According to the Global Risk Report 2023 released by the World Economic Forum (WEF) in January 2023, the top two risks in the next decade are "Failure to mitigate climate change" and "Failure of climate-change adaptation." This highlights that climate change has become a common global risk, and taking action in response to climate change risks is crucial.

To strengthen climate resilience, following the strategies of SKFH and the introduction of TCFD framework, SKL established a climate governance mechanism (including governance, strategy, risk management, and metrics and targets). We identified climate-related risks and opportunities, and used scenario analysis to assess the potential financial impact of climate change on the Company, and further established management processes, developed climate strategies, and set relevant metrics and targets. Through the disclosure of relevant information according to the TCFD framework, we hope to explore opportunities for transformation.