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 2025, environmental risks account for half of the top ten global risks over the next 10 years (longterm). These include Extreme Weather Events, which have ranked first for two consecutive years; Biodiversity Loss and Ecosystem Collapse, which have risen to second place; Critical Change to Earth Systems in third place; Natural Resource Shortages in fourth; and Pollution ranking tenth. Regardless of the outcomes of efforts to combat climate change, businesses will face both risks and opportunities in their operations.
According to the Global Risks Report, the frequency and intensity of extreme weather events have continued to rise, posing greater challenges to property security across industries and regions. SKS serves clients from various sectors and locations, and extreme weather not only increases the risk of damage to client assets but also results in more frequent dispatches of SKS field personnel to ensure client safety and elevates the risks faced by dispatched staff. In response, we continue to optimize the application of smart technologies, leveraging AI surveillance and drone assistance to expand our service coverage while reducing personnel exposure to hazardous environments.
In 2021, Shin Kong Security joined the Taiwan Alliance for Net Zero Emission (TANZE) to support the joint goal of achieving global net-zero emissions by 2050. In 2023, all operational sites across Taiwan completed ISO 14064-1 carbon inventory and verification for Scopes 1, 2, and 3 in a practical demonstration of the Company's greenhouse gas management and carbon reduction commitments. In 2024, SKS further adopted data-driven carbon reduction strategies and promoted low-carbon transition practices among supply chain partners. These systematic responses to climate change aim to strengthen the Company's resilience and competitiveness.
