Climate Risks and Opportunities
Following the enactment of the Paris Agreement and the release of the United Nations'Sustainable Development Goals (SDGs), global climate change trends have become a key issue for global economic development. According to the World Economic Forum's Global Risks Report 2024, environmental risks constitute half of the top ten global risks for the next 10 years (long-term), including extreme weather events ranking first, critical change to Earth systems ranking second, biodiversity loss and ecosystem collapse ranking third, natural resource shortages ranking fourth, and pollution ranking tenth.
Regardless of the outcome of efforts to combat climate change, businesses will face risks and opportunities in their operations. Concerning climate risk, as our security customers are spread across various industries and regions, severe weather events will threaten the security of our customers' property. Consequently, our service personnel need to be deployed more frequently to ensure the safety of the property, leading to increased safety risks for our personnel. However, climate change also presents opportunities, such as the development of new disaster alert systems and related services, as well as the integration of smart technology with security services to reduce the risks associated with personnel deployment and expand the scope of security services. In 2021, SKS joined the Taiwan Net Zero Emissions Association and established the Taiwan Alliance for Net Zero Emission with over 20 other domestic companies to jointly promote the "Taiwan Net Zero Emissions Initiative Net Zero 2030/2050." Our headquarters and the Jianguo North Road building completed Scope 1, 2, and 3 GHG emissions inventories for ISO 14064-1 in 2022 and initiated Taiwan-wide educational training in December 2022. We have completed the verification of Scope 1, 2, and 3 GHG emissions inventories for ISO 14064-1 for all operational sites in Taiwan in 2023, demonstrating our commitment to addressing the climate change crisis.
