In June 2022, the Company announced its support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). In line with the TCFD recommendations, we will disclose important information on climate change as follows.
We recognize climate change response as an important issue (Materiality) that we should prioritize in order to promote sustainable management. The Sustainability Committee that is chaired by the President deliberates on the direction of management including policies for addressing risks and opportunities related to climate change, reports to the Board of Directors as appropriate, and receives instructions and supervision from management.
The Sustainability Committee is held at least twice a year to deliberate and discuss initiatives to resolve issues related to sustainability (CSR, ESG, SDGs), including climate change.
In order to understand the impact of climate change on the Group business, we have analyzed risks and opportunities for all businesses in the Group using the following two scenarios:
|1.5°C scenario||A scenario to ensure a transition to a decarbonized society|
|4°C scenario||A scenario in which measures against global warming that surpass the current level are not taken and physical effects are assumed|
[Important risks and opportunities]
We identified risks and opportunities for climate change and examined the importance of climate change to the Group and when it might occur.
*ZEVs (Zero-Emission Vehicle): Battery electric vehicles (BEV) and fuel cell vehicles (FCV) that do not emit carbon dioxide or other exhaust gases when running
[Policy on climate change risks and opportunities]
The Group will use scenario analysis to identify medium- to long-term risks and opportunities, analyze the impact of its management strategy and financial position, and take measures to respond appropriately to risks, strengthen its competitiveness against opportunities, and acquire new business opportunities. The results will be disclosed and reported to stakeholders through media such as the Company website and corporate reports.
[Future direction of management]
As the shift to EVs accelerates in the automotive industry, our mainstay, the Company has established the EV Shift Action Promotion Dept. and is working to connect the needs of the automotive industry to new businesses, such as initiatives to vehicles equipped with internal combustion engines using CN-fuel (hydrogen-fueled vehicles, etc.), not only responding to the EV shift. In addition, we will actively engage in research in new fields that lead to the development of products with environmentally and energy-friendly materials and functions. With regard to capital investment, we will promote the development of facilities with less energy loss and less use of materials and oils and review the optimal investment plan while paying close attention to future trends in demand for internal combustion engines.
We are also making the most of our core technologies cultivated over many years, and as a contribution to green energy, are continuing to actively develop the market for bearings for wind power generation, for which demand is expected to grow in the renewable energy field. We have established the Wind Turbine Technology R&D Institute, an independent organization dedicated to the development (design and evaluation) of basic technologies for bearings for wind power generation, so as to further increase sales in the wind turbine business.
We will continue to enhance our profitability (increase in sales and share) by refining existing businesses while responding to changes in the business environment by creating and fostering new businesses.
The Company has established policies on the Group-wide risk control and management system, and appropriately manages various risks surrounding its business through the collection of information by the Risk Management Committee that is chaired by the President. The Risk Management Committee is held at least twice a year to set priorities for risks that may have a significant impact on the realization of sustainable management in the Group, taking into account the likelihood that risks will materialize and the degree of impact they will have on our business. We promote measures to mitigate risks based on priority and strengthen risk control. We have identified risks such as climate change risks and risks caused by natural disasters and accidents as our priority risks, and the risk management department in charge is responsible for overseeing the risk management of the Group companies.
Based on the recent increase in environmental awareness and the Japanese government's efforts to achieve carbon neutrality by 2050, the Group has formulated its carbon neutral policy and established the Carbon Neutral Promotion Dept., a specialized organization that oversees various measures.
In order to fulfill our responsibilities as a member of the global society, we aim to achieve carbon neutrality (net-zero CO2 emissions) by 2050 in the Group as a whole, including overseas companies. We will work to reduce CO2 emissions concretely in a step-by-step manner by working to reduce to energy, utilizing renewable energy, and promoting innovation.
＞Daido Metal’s Carbon Neutrality