Vision/PolicyClimate Change Initiatives

Nippon Chemi-Con has declared support for the recommendations of the "Task Force on Climate-Related Financial Disclosures (TCFD)" with the recognition that climate change is a significant issue which affects the continuation of our business. Based on the TCFD framework, we will analyze risks/opportunities related to climate change that may affect our business and reflect them in our corporate strategy. At the same time, we will engage in
disclosure of financial information related to climate change.

We will conduct discussions related to climate change and evaluate/manage statuses of climate change initiatives at the Risk Management Committee.
The Risk Management Committee will report climate-related information including risks and opportunities that may affect our business to the Executive Committee Meeting and Board of Directors twice a year, and the Board of Directors will instruct/supervise.
We will also implement initiatives towards resolving issues related to climate change, environmental risks and environmental tasks at the Environmental Committee. The Environmental Committee will extend initiatives to executing divisions and manage progress of initiatives towards decarbonization and energy conservation, and report to the Executive Committee Meeting and Risk Management Committee.

We identified and evaluated climate-related risks/opportunities that may affect our business. The results are as follows.

  • 1 Risks and opportunities that may have an effect of over 5% of net sales is evaluated as having a large impact.
  • 2 The terms assume the following periods: short=until FY2025, medium=until FY2030, long=until FY2050.

We have analyzed the following scenarios and are considering measures that need to be taken for each scenario.

  • Assumed world view in the 1.5℃ scenario (based on IPCC SSP 1-1.9 and IEA SDS):A world where a social economy aimed at the realization of a decarbonized/low carbon society evolves to achieve carbon neutrality by 2050 or later.
  • Assumed world view in the 4.0℃ scenario (based on IPCC SSP 3-7.0 and NGFS (NDCs)):A world where the need to adapt to increased severity of disasters will heighten due to the continued execution of current climate change policies without enhancement.
  • IPCC SSP: Intergovernmental Panel on Climate Change, Shared Socioeconomic Pathways
    IEA SDS: International Energy Agency, Sustainable Development Scenario
    NGFS (NDCs): Network for Greening the Financial System (Nationally Determined Contributions)

The assumed events and measures for each risk and opportunity is as follows.



In FY2021, the first fiscal year of responding to TCFD, we organized a TCFD team consisting of members from various divisions. The team discussed the risks/opportunities related to climate change that may affect our business from multiple points of view. More specifically, we listed events that may affect our business based on the world view of the two scenarios we selected. We then sorted them into transition risks and physical risks and extracted those along with opportunities that may have an especially significant impact after considering the size of impact and degree of priority. For measures against these risks and opportunities, the TCFD team conducted considerations from a comprehensive point of view followed by integrated considerations with other risks at the Risk Management Committee. The results then received approval from the Board of Directors.
For years beyond FY2022, as is stated in "Governance," we plan to conduct considerations integrated with other risks from a comprehensive point of view, mainly at the Risk Management Committee.

For our basic policy and processes regarding risk management, please refer to the link below.
https://www.chemi-con.co.jp/en/company/sustainability/governance/risk/management.html



Nippon Chemi-Con uses the following metrics and targets to evaluate/manage climate-related risks.

  1. Manufacturing bases in Japan: We aim to improve energy consumption per unit by an annual average of 1% or higher towards FY2030 based on the "Carbon Neutrality Action Plan" promoted by electrical and electronics industries.
  2. Manufacturing bases in Japan: To realize carbon neutrality by 2050, we will pursue a reduction of approximately 46% for CO2 emissions caused by our production operations in FY2030 on a FY2013 basis.
  • For manufacturing bases in other countries, we will promote consideration to set goals within three years while abiding by the laws of each country.

As metrics/targets for climate-related opportunities, we have focused on enhancing product planning capabilities and accelerating introduction of new products into markets expected to grow in our 9th Medium-term Management Plan (FY2020-2022). This includes new products in automotive electronics and industrial equipment/energy conversion markets. We plan to generate a total operating income of 3.8 billion yen combined with other products during the 9th Medium-term Management Plan.



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Nippon Chemi-con Corporation published this content on 29 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2022 14:03:03 UTC.