Analyzing Operational Risks and Response Strategies of Qisda Corporation Using Nature-Related Financial Disclosures and Climate Change Scenarios

The growth of population and economic development led to the rapid development of corporation. However, being the benefactor of ecosystem service, directly or indirectly, if the corporations fail to acknowledge the inevitable impacts of business activities on the natural environment, it could lead to the ongoing degradation of natural ecosystems, which is detrimental to environmental sustainability. Therefore, it is essential for corporations to assess nature-related risks.

This study took Qisda Corporation as case, employed the framework of the Taskforce on Nature-related Financial Disclosures (TNFD) in tandem with the biodiversity questionnaire to locate, evaluate and assess risks in order to determine material risks faced by the corporation. These material risks were subsequently analyzed under different climate change scenarios introduced by the Intergovernmental Panel on Climate Change (IPCC). The variations of risk severity were examined under the scenarios of SSP1-2.6, SSP2-4.5, and SSP5-8.5.

The results indicated that Qisda would encounter the most severe climate adaptation challenges under the SSP5-8.5 scenario, while the SSP1-2.6 scenario represents the most optimistic outlook. In response, Qisda implemented biodiversity and no-deforestation policies as well as conducting biodiversity assessments. By examining corporate operational strategies, this study aims to inspire corporations to act proactively, integrate the industry value chain, and establish comprehensive measures and mechanisms to address climate change and preserve biodiversity. In addition, the results of this study can serve as an empirical foundation for corporate biodiversity risk management and provide reference material for sustainable development efforts.

Key Words: Sustainable development, Scenario analysis, Climate change, TNFD, Corporation risk management