Disclosure of information based on TCFD recommendations
table of contents
Disclosure of information based on TCFD recommendations
Under our Basic Policy on Sustainability, "To be a company needed in the future, and to contribute to the realization of a sustainable society and environment," we are working to solve social issues through our business activities.
Climate change, which is currently worsening on a global scale, is an urgent issue that will have a significant impact on social structures and economic activities. We consider addressing climate change to be one of our key management priorities, and we will strive to improve our corporate value in the medium to long term through highly transparent information disclosure and dialogue, while valuing engagement with all our stakeholders.
In this section, we disclose the risks and opportunities that climate change presents to our business, as well as our specific initiatives, in accordance with the four frameworks of the Task Force on Climate-related Financial Disclosures (TCFD) recommendations: "Governance," "Risk Management," "Strategy," and "Metrics and Targets."
governance
We have established a Sustainability Committee, a subordinate body of the Board of Directors, to consider and deliberate on important matters, including basic policies, risks, and opportunities related to sustainability.
Furthermore, in accordance with our Basic Policy on Corporate Governance, we have established a Governance Committee as an organization to consider and deliberate on important matters, and we are promoting sustainability initiatives in cooperation with the Sustainability Committee.
The Board of Directors promotes sustainability management from a multi-stakeholder perspective, overseeing and managing important matters, including identifying material issues related to overall sustainability, such as climate change, and identifying risks and opportunities considered and deliberated by the Sustainability Committee.
Risk management
The Sustainability Committee conducts detailed reviews, evaluations, and corrective actions regarding the identification and assessment of sustainability risks and opportunities, as well as policies for addressing risks that should be prioritized. The results are then reported to the Risk Management Committee.
The Risk Management Committee oversees company-wide risk management and reports regularly to the Board of Directors.
strategy
We analyzed how climate-related risks and opportunities impact our business and financial strategies. Specifically, we used climate scenarios involving a temperature increase of less than 2°C and a temperature increase of 4°C to assess the short-term, medium-term, and long-term impacts and examine the organization's resilience.
| The envisioned world | overview | Specific scenarios used in the analysis |
|---|---|---|
| 2°C rise scenario | A scenario in which the global average temperature at the end of the 21st century*¹ is likely to rise by 0.9 to 2.3°C compared to pre-industrial levels*². ➡This corresponds to the climate conditions that could occur in a world where the Paris Agreement's 2°C target has been achieved. | Net Zero Emissions by 2050 ・Announced Pledges Scenario ・RCP2.6 |
| 4°C rise scenario | A scenario in which the global average temperature at the end of the 21st century*¹ is likely to rise by 3.2 to 5.4°C compared to pre-industrial levels*². ➡This corresponds to the climate conditions that could occur in a world where no further mitigation measures beyond the current level are taken. | Stated Policies Scenario ・RCP8.5 |
(*¹) End of the 21st century: Average of 2081-2100.
(*²) This refers to the period before 1750, but it is replaced with observational values from 1850-1900, when global observations began to be conducted.
Based on the TCFD recommendations framework, we have organized and evaluated the "risks" and "opportunities" that climate change is expected to have on our business as follows:
risk
opportunity
Our company views the risks and opportunities presented by climate change as important management challenges that will impact our medium- to long-term business activities, and we are pursuing strategic responses based on the recommendations of the TCFD. Our quantitative and qualitative analysis of physical and transition risks revealed that setting greenhouse gas emission reduction targets demonstrates a certain degree of strategic resilience.
Furthermore, regarding our IT services business, including digital infrastructure and solutions, which is our core business area, the impact of transition risks is relatively minor, and the stability of our business in the face of climate change is considered to be maintained. However, we recognize that continued monitoring and strengthening of responses will be necessary in the future.
In particular, we will contribute to the realization of a sustainable society by promoting sustainability initiatives throughout the entire supply chain, strengthening the visualization and reduction measures for greenhouse gas emissions, including Scope 3 emissions, and improving the quality and quantity of information disclosure based on the TCFD framework, through dialogue with our stakeholders.
Indicators and targets
To objectively evaluate and manage our response to climate change, we have set greenhouse gas (GHG) emissions as a key indicator. In line with Basic Policy on Sustainability, which aims to "realize a sustainable society and environment," we will continuously monitor these indicators and promote measures to achieve our goals.
Below, we publish the metrics and reduction targets for climate-related risks and opportunities that we have identified.
| KPI / Reference metric | the goal |
| Scope 1/2 GHG emission reduction rate | 30% reduction in 2030 (compared to 2024) |
Achievements
GHG Emissions
| Item | unit | Emissions |
| FY2025 | ||
| Greenhouse gas emissions (Scope 1) | t-CO2 | 34.69 |
| Greenhouse gas emissions (Scope 2) | t-CO2 | 378.81 |
| Greenhouse gas emissions (Scope 3) | t-CO2 | 19596.60 |
| - Category 1: Purchased products and services | t-CO2 | 18496.09 |
| - Category 2: Capital goods | t-CO2 | 439.85 |
| - Category 3: Fuel and energy related activities | t-CO2 | 70.25 |
| - Category 5: Industrial waste | t-CO2 | 6.06 |
| - Category 6: Business trips (travel expenses included) | t-CO2 | 186.96 |
| - Category 7: Employee commuting | t-CO2 | 337.49 |
| - Category 8: Leased assets (upstream) | t-CO2 | 59.89 |
| Total | t-CO2 | 20010.10 |
*Based on the standards of the GHG Protocol, our calculations are limited to categories 1, 2, 3, 5, 6, 7, and 8.
Achievements left behind
It's been 50 years since the company was founded.
Our track record is a result of focusing on what is important to us.
We have a proven track record in both the public and private sectors.
Number of projects per year
500 PJ
Annual number of business partners/customers
200 companies
Maximum number of trading years
49 years
Total number of qualified persons
2,133 people