Based on the scenario assumptions from the Intergovernmental Panel on Climate Change (IPCC) SSP5-8.5 (representing a future with Nations
take NO Action to reduce GHG emissions and may be Unsustainable), NM's 10 facilities may experience a temperature increase of 1.6~2.4°C between 2040 and 2060. Hence, we need to be attentive to Floods (1 site), Extreme Heat (2 sites), and Drought (3 sites) risks. Additionally, due to global warming, the 2 sites currently facing Extreme Cold risks may experience reduced risk levels between 2040 and 2060. The selected risk explanation is as follows:
I. Floods:
Under the SSP5-8.5 scenario (2040~2060),
sea levels may rise by 30~60cms, and the
daily rainfall could increase by 6~13% at NM's 10 facilities.
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Sea Level Rise:
The lowest-altitude factory site among the ten locations is situated more than 100kms away from the coast, making the impact of sea
level rise a Mild-risk concern.
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Increased Rainfall:
A 13% increase in daily rainfall raises the flood risk at 1 NM site, with rainfall during the wettest month reaching 301 mm, up by 35 mm. Amidst a worst-case simulation (assumed disruptions in external transportation and government-declared work suspensions in towns in 2040~2060), the facility will experience work stoppages for 5, 10, or 15 days, resulting in maximum revenue impacts of 0.2%, 0.4%, and 0.6%, respectively. These impacts are considered Mild-risk, affecting revenue by ~NT$50mn, ~NT$100mn, and ~NT$160mn, respectively.
II. Extreme Heat:
Under the SSP5-8.5 scenario (2040-2060), the ≥ 35°C days at NM's 10 facilities may increase by 1.6~18.7 days.
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Increase in ≥ 35°C days:
2 sites of NM may increase of 18.7 and 6.1 days of Extreme Heat. Based on simulations by the International Labour Organization under the RCP2.6 scenario for 2030, there may be a loss of working hours amounting to 7.8% (at location A) and 0.5% (at location B). To account for worst-case simulation in the SSP5-8.5 scenario (2040~2060), we have adopted a 10% reduction in working hours at location A and a 5% reduction at location B due to Extreme Heat risks. In the event of such reductions, other facilities outside locations A and B will implement temporary scheduling and contingency measures, resulting in revenue impacts still considered Mild-risk.