TCFD Task Force on Climate-related Financial Disclosures
TCFD
We consider climate change to be a priority issue for sustainability management. In line with the framework of the Task Force on Climate-related Financial Disclosures (TCFD)*, we have comprehensively identified risks and opportunities that our business could be directly impacted by climate change. We also identified risks and opportunities that could indirectly affect our customers and supply chain and identified significant risks (including mitigation measures) and opportunities based on qualitative analysis and assessment of their impact. In the future, we will work to formulate specific action plans.
*For reference: TCFD official site（https://www.fsb-tcfd.org/）
Key Risks
| Risk Classification | Mitigation Measures Against Key Risks | Estimated Business and Financial Impact | ||
|---|---|---|---|---|
| 1.5°C/2°C Scenario*1 | 4°C Scenario*1 | |||
| Transition risks | Policies and regulations | Promoting initiatives to reduce CO2 emissions related to Scope 1 and 2*2 | Large | Medium |
| Markets | Improving procurement capacity for low-carbon products | Large | Medium | |
| Technology | Promoting development and strengthening sales of new technologies and eco-friendly products and services | Medium | Small | |
| Reputation | Reduce procurement costs by improving operational efficiency in digital transformation (DX) promotion, etc. | Large | Medium | |
| Physical risks | Acute | Strengthening supply chain management and improving responsiveness | Medium | Small |
| Chronic | Improving power generation efficiency | Medium | Small | |
Main Opportunities
| Classification of Opportunities | Main Opportunities | Estimated Business and Financial Impact | |
|---|---|---|---|
| 1.5°C/2°C Scenario*1 | 4°C Scenario*1 | ||
| Reputation | Growing market capitalization by being evaluated as an excellent company | Large | Medium |
| Resource efficiency | Expanding market opportunities associated with the increasing adoption of electrification, such as advanced driver-assistance systems (ADAS) and autonomous driving, etc. | Medium | Medium |
| Energy sources | Increasing opportunities to expand sales through assistance measures for renewable energy, etc. | Medium | Medium |
| Products and services | Expanding sales by providing energy-efficient (energy-saving, etc.) products and services, etc. | Medium | Medium |
| Resilience | Expanding sales of products and services through local infrastructure (e.g., smart cities) and disaster preparedness | Medium | Medium |
*1 The "1.5°C and 2°C Scenarios" recommended by the TCFD are scenarios that promote severe climate change measures, while the "4°C Scenario" is a scenario in which no measures are taken to combat global warming beyond the current level.
*2 Scope 1: Direct greenhouse gas emissions by our company
Scope 2: Indirect emissions from the use of electricity and the like supplied by other companies