Page 58 - SD RATCH EN

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Sustainability Report 2020
RATCH Group PCL.
Emerging Risks Management
RATCH envisages that worsening climate change will induce uncertainties that may turn to emerging risks and affect the Company’s future operations. Risks relevant to climate change or climate change impacts that may have significantly adverse or positive impacts on the Company’s operations are as follows:
Emerging risks
Possible impacts
Management approach/opportunity
Laws and regulations on GHG reduction
• It may be mandatory for the private sector to reduce carbon dioxide or greenhouse gas emissions through a Cap & Trade scheme (limit on GHG emission allowances through buy/sell activities) and/or target setting and/or carbon taxes. Such laws may affect the Compa- ny’s long-term business strategies and objectives and operating cost.
• Continually monitor and study GHG reduction targets of target investment countires, as well as relevant policies, laws and regulations, to assess possible changes and impacts that may affect the Company.
• Monitor and follow up on national-level and international-level GHG reduction mechanism, the development and mechanism of carbon markets, carbon credit pricing and enforced carbon taxes, to analyze the economic impacts on the Company.
• Review and adjust the electricity generation investment strategy to balance the invest- ment ratio of fossil fuel and renewable power plants.; and prepare GHG management strategy and reduction target in line with investment countries’ strategic plans and targets.
Advanced and rapid technology development in support of GHG reduction
• Technology to generate electric power from renewable energy like solar and wind power has been continually stepped up in line with increasing demands.
• R&D on Carbon Capture and Storage (CCS) to reduce fossil fuel power plants’ GHG, particularly those powered by coal.
• Monitor the advancement of electricity generation technology for cost analysis.
• Explore opportunities to invest in the renewable energy value chain and alternative energy technology; and seek collaboration with technology developers or experts.
• Follow up on the improvement in CCS technology and its commercialization trend.