To comprehensively understand the impact of climate change on the company, momo, in 2024, followed the Task Force on Climate-related Financial Disclosures (TCFD) framework issued by the Financial Stability Board. The company re-identified potential climate risks and opportunities within the retail value chain. Referring to reports regularly published by the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC), three climate scenarios were selected for simulation analysis of climate-related risks and opportunities : the 2050 Net Zero Emissions (NZE) scenario, SSP 1-2.6, and SSP 5-8.5. The analysis identified possible impacts of climate change on company operations, related risks, and opportunities. After assessing and determining these risks, the company resolved on corresponding response measures and management approaches. To effectively grasp the climate risks and opportunities in the retail industry, momo initiates an identification process every two years. In the third quarter of 2025, the second bilingual (Chinese-English) "Task Force on Climate-related Financial Disclosures (TCFD)" report will be publicly released. The report includes detailed explanations of various indicators and targets, as well as assessments of financial impacts. Please refer to the momo 2024 TCFD report for comprehensive information.
Climate Risk and Opportunity Identification Results
momo has identified a total of 14 climate risks, comprising 9 transition risks and 5 physical risks, as well as 5 opportunities. In the materiality ranking of climate change risk issues, the top four issues are all transition risks, including : "Self-built Zero carbon buildings" , "Renewable energy upgrades" , "Electric vehicles in place of fossil-fuel vehicles", and "Replacing leased buildings with Zero carbon buildings" . Since momo has identified the impact of extreme climate conditions on company operations as a major operational risk, it has also included the physical risk issue "Increased operating costs due to extreme weather conditions" along with up to four major transition risk issues as significant climate risks. This approach enables the identification of impacts and the detailed formulation of response measures and action plans. Additionally, the climate opportunity issues identified by momo, based on the materiality ranking results, include "Zero carbon Warehousing". In response to the consumer trend favoring green products, "Rising green consumption awareness" has also been incorporated as a significant climate opportunity. momo has further identified the impacts related to significant climate risks and opportunities, and has developed detailed response measures and action plans, continuously advancing towards the goal of transforming into a green e-commerce platform.
