SUSTAINABILITY
Support for the TCFD Recommendations
TCFD-Aligned Disclosures
In April 2022, we announced our endorsement of the TCFD recommendations. Recognizing climate change response as a critical management issue, we view the accelerating transition to a decarbonized society not only as a risk but also as an opportunity to enhance our corporate value over the medium to long term.
What is TCFD?
Our Commitment to Climate Action and Decarbonization
The Task Force on Climate-Related Financial Disclosures (TCFD) is an international framework that provides guidelines for companies to accurately assess and disclose climate-related risks and opportunities as financial information. Through these recommendations, companies are expected to manage climate-related impacts, capitalize on opportunities in the transition to a decarbonized society, and contribute to sustainable economic development.
In April 2022, our Group publicly declared our support for the TCFD recommendations. We recognize that responding to climate change is an important challenge for business. Understanding the rapid transition to a decarbonized society as not only a risk but also an opportunity, we will work to increase our corporate value over the medium to long term.
Four Strategic Initiatives Under TCFD Framework
Governance
Our Sustainability Committee oversees key ESG issues, including climate change initiatives, and reports directly to the Board of Directors. The committee ensures that climate-related risks and decarbonization progress are integrated into management decision-making.
Risk Management
We conduct risk awareness surveys for all department managers and heads of Group companies under company-wide internal controls. The identification and assessment of climate-related risks is integrated into risk management systems and managed by the Sustainability Promotion Subcommittee. This subcommittee reviews risk responses based on the survey results. Significant risks are reported to the Board of Directors via the Sustainability Committee.
Indicators, Targets, and Strategies
As part of our plan to transition to a decarbonized society, the CHEMIPAZ Group conducts multiple climate scenario analyses in line with the TCFD recommendations. We analyze the transition risks and opportunities based on a 2°C scenario, as well as the physical risks and opportunities based on a 4°C scenario, referencing the IPCC’s Sixth Assessment Report and the IEA’s World Energy Outlook. This analysis enables us to flexibly and proactively advance long-term growth strategies aimed at increasing our corporate value.
Greenhouse Gas (GHG) Emissions
We have set ambitious targets that exceed government policy: a 50% reduction in GHG emissions (Scope 1+2) by 2030 from 2013 levels, and carbon neutrality by 2050.
We have set internal carbon pricing and work to reduce GHG emissions through solar power and green energy purchases. FY 2023 saw a 17% reduction compared to 2013 levels.
Our Group’s GHG Emissions (Scope 1 & 2)
