In light of the potential physical impacts and transition risks posed by climate change on business operations, MPI has adopted the Task Force on Climate-related Financial Disclosures (TCFD) framework as the foundation for establishing its climate risk management mechanism and adaptation strategies. The TCFD framework encompasses four key dimensions — governance, strategy, risk management, and metrics & targets — helping the Company systematically identify, assess, and respond to the potential financial impacts of climate change.
Since 2022, MPI has participated in the Carbon Disclosure Project (CDP) and, in 2025, was awarded a B rating for its disclosure performance. Moving forward, MPI will continue to enhance climate risk assessments, refine response strategies, and integrate more comprehensive risk management practices to ensure the sustainability of its supply chain.
| Risk Description | Level of Impact | Time Horizon | Potential Impact | Response Strategy | |||
|---|---|---|---|---|---|---|---|
| Risk | Transition Risk | Policies & Regulations | Gradual implementation of carbon fee and carbon tax schemes | Low | Short-term - Medium-term | Increased manufacturing costs and operating expenses | • Promote energy conservation and carbon reduction, conduct greenhouse gas inventories, and improve energy efficiency. |
| Technology | Rapid development of energy-efficient equipment and low-carbon processes | Medium | Medium-term | Existing equipment may require early replacement | • Continue investing in R&D and equipment upgrades. • Collaborate with experts from the Industrial Technology Research Institute (ITRI) and other professional organizations to implement energy-saving improvements for energy-intensive facility equipment. | ||
| Market | ESG becoming a criterion in procurement evaluations | High | Medium-term | Impact on new customer acquisition and bidding eligibility | • Establish ESG management and disclosure mechanisms. • Develop ESG implementation plans in advance to address customer audit and survey requirements. | ||
| Reputation | Insufficient ESG information disclosure | Medium | Short-term | Damage to brand image and decline in investor confidence | • Strengthen sustainability information disclosure and third-party verification. | ||
| Physical Risk | Immediate | Heavy rainfall / Flooding | High | Short-term | Equipment damage and logistics disruptions | • Install additional flood barriers and elevate critical machinery and facility equipment. | |
| Immediate | Power outages | High | Short-term | Production disruptions | • Continue installing UPS systems and backup power generation equipment for critical production lines. | ||
| Long-Term | Continued rise in average temperatures | Low | Medium-term | Increased energy consumption by air-conditioning systems and higher energy costs | • Improve air-conditioning efficiency and energy management. • Enhance ventilation and cooling for facility equipment vulnerable to high temperatures. | ||
| Long-Term | Increasing risk of water shortages | High | Medium-term- Long-term | Insufficient water supply for manufacturing processes, affecting production | • Reclaim treated wastewater and install process and domestic wastewater recycling facilities at new plants. • Establish contingency arrangements for backup water-tanker dispatch. | ||
| Long-Term | Rising water costs | Low | Long-term | Increased water costs | • Continue planning and promoting water conservation and water recycling systems. | ||
| Opportunity Description | Time Horizon | ||
|---|---|---|---|
| Opportunities | Resource Efficiency | By introducing high-efficiency production equipment, implementing intelligent energy management systems, and optimizing manufacturing processes, MPI can improve both energy and water utilization efficiency. These measures reduce per-unit product carbon emissions and resource consumption, ultimately lowering operational costs and enhancing production stability. | Short to Medium Term (1–3 years) |
| Renewable Energy | MPI is actively evaluating and progressively adopting renewable energy solutions, such as green electricity procurement and solar panel installations. These efforts not only align with global net-zero transition trends but also mitigate risks associated with traditional energy dependency, strengthening the stability of the Company’s power supply. | Medium to Long Term (3–5 years or more) | |
| Products and Services | In response to the growing global demand for low-carbon and energy-efficient products, MPI is accelerating the development of low-power consumption and energy-saving testing technologies. By expanding sustainable product portfolios and offering innovative solutions with enhanced ESG value, the company aims to capture emerging market opportunities. | Long Term (5 years or more) | |
| Market | With the rising awareness of ESG, companies with strong carbon management capabilities and proven green manufacturing practices are more likely to gain procurement and partnership opportunities. This strengthens MPI’s ability to expand its presence in sustainable supply chain markets and enhances international customer trust. | Medium Term (3 years) | |
| Resilience | By adopting the ISO 22301 Business Continuity Management System (BCMS) and proactively implementing climate risk adaptation measures — such as redundancy and backup mechanisms, emergency response drills, and recovery planning — MPI enhances its ability to minimize operational disruptions and maintain uninterrupted service within the supply chain. This provides a significant competitive advantage. | Short to Medium Term (1–3 years) | |