Sustainability

Disclosures based on the TCFD framework

 
 

TCFDコンソーシアムロゴ



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. Recognizing that climate change is an important issue that has an impact on the sustainability of business, the Group supports the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and continues to assess and respond to risks and opportunities related to climate change in accordance with the TCFD framework, disclose relevant information, and engage in dialogue with stakeholders. The Group has also joined the TCFD Consortium, where companies and financial institutions which support the TCFD recommendations work together to move ahead with initiatives, and discuss effective information disclosure of companies and initiatives to lead to right investment decisions by financial institutions, etc.

Governance

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.

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Risk Management

The Takara Group identified risks and opportunities for Takara Shuzo Co., Ltd. and Takara Shuzo International Co., Ltd. (Overseas Alcoholic Beverages Business, Japanese Food Wholesale Business in overseas markets). 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

In addition to Takara Shuzo Co., Ltd. in fiscal year 2021 and the Overseas Alcoholic Beverages Business of Takara Shuzo International Co., Ltd. in fiscal year 2022, the Takara Group expanded its scope to include Japanese Food Wholesale Business in overseas market of Takara Shuzo International Co., Ltd. in fiscal year 2023, 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, and APS scenario (below 2°C scenario), SDS scenario (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 production costs, operating costs, storage costs, and the prices of containers and packaging materials, causing an 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 greatly 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.

      

        
Target company: Takara Shuzo Co., Ltd.

         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 Domestic Business and Overseas Alcoholic Beverages Business

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Impact on crop yields

In addition to Takara Shuzo Co., Ltd., we have expanded our scope to include the Overseas Alcoholic Beverages Business of Takara Shuzo International Co., Ltd., and analyzed the impact of temperature rise on yields for four items that account for a large proportion of raw material use.

Impact on crop yields
       

Business Risks and Opportunities due to Climate Change in Japanese Food Wholesale Business in overseas markets

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Indicators and Targets

The Takara Group has set CO2 emissions reduction targets in its Takara Group Sustainability Vision. Takara Shuzo Co., Ltd. and the Takara Shuzo International Group have set CO2 emissions targets in Scope 1 and Scope 2 in total for their production sites.

目標と進捗状況

GHG Emissions of Takara Holdings Inc. and Takara Shuzo Co., Ltd. in FY2023

Takara Holdings Inc. and Takara Shuzo Co., Ltd. calculate greenhouse gas (GHG) emissions in Scope 1, Scope 2, and Scope 3. Going forward, we will work to grasp our Group-wide GHG emissions.

co2排出量