Kumho Tire is advancing climate change response activities based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) to effectively identify and manage financial risks associated with climate change. In accordance with TCFD’s key recommendations on governance, strategy, risk management, and metrics and reduction targets, we transparently disclose climate-related risks to provide essential information to investors and stakeholders.
| Topic | TCFD Recommendation | Details | CDP Linked Items | Page |
|---|---|---|---|---|
| Governance | a) Describe the board’s oversight of climate-related risks and opportunities | · Establishment of the ESG Committee under the Board of Directors·Quarterly ESG Management Committee Meetings | C1.1a, C1.1b | 34 |
| b) Describe management’s role in assessing and managing climate-related risks and opportunities | · Review of ESG-related agenda items and performance | C1.2 | 34 | |
| Strategy | a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term | · Acceleration of transition to a Net-Zero society·Domestic and international car makers’ Net-Zero declarations·Increased interest in eco-friendly products | C2.1a, C2.3, C2.3a, C2.4, C2.4a | 36-37 |
b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning | · Climate change-related risks, opportunities, and response activities·Increased investment costs for facilities aimed at Net-Zero | C2.3a, C2.4a, C3.1, C3.2a, C3.2b, C3.3, C3.4, C-FS3.7, C-FS3.7a | 36-37 | |
c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2℃ or lower scenario | · Management strategies reflecting climate change scenarios·Incorporation of climate change-related risks and opportunities within the ESG management system·Scenario-based impact analysis considering changes in heatwave days and precipitation intensity | C3.2, C3.2a, C3.2b | 36-37 | |
| Risk Management | a) Describe the organization’s processes for identifying and assessing climaterelated risks | · ESG management system·Risk identification and management processes | C2.1, C2.2, C2.2a, C-FS2.2b, C-FS2.2c, C-FS2.2d, C-FS2.2e | 23-26, 34-36 |
| b) Describe the organization’s processes for managing climaterelated risks | · ESG management system·Risk identification and management processes | C2.1, C2.2, C-FS2.2d, C-FS2.2e | 23-26, 34-36 | |
c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management | · Identification and management of significant risks by the ESG Management Committee·Development of implementation tasks by five Working Groups | C2.1, C2.2 | 23-26, 79-80 | |
Metrics and Targets | a) Disclose the metrics used by the organization to assess climaterelated risks and opportunities in line with its strategy and risk management process | · Disclosure of energy usage and greenhouse gas emissions at domestic and international business sites | C4.2, C4.2a, C4.2b, C9.1 | 38-40, 84-85 |
b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks | · Disclosure of Scope 1 and 2 emissions·Disclosure of major category Scope 3 emissions | C6.1, C6.3, C6.5, C6.5a, C-FS14.0, C-FS14.1, C-FS14.1a, C-FS14.1b | 38-39, 84-85 | |
c) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets | · Declaration of Net-Zero by 2045·Establishment of a Net-Zero roadmap | C4.1, C4.1a, C4.1b, C-FS4.1d, C4.2, C4.2a, C4.2b | 38 |