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.
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 |
|
High |
Stricter regulations on CO2 emissions volumes and energy conservation | Reducing CO2 emissions intensity through the development of efficient logistics systems |
|
Low | ||
Markets | Growing demand for low-carbon products | Risks: Declining demand for existing high 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) |
|
High | ||
Growing demand for recycling materials | Risks: Rising prices for used paper and other recycled raw materials |
|
Medium | ||
Reputation | Declining corporate brand value due to inadequate environmental measures | Risks: Changes in evaluations by stakeholders |
|
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 |
|
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 |
|
Low | |
Improved business sustainability through environmental measures | Opportunities: Achieving differentiation from the competition and containing opportunity loss by ensuring a stable supply of products |
|
Low |
Strengths and initiatives for addressing major opportunities
Event | Strengths and initiatives |
---|---|
Stricter regulations governing CO2 emissions and energy conservation |
|
Growth in demand for low carbon products Promoting the switch from plastic to paper products |
|
Increasing the sustainability of eco-friendly businesses |
|
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% |
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% |
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.