Representatives from relevant departments of our Corporate Administration Division and Global Sales & Operations have formed the TCFD Working Group and carried forward considerations and reviews on climate change-related basic policies, important matters, risks/opportunities, and other topics.
Going forward, we will newly launch a Sustainability Committee and have it lead initiatives for sustainability-related and other matters, including climate change risks.(The aforementioned TCFD Working Group will transition to the Sustainability Committee.) Matters that the TCFD Working Group will examine and decide will be compiled by the Committee and reported to the Board of Directors.
Agendas examined and decided in the Board of Directors will be shared with each department and reflected in their management plans and business operations.
2. Strategy
To view climate change as a mid- to long-term risk and consider organizational resilience and strategies based on relevant risks and opportunities, we referenced (2°C and 4°C) climate change scenarios that the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC) developed, thereby examining the long-term impact that Tokyo Electron Device will experience up until 2050 and performing scenario analyses with a focus on our Electronic Components and Private Brand Businesses.
*2°C scenario: This scenario involves taking measures to minimize the rise in global temperatures, such as tightening regulations or making changes in markets.
*4°C scenario: This scenario involves extreme weather and other physical impacts occurring as a result of the rise in global temperatures.
3. Risk Management Relating to Sustainability
We established a working group relating to climate change risks (the aforementioned TCFD Working Group) and performed a scenario analysis. As for the priorities of climate-related risks, we will consider the possibility of risks/opportunities arising and their consequential impact, and focus our efforts on high-priority matters accordingly. Moving forward, the planned Sustainability Committee will continue to engage in confirmations and undertake other efforts.
As for our climate-related risk management process, we plan to analyze climate-related risks, and make efforts such as developing, promoting, and managing the progress of measures through the Sustainability Committee and TCFD Working Group. Details analyzed and considered in the Committee and Working Group will be reported to the Board of Directors as necessary to promote integrated company-wide risk management.
4. Metrics and Targets
In consideration of responses to environmental issues, we provide eco-friendly products, prevent contamination, and undertake various other initiatives.
As for environmental initiatives, we plan to set a total greenhouse gas (CO2) emissions target to assess and manage the impact that climate-related issues have on our management, recognizing climate change responses as our important management issue.
Our first step is to disclose in 2023 the total CO2 emissions of Tokyo Electron Device Limited (on an individual basis).