Daiwabo Holdings Co., Ltd. supports the TCFD (Task Force on Climate-related Financial Disclosures) recommendations*1 and is a member of the TCFD Consortium*2, which is a forum for discussions among supporting companies and financial institutions.
Recognizing global warming and climate change as important management issues, our Group’s basic environmental philosophy calls for protecting the global environment, which is essential for healthy and cultured living, through "Friendly to People and the Environment" corporate activities.By announcing our support for the TCFD recommendations and joining the TCFD Consortium, the Group will actively disclose information based on the TCFD recommendations, and promote its business activities to contribute to sustainable development by reducing the burden on the global environment.
Daiwabo Holdings Sustainability Site “Environmental Activities”
https://www.daiwabo-holdings.com/en/sustainability/environment.html
- 1: The Financial Stability Board (FSB) was established in 2015 at the request of the Group of 20 countries and regions (G20). It assesses the financial impact of the risks and opportunities posed by climate change, and recommends information disclosure on “governance,” “strategy,” “risk management,” and “indicators and targets.”
（TCFD website：https://www.fsb-tcfd.org/）
- 2： The TCFD Consortium was established in 2019 as a forum to discuss effective corporate information disclosure and initiatives to translate the disclosed information into appropriate investment decisions by financial institutions, etc.
（The TCFD Consortium website：https://tcfd-consortium.jp/en）
In April 2020, our group established the ESG Promotion Committee, chaired by the Representative Director, as an advisory body to the Board of Directors to deliberate on environmental, social, and governance issues.
The ESG Promotion Meeting has been established as a subordinate organization of the ESG Promotion Committee for practical discussions about and promotion of activities. Items discussed by the ESG Promotion Committee are reported to the Board of Directors.
The Board of Directors resolves matters reported by the ESG Promotion Committee, and gives relevant instructions and supervision.
As one of the key environmental issues in our group’s materiality (important challenges), climate change issues are discussed, deliberated, and resolved in this system, to make progress in the issues. If necessary, we report the impact of climate change as a company-wide risk to the Risk Management Committee, and make recommendations.
●Climate Change Risk Management System
Our group recognizes climate change as a medium- to long-term challenge. Therefore, we make analysis using multiple future scenarios based on the 1.5–2°C and 4°C scenarios, to account for risks and opportunities under a variety of circumstances.
In a world of +1.5–2°C, regulations to reduce greenhouse gas emissions will be tightened, and the risk of transition will increase due to the progress of low and decarbonization.
On the other hand, in a world of +4°C, physical risks, such as abnormal weather, are expected to increase, although the impact of transition risks, such as regulations, are small.
The scenario for FY2030 is based on “RCP-2.6” and “RCP-8.5” from the IPCC, and “NZE2050, SDS” and “STEPS” from World Energy Outlook.
Assumptions for Scenario Analysis
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Scenario |
1.5°C–2°C scenario, 4°C scenario |
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Target business |
IT infrastructure distribution business, Fiber business (Japan), Industrial machinery business (Japan) |
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Target year |
Impact as of FY2030 |
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The ESG Promotion Meeting, which promotes issues related to climate change, assesses risks and opportunities related to the impact of climate change, in cooperation with each office of Daiwabo Holdings and Group companies, and monitors the status. Risk assessment is conducted at least once a year and as necessary, and the ESG Promotion Meeting reports and makes recommendations to the ESG Promotion Committee.
The ESG Promotion Committee deliberates on risk assessment, relevant proposed countermeasures, and related indicators and targets at least once a year, followed by reports to the Board of Directors. The Board of Directors resolves matters reported by the ESG Promotion Committee, and gives relevant instructions and supervision.
In the first fiscal year of TCFD disclosure, only risks and opportunities are disclosed. The Group will consider further disclosure of the financial impact.
Recognizing global warming and climate change as important management issues, we have established Group-wide CO_{2} reduction targets to realize a decarbonized society.
Scope:
IT infrastructure distribution business: Daiwabo Information System Co., Ltd. (consolidated)
Fiber business: Daiwabo Co., Ltd. (consolidated in Japan)
Industrial Machinery Business: O-M Ltd. (consolidated in Japan)
Daiwabo Holdings Co., Ltd. (non-consolidated)
Major CO_{2} emissions factors in our Group
Scope 1: Direct emissions from fuel combustion in factories and other manufacturing processes
Scope 2: Indirect emissions from the use of electricity supplied by other companies