HOME > Sustainability > Archive by year > 2021 > Initiatives for TCFD Recommendations

CSR activities in FY2021

Initiatives for TCFD Recommendations

Governance
Strategy
Risk Management
Metrics and Targets

In May 2021, we expressed our support of TCFD (Task Force on Climate-related Financial Disclosures) recommendations. We identify the risks and opportunities posed by climate change in our business and reflect them in our management strategies. We also disclose information based on TCFD recommendations. Through dialog with a wide range of stakeholders, the Group will further strengthen its efforts to address climate change and contribute to the sustainable development of society through its business activities.

Governance

The Group has established the Sustainability Committee as an organization to promote sustainability management, and has established a system to report its efforts to the Board of Directors as appropriate.

Organization

Strategy

We link the results of scenario analysis in line with TCFD recommendations to related materiality indicators and targets (Opportunity : reduce energy loss, Risk: respond to climate change), and develop them into business activities. In addition, we concentrate our R&D resources on areas that lead to "carbon neutrality (environmental impact reduction and decarbonization)" and the "pursuit of safety and comfort," and are accelerating our R&D activities for future growth.

Risk Management

Our financial condition, results of operations and cash flows could be impacted by extreme weather conditions (such as operating or shutting down operations due to heavy rain, floods or storms) associated with climate change (temperature increases), and by stricter environmental regulations (such as increased procurement costs for raw materials and energy due to the introduction of carbon taxes) in the countries and regions in which we operate.
Regarding the effects of climate change (temperature increases), the risks and opportunities assumed based on the scenario in which the temperature rise during the 21st century is "4 ℃" and "less than 1.5 ℃" are as follows.

■Outline of the future society assumed in scenario analysis

When the temperature rises by 4 ℃ (Physical) When the temperature rises less than 1.5 ℃ (Transition)
Future image of society
  • Environmental policies such as from the government are passive, and the move to low-carbon and decarbonization has not progressed.
  • The scale and intensification of natural disasters due to climate change are progressing.
  • The number of hot days increases even in seasons other than summer, increasing the risk of heat stroke.
  • Due to the aggressive environmental policies of the government and other parties, carbon taxes have been introduced, fossil fuel-derived electricity is limited, and the industrial structure is centered on renewable energy (wind power, hydrogen, etc.).
  • The industry as a whole is strengthening efforts such as energy saving to reduce CO2 emissions.
  • In the automobile industry, the electrification and EVs shift is progressing.

■Risks and opportunities

Classification Anticipated risks and opportunities Our countermeasures
Risks Physical Downtime at our plants and within the supply chain due to extreme weather conditions (heavy rain, floods, storms) <Internal>
  • Regular confirmation using a hazard map of domestic business sites
<Business Partners>
  • Encouragement to build BCP and BCM through Procurement Policy briefing sessions and CSR Procurement Guidelines
  • Introduction of supplier crisis management system
Risk of heat stroke among employees at plants and such
  • Identification of working environments where air conditioning is not effective
  • Systematic implementation of heat measures
Transition Increase in procurement and operating costs due to carbon taxes, etc.
  • Promotion of decarbonization in our business activities
  • Considering the introduction of internal carbon pricing
Opportunities Physical Increase in demand for solutions that are useful in preparing for natural disasters and in the event of disasters
  • Securing a lifeline that prevents power shutdown due to natural disasters (providing stationary independent power supply units and transportable independent power supply units to the market)
Transition Increase in demand for energy saving in mechanical devices
  • Reduction of CO2 emissions by core products
Spread of wind power generation equipment
  • Provision of large bearings and CMS services for wind turbines
Spread of hydrogen energy
  • Development of product technology and market provision of bearings for hydrogen energy-related equipment
Spread of EVs and electrified vehicles
  • Development of product technology and market provision of electric module products

Metrics and Targets

Among the materiality of the Group, the target of "respond to climate change" is "Achieve carbon neutrality by the fiscal year 2035 (by the fiscal year 2050 for the entire supply chain)." Also, we have newly set "50% reduction in CO2 emissions in business activities in the fiscal year 2030 compared to the fiscal year 2018" as KPIs (management indicators) for the fiscal year ending March 31, 2023 and beyond.