The overall effectiveness of carbon reduction in many countries has not met expectations, turning “climate change” into a “climate emergency”. Faced with the threat of extreme climate disasters, the earth is ushering in the 6th mass extinction, endangering the survival of human civilization, and also affecting the daily life of all people on the earth. Although the real estate brokerage industry is not a major producer of carbon emissions, Sinyi Realty chooses to focus on the impact of climate change, implement climate-related risk manage in compliance with the TCFD structure of “governance, strategy, risk management, and metrics and targets”, to reveal climate-related risk management to enhance climate resilience, promote sustainable business operations and integrate industry forces and all human power to resolve disasters caused by “climate emergency”.
Climate-related Risk and Opportunity in Compliance with the TCFD
- The Board of Directors, as the top management position with responsibility for climate-related issues, regards climate change as a material risk and manages climate-related risks and opportunities.
- The “Total Ethical Management Committee (TEM Committee)” is subordinate to the Board, setting up a cross-department subordinate of “Green Management Group”. Our Chief Strategy Officer is the principal of Green Management Group, and responsible for implementing environmental-related plans and regularly reporting to the Board of Directors.
- The Board of Directs regularly reviews ESG impact, performance and strategic goals. We follows “Crisis Management Operation Process” to immediately reduce operating threats caused by occasional climate events.
- Define time horizons: short-term: 1 year, medium-term: 1~10 years, long-term: 10~30 years
- Short-term: acute extreme weather events
- Medium-term: changing customer behavior, net zero commitment, uneven distribution of energy and resources, participating in global initiatives, renewable energy consumption, and low carbon service
- Long-term: chronic extreme weather events
- Analyze the financial and non-financial impacts and explore business opportunities, strategies and action plans.
- Apply two climate-related scenario analysis of “2DS+NDCs and RCP8.5” to analyze physical risks and transition risks.
In line with the Paris Agreement and the government’s carbon reduction path of “Net Zero by 2050”, Sinyi Realty has set 2030 GHG reduction goal and plans to purchase renewable energy, which is expected to increase the unit price of energy and the increased transaction cost of renewable energy will account for about 0.2% of total revenue.
The scenario involves an annual temperature increase of 1.62°C and an annual precipitation increase of 75.74 mm/day. Sinyi predicts that it will cause approximately 5.4% increase in electricity consumption by air-conditioning devices by 2030, accounting for approximately 0.24% of the total revenue.
3. Risk Management
- In response to possible climate-related physical risks and transition risks, we reassess the climate-related impact every year, explore business opportunities, strategies and action plans in a systematic way.
- The Board of Directors is responsible for reviewing the annual risk management report and audit report to ensure the effective implementation of the climate-related risk management system.
- Based on the risk severity and occurrence probability, we identified the types of high impacts of climate-related risk as “transition risk-low carbon service”, “net zero commitment”, and “renewable energy consumption”; the types of medium-high impacts as “customer behavior change”, “extreme weather events- floods, heavy rainfall”, and “external initiatives”; the types of low impacts as “extreme weather events-drought” and “uneven distribution of energy and resources”.
4. Metrics and Targets
In response to the opportunity for transformation arising from this “Climate Emergency”, Sinyi Realty expects to influence its customers to move towards a low-carbon green economics to mitigate climate impact. We propose green management strategies and goals, launch and promote green projects, and evaluate performance through annual audits to achieve sustainability.
5. Action Plan
To enhance our climate resilience in face with the challenges and impact brought on by the “Climate Emergency”, Sinyi Realty has established natural a disaster response mechanism which proposes sustainability principles and strategies, implement relevant action plans, in the hope to fulfill our responsibility as part of the global community in protecting the Earth’s ecology.
- Conduct organizational environmental related audits annually
- Promote carbon neutrality branch project
- Use renewable energy since 2021
- Annual audit of carbon footprint to realize reduction commitment
- Connect online-offline info and optimize service app-tools, reduce carbon emissions from transportation
- Innovate green digital tools to reduce paper usage for marketing and contract documentation
- Respond to international initiatives (CDP, TCFD, SBTi, Net Zero X 2030/2050 initiative, Earth Hour)
- Invite supplier and village chiefs with Sinyi to participate in organizing green community activities for community residents
- Launch circular economy – lending services