Response to TCFD recommendations
Overview
In November 2020, our company expressed support for the recommendations made by the TCFD (Task Force on Climate-related Financial Disclosures) and is participating in the TCFD consortium. We have established a cross-company TCFD subcommittee within Sustainability Committee to promote information disclosure in accordance with the disclosure items recommended by the TCFD recommendations.
Governance
For details on governance related to TCFD, please refer to the "Sustainability Promotion System" page.
Linking executive compensation and ESG indicators
Starting in fiscal 2022, our company has incorporated ESG indicators into the individual performance targets of executives. One of the ESG indicators we incorporate is climate change response, such as reducing CO2 emissions. By introducing incentives that link executive compensation and ESG indicators, we will strengthen executives' initiatives of climate change countermeasures and promote ESG Management.
strategy
Prerequisites
Our Group considers climate change to be a very important management risk from the perspective of business continuity, and we are analyzing risks and opportunities under 2℃ and 4℃ scenarios*. In addition to climate change, we are also considering other risk factors, such as the worsening of typhoon damage due to the progress of global warming.
*Less than 2℃ and 4℃ scenarios are the 6th assessment report of the IPCC (Intergovernmental Panel on Climate Change), which provides scientific basis for countermeasures against global warming and is influential in international negotiations. This is a prediction of how much the average temperature will rise from before the revolution until the end of the 21st century. The scenario with the lowest temperature increase (SSP1-1.9 scenario) is predicted to cause an increase of around 1.4℃, and the scenario with the highest temperature increase (SSP5-8.5 scenario) is predicted to increase around 4.4℃.
●Less than 2℃ scenario
With the introduction of strict environmental regulations and high carbon taxes, the world will achieve carbon neutrality in 2050. In the agricultural sector, CO2 While achieving zero emissions, procurement costs are increasing due to expanding demand for biofuels and environmental regulations. As consumers become more environmentally conscious, demand for plant-based foods will expand.
The temperature in Japan has risen by approximately 1.4℃ compared to the end of the 20th century. Although the frequency and intensity of natural disasters (typhoons and floods) in Japan will increase, they will not worsen to the level assumed in the 4℃ scenario.
●4℃ scenario
Although progress is being made in reducing carbon emissions, carbon neutrality in 2050 will not be achieved. Natural disasters are becoming more severe and frequent, and the frequency of flood damage at suppliers and our own production bases is increasing. Due to rising temperatures, the yield and quality of agricultural crops are becoming worse.
Temperatures in Japan are expected to rise by approximately 2.3 degrees Celsius by around 2050 compared to the end of the 20th century. Additionally, as the frequency of typhoons increases, their intensity also increases. Flood frequency will be approximately 2 to 4 times more frequent than at the end of the 20th century.
| Target period | From now to 2050 |
|---|---|
| Target range | All businesses of J-Oil Mills Group |
Risks from climate change
Opportunities from climate change
Additionally, we reviewed our materiality in 2021 and identified "Mitigation and adaptation to climate change" as one of our priority issues. In 2023, we reviewed our materiality again.
Please see below for the process of identifying materiality and determining relative importance.
Risk management
Our Group 's risk management system
The Group has established Risk Management Committee, which is chaired by the Company's representative Member of the Board Representative Executive Officer, President and CEO, and whose members include Member of the Board and Executive Officer. This committee is responsible for identifying important risks related to risk management, such as identifying risks that may have a significant impact on the Group 's management (management risks), risk reduction activities that should be undertaken company-wide, and countermeasures for risks that have emerged. The matter is being discussed. Additionally, the committee reports its deliberations to Executive Committee and Board of Directors once every six months, and Board of Directors Supervise the effectiveness of risk management through these reports.
Risk Management Committee has a "Risk Management Subcommittee" and a "Compliance Subcommittee" under its umbrella, and by supervising the management of both subcommittees, it also functions to operate and maintain internal control systems centered on risk management and compliance. I am fulfilling my role. Risk Management Subcommittee 's mission is to anticipate and prevent risks and respond to crises, while Compliance Subcommittee is in charge of compliance, which is an important element of risk management, and its mission is to improve employee awareness and deal with compliance violations. That's what I mean.
In addition, among management risks, risks related to sustainability, such as human rights, climate change, and environmental issues, are handled by Sustainability Committee, which has the functions of both risks and opportunities. The committee considers and promotes risk countermeasures.
Risk management process
In identifying management risks, the Internal Control Group of the Business Management Department serves as the secretariat. Every fiscal year, each division and subsidiary identifies, analyzes and evaluates the risks that are important to them, and then takes risk countermeasures. We are implementing it. Risk Management Committee aggregates and examines the important risks identified by each division and each subsidiary, and also considers potential risks from a medium- to long-term perspective, taking into account the business environment and social conditions surrounding the Group. We focus on this and identify management risks. In addition, for each management risk, risk management officers (Executive Officer, etc.) designated by Risk Management Committee promote initiatives to reduce and prevent risks at the company-wide level, and ensure that the committee functions effectively on a regular basis. We are monitoring whether the
In addition, in the event of a crisis that occurs during the period (a risk that materializes and has a significant impact on corporate value), we have established a crisis management system with the Company's Representative Member of the Board Representative Executive Officer, President and CEO as the chief executive officer, and Risk Management Subcommittee We are working to provide prompt and appropriate responses. After the crisis subsides, under the leadership of Risk Management Committee, we analyze the root cause of the crisis, implement corrective measures, and strive to prevent recurrence company-wide.
Metrics and goals
Our goal is to reduce CO2 emissions by 50% (Scope 1, 2) compared to 2013 by 2030, and to achieve carbon neutrality with zero emissions by 2050. Additionally, we aim to reduce CO2 emissions from the raw materials we purchase and the manufacturing of our products across the entire supply chain (Scope 3) by collaborating with our suppliers. Regarding Scope 3, we will improve the calculation accuracy for Category 1 and Category 4, which have large emissions, and consider ways to reduce them. We will introduce internal carbon pricing (ICP) from April 2023 to promote CO2 reduction investment and investment decision-making.
Main initiatives
- Reduction of energy consumption (process optimization, energy saving, introduction of high-efficiency equipment, etc.)
- Utilization of renewable energy (use of biomass fuel, etc.)
- Archives of responses to TCFD recommendations
- 2022 (1.2MB) (Japanese text only)