Disclosures according to the Recommendations of TCFD
Amid the increasingly severe impacts of climate change around the world, the Financial Stability Board established TCFD in December 2015 in response to a request from the G20. In June 2017, TCFD issued TCFD recommendations, which require companies and others to disclose information on the risks and opportunities that climate change may have on their company based on four themes.
In December 2021, KOITO has signed up to support the TCFD and is actively promoting activities to reduce CO₂ emissions and disclose related information in order to materialize carbon neutrality in FY 2051.
We will continue to analyze the risks and opportunities that climate change may pose to us and identify their impacts, and will work to further enhance information disclosures.
Items Recommended for Disclosure by TCFD and KOITO's compliance
| Recommended Disclosures | Compliance | |
|---|---|---|
| Governance | a)The board's oversight of climate-related risks and opportunities | The KOITO Group identifies materiality including "prevention of global warming" through discussions at the Board of Directors and promotes business activities that contribute to materialize a sustainable society. KOITO convenes the monthly Safe and Environmental Committee chaired by the Representative Director to supervise environmental activities of the entire Group and to discuss and make decisions on important environmental issues and environmental conservation measures to be implemented under environmental laws and regulations. Subcommittees and working groups, such as the Energy and CO₂ Reduction Subcommittee, Environmental Impact Substance Reduction Working Group, and Recycle Promotion Working Group, which were established to address specific environmental issues, are implementing specific activities. These activities are reported to the Safe and Environmental Committee, which follows up on progress and discussing various actions. |
| b)Management's role in assessing and managing climate-related risks and opportunities | ||
| Strategy | a)The climate-related risks and opportunities the organization has identified over the short, medium, and long term | We will analyze and disclose the risks and opportunities that climate change may have on KOITO in the future based on climate-related scenarios and other factors. |
| b)The impact of climate-related risks and opportunities on the organization's businesses, strategy, and financial planning | ||
| c)The resilience of the organization's strategy, taking into consideration different climate-related scenarios, including a 2℃ or lower scenario | ||
| Risk Management | a)The organization's processes for identifying and assessing climate-related risks | Departments are assigned to risk management, including the implementation of measures to reduce and avoid risks and daily management. The Quality Assurance Department is assigned risks associated with the safety of products, the Purchasing Department handles risks in the supply chain, and the Safety Environment Department handles risks of natural disasters. As such, each department assess relevant risks and implement preventive measures. Officers of assigned responsible departments act as the general managers. In addition, training on individual risks is provided to employees. If risks become actual problems, the basic protocol is to report the incidents to the Board of Directors, the highest decision-making entity of the business administration, and such problems are swiftly and properly handled under the direction of the top administrators. |
| b)The organization's processes for managing climate-related risks | ||
| c)How processes for identifying, assessing, and managing climate-related risks are integrated into the organization's overall risk management | ||
| Metrics and Targets | a)The metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process |
【Target for FY 2031】 【Monitoring metrics】 【Result for FY 2022】 |
| b)Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks | ||
| c)The targets used by the organization to manage climate-related risks and opportunities and performance against targets | ||