1. TOP
  2. EnglishTOP
  3. Sustainability
  4. Environment
  5. Responses to the TCFD Recommendations

Responses to the TCFD Recommendations

Governance

The Sustainable Committee (chaired by the President and CEO) under the Board of Directors manages and promotes response to climate change. The Sustainable Committee and the Sustainable Committee Secretariat, its executive arm, in partnership with the Conference of Business Divisions, Business Units, and Group companies, ascertain risks and opportunities associated with climate change, draft related targets, monitor and assess the state of related efforts, and submit reports and answers to the Board of Directors twice a year on the results of this process. While the Sustainable Committee meets twice annually in principle, it may meet at other times to address matters judged by the chairperson to be highly important or urgent.
The Board of Directors consults with and supervises the Sustainable Committee and makes decisions on targets.
Tasked with overseeing the executive organization, the Sustainable Committee Secretariat reviews anticipated risks and opportunities associated with climate change, identifies them and assesses their importance, and reviews their assessments. It also considers action plans and response policies and inspects and follows up on the state of execution periodically.
The Conference of Business Divisions consults with the Sustainable Committee to share information. Business Units and Group companies implement various measures and provide results and data.
The Audit and Supervisory Board and the Audit Office provide supplemental audits related to these initiatives.

Sustainable Committee

Risk Management

The Sustainable Committee reviews the risks and opportunities associated with climate change annually, assesses risks and opportunities based on various considerations, including their probability and impact and what recourses are available. In reviewing assessments of risks and opportunities, it refers to various scenarios provided by organizations such as the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC), and interviews related business sections as necessary. Among the risks and opportunities associated with climate change, those considered to be highly important are reported to the Board of Directors through the Sustainable Committee. The Sustainable Committee drafts responses to risks and opportunities and manages the progress thereof in accordance with established guidelines.

Strategy

The Group has considered two scenarios, the 2°C scenario and 4°C scenario, for the year 2030, for a scope consisting of The Pack Corporation. In doing so, it referred to the scenarios of the IEA’s World Energy Outlook, the IPPC’s Shared Socioeconomic Pathways (SSPs) and Representative Concentration Pathways (RCPs) scenarios, and various forecasts and plans issued by the Japanese government and other parties. Analyzing each event along the two axes of probability and impact, it assessed business risks and opportunities at three levels: high, medium, and low. We will increase the resilience of business activities by promoting optimal initiatives based on the important business risks and opportunities clarified through this process.

  Item Event Potential impact Business impact Assessment
Transitional risks and opportunities 2 °C scenario Policy, legal Adopting carbon taxes Risks: Rising business costs, including the cost of fuel and raw materials, due to stricter regulations and carbon taxes
  • New tax burdens on emissions expected to be incurred with adoption of carbon taxes
High
Stricter regulations on CO2 emissions volumes and energy conservation Reducing CO2 emissions intensity through the development of efficient logistics systems
  • Emissions intensity expected to be reduced by making the Company’s logistics systems more efficient in partnership with leading logistics firms
Low
Markets Growing demand for low-carbon products Risks: Declining demand for existing high carbon products
  • Projections suggest that customers and consumers would move away from existing high carbon products toward low carbon products.
Low
Opportunities: Increasing demand for low carbon products (paper products) High
Promotion of switching from plastic to paper products Opportunities: Increased demand for paper products (bags, cartons)
  • Growing consumer movement away from plastic products to more eco-friendly paper products due to expanding environmental awareness
High
Growing demand for recycling materials Risks: Rising prices for used paper and other recycled raw materials
  • Projections suggest that market prices of used paper and other materials would rise as demand for recycling materials grows, leading to higher manufacturing costs.
Medium
Reputation Declining corporate brand value due to inadequate environmental measures Risks: Changes in evaluations by stakeholders
  • Projections suggest that failure to adapt to climate change may lead to exclusion from investments, chiefly by institutional investors, and less favorable lending conditions from financial institutions.
  • Despite the risk of fundraising obstacles, the impact might be controlled by enhancing disclosure and implementing measures to adapt to climate change.
Low
Physical risks and opportunities 4 °C scenario Acute Increasing frequency and scale of weather-related disasters Risks: Suspension of operations due to damage to Company facilities and supply chains
  • Projections suggest that growth in demand for electricity due to growing numbers of days of erce heat may threaten business continuity due to power failures and other consequences.
Low
Chronic Increasing numbers of days of fierce heat Risks: Inadequate electricity due to growing numbers of days of fierce heat
Risks: Rising air conditioning and other costs
  • Projections suggest that growth in demand for electricity due to growing numbers of days of fierce heat may threaten business continuity due to power failures and other consequences.
Low
Improved business sustainability through environmental measures Opportunities: Achieving differentiation from the competition and containing opportunity loss by ensuring a stable supply of products
  • Projections suggest that the Company can differentiate itself from the competition by increasing its business continuity by adapting to climate change to ensure a stable supply of products and to avoid shortages.
Low

Strengths and initiatives for addressing major opportunities

Event Strengths and initiatives
Stricter regulations governing CO2 emissions and energy conservation
  • Rebuilding the head office building to make it highly environmentally efficient
  • Establishing guidelines on adopting machinery and using machinery with a focus on efficiency
  • Adopting and expanding facilities to reduce environmental impact—for example, by installing solar power
  • Promoting the development of efficient logistics systems
  • Promoting contracts for CO2-free electricity from renewables
  • Considering carbon offsets through the purchase of non-fossil-fuel certificates, etc.
Growth in demand for low carbon products Promoting the switch from plastic to paper products
  • Together with boosting sales of FSC® and other Forest Products, actively proposing and expanding the lineup of other paper products
  • Moving ahead with the development of eco-friendly products and proposing their use as substitutes for plastic products
Increasing the sustainability of eco-friendly businesses
  • Ensuring stable supplies and effective risk management for emergencies through joint efforts with our four plants in Japan, Group companies, and subcontractor plants
  • Promoting supply chain resiliency by developing new suppliers and strengthening relations with existing suppliers

Indicators and Targets

The Pack has established the following indicators and targets. Each business unit will strive to meet these targets under the oversight of the Sustainable Committee.

Supply chain CO2emissions results

We have determined that Scope 3, Category 1 emissions (from purchased products and services) account for 81.7% of total supply chain CO2 emissions. In addition, we will consider ways to reduce total supply chain CO2 emissions.

Emissions by scope

Scope Emissions (t-CO2) Ratio
Scope1 5,118 0.7%
Scope2 11,638 1.6%
Scope3 693,899 97.7%
Supply chain emissions 710,655 100.0%
Supply chain emissions

Scope 3 emissions categories

Category Emissions (t-CO2) Share of Scope 3 emissions
1. Purchased goods and services 580,437 83.6%
2. Capital goods 15,958 2.3%
3. Activities related to fuel and energy not included in Scopes 1 and 2 3,138 0.5%
4. Upstream transportation and distribution 27,343 3.9%
5. Waste generated by operations 937 0.1%
6. Business travel 349 0.1%
7. Employee commuting 1,290 0.2%
8. Upstream leased assets - -
9. Downstream transportation and distribution 5,310 0.8%
10. Processing of sold products 320 0.0%
11. Use of sold products - -
12. End-of-life treatment of sold products 58,817 8.5%
13. Downstream leased assets - -
14. Franchises - -
15. Investments - -
Total Scope 3 emissions 693,899 100.0%
2023 Scope 3 emissions

CO2emission reduction target (Scopes 1 and 2)

Each plant seeks to continue to adopt and deploy more efficient machinery and equipment in line with related guidelines. Investment in machinery and equipment will continue in 2024 and beyond to help curb CO2 emissions.
[Target] By 2030, we hope to reduce CO2 emissions (Scopes 1 and 2) by 46% vs. FY2018.
[Scope 1 and 2 results] In 2023, Scope 1 and Scope 2 emissions increased 8.8% year-on-year. We will maintain activities that conserve energy, including efficiency improvements in manufacturing and logistics sections.

Trends in CO2 emissions (Scopes 1 and 2)

Trends in CO2 emissions (Scopes 1 and 2)

See related pages

This website uses cookies for the purpose of improving the service. If you agree to the use of cookies, please click the "Agree" button. For more information on the use and handling of cookies, please see About Cookies.