, and the matrix of climate change risk events is obtained according to the impact degree of risks and the possibility of occurrence:

￭ Risk Issues

While climate change poses risks, it also creates potential business and development opportunities for Infinite Finance. Aimed at opportunity factors accompanying climate change, a climate change opportunity events matrix has been developed according to impact degree and probability of occurrence.

￭ Opportunity Issues

Response measures to significant climate change-related risks and opportunities

From a variety of climate change-related risk and opportunity factors, Infinite Finance has summarized three major risks and three major opportunities in accordance with “impact/influence degree” and “occurrence probability”, and developed response strategies and measures to reduce financial impact and grasp the business opportunities brought by climate change.

Three major risks	Potential impact on the Company’s operations	Financial impact	Risk strategies and management measures
Market uncertainty	The uncertainty of market information (international policies, economic changes, etc.) affects the overall operating situation of the Company and it takes time to respond to different changes	Changes in market share, and increases in operating costs and time	Pay close attention to market trends and climate changes to adjust the business in a timely manner and provide products and services that meet customers’ needs. Participate in seminars, strengthen personnel’s sensitivity and judgment of market information through daily news, respond as early as possible and simulate the results of changes.
Affects business activities such as employee attendance and travel.	Increased extreme weather events, such as typhoons or floods, have an impact on business activities such as employee attendance and travel.	Employees affected by a disaster with disrupted operations, including property and personnel losses.	Tracking climate change predictions through government and press releases while planning agency mechanisms to respond to changes. Rehearsal and test backup mechanisms are provided to avoid operational disruption and establish remote working systems and environments. Staff knowledge of health, safety, and disaster prevention is enhanced through seminars and activities.
Temperature rise	The increase in average temperature leads to increased energy demand, disruption of supply chains due to disasters, or impact on operations.	Asset damage and devaluation, higher energy consumption, and increased operational costs.	Evaluate climate-related risks in business activities and develop response strategies, such as diversification of operational locations and disaster emergency plans. Establish a risk assessment mechanism, with front-end business and review teams evaluating the extent of climate change impact on clients' industries to distinguish high-risk clients.

Three Opportunity Issues	Potential Impact on the Company's Operations	Financial Impacts	Opportunity Strategies and Management Measures
Improving sustainability/ESG index ratings.	The company's sustainability/ESG index rating can be improved through continual positive advocacy and the promotion of green energy.	Increased revenue and Enhanced corporate reputation.	The concept of sustainability is actively advocated for and promoted through environmental protection, social responsibility, and corporate governance to reduce environmental damage. Organizing and participating in energy-saving and carbon reduction activities to increase the company's exposure and promote the company's ESG sustainable corporate image.
Digital Optimization of Product or Service Processes	Digitalizing processes can automate many tedious tasks, increase work efficiency, and reduce energy consumption and waste. Introducing digital tools can effectively identify and manage credit and ESG-related risks.	Reduction in operating costs and energy consumption	Provide necessary technical training for employees and invest in technological solutions that support ESG goals, introducing new technologies for energy conservation and carbon reduction. Through digital optimization, regularly review and improve product or service processes to enhance efficiency.
Enhancing corporate reputation.	The company's good image and reputation promote an increase in demand for products and services.	The company's scale is expanded, and revenue is increased.	Excellent talents are recruited to collaborate with other green enterprises, boosting the effect of sustainable operations. Infinite Finance has been built and developed into a sustainable enterprise through the promotion of ESG culture. This not only protects the environment and society but also enhances the company's image and reputation.

Back