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Contact UsSeeing climate change as a material issue, in November 2023, we announced our support for the Task Force on Climate-related Financial Disclosure (TCFD) Declaration.The following is information regarding our climate change strategy, as well as climate change-related risks and opportunities analyzed as per the TCFD Declaration.We will continue to promote data-driven measures and undertake efforts toward realizing a sustainable society and enhancing our corporate value.
Governance
We have a Sustainability Committee in place, led by our CEO, to discuss and examine sustainability issues, including those related to climate change.The committee will meet multiple times a year as necessary to identify and review material issues such as risks and opportunities related to sustainability, as well as to promote efforts regarding sustainability issues through discussing and examining measures and assessing and monitoring the state of their implementation.Matters discussed by this committee are reported at the Board of Directors meetings at least once a year, whereby the details of these matters are then discussed and decided.
Risk management
Climate change risks are managed by the Sustainability Committee.The committee identifies climate change-related risks, assesses them qualitatively and quantitatively, and discusses and examines countermeasures.The committee consolidates and reassesses the identified climate change risks together with other sustainability risks, and monitors the state of action.The risks determined by material risks are reported at the Board of Directors meetings, and then consolidated and managed/monitored with company-wide risks.
Strategy
Using the scenario analysis techniques recommended in the TCFD Declaration, we identify and evaluate the future risks and opportunities, looking ahead to 2030.The scenario analysis assumes two possible climate change scenarios: the less than 2°C scenario, in which the effects of a transition to a low-carbon society become apparent, and the 4°C scenario, in which the physical impact of climate change becomes apparent.For the identified risks and opportunities, we consider the items listed in the “main risks and opportunities related to climate change” on page 32 as the main countermeasures.
| Assumed world view | Documents referred for analysis of transition risks and opportunities | Documents referred for analysis of physical risks/opportunities analysis |
|---|---|---|
4°C scenarioA scenario that assumes a world in which global warming reaches approximately 4°C above preindustrial levels by 2100.Current climate change-related government policies highlight a worldview in which industry will continue to rely on fossil fuels, without assuming a transition to decarbonization. |
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Less than 2°C scenarioA scenario that assumes a world in which global warming is curbed to a 1.5°C increase from preindustrial levels by 2100.This indicates a worldview where companies will be subject to even stricter regulations, as society demands net-zero greenhouse gas emissions, and as a result, the speed at which greenhouse gases are emitted into the atmosphere will slow down. |
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| Risks and Opportunities | Considerations | Assessment* | Measures | |||
|---|---|---|---|---|---|---|
| Less than 2°C | 4°C | |||||
| Risks | Transition | Carbon cost (carbon tax) | The introduction of a carbon tax will result in increased operational costs as businesses are taxed for CO₂ emissions. | Large | Small | Promote energy conservation (deploying hybrid vehicles, etc.), develop low-carbon technologies and products (low-carbon concrete, etc.), research and develop private power generation equipment (environmental use at construction sites) |
| Recycling regulations | New costs for taking action in response to the updating or implementation of laws and regulations related to construction recycling | Medium | Medium | Minimize the production of waste, promote recycling, and introduce uniforms made of plant-based materials | ||
| Change in raw material/energy costs | Sharp increases in the cost of materials and electricity due to factors such as changes in production methods and an increase in the use of renewable energy | Large | Large | Reviewing material procurement (promoting green procurement, etc.) and examining the development of low-carbon technologies and products (low-carbon concrete, etc.) | ||
| Physical | The increasing severity of extreme weather (typhoons, rainstorms, landslides, storm surges, etc.) | The intensifying of losses caused by asset damage or business suspensions as a result of natural disasters, and an increase in the cost of taking action due to work delays and suspensions at work sites affected by natural disasters | Small | Small | Improvements to business contingency plan measures (implementing regular training, etc.) | |
| Worsening of labor and construction conditions | Drop in worker productivity due to heat-related stress and torrential weather, delays or cancellation of construction work, and associated costs | Medium | Medium | Promoting labor saving and work efficiency (promoting industrialized construction methods, use of things like BIM/CIM and robotics) | ||
| Opportunities | Transition | Change in energy costs/customer behavior | Increase in construction sales resulting from promoting energy efficiency improvements and increased use of renewable energy and energy conservation | Large | Small | Increasing the lifespan of existing buildings (architectural regeneration, etc.), developing environment-related technologies and products (promoting ZEB and ZEH series, etc.), and exploring the development of low-carbon technologies and products (low-carbon concrete, etc.) |
| Physical | The increasing severity of extreme weather (typhoons, rainstorms, landslides, storm surges, etc.) | Increase in winning contracts for disaster prevention and mitigation constructions to enhance national resilience, as well as constructions in disaster recovery efforts | Medium | Large | Increasing/enhancing opportunities to win contracts (by entering into the civil engineering business, etc.) | |
| Increase in mean temperature | The demand for air conditioning efficiency improvements and renovation work increases | Small | Medium | Promoting efforts and enhancing sales activities in the renovation space | ||
| Drop in geographical advantage (caused by an increase in natural disasters) | An increase in project opportunities and sales associated with the relocation of plants and logistics hubs to favorable locations | Small | Medium | Promote efforts and enhance sales activities in non-housing areas (plants, distribution warehouses) | ||
*Assessment categories of financial impact: Large = ¥50 million or more, Medium = ¥10 million or more to less than ¥50 million, Small: Less than ¥10 million.
Metrics and targets
Using greenhouse gas (GHG) emissions as a metric, we have outlined that we will reduce our Scope 1 (directly emitted by our business) and Scope 2 (indirectly emitted through electricity consumption) CO₂ emissions by 31.0% compared to fiscal 2021 levels by fiscal 2030.In relation to Scope 1 and Scope 2 CO₂ emissions of 5,106.1 t-CO₂ in fiscal 2021, which is the base year, in fiscal 2024, our emissions increased by approximately 15% to 5,872.2 t-CO₂. However, we improved our emission factor from 7.5 t-CO₂/¥100 million to 6.8 t-CO₂/¥100 million.Scope 3 CO₂ emissions across our supply chain in fiscal 2024 were 869,358.3 t-CO₂.We are continuing to monitor our CO₂ emissions and implement efforts to reduce them.
| KPI | Unit | (Base year) FY2021 |
Target | FY2022 | FY2023 | FY2024 | |
|---|---|---|---|---|---|---|---|
| Scope1･2 | Total emissions | tｰCO₂ | 5,106.1 | Reduce emissions by 31.0% compared to fiscal year 2021 levels by fiscal year 2030 | 6,420.7 | 5,970.7 | 5,872.2 |
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Emission intensity |
t-CO₂/¥100 million | 7.5 | 9.2 | 7.9 | 6.8 | ||
| Scope3 | Total emissions | tｰCO₂ | 718,705.2 | 952,963.9 | 877,405.9 | 869,358.3 |