Our group identified five materialities (important issues) in April 2023, with the aim of contributing to the realization of a sustainable society through our business as well as the sustainable growth of the group.
We have defined “contribute to a circular society” as one of our material issues, and recognize that climate change issues have a significant impact on our group’s business activities and society. Therefore, we believe that by understanding the effects of climate change and taking countermeasures, we can contribute to the realization of sustainable growth and a sustainable society. Based on this idea, we are proceeding with information disclosure in accordance with a framework based on the recommendations of the TCFD (Task Force on Climate-related Financial Disclosures).
Our group recognizes that reducing greenhouse gas and industrial waste emissions is an important issue for sustainable business operations as a measure to minimize the effects of climate change. Therefore, we have set the following reduction objectives by fiscal 2031. From now on, we will continue to move forward with concrete initiatives in stages to achieve these objectives.
Goal for Fiscal Year 2031 (Compared to Fiscal Year 2019)
Initiatives to achieve carbon neutrality
Energy conservation Improving factory heat, electricity, and water usage efficiency and rebuilding production systems, etc.
Energy creation Installation of solar power generation equipment in factories
Renewable energy Improving renewable energy utilization rate
（Note）The above figures (including objectives) are for Warabeya Nichiyo Holdings Co., Ltd. and its domestic group companies.
Our group conducts assessment analysis using scenario analysis methods to identify risks and opportunities influenced by climate change. In reference to the scenarios published by the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC), that is, the two future worldviews: the scenario 4°C and the scenario 1.5°C, we are evaluating the impact both quantitatively and qualitatively.
Projected Scenario
| Scenario 4℃ | Scenario 1.5℃ |
|
Anticipated worldview in which economic activities take priority and physical impact expands.
|
A worldview in which efforts to realize a decarbonized society are actively pursued.
|
Results of Risk Impact Analysis
|
Item |
Impact on our Group |
Time Axis |
Impact |
|||
|
Classification |
Factor |
4℃ |
1.5℃ |
|||
|
transition risk |
policy / legal regulations |
carbon pricing |
A carbon tax will be imposed on CO₂ emissions associated with business activities, increasing operating costs. Additionally, the cost of purchasing certificates and credits to comply with emission regulations will increase. |
Medium term and beyond |
S |
Ｍ |
|
renewable energy/energy saving policies |
Investment in environmental considerations will expand along with the increase in the use of renewable energy, the upgrade of energy-saving equipment in factories, and the upgrade of hybrid and electric trucks in logistics-related businesses |
Short- to Medium-term |
S |
S |
||
|
strengthening plastic regulations |
Regulations will be enforced for petroleum-derived plastic containers and packaging, increasing purchasing and processing costs for packaging materials. |
Short- to Medium-term |
S |
S |
||
|
market |
changes in energy prices |
Operating costs will increase deriving from soaring electricity prices with the increase in proportion of electricity used from renewable energy sources, as well as price hikes from changes in demand for fossil fuels. |
Medium- to Long-term |
S |
S |
|
|
physical risk |
acute |
intensification of abnormal weather |
Direct damage to the headquarters and factories, as well as operational losses by disruption of the supply chain will occur. |
Short- to Long-term |
S |
S |
|
chronic |
average temperature rise |
Although the yield of rice, the main raw material, will increase, the quality will decline, and the yield of dried seaweed will decrease, leading to an increase in procurement costs. |
Medium- to Long-term |
S |
S |
|
Definition of Time Axis
Short term: 0–3 years Medium term: around Year 2030 Long term: around Year 2050
Evaluation criteria of Impact
Large: more than 2,000 million yen Medium: 1,000–2,000 million yen Small: less than 1,000 million yen
(Note) For fiscal year 2026, the criteria for evaluating the impact are revised based on the most recent performance.
Analyses of Scenarios
Based on the evaluation using the new criteria, no risks categorized as “large” were identified. On the other hand, regardless of the evaluation results, our group will continue its efforts in line with our environmental materiality, “contribute to a circular society,” and shall take necessary measures.
As for damage caused by climate change, we will conduct simulations to develop countermeasures and production systems to minimize the damage.
Our group has established a Sustainability Committee, chaired by the President and Representative Director, to promote group-wide efforts to address sustainability issues including climate change. This committee meets four times a year to discuss various aspects of sustainability and decides on various policies, goals, and measures related to sustainability. Regarding climate change, it analyzes risks and opportunities using scenario analysis, set objectives for reducing CO₂ emissions and industrial waste emissions, considers measures to achieve these objectives, and manages progress. The considerations made by this committee will be reported to the Board of Directors each time it is held.
The Board of Directors makes decisions on important issues related to sustainability, including climate change, and oversees overall sustainability.
The Sustainability Committee identifies and assesses climate change risks applying scenario analysis, and considers and promotes risk reduction measures for our group.
The Risk Management Committee, which manages risks for the entire group, receives information about climate change risks from the Sustainability Committee and incorporates them into company-wide risk management.
Additionally, the Board of Directors receives reports from the Sustainability Committee regarding the results of analysis of climate change risks, measures to reduce risks, and their progress, and supervises whether risk management is being carried out appropriately.
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