Sustainability

Climate Change Action

Sustainability
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  • Environment：Climate Change Action
    (Commitment to TCFD* Recommendations)

Climate Change Action
(Commitment to TCFD* Recommendations)

  • SHIKOKU KASEI Group’s Climate Change Action (Commitment to TCFD* Recommendations)

    SHIKOKU KASEI Group recognizes that the long-term impacts (risks and opportunities) of climate change on our business activities are significant and that addressing climate change is an important management issue. The international frameworks, the Paris Agreement and the Sustainable Development Goals (SDGs) also necessitate stronger action on climate change. As such, we expressed our support for the TCFD recommendations in March 2023. Our group aims to contribute to the realization of a sustainable society by working in harmony with the global environment in all aspects of business activities.

    *TCFD: Task Force on Climate-related Financial Disclosures. Individual companies are required to disclose the impact of climate change on their financial reporting.

  • Governance

    Our group’s sustainability activities are overseen by the Board of Directors and reflected in management. To strengthen the group’s overall sustainability activities, the Representative Director, President is positioned as the Chief Responsible Care* Officer. Additionally, an RC Promotion Committee, consisting of officers, has been established under this position.
    RC Promotion Committee meetings (held twice a year) check the progress of targets and set agendas for continuous improvement under the leadership of the committee chair, who is responsible for promoting specific activities. The results were reported and supervised by the Board of Directors.

    Governance

  • Strategy

    The company has identified the following as material, physical and transition risks and opportunities related to climate change.
    Based on scenario analysis, we will continue efforts to increase resilience to climate change.

    Type of Risks / Opportunities

    Transition Risk Policy / Legal / Regulatory Risk 2℃ Strengthening legal regulations
    2℃ Expansion of information disclosure obligations
    Technology Risk 2℃ Delayed response to environment-friendly technologies
    2℃ Increased investment and R&D costs for environment-friendly technologies
    Market Risk 2℃ 4℃ Decreased demand for products with high environmental impact
    2℃ Longer product life cycle
    Reputation Risk 2℃ Decline in appreciation by stakeholders
    Physical Risk Acute Risk 2℃ 4℃ Incidence of abnormal weather
    Chronic Risk 4℃ Increased abnormal weather
    Opportunities Improvement of Resource Efficiency 2℃ Improved resource conservation and recycling
    Energy Sources 2℃ Shifting energy sources to create business opportunities
    Products and Services 2℃ 4℃ Increased opportunities to capture markets through the development of environment-friendly products and goods
    Stock Market 2℃ 4℃ Enhance corporate image by promoting environment-friendly products and information disclosure
    Resilience 2℃ Improved ability to adapt quickly to market changes associated with climate change

    To identify and assess risks, we referred to the Guidebook for Promoting Decarbonization Management published by the Ministry of the Environment and other sources.
    Most material risks and opportunities were identified by assessing the risks and opportunities faced by the company in relation to climate change using the criteria in the table below, based on the timing of manifestation and the degree of impact on the company’s business.

    Time of Risk Manifestation Business Impact
    Likelihood of Incidence Timing Magnitude of Impact Impact
    10-30 years Long term Significant impact Large
    3-10 years Medium term Temporary impact Medium
    0-3 years Short term Minor impact Small

  • Risk Management

    The identification of company-wide risks and the policies for responding to the material risks are reviewed annually, following consultation with the RC Promotion Committee and risk management divisions. The results of the risk assessment are then reported by the RC Promotion Committee to the Board of Directors, which is responsible for corporate risks, and further climate change risks are incorporated into the corporate risks.

  • Indicators and Targets

    The GHG emissions were selected as indicators of climate change. In addition, we disclose the following indicators for Scope 1 and 2 as GHG emissions.

    Item Scope Target Policy
    1 Reduction in greenhouse gas (GHG) emissions (CO2 equivalent) SHIKOKU KASEI Group Scope 1, 2
    ・FY2026: reduction by 21% from FY2021
    ・FY2031: reduction by 42% from FY2021

    Scope3
    ・Identify Scope 3 emissions to set the base year    		 In response to more stringent regulations on the environment, obtaining SBT* certification is becoming more common among our customers, and they require us to set CO2 emissions reduction target and to report emissions in accordance with the SBT criteria. Accordingly, we will set targets in accordance with the SBT criteria, switching from targets based on existing national policies, and proactively address environmental issues.
    *SBT (Science Based Targets): CO2 emissions reduction targets for companies based on the Paris Agreement, which replaces the framework of the Kyoto Protocol.
    Target level
    　・Scope 1, 2: reduction by at least 4.2% per year
    　・Scope 3: reduction by at least 2.5% per year
    ●Scope 1, 2
    [Plant facilities]
    • ・Strengthening energy-saving measures for existing facilities
    • ・Installation of energy-saving equipment
    • ・Introduction of renewable energy
    • ・Change to energy with lower environmental burden
    • ・Collecting information on decarbonization technologies
    [Development]
    • ・Development of decarbonization technologies and new products
    [Office]
    • ・Energy saving in offices
    • ・Electrification of company vehicles
    • ・Change to decarbonized work styles
    ●Scope3
    • ・Use of consultants
    • ・Data collection and calculation by the responsible department
    • ・Scope 1: Direct GHG emissions from the business itself (fuel combustion and industrial processes)
    • ・Scope 2: Indirect emissions from electricity, heat, and steam supplied by other companies

  • Items to be considered for Disclosure in the Future

    We will continue to consider ways to expand our disclosure of the scenario analysis and the financial impact of each risk and opportunity.