Environment Actions for a Decarbonized Society
- Environmental Management
-
Actions for a Decarbonized Society
- Actions for a Recycle-Based Society
- Research and Development
- Intellectual Property Management
- Takasago Thermal Engineering Green Bonds
Greenhouse Gas (GHG) Emissions by Scope*
Estimated FY2019 emissions for publication and disclosure of environmental data and the like are the basis for the long-term targets for FY2025 and FY2030.
Classification/Category | What is calculated | Sources | Emissions (t-CO2) | |||
---|---|---|---|---|---|---|
2019 (Base) |
2020 | 2021 (Percentages compared to 2019) |
||||
Scope 1 | Direct emissions | Direct emissions from the Company’s use of fuels (e.g. oil) and industrial processes | Gas, oil, gasoline | 2,754 | 2,037 | 2,176 |
2 | Indirect emissions from energy sources | Indirect emissions from the consumption of electricity and heat purchased by the Group | Electricity, water, and the like consumed at Group business locations | 3,110 | 2,442 | 1,864 |
Scope 1 & 2 total | 5,864 | 4,479 | 4,040 -31.1% |
|||
3 | Other indirect emissions (other than Scope 1 & 2) Design, construction, etc. |
4,963,127 | 4,000,944 | 4,648,164 -6.3% |
||
Category 1 | Purchased goods and services | Emissions from activities leading to the manufacture of raw materials and other materials | Ducts, pipes, frames | 173,731 | 104,307 | 119,213 |
Major components of air conditioning system (chillers, air conditioners, all-in-one air conditioning systems, fan coil units, blowers) | ||||||
2 | Capital goods | Expansion of production facilities | Capital investment | 39,557 | 13,190 | 7,336 |
3 | Energy-related activities | Minerals for generating electricity purchased by the Company | Electricity consumption | 459 | 606 | 715 |
4 | Transport (upstream) | Emissions from transporting goods from suppliers to work sites | Number of trucks for transport | 3,678 | 5,269 | 5,662 |
5 | Waste generated in operation | Emissions from transporting and disposing of general and industrial waste generated by the Company | General waste from buildings and offices | 9,614 | 7,168 | 5,676 |
Amount of industrial waste disposed of onsite | ||||||
6 | Employee business travel | Business travel | Domestic and overseas business travel | 2,474 | 822 | 919 |
7 | Employee commuting | Commuting | Commuting | 547 | 632 | 609 |
11 | Use of sold products | Emissions from the use of products by users (consumers and businesses) | Equipment for delivery to customers | 4,650,967 | 3,835,589 | 4,499,860 |
12 | Disposal of sold products | Emissions from disposing of products | Disposal of purchased products | 82,100 | 33,359 | 8,089 |
Scope 1 & 2 & 3 total | 4,968,991 | 4,005,423 | 4,652,204 |
- Independent third-party assurance was obtained from Sustainability Accounting Co., Ltd.
TCFD Initiatives and Disclosures
We view climate change as one of the highest priority issues and promote and incorporate climate change measures into our management strategy.
In September 2020, we endorsed the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and joined the TCFD Consortium. We decided to clearly state the CO2 emission processes throughout our business and position quantitative reduction targets as management indicators. We have also committed to disclosing our initiatives and results through integrated reports and other means, and participate in relevant consortiums and other frameworks to gain the understanding and appreciation of society.
Governance
The ESG Promotion Committee deliberates over important matters involving climate-related issues before bringing and reporting them to the Board of Directors, which supervises and directs them to ensure that proper action is taken on the matters.
In FY2022, the committee met a total of six times to check the quarterly progress of Group ESG activities in addition to determining what TCFD disclosures to make and sharing information about decarbonization initiatives toward achieving the 1.5℃ target.
The president has the ultimate responsibility for climate-related issues, and manages and promotes initiatives to address climate change, including TCFD recommendations.
We also recognize climate-related risks as one of the many risks in our business activities, and share information with the Risk Management Committee, which oversees all business risks.
Promotion System Chart
Strategies
We use the following four-step process to develop strategies, which we verify in terms of resilience. We constantly use the results of this analysis in initiatives for improvement.
Presumed climate-related risks
We examined countermeasures for the risks and opportunities identified and assessed, focusing on those with major financial/business impact. We will continue to assess resilience and deepen our countermeasures.
Broad category |
Medium category |
Item | Impact on business operations | Financial impact |
Response measures | |
---|---|---|---|---|---|---|
1.5℃ | 4℃ | |||||
Transition risks
|
Policies and regulations
|
Carbon pricing | Increase in operating costs (facility electricity, GHG emissions during delivery) due to the introduction of a carbon tax | Low | - |
|
The introduction of a carbon tax would increase operating costs for upstream suppliers and increase their own procurement costs | Medium | - |
|
|||
Circular economy | Increase in procurement of recycled materials and waste disposal costs | Low to medium | - |
|
||
Plastic regulations | Increase in material costs due to higher plastic prices | Low | - | |||
Market
|
Crude oil price | Increase in transportation and equipment costs due to higher gasoline prices | Medium | Medium |
|
|
Technology
|
New technology | Market share decline due to inadequate response to customer needs (including ZEB) caused by delays or failures in the development of new technologies (including energy-saving design and construction technologies) that contribute to the reduction of greenhouse gas emissions | Medium | Low |
|
|
Reputation
|
Changes in reputation among investors | Reputation damage and increased investment-related risks resulting from inadequate responses to climaterelated issues and inadequate information disclosure | High | Medium |
|
|
Physical risks
|
Acute physical risks
|
Extreme weather events | Increase in procurement of recycled materials and waste disposal costs due to circular economy regulations | Medium | Medium to high |
|
Spread of viruses due to extreme weather events | Loss of sales opportunities due to fewer orders received as a result of the spread of viruses and the like due to extreme weather events | High | High |
|
||
Chronic physical risks
|
Rise in temperature | Worsening labor shortage due to reduced employees with work environments becoming tougher, resulting in a decrease in construction capacity and therefore a decrease in completed construction | High | High |
|
|
Reduced work efficiency resulting from worsening work environments and increases in costs and process delays for labor measures and securing human resources | Low to medium | High |
|
|||
Increase in air-conditioning equipment usage at business sites due to rising temperatures | Low | Low to medium |
|
|||
Floods | Loss of sales opportunities due to suspension of business activities caused by flooding | Medium | Medium |
|
||
Opportunities
|
Resource efficiency
|
Productivity | Reduction of operating costs and increase in productivity by transforming the construction process | High | High |
|
Energy mix | Change of the price of electricity and reduction of operating costs by increasing the share of renewable energy in the energy mix | Low | Low |
|
||
Products / services
|
Promotion of energy-saving efforts | Reduction of costs through the use of policy incentives as a result of further promotion of energy-saving efforts | High | Medium |
|
|
Increased demand | Increased revenue opportunities due to increased infrastructure resiliency needs and accelerated equipment replacement periods (e.g., equipment and product services for disasters and hot weather) | High | Medium |
|
||
Products with reduced environmental impact | Increase in sales of products that contribute to reducing environmental impact (e.g., energy-saving products) | High | Medium | |||
Market
|
New business | Increased opportunities to receive orders for newly developed technologies (e.g., energy-saving technologies, ZEB-related technologies, water electrolysis hydrogen production technologies, and renewable energy-related technologies) | High | Medium |
|
|
Green bonds | Evolution and creation of the Group's environment improvement technologies and further activation of open innovation through the issuance of green bonds | High | High |
|
||
Resource efficiency
|
Decarbonization | Reduction of carbon emissions by achieving SBT targets | Low | Low |
|
|
Productivity improvement | Reduction of material costs by establishing a recycling flow for waste products and materials | Low | Low |
|
Learn about Our Other ESG Initiatives
- Top
- Sustainability
- Environment
- Actions for a Decarbonized Society