Climate Change Information
The Company conducted a financed emissions inventory for its relevant long-term investment holdings (accounting classification: Financial Assets at Fair Value through Other Comprehensive Income (FVOCI)) in accordance with the methodology of the Partnership for Carbon Accounting Financials (PCAF) and with reference to the Practical Handbook on Financed Emissions (Scope 3) for Investment Portfolios of Domestic Futures Companies issued by the Taiwan Futures Association.
The financed emissions associated with these long-term investment holdings amounted to 0.252 tCO₂e, with an overall data quality score of 1.018, based on the PCAF data quality assessment methodology, where Score 1 represents the highest data quality and Score 5 represents the lowest.
【Capital Futures – Financed Emissions of Investment Portfolio (December 2025)】
| Industry Category | Market Value (NT$) | Investment Allocation (%) | Financed Emissions (tCO₂e) |
|---|---|---|---|
| Non-high-carbon-emitting industries | 173,236,088 | 100% | 0.252 |
| Total | 173,236,088 | 100% | 0.252 |
Capital Futures evaluates scenarios based on the NGFS framework, including seven related climate change scenarios such as orderly transition, disorderly transition, and uncontrolled warming, as shown in the table below.
【Transition Risk Scenario Assumptions】
| Scenario Category | Carbon Price in 2030* | Carbon Price in 2050 | |
|---|---|---|---|
| Orderly | Scenario 1.Net Zero 2050 | USD 115.42 /tCO₂ | USD 1062.46 /tCO₂ |
| Scenario 2.Below 2°C | USD 73.39 /tCO₂ | USD 354.9 /tCO₂ | |
| Scenario 3. Low Demand | USD 107.91 /tCO₂ | USD 1027.7 /tCO₂ | |
| Disorderly | Scenario 4.Delayed transition | USD 0 /tCO₂ | USD 388.72 /tCO₂ |
| Hot house world | Scenario 5.Nationally Determined Contributions (NDCs) | USD 10.35 /tCO₂ | USD 70.21 /tCO₂ |
| Scenario 6.Current Policies | USD 0 /tCO₂ | USD 0 /tCO₂ | |
| Too-little-too-late | Scenario 7.Fragmented World | USD 2.95 /tCO₂ | USD 5.95 /tCO₂ |
*Note: Carbon price assumptions are based on the scenario parameters published in NGFS Phase 5, using the 1.a GCAM6.0 + NGFS: Energy Demand and CO₂ Emissions model for Taiwan's projected carbon prices in 2030 and 2050.
【Transition Risk Scenario Analysis Results】
| Scenario | 2030 | 2050 |
|---|---|---|
|
Scenario 1: Net Zero 2050 Low-emissions scenario (approximately 1.4°C warming) |
Net assets decrease by approximately 0.0000088% |
Net assets decrease by approximately 0.0000807% |
|
Scenario 2: Below 2°C Moderate-emissions scenario (approximately 1.8°C warming) |
Net assets decrease by approximately 0.0000056% |
Net assets decrease by approximately 0.000027% |
|
Scenario 3: Low Demand Low-emissions scenario (approximately 1.1°C warming) |
Net assets decrease by approximately 0.0000082% |
Net assets decrease by approximately 0.0000781% |
|
Scenario 4: Delayed Transition Moderate-emissions scenario (approximately 1.7°C warming) |
No reduction in net assets 0% |
Net assets decrease by approximately 0.0000239% |
|
Scenario 5: Nationally Determined Contributions (NDCs) High-emissions scenario (approximately 2.3°C warming) |
Net assets decrease by approximately 0.0000008% |
Net assets decrease by approximately 0.0000053% |
|
Scenario 6: Current Policies High-emissions scenario (above 3°C warming) |
No reduction in net assets 0% |
No reduction in net assets 0% |
|
Scenario 7: Fragmented World High-emissions scenario (above 2.4°C warming) |
Net assets decrease by approximately 0.0000002% |
Net assets decrease by approximately 0.0000005% |
The National Science and Technology Center for Disaster Reduction (NCDR) publishes the Climate Change Flood Risk Assessment and Climate Change Landslide Risk Assessment through the Dr.A Climate Change Adaptation Information Platform. These assessments simulate future flooding and landslide hazards at the township level and classify risk into five categories based on comparative analyses across Taiwan.
The physical risks faced by Capital Futures vary by operating location. Based on the hazard maps, the Company's operating sites were assessed for exposure to flood and landslide risks, with the following results.
【Flood Risk】
| Period | Level 5 | Level 4 | Level 3 | Level 2 | Level 1 |
|---|---|---|---|---|---|
| Baseline | 1 site | 0 | 0 | 3 site | 1 site |
| Future Projection | 1 site | 3 site | 1 site | 0 | 0 |
【Landslide Risk】
| Period | Level 5 | Level 4 | Level 3 | Level 2 | Level 1 |
|---|---|---|---|---|---|
| Baseline | 0 | 0 | 0 | 0 | 5 site |
| Future Projection | 0 | 0 | 0 | 1 site | 4 site |
In accordance with the Intergovernmental Panel on Climate Change (IPCC) framework, climate risk is defined as the combined effect of Hazard (H), Vulnerability (V), and Exposure (E).
• Hazard (H) refers to the degree of threat posed by climate-related or non-climate-related factors to the asset or subject being protected.
• Vulnerability (V) refers to the susceptibility of the asset or subject to potential damage or loss resulting from such hazards.
• Exposure (E) refers to the extent to which the asset or subject is exposed to the hazard across temporal and spatial dimensions.
Physical Risk Scenario
The assessment estimates the Expected Annual Loss (EAL) from flooding for each operating location under different Representative Concentration Pathway
(RCP) scenarios, where:<br> Risk (R) = Hazard (H) × Vulnerability (V) × Exposure (E)
| Scenario | Mid-Century (2041–2060) | End-of-Century (2081–2100) |
|---|---|---|
| RCP 2.6 | 0.26 | 0.27 |
| RCP 4.5 | 1.69 | 1.85 |
| RCP 6.0 | 0.05 | 12.96 |
| RCP 8.5 | 1.69 | 27.08 |
