Governance and risk management

Governance

The Group has positioned the promotion of sustainability management, including responses to climate change, as one of its key management priorities, and has established a system for overseeing such efforts by the Board of Directors. The promotion of efforts to address climate change issues is overseen by Sustainability Strategy Committee (chaired by the Director in charge of Sustainability Strategy, which meets at least twice a year in principle), which formulates basic policies, deliberates and discusses important matters such as mid- to long-term strategies, and monitors them. It also reports on the content of discussions and decisions to Executive Management Meeting and the Board of Directors, and important policies are decided by the Board of Directors.

Under this committee, we have established Sustainability Promotion Council and Carbon Neutral Promotion Council, which work together within the Group to formulate and implement specific sustainability measures.

*For details of our governance structure, please refer to the Corporate Governance page.

Risk management

The Group manages environmental risks, including climate change, through the activities of its Risk Management Committee, Sustainability Strategy Committee, and Central Environment and Disaster Prevention Committee, as well as through the implementation of the ISO 14001 environmental management system.

In particular, when identifying and evaluating risks, the following committees evaluate risks, narrow down the major risks, decide on countermeasures, monitor the progress of those countermeasures, and report regularly to the Board of Directors.

strategy

Conducting scenario analysis

Our Group is identifying, analyzing and evaluating risks and opportunities based on two scenarios regarding the rise in global average temperature: a 1.5/less than 2°C scenario and a 4°C rise scenario, and is considering the impact on our business activities and countermeasures.

Scenario analysis step

Reference scenario

About resilience

After examining the resilience of the Group's current strategy, this analysis confirmed that in either scenario of below 1.5/2°C or a 4°C increase, we can be sure of achieving continued growth by developing our business flexibly and strategically. Therefore, we have determined that the Group's business is highly resilient to climate change.

Business and financial impacts and responses to climate-related risks and opportunities

risk

chance

metrics and goals

The Group has set long-term targets for reducing CO2 emissions in fiscal 2030 and 2050 and is promoting efforts to achieve these targets.

In addition to reducing CO2 emissions under Scope 1 and 2 through thorough energy conservation in the production process under the Energy Saving Meister system, we are also taking on the challenge of achieving carbon neutrality by promoting strategic responses and initiatives across the company, including technology, sales, and production management, to Scope 3 emissions, such as reducing energy consumption in product transportation through the value chain and improving fuel efficiency by making wheels lighter.

CO_{2}排出量に関する目標および実績

CO2 emissions reduction roadmap

Glossary

Scope 1: Direct greenhouse gas emissions by business operators (fuel combustion, industrial processes)
Scope 2: Indirect emissions associated with the use of electricity, heat and steam supplied by other companies
Scope 3: Indirect emissions other than Scope 1 and Scope 2 (emissions by other companies related to business activities)