Status of compliance with TCFD and TNFD disclosure recommendations
The status of compliance with the disclosure recommendations of the TCFD (Task Force on Climate-related Financial Information Disclosures) final recommendations and the TNFD (Task Force on Nature-related Financial Disclosures) final recommendations V1.0 is posted.
Governance
We have formulated and announced our “Carbon-neutral Strategy 2030,” which is a mid-term strategy for environmental initiatives, and the “7th Environmental Action Plan,” which is a short-term plan (2021-2025), and are promoting activities throughout the entire group to achieve these goals. In order to carry out these initiatives steadily and speedily, we have organized an Environmental Committee, clarified the roles of the Board of Directors and management meeting, and their relationships with each other through a corporate governance system, and are implementing them using the PDCA cycle.
| Disclosure recommendation |
TCFD | TNFD | Related information links |
| Board of Directors oversight system for risks and opportunities |
The Board of Directors receives regular reports on the progress of our carbon-neutral mid-term strategy and conducts reviews. It makes a comprehensive resolution for the budget for implementing strategies each year, and decides on and supervises the annual plan. Additionally, it receives individual reports and makes decisions regarding large-scale investments in environmental activities, including carbon neutrality and biodiversity conservation activities. |
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| Management's role in assessing and managing risks and opportunities | The Company-wide Environmental Committee, chaired by the Representative Director and President, determines mid- to long-term strategies for environmental activities, including carbon neutrality and biodiversity conservation activities, approves goals and action plans, and manages and reviews progress against the plans. | ||
| How human rights policies and related activities, and oversight are conducted with respect for stakeholders, while also respecting indigenous peoples and local communities. [TNFD recommended disclosures] |
We formulated the Tokai Rika Group Human Rights Policy and respects internationally recognized views on human rights, such as the International Bill of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work, and supports the UN Guiding Principles on Business and Human Rights. We announced that we would continue to promote initiatives to respect human rights. We hope that stakeholders will understand and support our policies through information disclosure, and we will also actively engage in dialogue regarding negative impacts on human rights and provide feedback on our activities. | ||
Strategy
The Environmental Committee considers responses to the risks and opportunities identified through scenario analysis, and incorporates them into the mid-term guideline “Carbon-neutral Strategy 2030” and the short-term plan “7th Environmental Action Plan,” allowing us to respond surely and systematically.
Risk management
We conduct impact analysis based on scenarios such as NZE scenario (IEA WEO2023), RCP85 (IPPA AR6), and Aqueduct Water Risk Atlas (WRI), and identify risks and opportunities.
| Disclosure recommendation | TCFD | TNFD | Related information links |
| Risk and opportunity identification and assessment process |
We conduct analyses based on climate change scenarios such as IEA (International Energy Agency) Net Zero by 2050 and IPCC (Intergovernmental Panel on Climate Change) RCP, identify risks, and assess impacts. We strive to quantify the impact in monetary terms and understand the impact on finances. | ||
| Risk and opportunity management process | For identified risks and opportunities, specific responses and goals are incorporated into mid-term and annual plans for environmental initiatives, and progress is managed. In addition, the evaluation of risks and opportunities will be periodically reviewed based on the latest scenarios and social trends in order to improve the accuracy of the evaluation. | ||
| Integration and communication status for risk management throughout the organization | In the materiality analysis of the entire organization, the preservation of the natural environment, which is the foundation of society, is taken up as an analysis item, and among these, “response to climate change” and “biodiversity conservation” are identified as important issues. Responses to issues are incorporated into the sustainability and carbon-neutrality policies, which take precedence over the central policy and each department's policy, thus our risk response is managed. | ||
Indicators and goals
In the mid-term strategy “Carbon-neutral Strategy 2030” and the short-term plan “7th Environmental Action Plan,” activity indicators and goals for each item are set by working backward, and the progress of activities against the goals is confirmed and monitored by the Environmental Committee. By doing so, we carry out planned execution.
| Disclosure recommendation | TCFD | TNFD | Related information links |
| Indicators used to assess and manage risks and opportunities |
The degree of impact caused by risks and opportunities is determined by the amount of financial impact, and responses are prioritized based on the calculated amount of impact. Regarding responses to risks and opportunities, we set indicators for each initiative and manage their progress. [Climate change related] [Nature related] |
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| Indicators used to assess and manage dependency relation and impacts on nature [TNFD recommended disclosures] |
Use of natural resources: Water withdrawal (㎥) |
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| Indicators | Target | Goals | FY2023 | ||||
|---|---|---|---|---|---|---|---|
| Base year | Target year | Goals | Single year goal | Results | |||
| Climate change related | Plant CO2 emissions (t-CO2) |
Consolidated | FY2013 | FY2025 | ▲25% (97,920t-CO2 or less) | 107,844t-CO2 or less | 105,379t-CO2 |
| FY2030 | ▲60% (52,224t-CO2 or less) | ||||||
| Unconsolidated | FY2013 | FY2025 | ▲25% (42,320t-CO2 or less) | 44,671t-CO2 or less | 40,388t-CO2 | ||
| FY2030 | ▲60% (22,570t-CO2 or less) | ||||||
| Renewable energy rate (%) |
Consolidated | FY2025 | 15% or more | 10.5% or more | 15.10% | ||
| 2030 | 25% or more | ||||||
| Transport CO2 emissions (t-CO2) |
Unconsolidated | FY2013 | FY2025 | ▲12% (2,831t-CO2 or less) | 2,895t-CO2 or less | 2,897t-CO2 | |
| Water withdrawal (thousand ㎥) |
Unconsolidated | FY2019 | FY2025 | Below base-year results (551 thousand ㎥ or less) |
551 thousand ㎥ or less | 482 thousand ㎥ (cubic meter） |
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| Nature related | Discharge of waste materials (t/million pieces) | Unconsolidated | FY2018 | FY2025 | Below base-year results (0.37 t/million pieces or less) |
0.37 t/million pieces or less | 0.21 t/million pieces |
| Discharge of plastic waste (t) | Unconsolidated | FY2018 | FY2025 | Below base-year results (610 t or less) |
610 t or less | 450t | |
| Water quality of river discharge water | Unconsolidated | Below voluntary criterion value (set in addition to legal regulation value) |
Below voluntary criterion value | No target value exceeded | |||
| Biodiversity conservation activities | Unconsolidated | Set for each activity (habitat area of target alien species, etc.) |
Set for each activity | Achieved each activity | |||
| FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | ||
|---|---|---|---|---|---|---|
| SCOPE 1 | Direct greenhouse gas emissions by Tokai Rika itself. | 127,945 | 99,561 | 138,334 | 124,897 | 102,914 |
| SCOPE 2 | Indirect emissions from the use of electricity, heat, or steam supplied by others. | 106,671 | 93,515 | 98,072 | 91,747 | 93,924 |
| SCOPE 3 | Emissions by others related to : Tokai Rika's activities. | 603,179 | 516,271 | 534,412 | 560,285 | 546,213 |
| CATEGORY 1 | Purchased goods and services | 442,120 | 401,596 | 410,344 | 404,609 | 375,740 |
| CATEGORY 2 | Capital goods | 79,344 | 42,002 | 49,546 | 66,017 | 80,847 |
| CATEGORY 3 | Fuel- and energy-related activities not included in Scope 1 or Scope 2 | 16,313 | 15,027 | 15,462 | 14,373 | 12,703 |
| CATEGORY 4 | Upstream transportation and delivery | 47,497 | 43,617 | 45,060 | 42,793 | 50,786 |
| CATEGORY 5 | Waste generated in operations | 455 | 419 | 399 | 582 | 497 |
| CATEGORY 6 | Business travel | 4,146 | 1,294 | 1,417 | 2,500 | 2,743 |
| CATEGORY 7 | Employee commuting | 13,304 | 12,317 | 12,183 | 29,412 | 22,897 |
| CATEGORY 8 | Upstream lease assets | Included in Scope 1 or Scope 2 and Category 1 | ||||
| CATEGORY 9 | Downstream transportation and delivery | Not applicable | ||||
| CATEGORY 10 | Processing of sold products | Determined as not applicable since the amount of emissions associated with processing at the customer is extremely small | ||||
| CATEGORY 11 | Use of sold products | Determined as not applicable since the amount of emissions associated with the use of our products is extremely small | ||||
| CATEGORY 12 | End-of-life treatment of sold products | Determined as not applicable since the amount of emissions associated with the disposal of our products is extremely small | ||||
| CATEGORY 13 | Downstream lease assets | Included in Scope 1 or Scope 2 and Category 1 | ||||
| CATEGORY 14 | Franchises | Not applicable | ||||
| CATEGORY 15 | Investments | Included in Scope 1 or Scope 2 and Category 1 or Category 2 | ||||
| Total | 837,795 | 709,347 | 770,818 | 776,929 | 743,051 | |