Based on its “Total-Living” concept, the YAMADA HOLDINGS Group handles a wide variety of home appliances, housing equipment, furniture and interior goods that support customers’ lifestyles. These products are manufactured and processed not only in Japan but also in other parts of the world, using various resources from each region. For this reason, we believe that tackling climate change and preserving the natural environment are important themes for the sustainable growth of the Group. For disclosure based on the Task Force on Climate-related Financial Disclosures (TCFD), the Group is looking at the current state of the whole Group, developing a governance system, and examining strategies, risk management, metrics and targets. Going forward, we will continue to appropriately manage the risks associated with climate change, and view various changes toward a carbon-free world as business opportunities that will lead to sustainable growth.
In YAMADA HOLDINGS, the Board of Directors discusses important management and business strategies, makes policy decisions, and supervises the ESG & Sustainability Promotion Committee. In addition, the ESG & Sustainability Committee examines important issues, such as climate change risks and opportunities identified from scenario analysis, and regularly reports to the Board of Directors on the status of addressing these risks, so that the Board of Directors can fully exercise its supervisory function.
Based on the TCFD recommendations, the Group has established the target businesses, timelines, and scenarios to analyze and assess the climate change risks and opportunities.
This scenario sees regulations and policies for decarbonization tightened and measures against climate change progressing with the temperature rise from pre-industrial levels at around 1.5°C to 2.0°C. As customers’ preferences for products and services change and companies are more strongly required to tackle climate change, it is likely that transition risks, including less customers and greater reputational risk, will increase if the companies fail to do so. Conversely, it is assumed that the physical risks would be relatively low compared to the 4.0°C scenario, with for example, more extreme and prevalent disasters caused by climate change being suppressed to some extent. (Reference: The International Energy Agency’s Net Zero Emissions by 2050 Scenario)
A scenario in which sufficient measures against climate change are not taken and the temperature rises around 4°C from pre-industrial levels. It is assumed that physical risks would increase, with for example, more extreme natural disasters, rising sea levels, and an increase in abnormal weather events. As a result, it is thought that climate change-resilient products and services in terms of good BCP will become more competitive. Conversely, it is assumed that transition risks would be low, with for example, the government’s lack of tighter regulations. (Reference: The Intergovernmental Panel on Climate Change’s RCP8.5 Scenario)
Climate-related risks are regarded as one of the major risks that affect the Group’s business. As such, the Group monitors progress of measures to address the important climate-related risks identified in the scenario analysis, and the status of risk management, reporting to the Board of Directors once a year.
Japan is aiming to become carbon neutral by 2050, and as an interim goal, to reduce greenhouse gas emissions by 46% by 2030 compared to 2013 levels. The YAMADA HOLDINGS Group also aims to reduce Scope 1 and 2 greenhouse gas emissions by 46% compared to 2013 levels by 2030, and will set reduction targets for greenhouse gas emissions within fiscal 2024.