We at Daifuku Co., Ltd. announced our assent to the recommendation of the Task Force on Climate-related Financial Disclosures (TCFD) in May 2019. In accordance with the framework of the TCFD recommendations, we have identified risks and opportunities that climate change creates for our businesses globally. Today, we will disclose information about the four items of (1) Governance, (2) Strategy, (3) Risk Management, and (4) Metrics and Targets.
1. Basic stance on environmental issues
At Daifuku, we produced the Daifuku Environmental Vision 2020 in 2011. Since then, we have been operating an environmental certification program for our products (Daifuku Eco-Products), which is aimed for energy and resource conservation, as well as pollution control, aspiring to contribute to society through manufacturing. We are now taking this a step further. Since last fiscal year, we have been carrying out an environmental management strategy aimed at decarbonizing society and achieving the Sustainable Development Goals (SDGs).
At Daifuku, we regard intensifying global environmental issues as one of the important factors in the social environment surrounding the Daifuku Group. Moving forward, we will revise the Daifuku Environmental Vision to better reflect the demands of society in our management. At the same time, we will strive to improve our business activities, products and services through dialogues with our stakeholders, thereby contributing to the development of society and aiming to improve our corporate value.
For that purpose, we will further develop our frameworks of corporate governance and risk management related environmental management.
2. Risk and opportunity
The core of this information disclosure is resulted from our analysis based on two scenarios; a rise in temperature of 4 degrees Celsius in the 21st century and the rise in temperature below 1.5 degrees Celsius until the end of the 21st century. While business cost will increase, we expect growth in demand for our products and services that exceeds the above negative impact.
3. Metrics and targets
A new environmental vision we are now developing will include metrics and targets on climate change. The new vision will be looking ahead a final target in 2050 with an interim target in 2030 and also contain our environmental contribution through providing best products and services, use of renewable energy in process of operation, and initiatives toward recycling-oriented society.