Our Group considers the response to the risks and opportunities associated with climate change as an important management issue, and will continue to analyze scenarios based on the Task Force on Climate-related Financial Disclosure (TCFD) recommendations and further enhance information disclosure in line with the framework of those recommendations.
Governance
- Basic policies, important matters, and risks and opportunities related to climate change are discussed, studied, and evaluated by the Sustainability Promotion Council, chaired by the director responsible for the Corporate Planning Department and Sustainability Committee, chaired by the President.
- The contents discussed by the Sustainability Committee are reported annually to the Board of Directors, which manages and supervises the measures.
- The contents reported at the Board of Directors meetings are reflected in their respective business plans and business operations.
Strategy
We consider climate change as a medium- to long-term risk, and to study our strategy and organizational resilience based on the related risks, we referred to the climate change scenarios (2°C and 4°C scenarios)* by the IEA (International Energy Agency) and IPCC (Intergovernmental Panel on Climate Change). We then conducted scenario analysis for our maintenance and engineering businesses, considering the impact on our company until 2040.
* 2°C scenario (transition): Scenario in which measures such as tighter regulations and market changes are taken to minimize temperature rise
4°C scenario (physical): Scenario in which temperature rise results in physical impacts such as extreme weather events
Major Risks Related to Climate Change and Responses
| Factors | External Environmental Changes | Risks / Opportunities | Estimated Impacts | Impacts on RAIZNEXT | Measures |
|---|---|---|---|---|---|
| 2℃ scenario (transition): Scenario in which measures such as tighter regulations and market changes are taken to minimize temperature rise | |||||
| Tightening of various regulations including GHG emission regulations | Decreased demand for plant construction and repair in the petroleum refining and petrochemical sectors | Risk | Large | Decreased sales from the maintenance and engineering sectors | Optimize existing business structure by reallocating resources and focusing on other areas (general chemicals, renewable energy, etc.) |
| Increased need for construction and maintenance of renewable energy-related facilities | Opportunity | Medium | Increased sales in renewable energy and new energy (hydrogen related, etc.) | Strengthen related technologies and develop a project promotion system | |
| 4℃ scenario (physical): Scenario in which temperature rise results in physical impacts such as extreme weather events | |||||
| Rising average annual temperatures | Reduced productivity at construction sites due to heat stress | Risk | Small | Increased risk of heat stroke and loss of productivity at construction sites | Continue to strengthen heat stroke countermeasures in accordance with our heat stroke prevention guidelines Enhance initiatives to take more effective environmental improvements |
| Increased frequency of severe disasters | Increased need for rapid restoration in the event of plant damage | Opportunity | Small | Increased rapid restoration work for plant damage due to severe disasters | Further strengthen the emergency response system by leveraging the nationwide procurement and mobilization network |
| Increased secondary needs due to increased plant damage | Opportunity | Small | Increased construction of plant damage countermeasures in preparation for severe disasters | Maintain and expand orders for countermeasure work in preparation for severe disasters by strengthening cooperation with customers while being stationed at plants and conducting routine inspections and repairs | |
Risk Management
- In prioritizing climate-related risks, we focus our efforts on priority risk factors, taking into consideration the likelihood of the risks occurring to our company and the magnitude of the impact.
- As a process for managing climate-related risks, we will have the Sustainability Committee analyze, plan, and promote countermeasures, and manage progress regarding climate-related risks.
- The contents analyzed and studied by the Sustainability Committee, will be reported to the Management Officer Committee and then to the Board of Directors, and climate-related risks are managed on a company-wide basis within the framework of the enterprise risk management.
Indices and Targets
- In order to assess and manage the impact of climate-related risks on management, we will use greenhouse gas (GHG) emissions as an indicator. In addition to our existing efforts, we will work toward contributing to a decarbonized society by introducing renewable energy and new energy-related technologies and using decarbonized materials and equipment.
- We, RAIZNEXT Group including RAIZNEXT and our affiliated companies, aim 30% reduction on Scope 1 and Scope 2 emissions related to our own business activities by FY2030 compared to FY2021.
GHG emissions reduction targets
GHG reduction targets and performance
（Unit：t-CO2）
| Scope | Base Year | Target Year |
|---|---|---|
| FY2021 | FY2030 | |
| Scope1 and 2 | 7,492 | 5,244 |
| （Scope1） | 4,118 | - |
| （Scope2） | 3,374 | - |
