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

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.

The Environmental Subcommittee monitors implementation and progress on measures to address climate change risks throughout the Group. In FY2023, its reports to the Board of Directors reflected the impact of the consolidation with JFE Engineering Corporation’s water engineering business. Climate change risks approved by the Sustainability Committee are also shared with compliance promotion sections. Risks deemed to be notable from a business perspective are identified, assessed, and reported to the Board of Directors.

Management of emissions reduction targets has begun with Scope 1 and 2 emissions. We are calculating Scope 3 emissions in preparation for their disclosure in the future. Having set the goal of achieving net zero GHG emissions by FY2050, we will energetically promote energy conservation, use of renewable energy, and other efforts in Group business activities.