TCFD
Information disclosure in line with TCFD proposals
Toyoda Goseiannounced its support for the Task Force on Climate-Related Financial Disclosures (TCFD) in May 2019, and held up the materiality (important issue) of creating a decarbonized society by reducing CO2 emissions as a measure to combat climate change.
Based on the thinking of the TCFD, a scenario analysis was used to identify risks and opportunities in our business activities and we implemented activities integrated into our management strategy. We will enhance these efforts in the future, including verification of the effects on finances.
Governance
Toyoda Goseiconsiders responding to climate change and other environmental problems to be an important management issue. The TG 2050 Environmental Challenge, our long-term environmental activities plan, was formulated by the Carbon Neutrality and Environmental Committee (formerly, Environmental Committee) and announced in February 2016. The Toyoda Gosei Group is reinforcing its activities to achieve a sustainable society.
The Carbon Neutrality and Environmental Committee meets twice a year, with the company president serving as the chairperson. The committee discusses risks and opportunities related to climate change, including effects on our suppliers, certifies our medium-and long-term goals, formulates scenarios to achieve those goals and reflects them in corporate strategy. The results are regularly reported to the Board of Directors and management meetings.
Strategy
Toyoda Gosei has been making efforts to reduce CO2 based on its TG 2050 Environmental Challenge. Heeding the heightening calls for action from society in recent years, we set our Targets 50&50 in April 2021 to bring forward the timing for the achievement of zero CO2 emissions. After review, we set higher targets of a 50% reduction in CO2 emissions (compared with FY2013) and a 50% renewable energy usage rate by 2030.
To achieve this, we considered the “4℃ scenario*1” and “2℃ scenario*2” announced by the Intergovernmental Panel on Climate Change (IPCC) and identified the following climate-related risks (physical risks and transition risks) and opportunities for our business activities, for which we are taking action.
*1 4℃ scenario: The scenario in which the earth’s average temperature rises about 4℃ compared with pre-industrial revolution levels
*2 2℃ scenario: The scenario in which the rise in the earth’s average temperature at the end of the 21st century is kept to less than 2℃ compared with pre-industrial revolution levels
■Physical risks Risks related to physical influences, such as disasters due to climate change
Matters that affect us | Risk | Opportunity | Response | |
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■Transition risks Risks that will occur in the transition to a decarbonized society
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Markets |
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Technology |
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*3 Zero emission vehicles include EVs and FCEVs that do not emit CO2 or other gases when driven.
*4 Carbon pricing is done with carbon taxes and emissions trading.
*5 Net zero energy buildings are buildings that achieve zero annual primary energy balance with high-efficiency equipment and the introduction of renewable energy.
Risk management
At Toyoda Gosei, climate-related risks (physical risks & transition risks) are managed by the Carbon Neutrality and Environmental Committee, Internal Control Committee (formerly, Compliance and Risk Management Committee), and Management System (ISO 14001). In the risk management process, risks are identified and evaluated and then ranked according to their frequency and impact. After this, measures such as avoidance, mitigation, transference, or retention are determined, and progress is managed by the committees and others. Regular reports on major risks are made to the Board of Directors.
Indicators and targets
Among the environmental activities at Toyoda Gosei, we have set the target of zero CO2 plant emissions by 2050 in the TG 2050 Environmental Challenge, our long-term targets. As a 2030 milestone for the medium term, we have also set the Targets 50&50, a 50% reduction in CO2 emissions (compared with 2013 levels), and a 50% renewable energy usage rate. We are developing environmentally-friendly production processes and equipment and undertaking other CO2 reduction activities across the company. We also formulate an “Environmental Action Plan” every five years and undertake activities that incorporate them into our company targets each year.
■Toyoda Gosei’s medium- and long-term targets
Efforts | Target year | Target value |
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7th Environmental Action Plan | 2025 | Carbon neutrality in Scope 1 + Scope 2 + Scope 3*6 FY2015 |
2030 milestones (Targets 50&50) |
2030 | Scope 1 + Scope 2 CO2 emissions reduced 50% compared with FY2013 |
TG 2050 Environmental Challenge | 2050 | Zero Scope 1 + Scope 2 CO2 emissions Contribution to an environmental society with product technology |
*6 Scope 1: CO2 emissions from use of fuel by business itself
Scope 2: CO2 emissions from use of electricity, etc., provided by other companies
Scope 3: CO2 emissions over the entire product lifecycle except for CO2 emissions in the manufacturing stage
TCFD Index
Toyoda Gosei agrees with the proposals of the Financial Stability Board Task Force on Climate-related Financial Disclosure (TCFD), and refers to its disclosure recommendations when disclosing relevant information. The company’s website and annual report (Toyoda Gosei Report) present information that is aligned with these disclosure recommendations.
Governance | TCFD recommendations | Publication Location | Website |
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Overseeing the Board of Directors meetings on climaterelated risks and opportunities | P68-74 Corporate Governance |
https://www.toyoda-gosei.com/csr/governance/corporate/ https://www.toyoda-gosei.com/csr/environmental/report11/ |
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Role of management in evaluation and management of climate-related risks and opportunities |
Risk management |
TCFD recommendations | Publication Location | Website |
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Processes for identifying and evaluating climate-related risks | P43 Environmental Organization | https://www.toyoda-gosei.com/csr/environmental/report1/ | |
Organizational processes for managing climate-related risks | P80-81 Risk Management |
https://www.toyoda-gosei.com/csr/environmental/report11/ https://www.toyoda-gosei.com/csr/governance/risk_management/ |
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Integrate identification, evaluation and management of climate-related risks into our risk management throughout our organization |
- Contributing to Environmental Preservation Through All Our Business Activities
- Environmental Action Plan
- Building Decarbonized Societies
- Building Circular Societies
- Environmental Preservation and Building Environmentally-Friendly Societies
- Environmental Management
- Collaboration with External Organizations
- Environmental Efforts at Affiliated Companies
- Environmental Data
- Third-Party Verification
- TCFD
- Third-Party Assessment