Sustainability
Disclosures based on the TCFD framework
The Takara Group positions the harmonization of its business activities with global environmental preservation as one of its key challenges, and is actively implementing these initiatives.
The Group recognizes that climate change is an important issue that affects the sustainability of our business, and we support the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). We will continue to assess and respond to the risks and opportunities related to climate change in line with the TCFD framework, disclose relevant information, and engage in dialogue with our stakeholders.
We are also a member of the TCFD Consortium, which brings together companies and financial institutions that support the TCFD recommendations to promote initiatives and discuss ways to ensure effective corporate disclosure and appropriate investment decisions by financial institutions.
Governance
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The Takara Group has established the Takara Group Sustainability Promotion Committee chaired by the Representative Director and President of Takara Holdings, under the supervision of the Board of Directors. The committee assesses the risks and opportunities that climate change poses to business, formulates strategies, and discusses targets, etc. In addition, as a subordinate organization of the Takara Group Sustainability Promotion Committee, the Executive Office of Sustainability Promotion Committee has been established to deal with climate change issues. The Executive Office of Sustainability Promotion Committee sets out and implements specific activities for each Group company based on decisions made by the Takara Group Sustainability Promotion Committee.
These sustainability initiatives, including climate change issues, are reported to the Board of Directors by the Takara Group Sustainability Promotion Committee. -
Risk Management
The Takara Group identified risks and opportunities for Takara Shuzo Co., Ltd. and Takara Shuzo International Co., Ltd. (Overseas Alcoholic Beverages Business and Japanese Food Wholesale Business). As a process to identify them, we extracted potential risks and opportunities for transition risks and physical risks by referring to experts’ opinions and published reports, and selected risks and opportunities that are expected to have a significant impact over the short-, medium-, and long-term period, taking into account the likelihood and magnitude of impact. The Takara Group Sustainability Promotion Committee reports to the Board of Directors on the details of identified risks and opportunities and the countermeasures.
Strategy and Scenario Analysis
The Takara Group had included in its scope Takara Shuzo Co., Ltd., which was analyzed in fiscal year 2021, and the Overseas Alcoholic Beverages Business of Takara Shuzo International Co., Ltd. analyzed in fiscal year 2022. In fiscal year 2023, the Takara Group expanded its scope to include the Japanese Food Wholesale Business of Takara Shuzo International Co., Ltd., and conducted a scenario analysis to understand the impact of climate change risks and opportunities on the business and consider countermeasures to be taken. In this analysis, we referred to RCP 2.6 (below 2°C scenario) and RCP 8.5 (4°C scenario) based on AR5 of IPCC (Intergovernmental Panel on Climate Change) for physical risks, APS scenario (below 2°C scenario), Sustainable Development Scenario (SDS; below 2°C scenario) and NZE2050 scenario (1.5°C scenario) based on WEO of IEA (International Energy Agency) for transition risks to analyze and examine the impact of climate change.
Going forward, we will continue to review risks and opportunities and give shape to measures to be taken, and reflect them in our medium- to long-term management strategies, thereby striving to improve the resilience of our strategies.
Transition risk
As the temperature rise is limited to less than 2°C and strict environmental regulations are introduced to achieve carbon neutrality, the adoption of carbon tax will force up the prices of containers and packaging materials and increase energy costs, causing a significant impact on our business.
Physical risk
As the temperature rise will be about 4°C, damage due to storm surges and floods caused by sea level rise will have a significant impact on our operations. In addition, it has been found that the amount of yield of crops, which are raw materials, is affected by rising temperatures.
Opportunities
We think that the reduction of operating costs through promotion of energy conservation efforts such as the introduction of energy-saving equipment as well as increased demand for ethical consumption and eco-friendly products will become business opportunities for us.
Takara Shuzo International Co., Ltd. ・Overseas Alcoholic Beverages Business (Takara Sake USA Inc.,
Takara Shuzo Foods Co., Ltd., and The Tomatin Distillery Co. Ltd)
・Japanese Food Wholesale Business (Mutual Trading Co., Inc., Tazaki Foods Ltd,
FOODEX S.A.S.,Cominport Distribución S.L.,
and Nippon Food Supplies Company Pty Ltd)
* For disclosures on Takara Bio Inc. based on the TCFD framework, please visit Takara Bio’s website.
Business Risks and Opportunities due to Climate Change in the Domestic Business and Overseas Alcoholic Beverages Business
Impact on crop yields
In addition to Takara Shuzo Co., Ltd., which we have analyzed up until now, we have expanded our scope to include the Overseas Alcoholic Beverages Business of Takara Shuzo International Group and analyzed the impact of temperature rise on yields for four items that account for a large proportion of raw material use.
Business Risks and Opportunities due to Climate Change in the Japanese Food Wholesale Business in overseas markets
Indicators and Targets
The Takara Group has set CO2 emissions reduction targets in its Takara Group Sustainability Vision. Takara Shuzo and Takara Shuzo International Group have set CO2 emissions targets in Scope 1+Scope2 for their production sites.
■GHG Emissions of Takara Holdings, Takara Shuzo, and Overseas Alcoholic Beverages Business of Takara Shuzo International Co., Ltd. in FY2022
Takara Holdings, Takara Shuzo, and Overseas Alcoholic Beverages Business of Takara Shuzo International Co., Ltd. calculate Scope 1, Scope 2, and Scope 3 greenhouse gas (GHG) emissions. We will work to grasp our Group-wide GHG emissions.