CSR activities in FY2021
Initiatives for TCFD Recommendations
In May 2021, we expressed our support of TCFD (Task Force on Climate-related Financial Disclosures) recommendations. We identify the risks and opportunities posed by climate change in our business and reflect them in our management strategies. We also disclose information based on TCFD recommendations. Through dialog with a wide range of stakeholders, the Group will further strengthen its efforts to address climate change and contribute to the sustainable development of society through its business activities.
Governance
The Group has established the Sustainability Committee as an organization to promote sustainability management, and has established a system to report its efforts to the Board of Directors as appropriate.
Strategy
We link the results of scenario analysis in line with TCFD recommendations to related materiality indicators and targets (Opportunity : reduce energy loss, Risk: respond to climate change), and develop them into business activities. In addition, we concentrate our R&D resources on areas that lead to "carbon neutrality (environmental impact reduction and decarbonization)" and the "pursuit of safety and comfort," and are accelerating our R&D activities for future growth.
Risk Management
Our financial condition, results of operations and cash flows could be impacted by extreme
weather conditions (such as operating or shutting down operations due to heavy rain, floods or
storms) associated with climate change (temperature increases), and by stricter environmental
regulations (such as increased procurement costs for raw materials and energy due to the
introduction of carbon taxes) in the countries and regions in which we operate.
Regarding the effects of climate change (temperature increases), the risks and opportunities
assumed based on the scenario in which the temperature rise during the 21st century is "4 ℃" and
"less than 1.5 ℃" are as follows.
■Outline of the future society assumed in scenario analysis
When the temperature rises by 4 ℃ (Physical) | When the temperature rises less than 1.5 ℃ (Transition) | |
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Future image of society |
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■Risks and opportunities
Classification | Anticipated risks and opportunities | Our countermeasures | |
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Risks | Physical | Downtime at our plants and within the supply chain due to extreme weather conditions (heavy rain, floods, storms) |
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Risk of heat stroke among employees at plants and such |
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Transition | Increase in procurement and operating costs due to carbon taxes, etc. |
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Opportunities | Physical | Increase in demand for solutions that are useful in preparing for natural disasters and in the event of disasters |
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Transition | Increase in demand for energy saving in mechanical devices |
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Spread of wind power generation equipment |
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Spread of hydrogen energy |
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Spread of EVs and electrified vehicles |
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Metrics and Targets
Among the materiality of the Group, the target of "respond to climate change" is "Achieve carbon neutrality by the fiscal year 2035 (by the fiscal year 2050 for the entire supply chain)." Also, we have newly set "50% reduction in CO2 emissions in business activities in the fiscal year 2030 compared to the fiscal year 2018" as KPIs (management indicators) for the fiscal year ending March 31, 2023 and beyond.