These days, abnormal weather phenomena, their associated natural disasters, and the like are occurring more frequently and on a larger scale than before, and threatening the safety and comfort of our lives. These changes significantly affect the policies of countries including Japan, resulting in a big trend of decarbonization from the Kyoto Protocol to the Paris Agreement and the adoption of SDGs, and increase the expectations for the roles that companies play.
At the Taisei Group, we view the impact of climate change on our business as an important management issue. In fiscal 2018, we reviewed the 2050 Environmental Targets “TAISEI Green Target 2050” established in 2013. We also agreed on the TCFD recommendations in July 2020.
Furthermore, based on the government’s carbon neutral declaration announced in October 2020, we will review TAISEI Green Target 2050 again in 2021 and aim to have “virtually zero” CO₂ emissions from business activities by 2050. In addition to our reduction efforts, we will work on the value chain, and contribute to the realization of a decarbonized society. We will continue to promote information disclosure in line with the TCFD recommendations, and aim to realize a sustainable society and improve corporate value by carefully watching and responding to government measures and social trends related to the impact of climate change and CO₂ emission reduction.
- The CSR Committee and the Environment Committee have been established as meeting bodies to discuss climate change-related agenda. After discussion by the committees, the Board meeting deliberates and decides on the agenda.
- The important policies and measures for ESG in general are discussed by the CSR Committee, which is one of the committees of the Board, and the formulation of basic policies and medium- and long-term goals for environmental management is deliberated by an advisory body of the Management Committees, the Environment Committee.
- The agenda deliberated and determined by the Board meeting are passed on to each business unit and group company, and are reflected in their management plan and business operations. In addition, the content will be incorporated into the specific actions of construction worksites. We will also request the cooperation of our suppliers.
Chart of Climate-Related Governance System
- We recognize various medium- to long-term risks including the major ones listed below. We conducted scenario analysis on one of them, climate change risk.
- Climate change risk includes risk caused by transitions such as the reinforcement of regulations to minimize temperature increases and changes in the market, and risk that arises with physical changes such as acute abnormal weather that occurs due to higher temperatures.
- To establish business strategies that flexibly respond to climate change, we use multiple scenarios to evaluate the impact on our business. For the scenario analysis, we refer to the Sustainable Development Scenario (SDS) by the International Energy Agency (IEA) for the scenario where transitions will progress, and the Representative Concentration Pathways (RCP) scenario by the Intergovernmental Panel on Climate Change (IPCC), etc. for cases where physical changes will progress. In this way, we verify the validity of our business strategy.
Major risks and opportunities concerning climate change
|Shift||Market shrinkage and increase
in construction cost due to the
introduction of carbon pricing
and tightened CO2 emission
|Increase in demand for renewal||Opportunity||
|Increase in demand related to
energy-saving and renewable
|Physical||Increase in average
temperature during summer
|Increase in severity and
frequency of natural disasters
|Increase in severity and frequency of natural disasters||Risk||
|Rise in sea level||Opportunity||
Note: Possible works are classified by the significance of impact as “High,” “Medium” and “Low.”
Countermeasures for Climate Change
Countermeasures required for the risks and opportunities identified with scenario analysis are reflected in the Medium-Term Business Plan (2021–2023). They are also incorporated into the business operations of each division. Accordingly, we will reduce the risks associated with climate change and expand opportunities.
|Response to the market shrinkage and construction cost increase due to the introduction of carbon pricing and the tightening of laws and regulations||
|Response to the increase in demand related to renewal, energy-saving and renewable energy||
|Response to the reduced productivity of construction worksites due to abnormal weather||
|Response to abnormal weather, increase in the severity and frequency of disasters and sea level rises||
- As for climate change risk, we established a company-wide TCFD Working Group (TCFD WG) to identify the climate change risk related to each department’s business and analyze the degree of impact on the business. We also conduct evaluations relative to risks other than climate change risk, and confirm that the necessary measures are being taken. The risks analyzed by the TCFD WG are deliberated by the CSR Committee and reported to the Board meeting.
- In addition, it is consistent with the risks evaluated and identified with the environmental management system (EMS) based on the international standard ISO 14001.
- In the environmental targets for fiscal 2050 "TAISEI Green Target 2050," we set the goal of “virtually zero” CO₂ emissions from business activities. Moreover, we set out “Realization of a Sustainable and Environmentally Friendly Society” as one of the materiality (our important issues), and set KPIs for fiscal 2023 using the CO2 emission reduction rate as an index.
- We are trying to reduce CO₂ emissions by implementing key measures of the Medium-Term Business Plan (2021–2023).
|CO2 emission reduction target for each
fiscal year (compared with 1990)
|KPI||TAISEI Green Target 2050|
|At construction stage: Reduction rate of CO2 emissions per construction cost||36%||41%||56%||We will aim for “virtually zero” CO2 emissions from business activities.|
|At construction stage: Reduction rate of total CO2 emissions||52%||50%||62%|
|At building operation stage: Reduction rate of estimated CO2 emissions||41%||43%||55%||In addition to our reduction efforts, we will work on the value chain, and contribute to the realization of a decarbonized society.|
* To be reviewed during fiscal 2021