Climate Change 

Climate Change Adaptation

The Financial Stability Board established the Task Force on Climate-related Financial Disclosures (TCFD) in 2015 to develop recommendations for more effective climate-related disclosures, which enable stakeholders to better understand the financial system's exposures to climate-related risks. An-Shin follows the recommendations of the climate-related financial disclosure report published by TCFD, which includes governance, strategy, risk management, and metrics and targets.

The actual and potential impacts of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning.

Metrics and Targets

The metrics and targets used to assess and manage relevant climate-related risks and opportunities.

Core Elements of Recommended Climate-Related Financial Disclosures


The organization's governance around climate-related risks and opportunities.


Risk Management

The processes used by the organization to identify, assess , and manage climate-related risks.

Climate Change Governance

According to the Global Risk Report 2020 published by the World Economy Forum (WEF), the top 5 most concerned risks over the course of the next 10 years are environmental-related. This was also the first time in the 15-year history of the Global Risks Report, which climate-related risks, including extreme climate, climate action failure, threats to biodiversity, and etc. becoming the focus topics instead of economic issues. Despite the COVID-19 crisis, the climate change issues are gaining more and more attention. An-Shin established CSR Committee in 2014 which is responsible for the CSR related affairs within the company. The committee currently consists of five directors, including 1 independent director, and the independent director serves as the convener and chairman of the meeting which was held at least 2 times per year.

Climate Change Risk Management

In response to the potential risks of climate change and energy supply, An-Shin implements energy-saving and water-saving related projects from economic, environmental and social aspects. We contributes to sustainability by developing vegetarian products and offering low carbon services. An-Shin follows the recommendations of the climate-related financial disclosure report published by TCFD since 2019, and starts to collect, identify, and evaluate the financial impacts of climate change to reduce risks and discover opportunities.

Climate Change Risk Matrix Analysis



Climate Change Strategy

At the Paris Conference in 2015, nearly 200 countries adopted the goal to hold global average temperature increase to "well below 2° C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels". The Inter-governmental Panel on Climate Change (IPCC) published a special report in 2018 on the impacts of global warming of 1.5 ° C above pre-industrial levels and related global green-house gas emission pathways, and emphasized how a 0.5 ° C rise will affect the lives of millions of people. The European Commission announced the European Green Deal in 2019 and boosted the engagement of countries to achieve net-zero emissions in 2020.An-Shin follows the IPCC Assessment Report 5 (AR5), defines the future warming scenario by Representative Concentration Pathways (RCPs) and selects the RCP2.6 and RCP8.5 warming scenarios. 

Dilemma between Entity Level Risks and Transformatoin Risk:

Type Scenario  Description  End of 21st century  Emission control
Global warming leads to entity level risks

Low carbon economy leads to transformation risks
(High-emissions scenario)
  • Extreme weather may cause negative effects to stores and production areas, including floods caused by typhoons or heavy rains, landslides and coastal hazards, which gradually become normal phenomena. 
(Warming reaches 4°C 
above pre-industrial 
High emissions
(Mitigation scenarios)
  • Climate change leads to uneven distribution of rainfall, which may increase the frequency and intensity of droughts, causes water scarcity which in turns restricts the available water for farmland, and eventually leads to land fallowing.
  • Climate change also causes uneven temperature distribution, which may affect the stability and quality of agricultural products supply.
(Limit the temperature 
increase to 1.5℃ above 
pre-industrial levels)
Low emissions
The impacts of climate change on strategy, operations, and financial planning
Type Type Type Description Type of Impact  Potential Financial Impacts for An-Shin
Risk​ Transformation Policies and regulations
  • Set up regulations by charging a certain amount on greenhouse gas emissions, which can cause the increase of operating costs.
Increase in Operating Expenses
  • The implementation of Taiwan Greenhouse Gas Reduction and Management Act which imposes tax on industries can increase NT$ 5,698 thousand of operating costs.
  • Fine imposed for violating air pollution control act caused by cooking emissions, which can cause the increase of operating costs.
Increase in Operating Expenses
  • Fine imposed for violating air pollution control act caused by cooking emissions can reach up to NT$ 100-1000 thousand.
  • Some of the stores still using gasoline motorcycle for delivery, and An-Shin is gradually replacing themwith electric motorcycles. 
Decrease in Demand
  • Using electric motorcycle for all delivery service is estimated to raise the operating cost by NT$ 1,563 thousand.
  • Invest in smart farm, food factory, and response to the impacts of climate change. However, there are some potential losses on investment due to errors in positioning, investment targets, or some technical bottlenecks.
Early Scrapping of Assets
  • Competitiveness of smart farm, food factory, etc. may be affected by the market price, which can result in higher costs and lower profit.
  • Customers/shareholders/media’ s negative responses and comments on products or services due to the rising awareness of sustainability. 
Decline in Oper-
ating Profit
  • Negative response and comments may cause the decrease in demand and decline the revenue by 0.39-0.48%. 
  • The adaptation of environmentally friendly ingredients, for example, replacing all the CNS eggs to free-range egg is estimated to raise the cost by NT$ 14,700 thousand. 
  • Increased maintenance fee for the infrastructures or systems, and their malfunctioning may completely stop the operation of stores, which leads to declining revenue. Besides, the logistics and supply chains also face difficulties as a result of system malfunctioning. 
Decline in Operating Profit
  • Heavy rain for a short period of time will cause ​flooding that damages equipment and accelerates asset depreciation. Besides, it will also increase the maintenance fee, stop the stores from operating, and reduce the operating income by 0.095-0.103%.
  • Frequent rainfall and low-lying areas are more likely to experience severe flooding, which causes difficulties in store operations.
Early Scrapping 
of Assets
  • Changing rainfall patterns lead to frequent rainfall and low-lying areas are more likely to experience severe flooding, which will cause the earlier scrapping of assets.
  • Climate risk in agriculture, including floods caused by typhoons or heavy rains, landslides and coastal hazards, which will gradually become normal phenomena.
  • Uneven distribution of rainfall may increase the frequency and intensity of droughts, and causes water scarcity which in turns restricts the available water for farmland, and eventually affects the stability and quality of agricultural products supply.
Increase in Oper-
ating Expenses
  • An increase in average temperature will increase the cost of electricity consumption (air-conditioning in stores), which leads to the increase of operating expenses, and the company may need to invest more in changing the business model.





Types of Impact 

Potential Financial Impacts for An-shin



Product and Service

  • The rising food delivery service and changes in consumer habits have led to declining revenue.

Increase in Market Demand

  • On-demand food delivery services are gearing up to become bigger as consumer demand for these services rises. The penetration rate of food delivery service is 1.6%, which means a highly revenue growth potential.


Resource Efficiency

  • Improve work environment safety, employee satisfaction, reduce the loss rate of food ingredients, increase production capacity and income.

  • The increase in waste disposal costs has led to higher operating costs.

Increase in Production Capacity

  • Upgrade the kitchen equipment and pass part of the food processing to the central kitchen (food processing factory) for unified processing and  distribution. The logistics adopts electrical vehicles to improve production capacity and reduce operating expenses.

  • Use indirect food contact food packaging that is made of recycled materials to reduce the extraction of primary resources. 

Increase in Operating Expenses

  • Use paper towels, trays, decoration materials, and dining tables and chairs that are made of recycled materials to enhance brand and consumer identity, and further drive the operating income.

  • Improve the energy and water efficiency in existing stores such as using LED lights, sensor lights, inverter air conditioner, and water-saving toilet and faucet. For the newly open stores, the energy and water efficiency are directly considered in designs.

Increase in Asset Value

  • Fully equip the stores with LED lights, use sensors lights in areas such as toilet or aisles, and replace the normal air conditioners with inverter air conditioners. Besides, replace the traditional toilets and hand-washing stations with water-saving equipments. 

Energy Source

  • Support local agriculture and fisheries to enhance brand image and promote the products. 

Increase in Market Demand

  • Collaborated with city government to launch new product which uses local ingredients such as the Dragon Tiger Grouper Rice Burger with Salted Egg Yolk Sauce, which successfully increased the income by NT$ 13,346 thousand.

Product and Service

  • Reduce the development of beef products and replace by other meat products (chicken, fish). Besides, introduce new diets (plant-based) to reduce negative impacts of climate change.

Increase in Market Demand

  • Introduce vegetarian diets (plan-based meat) or low-carbon diets (chicken, fish), the estimated increase of income for each new product is NT$ 20,000 thousand.


  • Launch new products (low-carbon, vegetarian) to meet the market needs and increase the income, and eventually copy the business model to the global markets.

Develop New Markets

  • Launched MOS Burger with Beyond Meat and oat milk drinks according to the market needs, and promote them to the MOS Burger in Australia and 

    Mainland China to increase brand awareness and income.

  • Promote local agricultural products and equipment renewal in response to the government policies, and apply for the related subsidies.

Increase in Capital

  • Engage in climate change related projects initiated by the government, include the renewal of equipment and apply for the related subsidies. The subsidies total/increase in capital of NT$ 1,200 thousand was received.


  • Increase the number of suppliers to ensure supply chain stability (quantity and quality).

Stable supply chain

Sign contracts with farmers or use imported products for some of the agricultural products to maintain the stability of supply chain, control operating costs, and minimize the procurement risks.

Targets and Indicators of Climatic Change

Aside from improving energy efficiency and investing in An-Shin Smart Farm, An-Shin plans for the scope 1 and 3 of carbon emissions to effectively manage the impacts of climate change and opportunities. We hope to increase our flexibility to face climate change chal-lenges and able to drive the industry innovation.  


Performance Indicators  

2020 Goals

 2020 Action Plans

2020 Results

Mid- to Long Term Goals

Energy Efficiency

Sales intensity<7.45 kW/thousand NTD

  • Gradually replace the equipment with poor energy efficiency.

  • Failed to reach the goal with 7.83 kW/thousand NTD of sales intensity.

  • Replaced 287 indoor and outdoor equipment.

  • Continue to work on sales intensity

An-Shin Smart Farm

Launch new products using fresh produce from An-Shin Smart Farm

  • Develop and produce new varieties.

  • Develop berry crops.

  • Tested over 30 varieties.

  • Launched “MOS Burger with Beyond Meat” in June 2020 which used the butter lettuce produced by An-Shin Smart Farm. 

  • In July 2020, set up cultivation area for strawberry in An-Shin Smart Farm. 

  • Launched the "MOS Natsumi with Beyond Meat" in December 2020, which used the red oak lettuce produced by An-Shin Smart Farm, lettuce, tomato and Beyond Meat as ingredients.

Continueto develop and produce new varieties.