Environment
Disclosure based on TCFD Recommendations


We recognize that climate change is one of the most important management issues facing
the Group. We
believe that our efforts to reduce our own greenhouse gas (GHG) emissions (Scopes 1 and
2) and to
contribute to the decarbonization of the entire value chain, including our customers at
the same time,
will enhance the Group's corporate value. Based on this belief, we have identified
"Contribution to a
decarbonized, circular society by actively reducing environmental impact" as one of our
Materiality
issues. In September 2021, we announced our endorsement of the TCFD recommendations, and
in addition to
its existing efforts, we work to identify climate-related risks and opportunities and
strengthen and
expand information disclosure, including respective systems.
Governance
In October 2021, the Group established the Sustainability Committee, which is
chaired by the Group
CEO and includes executive directors and representative directors of the five
core operating
companies or persons in equivalent positions appointed by the President, for the
purpose of
strengthening the Group's sustainability promotion system. The Sustainability
Committee, under the
supervision of the Board of Directors, formulates sustainability-related
policies and manages their
implementation; identifies, analyzes, and evaluates risks and opportunities
related to climate
change; monitors the impact of climate change on the Group's business; and
discusses
countermeasures. For other initiatives and detailed discussions related to
climate change and
environment, the Environmental Subcommittee, a cross-group sub-organization of
the Sustainability
Committee, examines and manages the implementation of specific initiatives and
management
indicators. The director in charge reports on the progress and makes
recommendations to the
Sustainability Committee. Investments necessary to address climate change are
discussed and approved
individually by the Management Council, the Board of Directors, and other
decision-making bodies in
accordance with internal regulations.
Strategies
We have conducted a scenario analysis of the impact of climate change on our
Group's business, using
several climate scenarios (1.5C scenario and 4C scenario). Based on
assumptions about the impact
of climate change on the value chain, we identify risks and opportunities,
analyze and evaluate
them, and consider countermeasures, which will be reflected in our short-,
medium-, and long-term
business strategies to make the promotion of measures more effective.
Assumptions for Scenario Analysis
We have made the following assumptions for each scenario and analyzed the
financial impact assumed
as of 2030.
1.5℃ Scenario
Policies and regulations will be strengthened, and carbon taxes will be
introduced to achieve carbon
neutrality in 2050. In addition, consumers will demand more decarbonization from
companies, and
B-to-B firms will be under even greater pressure to respond to climate change,
including reducing
CO2 emissions.
4℃ Scenario
No carbon taxes will be introduced, and more emphasis will be placed on disaster
prevention and BCP
measures as natural disasters become more severe. Consumer behavior will not
change significantly
from the status quo, and corporate responses to climate change will remain at
the current level.
*See IEA-NZE, IPCC-1.5, IPCC AR6 SSP1-1.9, IPCC AR6 SSP3-7.0/SSP5-8.5, etc.
Risks, Opportunities, and Financial Impact related to Climate
Based on the scenarios assumed, we examined the impact of climate change on the
value chain for
consumers, customers, our Group, and contractors who are suppliers to our Group
individually. Then,
we estimated the time when risks and opportunities emerge and their quantitative
and qualitative
impacts.
Countermeasures
In our quantitative calculations, carbon pricing (introduction of a carbon tax)
under the 1.5C
scenario has the greatest impact on our Group. In general, however, the
financial impact of climate
change on our Group is small, and we consider ourselves resilient to climate
change. For
countermeasures against the emerging impact of carbon pricing (introduction of
the carbon tax),
since measures to reduce emissions in cooperation with our customers and
partners are effective, we
will promote these measures in addition to our own measures. In addition to the
quantitative
analysis items, we will also update and monitor information on qualitative
analysis items to verify
their impact on our business.
Risks | Financial Impact (1.5℃/4℃) |
Time of emergence | Countermeasures | |
---|---|---|---|---|
Policies & Regulations |
Taxes and other
regulations on CO2 emission
reductions Increased cost burden due to the introduction / enforcement of carbon pricing
|
Small - Medium / - | Medium term |
|
Refrigerant
regulation Increase in capital investment amount due to stricter regulations on alternative CFCs and other refrigerants
|
Small / Small | Medium term | ||
Other
Regulations Increased cost burden due to the introduction / enforcement of energy conservation regulations
|
- / - | Long term | ||
Market & Reputation |
Energy
transition by transportation
subcontractors Increase in transportation consignment costs due to progress in the shift to low-carbon and decarbonized fuels
|
Small / Small | Short to medium term |
Risks & Opportunities | Financial Impact (1.5℃/4℃) |
Time of emergence | Countermeasures | |
---|---|---|---|---|
Market & Reputation |
Customer Trends
(Conditions) Expansion of environmentally conscious response
|
Large / Small | Short term | Development and promotion of logistics solution services originating from social issues, such as SustainaLink, while grasping the needs of existing and potential customers related to climate change |
Customer Trends
(Products) Changes in characteristics of products handled by our customers
|
Large / Large | Medium to long term |
Physical Risks | Financial Impact (1.5℃/4℃) |
Time of emergence | Countermeasures | |
---|---|---|---|---|
Acute |
More severe
storm and flood damage (direct
impact) Damage to assets owned and increase in insurance premiums and repair costs caused by more frequent and larger catastrophic disasters |
Small / Small | Medium term |
|
Reputation
(indirect impact) Loss of trust due to inadequate understanding of the impact of storm and flood damage and insufficient BCP response |
Small / Large | Short to medium term | ||
Chronic |
Sea level
rise Damage to assets owned and increase in insurance premium and repair costs caused by more frequent floods |
Small / Small | Long term | |
Rise in
temperature Increased risk of heat stroke
|
Small / Small | Medium term |
Legend
Large / Medium / Small: Quantitative and qualitative evaluations based on the
results of financial
impact estimates
- ・「 - 」: Potential risk, but not highly likely to emerge in 2030 based on current information
- ・Short term: 3-5 years
- ・Medium term: approx. 10 years (2030)
- ・Long term: more than 30 years (after 2050)
Risk Management
We stipulate the recognition and management of risks in the Group's business
activities in the Risk
Management Regulations, develop a system for each type of risk, and implement
risk management. With
regard to risks and opportunities related to climate change, the Sustainability
Committee takes the
lead in identifying, analyzing, and evaluating risks and opportunities, sharing
information within
the Group, instructing relevant departments to take action, and reporting to the
Board of Directors,
with the aim of addressing and minimizing the risks. KPI management and data
analysis are conducted
by the Environmental Subcommittee, a cross-group sub-organization of the
Sustainability Committee.
Indicators and Goals
In order to realize our Materiality: Contribution to a decarbonized, circular
society by actively
reducing environmental impact, the Group has established environmental KPIs,
including climate
change, and manages their progress. With regard to greenhouse gas (GHG)
emissions, we aim to reduce
CO2 emissions generated from our Group's business activities (Scopes 1 and 2).
Scope | Time | Goal |
---|---|---|
Scope1+2※ | FY2031 | 50% reduction (compared to FY2014) |
FY2051 | Net zero | |
Scope3 | - |
We work to reduce CO2 emissions throughout our
own and our customers' supply chains. ※Reduction of CO2 emissions in customers' supply chains through the Group's supply chain sustainability support service SustainaLink contributes to the reduction of our Scope 3 emissions at the same time. We will also promote efforts to realize a decarbonized society through our own services. |
- ※Scope of coverage: Holding company and core operating companies
Please refer to the following link (ESG data) for emissions data over time and
other
environment-related KPIs.
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