CSR Disclosures under TCFD
In June 2017, the Task Force on Climate-related Financial Disclosures (TCFD), established by the Financial Stability Board (FSB), announced recommendations for companies to understand and disclose the risks and opportunities posed by climate change.
The Fujitsu General Group has endorsed the TCFD in 2020 and shall disclose key information related to climate change in line with the TCFD recommendation.
List of recommended disclousures
In March 2021, through discussions at the Board of Directors, we formulated and announced the basic policy and key themes of sustainable management.
In addition, important management issues are discussed at the Management Committee (held twice a month in principle) attended by Corporate Vice Presidents (Corporate First Senior Vice Presidents and above), as well as at meetings of the Board of Directors, held once a month or on an ad hoc basis when necessary. Corporate Executive Meeting, which consists of all Corporate Vice Presidents, meets three times a month in principle to deliberate and decide on speciﬁc important issues related to business execution, and seek approval from the Board of Directors on particularly important matters.
The Environmental Promotion Committee meets four times a year to check the progress and results of the policies and measures in the Mid-term Environmental Action Plan and the Environmental Action Plan Stage IX, and to promote further improvements and new initiatives.
Impact and countermeasures of climate-related risks and opportunities in the air conditioner business of Fujitsu General Group
Regarding the business risks related to climate change, we examined the following two scenarios according to the TCFD classification: (1) "Risks related to the transition to a low-carbon economy" which will mainly occur in the course of the 2°C scenario, and (2) "Risks related to the physical impacts of climate change" which will occur when the 4°C scenario is reached due to the failure to reduce global CO2 emissions.
We also consider the business opportunities and compile strategic initiatives to prepare for risks and take advantage of opportunities.
Risk： the business impact and probability
The Fujitsu General Group classifies various changes in the external environment associated with climate change into "transition risk" and "physical risk" as exemplified by the TCFD recommendations, and evaluates the financial impact and probability in three levels to identify significant risks and opportunities.
In addition, at the Group we strive to prevent and mitigate risks that could significantly impact our business by conducting risk assessments related to compliance, crisis management, human resources, labor, safety & health management, environment, IT security, and information management, amongst others. The process is overseen by the Compliance & Risk Management Committee.
Process for identification of climate-related risks and opportunities, consideration of actions, and the implementation management
Risk Management System
In order to promptly identify risks that may adversely affect the Fujitsu General Group, whether at home or overseas, and to implement countermeasures in a timely manner, risk assessments are conducted to confirm appropriateness of the risk evaluation and risk management of each division of the Company as well as for the Group companies. The Compliance & Risk Management Committee selects priority issues to be addressed while promoting activities to reduce risk.
The committee reports its annual activities to the Board of Directors.
Metrics and Targets
Mid-Term Environmental Action Plan
The Fujitsu General Group established the "Mid-Term Environmental Action Plan" in 2016 with FY2030 as the ﬁnal target year as a concrete plan to carry out actions for the "Fujitsu General Group Environmental Policy" and for climate change which is the highest priority theme in materiality analysis. In order to more actively work to bring about a sustainable society, we conducted a major revision of our Mid-Term Environmental Action Plan in March 2021. All employees will share the goals to be achieved in the medium term and aim to both reduce environmental impact and enhance corporate value while contributing to the achievement of SDGs.
1. Achieve carbon neutrality (completely eliminate greenhouse gas emissions) by FY2025
2. Reduction of 30% compared to FY2018 for total greenhouse gas emissions by our supply network by FY2035
3. Reduction of 30% compared to FY2013*2 for total global greenhouse gas emissions from the use of our products*1 by FY2035
*1 Scope 3 Category 11
*2 For air conditioners