Climate Change Information
By providing a globally recognized framework, PCAF fosters consensus in the financial industry on contributions and progress in climate action. As data quality improves, this tool will become increasingly useful for exploring the impact of financial activities on the climate. According to the asset categories and methodologies defined by PCAF, Capital Futures conducts carbon accounting for its related investments. The total financial carbon emissions amount to 840.77 metric tons of CO2 equivalent (tCO2e), with an overall data quality score of 1.08 (with 1 being the best and 5 being the worst).
Capital Futures evaluates scenarios based on the NGFS framework, including six related climate change scenarios such as orderly transition, disorderly transition, and uncontrolled warming, as shown in the table below.
【Explanation of Scenario Analysis for Transition Risk】
| Scenario | 2030 Carbon Price | 2050 Carbon Price | |
|---|---|---|---|
| Orderly Transition | Scenario 1.Net Zero 2050 | $ 95.48 per ton | $ 563.37 per ton |
| Scenario 2.Below 2°C | $ 64.33 per ton | $ 248.05 per ton | |
| Disorderly Transition | Scenario 3.Divergent Net Zero | $ 231.14 per ton | $ 958.04 per ton |
| Scenario 4.Delayed transition | $ 0 per ton | $ 388.72 per ton | |
| Uncontrolled Global Warming | Scenario 5.Nationally Determined Contributions (NDCs) | $ 0.41 per ton | $ 0.41 per ton |
| Scenario 6.Current Policies | $ 0 per ton | $ 0 per ton | |
【Results of Scenario Analysis for Transition Risk】
| Scenario | 2030 | 2050 |
|---|---|---|
|
【Scenario 1】 2050 Net-Zero Carbon Emissions Low Emission Scenario, Temperature Increase of Approximately 1.4°C |
Decrease in Net Worth of Approximately 0.0344% |
Decrease in Net Worth of Approximately 0.2027% |
|
【Scenario 2】 Temperature Increase Below 2°C Moderate Emission Scenario, Temperature Increase of Approximately 1.6°C |
Decrease in Net Worth of Approximately 0.0232% |
Decrease in Net Worth of Approximately 0.0893% |
|
【Scenario 3】 Disorderly Achievement of Net-Zero Carbon Emissions Low Emission Scenario, Temperature Increase of Approximately 1.4°C |
Decrease in Net Worth of Approximately 0.0832% |
Decrease in Net Worth of Approximately 0.3448% |
|
【Scenario 4】 Delayed Transition Moderate Emission Scenario, Temperature Increase of Approximately 1.6°C |
Decrease in Net Worth 0% |
Decrease in Net Worth of Approximately 0.1399% |
|
【Scenario 5】 Nationally Determined Contributions (NDCs) High Emission Scenario, Temperature Increase of Approximately 2.6°C |
Decrease in Net Worth of Approximately 0.0001% |
Decrease in Net Worth of Approximately 0.0001% |
|
【Scenario 6】 Policy Stays the Same High Emission Scenario, Temperature Increase of More Than 3°C |
Decrease in Net Worth 0% |
Decrease in Net Worth 0% |
The National Center for Disaster Reduction (NCDR) has published the results of "Climate Change Flood Disaster Risk Assessment" and "Climate Change Landslide Disaster Risk Assessment" on the Dr.A Climate Change Disaster Risk Adaptation Platform. These results are mapped by administrative units of towns, townships, cities, and districts, simulating and forecasting flooding and landslide disasters. The entire Taiwan is analyzed into five risk levels. Capital Futures, affected by physical risks, will experience varying impacts depending on the location of individual operational sites. Based on the risk levels classified in the disaster risk maps, each operational site is assessed for its exposure to flooding and landslide disasters. The statistics are as follows:
【Flooding】
| Time Point | Level 5 | Level 4 | Level 3 | Level 2 | Level 1 |
|---|---|---|---|---|---|
| Base Period | 1 Area | 0 | 0 | 3 Area | 1 Area |
| Future Projection Period | 1 Area | 3 Area | 1 Area | 0 | 0 |
【Landslide Disaster】
| Time Point | Level 5 | Level 4 | Level 3 | Level 2 | Level 1 |
|---|---|---|---|---|---|
| Base Period | 0 | 0 | 0 | 0 | 5 Area |
| Future Projection Period | 0 | 0 | 0 | 1 Area | 4 Area |
According to the climate risk definitions proposed by the IPCC, risk is composed of three factors: Hazard (H), Vulnerability (V), and Exposure (E). "Hazard" refers to the degree of threat posed by climate or non-climate factors to the object of protection (the target of risk assessment). "Vulnerability" refers to the extent to which the object of protection is susceptible to impacts and potential losses from the given hazard conditions. "Exposure" refers to the degree to which the object of protection is exposed to the threat of the hazard in terms of time and space.
期望年損失金額(R=H×V×E)
| Scenario | Mid-Century (2041-2060) | End of Century (2081-2100) |
|---|---|---|
| RCP 2.6 Flooding |
1.06 Ten Thousand Dollars | 0.16 Ten Thousand Dollars |
| RCP 4.5 Flooding |
0.18 Ten Thousand Dollars | 1.31 Ten Thousand Dollars |
| RCP 6.0 Flooding |
0.03 Ten Thousand Dollars | 1.03 Ten Thousand Dollars |
| RCP 8.5 Flooding |
9.60 Ten Thousand Dollars | 20.96 Ten Thousand Dollars |
