Response to the TCFD
Based on its Corporate Philosophy of “Promote corporate activities that help protect the global environment”, the Toyota Boshoku group makes collective efforts to contribute to preserving the global environment in order to realize a sustainable society.
We formulated the 2050 Environmental Vision in 2016 and identified our Materiality (important issue to be resolved through our business operations) of “Together with our business partners, we will realize MONOZUKURI innovations that minimize environmental stress” in 2020 in order to promote environmental initiatives.
In April 2020, we endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). By extensively analyzing the impact of climate change on our business and the risks and opportunities that result from it based on scenarios, we will confirm the direction of our company’s initiatives and reflect them in our future management strategy.
- Decision-making at the Board of Directors, and business execution at the Corporate Strategy Meeting, Corporate Planning Meeting, Corporate Management Meeting, etc.
- Based on decisions made by the Board of Directors and instructions given by the Corporate Strategy Meeting, Corporate Planning Meeting, Corporate Management Meeting, etc., the Carbon Neutral Environmental Promotion Meeting and the Environmental Committee in each region examine and implement practical environmental measures.
- Materiality is formulated as the approach we adopt to identifying and resolving issues including climate change, and this is finalized by the Board of Directors.
- The Toyota Boshoku group checks KPIs every month based on the 2050 Environmental Vision and the 2025 Environmental Action Plan, implements target management and monitoring for each milestone at the Carbon Neutral Environmental Promotion Meeting, and reports and discusses the content thereof at meetings of the Board of Directors.
- Climate-related opportunities are reviewed by the Carbon Neutral Environmental Promotion Meeting, after which the Corporate Planning Meeting determines the response policy (decides on investment in opportunities).
- The Risk Management Promotion Meeting, CSV Promotion Meeting, and Corporate Management Meeting confirm the status, and the details of this are reported and discussed at meetings of the Board of Directors to review the Company’s goals and strategies.
- In terms of the identification, assessment and management of the Toyota Boshoku group’s climate-related risks (typhoons, floods, etc.), ultimately reports are made to and approvals are given by the Risk Management Promotion Meeting, which in turn reports the details to the Board of Directors.
Scenario Analysis on Climate-related Risks and Opportunities
(1) Scenario Analysis Results
We have identified short-term, medium-term, and long-term risks and opportunities based on the 1.5 to 2°C scenario*1 developed by the International Energy Agency (IEA), in which the impact of transition risks surfaces, and the 4°C scenario*2 developed by the Intergovernmental Panel on Climate Change (IPCC), in which the impact of physical risks surfaces. The table below lists the risks and opportunities that are assessed as particularly high.
- 1.5°C scenario: NZE (IEA World Energy Outlook 2021); 2°C scenario: SDS (IEA World Energy Outlook 2021)
- 4°C scenario: RCP 8.5 (IPCC 5th Assessment Report)
|Causes||Risks / Opportunities||Assessment||Actions|
|Transition risks and opportunities (1.5 to 2°C)||Enhancement of climate change policies, including carbon pricing||
|Enhancement of efforts to promote vehicle electrification||
|Change in evaluation by customers and the consumer value standard (raised environmental awareness, etc.)||
|Physical risks and opportunities (4°C)||Worsening of extreme weather, including heavy rain and subsequent flooding||
Challenge to Carbon Neutrality through a Circular Economy for Product Materials
The Toyota Boshoku group promotes the reduction of CO2 emissions in the product life cycle. In addition to reducing the weight of products, using plant-derived materials (biomass), and developing technologies for electrified products, we will improve the recyclability of products. We will also work to reduce CO2 emissions from the materials used in our products toward carbon neutrality.
(1) Measures to reduce CO2 emissions from product materials
(2) Initiatives for a circular economy
Challenge to carbon neutrality by 2050 by recycling product materials and using biomass
- Reusing products as raw materials to produce new products
- Chemically decomposing and reusing the raw materials of products
- A renewable resource of biological origin
(3) Through Scenario Analysis
- We have recognized the magnitude of risks and opportunities that climate change poses to our business and have confirmed that our initiatives have led to risk reduction and opportunity expansion.
- The results of scenario analysis will be used as a reference when we promote the initiatives in the 2025 Mid-Term Business Plan and consider the 2030 Mid-Term Business Plan and will be reflected in our management strategy.
- Based on the results of scenario analysis, we will continue to strengthen our response to risks and opportunities and work on further information disclosure.
- Identification and assessment of climate-related risks is determined by the Carbon Neutral Environmental Promotion Meeting, and approved and implemented by the Risk Management Promotion Meeting.
In addition, climate-related opportunities are reviewed by the Carbon Neutral Environmental Promotion Meeting, after which the Corporate Planning Meeting determines the response policy (decides on investment in opportunities).
A risk management promotion system is constructed, an inventory of significant risks is made.
Metrics and Targets
Medium- and long-term targets
- 2050 Environmental Vision
Challenge of achieving zero CO2 emissions in the Toyota Boshoku group
Challenge of achieving zero CO2 emissions in the product life cycle
- 2030 target
50% reduction in CO2 emissions versus FY2014
- 2025 Environmental Action Plan
25% reduction in CO2 emissions versus FY2014
- Scope 1, Scope 2 CO2 emissions and energy usage (Toyota Boshoku group)
- Scope 3 CO2 emissions (Toyota Boshoku)
FY2021 results (thousand t-CO2)