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3 Sustainability ensures Success Ambassador, Dr. Eugene Chien Chairman of Taiwan Institute for Sustainable Energy President of Center for Corporate Sustainability

4 I an Era of Great Transformation

5 Transforming our world: Paris Agreement and SDGs Paris Agreement ( ) SDGs ( ) 1.5 Celsius

6 II. The Paris Agreement is About to Change the Development of Civilization

Long-Term Goals for the Global Economy The Paris Agreement includes three overarching and interdependent long-term goals which set our direction towards a thriving clean economy through the rapid

7 Long-Term Goals for the Global Economy The Paris Agreement includes three overarching and interdependent long-term goals which set our direction towards a thriving clean economy through the rapid deployment of low or emissions-neutral technologies. Temperature Goal To hold global warming well below 2 C above preindustrial levels, and to pursue a stretch target of 1.5 C Financial Goal To direct global finance flows towards low greenhouse gas and climateresilient investment Resilience Goal To increase the resilience of communities and businesses to the impacts of climate change Source:The Paris Agreement: What It Means for Business

8 Climate Risks to Business Businesses face many different types of climate-related risks: 1 4 Physical and Operational Risk Financial Risk The risk to facilities, manufacturing, supplies, and workforce from climate impacts such as extreme weather events. The risk of financial loss due to climate impacts. 2 5 Input Risk The risk of reduced availability of natural resources and raw materials, including water, materials, minerals, and commodities 3 6 Market Risk The risk of changed market demand, which could include stranded assets. Reputational Risk The risk of failing to deliver on the expectations of key stakeholders including investors. Regulatory Risk The impact of increasingly stringent climate policies that result from a rising price on high carbon sources of energy and carbon-intensive activities. Source:The Paris Agreement: What It Means for Business

9 Plans to Ban Petrol and Diesel Vehicles Country Date of Issue Deadline Content of ban Current Status Holland Ban on sale of petrol and diesel vehicles Proposed Norway Ban on sale of petrol and diesel vehicles Germany Ban on the sale of traditional internal combustion engine vehicles Awaiting final decision Decided India Ban on sale of petrol and diesel vehicles Planned France Ban on sale of petrol and diesel vehicles Decided UK Ban on sale of petrol and diesel vehicles Decided Source: Zhang Chun, 2017/09/12. China Considers end to petrol and diesel cars, China Dialogue, < China-considers-end-to-petrol-and-diesel-cars/en> (Last visited 09/19/2017)

10 Phasing Out the Use of Coal-fired Plants Country Deadline Country Deadline Belgium 2016 Canada 2030 France 2023 Finland 2030 Portugal 2025 Netherland 2030 Ireland 2025 Australia 2030 Austria 2025 Demark 2050 Sweden 2025 Germany 2050 UK 2025 Saudi Arabia 2050 Source: Steve Weissmann & Rena Kokon, 2017/03. Phasing Out the Use of Fossil Fuels for the Generation of Electricity. San Diego, CA: Center for Sustainable Energy; Chris Littlecott, 2017/04. The Coal Phase Out Transition: Italy s Leadership Opportunity. Brussels: E3G; Dave Jones, Sandbag Kathrin Gutmann and Climate Action Network Europe, End of an Era: Why Every European Country Needs a Coal Phase-Out Plan? London & Brussels: Greenpeace and Climate Action Network Europe.

11 What is the industry s long term strategy towards international requirement to cut down carbon dioxide emissions leading up to the 2100 carbon neutral goal? Source: Shell

12 III. The Global Drive for Sustainability

13 Average company lifespan on S&P Index in years (rolling 7-year average)

14 S&P 500 Churn Over the past Decade Source: INNOSIGHT Executive Briefing Winter2012

15 Lower costs Sustainability factors are indicators of operating activity and competitive positioning Sustainability factors create operating efficiencies, support value creation and create brand equity Shared value = creates value inside and outside the company Modern way to manage all corporate resources tangible and intangible Energy use Water use Impact on environment Company productivity Supplier access and viability Employee skills Employee health Worker safety Quality and productivity Source: from Theory to Practice A Case Study in ESG Integration, SASB

16 Research from Harvard shows that highly sustainable companies outcompete and outperform Growth of 1 USD invested in an equally weighted portfolio of high sustainability firms vs. low sustainability firms $25 High sustainability Low sustainability $20 $15 $10 $5 $ Source: from Theory to Practice A Case Study in ESG Integration, SASB

17 Sustainability Vision and Ambition 90% respondents see sustainability as important, but 25% have development a positive business case.* Source: Corporate Sustainability at a Crossroads, BCG *This annual conclusion of sustainability research carried by MIT SMR & BCG. Respondents were executive directors and managers from a broad mix of industries, 118 countries, and totaled over 60,000 respondents (18,733 respondents from commercial enterprises.)

18 Organizations with Sustainability Strategies by Industry High regulated industries such as energy and utilities are most likely to have a sustainability strategy Source: Corporate Sustainability at a Crossroads, BCG

19 Organizations with Sustainability Strategies by Region Companies in Northern America are less likely to have sustainability strategies Source: Corporate Sustainability at a Crossroads, BCG

20 IV. The Challenges and Opportunities of SDGs to Enterprises

21 2015 UN s Sustainable Development Goals

22 The Implications of the SDGs Across 4 Key Pillars Source: CEO Guide to the SDGs - WBCSD

23 Global Brands and their Demands Toward the Value Chains The Commitment to bring 4 gigawatts of renewable power online by Gigaton Project : 1 billion tons carbon emission reduction by All offices use 100% renewable energy

US$12 trillion a year in business saving and revenue by 2030 60 biggest market opportunities related to

24 US$12 trillion a year in business saving and revenue by biggest market opportunities related to delivering the Global Goals Creating more than 380 million jobs Source: Better Business, Better World BSDC, Jan. 2017

25 33 Business for the Global Goals Affordable housing Building resilient cities Circular models automotive Carbon capture and storage Energy efficiency buildings Municipal water leakage Expansion of renewables Energy access Electric and hybrid vehicles Cultural tourism Circular models - appliances Green chemicals Public transport in urban areas Smart metering Circular models - electronics Additive manufacturing Car sharing Road safety equipment Water and sanitation infrastructure Office sharing Energy efficiency non-energy intensive industries Energy storage systems Local content in extractives Shared infrastructure Autonomous vehicles ICE vehicle fuel efficiency Timber buildings Durable and modular buildings Resource recovery End-use steel efficiency Mine rehabilitation Grid interconnection Source: Better Business, Better World BSDC, Jan Energy efficiency energy intensive industries

26 What do the SDGs matter for business Identifying future business opportunities Enhancing the value of corporate sustainability Strengthening stakeholder relations and keeping the pace with policy developments Stabilizing societies and markets Using a common language and shared purpose Source:SDG Compass, The grade for Business action on the SDGs

27 V. Sustainability and Supply Chain Security

Engagement Source: Supply Chain Sustainability - A Practical

28 The three principles for successful supply chain sustainability management Governance Supply Chain Sustainability Transparency Engagement Source: Supply Chain Sustainability - A Practical Guide for Continuous Improvement, 2015, BSR and UN Global Compact 28

29 In Action: Mapping the SDGs Against the Value Chain Increasing Positive Impact Value Chain Raw materials Suppliers Inbound logistics Company operations Distribution Product use Product end life Minimizing Negative Impact Source: The guide for business action on the SDGs - SDG Compass

30 The SDGs and COP21: The adoption and impact of business Q. Which SDGs are you engaging in? Top5 SDGs that companies are engaging in 27% 24% 60% 48% 49% 44% 49% 58% 53% 28% 47% 57% 62% 17% 25% SDG 13: Climate action SDG 3: Good health and well being SDG 8: Decent work and economic growth SDG 12: Responsible consumption and production SDG 9: Industry, innovation and infrastructure 62% 60% 58% 57% 53% 20% 49% Source: The Responsible Business Trends Report 2017 Ethical Corporation

31 The SDGs and COP 21: The adoption and impact of business Q. Which SDGs are you engaging in? North America Europe Asia / Pacific Source: The Responsible Business Trends Report 2017 Ethical Corporation

Sustainability is in the Centre of Our Corporate Strategy We See this as a Competitive Advantage for Our Business and Want to Become The Benchmark in Our

32 Sustainability is in the Centre of Our Corporate Strategy We See this as a Competitive Advantage for Our Business and Want to Become The Benchmark in Our Industry.* Source: The Responsible Business Trends Report 2017, Ethical Corporation *This annual report features feedback and insights from 2428 business professionals.

33 Q. Does Sustainability Drive Savings for Business? (Corporate/Brand Responses only) Source: The Responsible Business Trends Report 2017, Ethical Corporation

34 VI. TAIWAN'S ARISING CORPORATE SUSTAINABLE DEVELOPMENT

35 TCSA Recognize Taiwan Corporations Sustainable Development The Taiwan Institute for Sustainable Energy founded the Taiwan Corporate Sustainability Awards (TCSA) in 2008, to recognize outstanding corporate sustainability reportage and efficacious corporate sustainability modalities, while encouraging realization of corporate sustainable development. Participating corporate entrants in the TCSA have grown from the initial cohort of 16 firms in 2008, the total of 208 organizations over the past decade, representing a combined corporate income of 83% of Taiwan s 2016 GDP.

36 Taiwan Corporate Sustainability Awards Corporate Comprehensive Performance Growth through Innovation Awards Creativity in Communicati on Awards Social Inclusion Award Supply Chain Leadership Awards Transparency and Integrity Awards People Developme nt Awards Sustainable Water Management Awards Climate Leadership Awards Circular Economy Leadership Awards Corporate Sustainability Report

Center for Corporate Sustainability (CCS) Taiwan s Most Influential Corporate Sustainability Leaders 249 Events Conducted for 18,581 Attendees in Period of 26

Apart from 13 members that were not evaluated, CCS is proud to have 30 members that are listed as top 50% companies and 14 members are listed top 5% companies.

37 Center for Corporate Sustainability (CCS) Taiwan s Most Influential Corporate Sustainability Leaders 249 Events Conducted for 18,581 Attendees in Period of 26 Months With a total of 43 corporate members, their overall revenue exceeded USD$260 billion, representing over half of the Taiwan GDP in Apart from 13 members that were not evaluated, CCS is proud to have 30 members that are listed as top 50% companies and 14 members are listed top 5% companies. 8 and 14 CCS members are recongnized by 2017 Dow Jones Sustainability Indices(DJSI) World and Emerging Market respectively. Alliance for Sustainable Development Goals will be launched soon.

38 In 2017 Taiwan ESG Information Disclosure Advanced to Second Worldwide Bloomberg: ESG DISCLOSURE SCORE & COVERAGE STATISTICS (May, 2017) 1 France 2 Taiwan 3 Spain 4 Switzerlan 5 Germany 6 UK 12 Japan 15 USA 17 South 18 Singapor 22 Hong 23 China 10 and 17 Taiwan Companies are recongnized by 2017 Dow Jones Sustainability Indices (DJSI) World and Emerging Market respectively 2017DJSI World Index-Country Ranking 1 USA 2 UK 3 Japan 4 France 5 South 6 Germany 7 Australia 8 Netherlands 9 Spain 10 Switzerland 11 Taiwan 12 Canada 13 Finland 14 Others 2017DJSI Emerging Index-Country Ranking 1 Taiwan 1 Thailand 3 India 4 Brazil 4 Columbia 6 South 7 Chile 8 Mexico 9 China 10 Turkey 11 Greece 11 Malaysia 11 Philippines 11 UAE Source: BLOOMBERG (2017) DJSI (2017)

39 VII. 7 Key Recommendations for Business Leaders

40 KEY 1 Incorporate the SDGs into company strategy Inside Out Approach Outside in Approach SDGs COMBINED IMPACT OF CURRENT BUSINESS GOALS Performance Gap SDGs Global and Societal Needs SDGs SDGs Source:WBCSD SDG Compass, 2015

41 KEY 2 To be a driver of innovation and technological development and a key engine of economic growth and employment Technological Development Innovation Economic Growth and Employment

42 KEY 3 Drive the Transformation to Sustainable markets Source: Better Business, Better World BSDC

KEY 4 Take urgent action to combat climate change Proportion of operational and supply chain greenhouse gas emissions by sector Source: (1)STEEL S

43 KEY 4 Take urgent action to combat climate change Proportion of operational and supply chain greenhouse gas emissions by sector Source: (1)STEEL S CONTRIBUTION TO A LOW CARBON FUTURE AND CLIMATE RESILIENT SOCIETIES, World Steel (2)STEEL- THE PERMANENT MATERIAL IN THE CIRCULAR ECONOMY, World Steel

44 Environmental Responsibility at Apple To ask less of the planet, we re asking more of ourselves 1. Can we power a global business with the sun, wind, and water? 2. Can we get 100 percent of our supply chain to move to 100 percent renewable energy? 3. Can we one day stop mining the earth altogether? 4. Can we use only 100 percent recycled and responsibility sourced paper in our packaging 5. Can we improve on the world s best materials? Source:2017 Apple: ERS

45 Taiwan Institute for Sustainable Energy Thank you!

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