Management Structure and Approach regarding the Material Issue of Climate Change (based on the TCFD recommendations)
Governance
The Group’s material issues related to sustainability, including climate change, are identified along with KPIs through discussion by senior management members and confirmed through a resolution of the Board of Directors. Climate risks, opportunities, and strategy pertaining to the Group are also reflected in 3-Year Business Plans, annual budgets, KPI targets, and other areas, and are confirmed through a resolution of the Board of Directors. The Carbon Neutrality Committee meets regularly to deliberate on and manage climate change-related matters pertaining to the Group. Initiatives and performance in regard to KPI targets are then reviewed by the Sustainability Committee and an overview is reported to the Board of Directors.
Strategy
Short-, medium-, and long-term climate change risks and opportunities that could have a major impact on the Group’s business, strategy, or finances are identified based on analysis of climate change scenarios that anticipate various changes in the external environment, including regulatory changes, technological progress, market changes, and natural disasters. We then consider the impact of each of these on business and strategy in each area, such as products and services, R&D investment, operations, and GHG emission reduction and response measures. Based on the results of this analysis, we formulate Group strategies for each climate change risk and opportunity, and these are reflected in 3-Year Business Plans. These strategies are also discussed by the Carbon Neutrality Committee and reviewed by the Sustainability Committee.
Risk Management
The climate change risks identified through scenario analysis are monitored and measured by the Carbon Neutrality Committee, which also takes corrective measures and revises strategies when necessary, and are reviewed by the Sustainability Committee. Climate change risk is also managed by the Group’s risk management system and Risk Management Working Group, based on consideration of the impact on other individual risks such as occupational accidents, environmental pollution, quality failures, and legal violations.
Metrics and Targets
We have established the goal of achieving carbon neutrality by 2050. In order to achieve this goal, we have set GHG emissions targets for 2030 and we are advancing activities for meeting these targets. We have also set and are pursuing targets for contribution to reducing GHG emissions at a society-wide level through the supply of secondary battery cathode materials for use in automobiles and near-infrared absorbing materials produced by the Group.
