Huaku Development follows relevant environmental laws and regulations to properly protect the environment and shall endeavor to promote a sustainable environment when engaging in business operations and internal management. In response to the climate change impact and regulations that are becoming more severe and tougher, carbon reduction has become the priority goal for companies. Huaku Development identifies the future transformation risk of greenhouse gas emissions according to the TCFD framework and implements management on potential impacts.

Since 2020, Huaku Development has adopted autonomous inventory inspection on the carbon emissions generated from the daily operation, and implements improvement and enhancement of the internal environment, equipment and employee environmental awareness according to the Company’s “Energy Saving, Carbon Reduction and Environmental Management Policy”, in order to achieve objective of effective management via various channels and methods. Furthermore, we have begun implementing ISO 14064-1:2018 Greenhouse Gas Accounting in 2023 to obtain a more comprehensive and accurate understanding of our organization’s carbon emissions data, thereby accelerating the reduction of carbon emissions.
 

Climate Change Risk Assessment and Response

The greenhouse effect has caused significant changes in the global climate, resulting in frequent natural disasters such as floods, droughts, forest fires and snowstorms. Climate conditions will also affect water safety and the disease transmission, posing potential risks to sustainable business operations for the company.

According to the TCFD framework, Huaku Development analyzes the impact of climate topics on the risks and opportunities of the Company and establishes relevant strategies with respect to four main core elements: governance, strategy, risk management, indicators and goals. Huaku Development adopts the following method to identify climate risks and opportunities, and includes the analysis in the overall risk management policy. The Sustainability Team and Risk Management Team periodically review the risk management matters of each unit, and perform periodic review follow-up. For the climate impact and our response measures, please refer to our Sustainability Report for the year 2023.  

Management Procedures

The Management Department will formulate, promote and maintain the relevant environmental management programs and encourage all employees to take practical actions to participate in the program, in order to implement energy saving and carbon reduction, and effectively enhance the effectiveness of the use of the company's resources. The specific measures are as follows:

Status of Accomplishment and Future Goals

Huaku Development Co., Ltd. has been reducing its energy use and resources every year by taking the above specific measures.
Regarding greenhouse gas emissions, as the head office's primary emissions are indirect, we have set a target to reduce electricity consumption by 0.5% annually and will regularly monitor progress toward this goal.
For water consumption, the company aims to reduce the parent company's water usage per million yuan of turnover by 1% compared to the previous year. In 2023, Huaku Development's water usage per million yuan of turnover decreased by 3.56% compared to 2022.