Responding to Climate Change
The Amano Group recognizes that addressing environmental issues, including climate change, is one of the most important management issues for solving social issues and improving corporate value, and has established an environmental policy. Going forward, we will continue to strengthen our environmental protection activities to mitigate climate change risks in all of our business activities, and we will strive to proactively disclose information in accordance with the TCFD information disclosure framework.
Endorsement of the TCFD (Task Force on Climate-related Financial Disclosures)
Amano discloses its evaluation of the impact of climate change on our business in four areas: Governance, Strategy, Risk Management, and Metrics and Objectives, compliant with the TCFD Recommended Framework. Considerling the response to climate change to be an important issue, we expressed our endorsement of the TCFD recommendations in October 2022. We will continue our efforts to address climate change and disclose information based on the TCFD recommendations.
Corporate Governance
In order to respond to environmental issues such as climate change, the Amano Group has created an Environmental Management Committee and implemented initiatives such as reducing CO₂ emissions, etc. In addition, in April 2022, we created the Sustainability Committee, which encompasses the Environmental Management Committee, to promote efforts to both achieve a sustainable society and improve corporate value.
In cooperation with relevant departments and the Risk Management Committee, the Committee has formulated a basic policy for responding to climate change, activity goals, and practical issues, and has also expanded them to our Group companies. In addition, the Board of Directors receives a report at least once a year on the basic policies and activity goals examined by the Committee regarding how our business contributes to the realization of a sustainable society and environmental issues such as reductions of CO₂ emissions to respond to climate change, evaluates their progress, approves the effectiveness of the activity policies, and provides monitoring and supervision.
Strategy
At the Amano Group, the Sustainability Committee works to identify and evaluate climate change scenario analysis and the financial impact of risks and opportunities for each business. Currently, in the Group, which develops, manufactures, and sells products in Time Information System business and Environment System business, the risks and opportunities common to all businesses are identified as follows.
Evaluation items | Assumptions | Risks and Opportunities (R & O) | Impact High, Medium, Low | Measures & Actions | |||
---|---|---|---|---|---|---|---|
Main Classification | Sub Classification | Specific Examples | R | O | |||
Policies, Laws & Regulations | CO₂ Emission Restrictions | Strengthening energy-saving standards for buildings (i.e.mandatory compliance with ZEB(*)) |
|
○ | M |
|
|
Implementation of Carbon Tax | Implementation of carbon tax and adoption of emissions trading (carbon pricing) |
|
○ | H |
|
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|
○ | H |
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Market | Changes in the Energy Mix | Promoting the adoption of expensive clean energy (renewable energy and hydrogen) |
|
○ | L- M |
|
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Technology | Changes in Demand and Consumer Intentions | Research and development associated with transition to low-carbon technology |
|
○ | M |
|
|
|
○ | M |
|
||||
Reputation | Changes in Consumer Behavior | In order to utilize resources more efficiently, recycling and circular economy are making progress |
|
○ | ― |
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|
Due to the growing demand for low-carbon products and services, environmentally friendly products and services are expanding to meet that demand |
|
○ | M-H |
|
*ZEB:Net "Zero Energy Building" (A building that aims to achieve a comfortable indoor environment while achieving zero annual primary energy balance.)
Evaluation items | Assumptions | Risks and Opportunities (R & O) | Impact High, Medium, Low | Measures & Actions | |||
---|---|---|---|---|---|---|---|
Main Classification | Sub Classification | Specific Examples | R | O | |||
Acute | Intensification of Extreme Weather Conditions | Severity and frequency of natural disasters/extreme weather due to extreme temperature changes (heavy rain, floods, typhoons, etc.) |
|
○ | H |
|
|
|
○ | H |
|
||||
Chronic | Rise in Average Temperatures and Extreme Weather | Improving the working environment and considerations given for health risks |
|
○ | M |
|
|
Spread of infectious diseases such as viruses and outbreaks of pandemics |
|
○ | M-H |
|
Risk Management
In consultation with the relevant departments, the Sustainability Commit tee annually identifies sustainability risks, including climate-related risks, and conducts scenario analyses and financial impact assessments as appropriate. The Sustainability Committee and the Risk Management Committee that manages risks discuss and review the strategy for responding to the significant risks identified.
The identified key risks and response policies are to be reported to the executives in charge of risk management via the Risk Management Committee and approval is obtained.
Metrics and Targets
We have selected CO₂ emissions as a metric for assessing climate change risks, and we disclose the target values and results on “Initiatives to Reduce our Environmental Burden”.
Items to be disclosed in the future
Disclosure of Scope 3 CO₂ emissions will be considered in the future.