Climate risk has become a significant challenge for companies’ sustainable development. The Task Force on Climate-related Financial Disclosures (TCFD) conducted two surveys on major global companies (2018, 2019) and has found that companies lack quantitative analysis of financial impact when implementing TCFD and are thus unable to provide sufficient information to investors. This study concentrating on Taiwan’s semiconductor industry, applies TCFD’s scenario analysis combined with hedge accounting methods to establish a set of quantitative assessment methods, and demonstrates how a company can quantify carbon risks and their impact on corporate finance. The results reveal that the internalization of carbon costs is the most important transition risk in the semiconductor industry. If companies can hedge carbon futures contracts, they can diminish financial and carbon risk. This study adopts an innovative research method that will help companies to implement TCFD and will serve as a useful resource for creating climate risk response strategies.