Response to the TCFD recommendation
We have comprehensively identified and analyzed the physical and transition risks arising from climate change issues. We are promoting responses to avoid those risks and take those opportunities, and we are strategically addressing climate change while enhancing our resilience as a company.
Support for the TCFD recommendations
Governance
Climate-related risks and opportunities are discussed by the Sustainability Committee.
The Sustainability Committee, chaired by the President & Representative Director of Board and Chief Executive Officer, and attended by full-time Directors of the Board and Corporate officers, identifies climate-related risks and opportunities, analyzes their impact when they emerge, and examines measures to address them. The results are reported to the Board of Directors.
Risks that may have a significant impact on business operations, including climate change, are reviewed, and discussed by the Sustainability Committee and the Risk Management and Compliance Committee, and reported to the Board of Directors.
Strategy（Scenario Analysis）
We conducted scenario analyses for the years 2030 and 2050, assuming two different temperature ranges of 2°C or less and 4°C or more as future temperature rise scenarios. The materiality assessment and financial impact analysis are conducted with reference to scenarios disclosed by government agencies and research institutes shown in the table below.
| Scenario Overview | Reference Scenarios | |
|---|---|---|
| 2°C or less scenario | A scenario in which more stricter climate change measures than the status quo are taken and global average temperature increase is limited to less than 2°C. | RCP2.6 by IPCC NZE2050、SDS4℃ by IEA |
| 4°C scenario | Scenario in which no climate change measures are taken beyond the status quo and the global average temperature rises by about 4°C | RCP8.5 by IPCC |
List of identified climate-related risks/opportunities and severity assessment
Risk Management
Under the Sustainability Committee, we are identifying climate-related risks and opportunities arising from climate change. For identified risks, we carry out company-wide risk management, including planning risk countermeasures centered on the Sustainability Committee and Risk Management/Compliance Committee. We also plan to monitor the implementation status and effects of the measures.
Metrics and Targets
Our Scope 1,2,3 emissions are an indicator of the impact of climate-related risks and opportunities. We are working to reduce our Scope 1 and 2 emissions in order to mitigate their impact. We recognize the importance of understanding Scope 3 emissions in the future and setting specific reduction targets.