We understand that climate change brings both physical and transition risks and opportunities. At the beginning, we planned and fully inventoried policy and legal, technology, market, and reputation risks and opportunities as countermeasures, and progressively disclosed our actions taken to address climate change in terms of the core elements of climate-related financial disclosures recommended by TCFD: governance, strategy, risk management, and metrics and targets in order to optimize the control of climate-related risks.
we signed up to the climate-related financial disclosures recommended by the Task Force on Climate-related Financial Disclosures (TCFD) created by the Financial Stability Board (FSB). Then, we committed will be made through the Science-Based Targets Initiatives (SBTi) in April 2022.
| Core Element | Approach | Action and Planning in 2021 |
|---|---|---|
| Governance | The Board periodically reviews climate-related risks and opportunities. Planning and establishing a climate change management decision-making body. Determining and designating implementation units | A governance committee was established at the Board level to sup ervise and review the Company´s environment-related strategies. The Risk Management Committee supervises the management of organizational risks and holds two committee meetings each year. The ESG Promotion Committee was established to supervise and plan issues related to climate change. The ESG office was established under the committee to coordinate with all units and report the status of implementation to the governance committee from time to time each year. |
| Strategy | Implementing carbon inventory to understand the actual GHG emissions of the Company. Identifying climate-related risks and opportunities through cross-department discussions. Planning strategies to mitigate and adapt to climaterelated risks. Proactively grasping climate-related opportunities Performing scenario analysis and Science Based Targets initiative (STBi) | Verified the actual GHG emissions (scopes 1 and 2) of the Company through GHG inventory and implemented energy conservation and c arbon reduction. Developed the green energy cycle and planned and promoted solar power stations and fishery and electricity symbiosis technology. Planned for carbon reduction to concentrations under the SSP1-1.9 scenario as stated in the AR6 published by the Intergovernmental Panel on Climate Change (IPCC) and analyzed the financial impacts and corporate resilience in the low-carbon transition. |
| Risk Management | Reviewing the processes for identification and control of climate-related risks based on the methodologies recommended by TCFD to build a complete control mechanism for climate-related risks. Drawing up countermeasures and solutions based on the identification results. Integrating climate-related risks into existing risk management framework. | Planned and implemented risk identification and assessment; impl emented risk control and mitigation programs through cross-department risk communication; consolidated the effectiveness of implementation of risk assessment and control programs and reported to the ESG Promotion Committee (functional committee at the management level) quarte rly; and established the complete process for climate-related risk management under Board supervision through the Committee every six months. |
| Metrics and Targets | Setting metrics for climate change management. Periodically implementing GHG inventories based on ISO 14064-1:2018. Establishing targets for climate change management and periodically reviewing the target achievement rate and actual effectiveness. | Set the targets for GHG emissions, electricity conservation, wa ter conservation, renewable energy consumption, and waste reduction as the metrics for measuring the effectiveness of climate change manage ment. Continuously verified GHG inventory in 2021 and planned to expand the scope of inventory to categories 3–6 and continued with energy conservation and carbon reduction to reduce scopes 1 and 2 emissions. |
