sustainability

Climate Change

The Tokyo Seimitsu Group sees climate change as a major risk for our business because its impacts on society and economy, including temperature rises and extreme natural disasters, are tremendous.

On the other hand, we think that addressing climate change issues can make our company stronger and our products more competitive, offering opportunities to expand our business.

Response to TCFD (Task Force on Climate-related Financial Disclosures)

In August 2021, we launched projects for responding to TCFD. Also, in November 2021, we established a Sustainability Committee, chaired by the President and CEO.

Its main activities are to continue with the projects. We analyze risks and opportunities that climate change may present to our business and provide and share information about the identified issues. We also disclose climate-related financial information within the framework of the TCFD.

Corporate Governance

The Tokyo Seimitsu Group considers climate change a major business threat. The Sustainability Committee discusses ways to control risks and opportunities related to climate change issues and reports results of the discussions to the board of directors on a regular basis.

The Sustainability Committee is chaired by the President and CEO. Its activities are reported to the semiannual Sustainability Promotion Meetings, and the report is submitted to the board of directors if deemed necessary by the chairperson.

The board members collect information and deepen their knowledge through various opportunities and means to grasp the constantly changing climate change situation.

The board of directors shares issues related to climate change risks and opportunities and discusses ways to control goals and solve the issues.

Corporate Governance

[About the Sustainability Committee]

This committee plans and executes sustainability-related activities. In particular, it promotes the following activities:

  • Creation of a basic policy, operation framework, goals, etc. and monitoring of information
  • Planning and implementation of projects
  • Summarization of information, reports to the board of directors, etc.
  • Preparation of reports and matters related to information disclosure
  • Hosting and operation of the Sustainability Promotion Meeting

[About projects for responding to TCFD]

These projects are led by the Sustainability Dept. and attended by the related personnel of the production, sales, and management departments. Members of the projects research and discuss climate change and submit reports to the Committee periodically.

Risk Management

The projects for responding to TCFD research and discuss climate change-related risks (transitional/physical). They submit reports to the Sustainability Committee on a regular basis and whenever there is an urgent need to do so. Risks considered to affect business are relayed immediately from the committee to the board of directors for judgment.

Such information is also shared with the Risk Management Committee, which is responsible for business risk management, to ensure that appropriate measures are implemented on a company-wide basis.

Strategy

For the moment, we analyze Tokyo Seimitsu's domestic business in Scopes 1 and 2.As for GHG emissions from our group companies (domestic and overseas subsidiaries), we intend to start analysis while monitoring their emissions continuously.

In the future, we will investigate the Scope 3 emissions, including those of suppliers.

Since future projections are highly uncertain and difficult to analyze, we examined GHG emissions based on multiple scenarios.
There is a growing international public opinion that measures under the Beyond 2°C Scenario (B2DS) are insufficient. Therefore, we conducted the analysis, taking into consideration the 1.5°C Scenario.

On the other hand, measures under the 1.5°C Scenario make people less conscious about physical risks. For projecting our business environment, therefore, we assumed the 4°C Scenario, where continuing with the current economic activities would lead to temperature rises.

* Reference scenarios
1.5°C Scenario: [IEA] NZE, 1.5°C Special Report [IPCC] SSP1-1.9
4°C Scenario: [IEA] STEPS [IPCC] SSP2-4.5, SSP3-7.0

  
Scenario  Risks/
Opportunities
  Event  Assumed Business Environment Financial Impact Emergence Timing





 

1.5℃





 


Risks

 
Regulations Carbon pricing
◆Rises in costs of
   materials, equipment,
   energy, transportation,
   etc. due to the
   introduction of a
   carbon tax
◆Restrictions on product
   exports due to the
   introduction of a
   carbon border tax
▲▲▲ Medium term
Markets
Use of EVs ◆Decrease in demand
   for the conventional
   business and products      (measuring
   instruments for
   internal-combustion
   engine parts)
▲▲ Medium term
Decarbonization premiums ◆Decarbonization
   resulting in surges in
   material costs,
   difficulty in
   procurement, and
   extra costs being
   incurred to procure
   alternative products
◆Difficulty in
   procurement of
   non-fossil energy and
   rise in procurement
   costs
▲▲ Medium term
Reputation Delayed decarbonization efforts ◆Delays in climate
   change action and
   other ESG efforts
   affecting financing and
   business relationships
Medium term
 

Opportunities

 

Markets
 
Use of EVs
Electrification/
digitization
◆Growing demand for
   measurement of new
   EV materials and parts
◆Increased use of
   semiconductors
   leading to increased
   production capacity 
▲▲▲ Medium term
Growing renewable energy markets ◆Growing demand for
   measuring instruments
   due to expanding
   renewable energy
   markets
Long term
Resource efficiency energy Production equipment ◆Energy-saving
   measures in factories 
   (equipment and
   processes) and
   recycling of resources
   leading to increase
   productivity and meet
   the customer need for
   decarbonization
Short term
Products
Services
Low-carbon products and services ◆Enhance the product
   reputation and
   competitiveness
   on the market by
   reducing
   environmental impact
   from the LCA
   perspective
◆Meet the customer
   need for lighter
   products (increase
   demand for measuring
   products)
▲▲ Short term
4℃
Risks
Physical
(acute)
Extreme weather events ◆Increase in risk control
   (BCP) costs
◆Disaster-caused
   physical damage and
   recover costs
◆Disaster-caused
   business operation
   suspension (of the
   company or suppliers)
▲▲▲ Medium term
Opportunities Resilience Disaster response ◆Stable supply of
   products and services
   in case of disaster to
   help customers
   maintain their
   production systems
▲▲ Medium term
 

Legend Financial Impact: ▲▲▲Large, ▲▲Moderate, ▲Small
Emergence Timing: Short term2022-2024, Medium term2025-2029, Long term2030-

Indicators and Goals

The growing trend of electrification and digitization is expected to further increase demand for semiconductors.

Semiconductors play a key role in realizing a carbon-free society, and we understand that it is crucial to meet such needs. Given the current situation, we are planning to boost our production capacity.

While this will lead to increased energy consumption, we will spare no effort in saving energy. Furthermore, we are going to step up our efforts toward decarbonization by promoting the use of renewable energy and other types of low-carbon energy.

We aim to reduce our CO2 emissions in 2030 by 50% from the level of fiscal year 2018.

Reduction in Greenhouse Gas (GHG) Emissions

Toward the Reduction of Greenhouse Gas (GHG) Emissions

Most of the GHG emissions from Tokyo Seimitsu are carbon dioxide (CO2) equivalent of electricity purchased to operate our plants. To minimize the impact on climate change, we are focusing on power saving.

●Tokyo Seimitsu's CO2 emissions

 
Previous five-year plan New five-year plan
FY2016
Performance
FY2017
Performance
FY2018
Performance
FY2019
Performance
FY2020
Performance
FY2021
Plan
Emissions (t-CO2) 12,176 12,311 12,312 11,976 9,524 8,240
Electric power used (kwh) 24,197 25,163 25,765 25,448 28,843 29,500
COemissions equivalent (t-CO2/million yen) 0.204 0.181 0.160 0.191 0.129 -
 

Tokyo Seimitsu plans to create medium-term GHG reduction policies through the Projects for responding to TCFD and disclose those policies.