Concerns on Climate Change is a reality for the Company
as climate is a factor that affects the day-to-day operations. Climate-relation risks such as energy shortage, natural disasters such as extreme typhoons and flooding, as well as occupational injuries and ill health due to gradual increase
in temperature have been identified as priority risks that the Company addresses through its Enterprise Risk Management (ERM) system and various environment programs described in previous sections.

Supported by the Audit and Board Risk Oversight Committee, Corporate Internal Audit, SVP for Legal and Compliance,
SVP for Operations, and SVP for Finance, the Board has the responsibility of supervising the overall risk management within the Company. This ensures that all risks are identified, measured, and managed effectively and continuously through the ERM system. It plans to consider additional measures for specific climate-related risk events within 2020.

The management is primarily responsible for overseeing
all risks to the Company and maintaining communication with the Board and stakeholders on the performance of its ERM system. Consequently, an ERM core team is assigned to help the management assess the effectiveness of the Company’s Risk Management System and, therefore, identify opportunities for improvement.

Using the established Risk Management Process, the Company regularly monitors current and emerging risks:

1. Assess
     1.1 Assess risk management framework
     1.2 Identify and prioritize risks
     1.3 Source and analyze risks

2. Improve
     2.1 Develop risk management strategies
     2.2 Develop risk management action plans

3. Monitor
     3.1 Develop risk monitoring process
     3.2 Develop risk reports