TCFD initiatives

The Group has declared its support for the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and assesses the impact on business activities of climate change risks and opportunities. By promoting measures to avoid risks and generate business opportunities, we are continually advancing efforts to make contributions to mitigate climate change based on our business activities and enhance related information disclosure.

Task Force on Climate-related Financial Disclosures:
Task force established in 2015 by the Financial Stability Board (FSB) in response to a G20 request to promote disclosure by businesses and other parties on governance, strategy, risk management, and KPIs and targets related to climate change risks and opportunities

Governance

We promote Groupwide initiatives under a structure whereby the Board of Directors oversees risks and opportunities related to climate change. We have established an Environmental Subcommittee under the Sustainability Committee to consider various measures related to climate change and to manage their status.

Strategy

Based on scenario analysis undertaken to identify the potential impact of climate change, we identified the important risks and opportunities at right based on the 1.5-2°C scenario (IPCC scenario RCP2.6, IEA scenario NZE2050) and on the 4°C scenario (IPCC scenario RCP8.5). On a time axis, we divided these risks and opportunities into short-term (now through 2030) and long-term (through 2050) impacts.
We plan to strengthen the resilience of the Group’s businesses still further by linking our responses to the risks and opportunities identified in this way to the Medium-term Management Plan.

Risk management

The Environmental Subcommittee monitors the implementation and progress of measures to address climate change risks Groupwide. It also reviews climate risks and opportunities at least once annually and continually assesses their impact and response policies. Its findings are discussed in the Sustainability Committee and reported to the Board of Directors. Climate change risks approved by the Sustainability Committee are shared with compliance promotion sections, and then companywide risks identified by the compliance promotion sections are integrated with climate change risks. Notable risks are identified, assessed, and reported to the Board of Directors.

Key Performance Indicator(KPI) and targets

Management of GHG emissions reduction targets began with Scope 1 and 2 emissions. In FY2025, we calculated Scope 3 emissions.
Having set the goal of achieving net zero GHG emissions by FY2050 (Scopes 1 and 2), we are vigorously promoting energy conservation, renewable energy, and other efforts in Group business activities. The following page gives specific reduction targets and a roadmap.

Risks and opportunities