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.
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 has joined the TCFD Consortium. We will continue 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.
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 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 the Overseas Alcoholic Beverages Business of Takara Shuzo International Group (Takara Sake USA Inc., Takara Shuzo Foods Co., Ltd., and The Tomatin Distillery Co. Ltd). As a specific process, we identified 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 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., which was analyzed in FY2021, the Takara Group expanded its scope to include the Overseas Alcoholic Beverages Business of Takara Shuzo International Group (Takara Sake USA Inc., Takara Shuzo Foods Co., Ltd., and The Tomatin Distillery Co. Ltd) in FY2022, and conducted a scenario analysis to understand the impact of climate change risks and opportunities on business and consider countermeasures.
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) 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.
Business Risks and Opportunities due to Climate Change
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 (Takara Sake USA Inc., Takara Shuzo Foods Co., Ltd., and The Tomatin Distillery Co. Ltd), and analyzed the impact of temperature rise on yields for four items that account for a large proportion of raw material use.
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 and Takara Shuzo in FY2022
Takara Holdings and Takara Shuzo calculate Scope1,Scope2,Scope3 greenhouse gas(GHG) emissions. Going forward, we wil work to grasp our Group-wide GHG emissions.
