Report in Line with the Recommendations of the TCFD

Nippon Sanso Holdings expressed its support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)* in November 2019. We have already been working to reduce environmental impacts and save energy, and to expand its lineup of products that contribute to reducing GHG emissions.

However, based on the final recommendations of the TCFD, we will enhance these initiatives even further and phase in improvements to our relevant information disclosure as we work to increase the corporate value of the entire Group.

※The TCFD announced its final recommendation report in June 2017, which recommends that all companies and other organizations disclose information about governance, strategies, risk management, indicators, and targets regarding climate change-related risks and opportunities.


We have established a governance structure for climate change issues, and we are engaged in initiatives on climate change.


Regarding climate-related issues identified as materiality, we have identified opportunities and risks through "transition scenarios" and "physical climate scenarios" based on the TCFD's recommendations. Negative impacts that have a significant financial impact on our company are considered as risks, while positive impacts are considered as opportunities.

For the "Transition Scenario," the Sustainable Development Scenario(SDS) of the International Energy Agency(IEA) was used, and for the "Physical Climate Scenario," Fifth Assessment Report (RCP8.5) of the UN's Intergovernmental Panel on Climate Change(IPCC) was used as a reference for impact analysis.

The table below shows the results of our analysis and synthesis of our group's opportunities and risks and their possible impact on our procurement, operations, and products/services.

Risk Management

We will construct a Groupwide risk management structure, and will identify, assess, and manage climate-related risks.

Climate change risk identification, assessment, and management process

Risk identification, assessment, and management
• Global Risk Management Committee
• Global Strategy Review Committee
• Technology Risk Liaison Committee
• Construction of risk management system in Nippon Sanso Holdings Group companies to enable early discovery of long-term risk, prevention, and rapid response in cases of risk materialization
• Risk importance determined by occurrence frequency × Financial or strategic impact
• Annual Global Strategy Review Committee meeting (Chairperson: CEO) to determine financial or strategic impact on business
• Specific countermeasures for items determined by the Global Strategy Review Committee determined at Technology Risk Liaison Committee meeting held between Nippon Sanso Holdings and operating companies, then deployed globally

Metrics (Indicators) and Targets

In the medium-term management plan, we will set out indicators and targets to be used for assessing and managing risks and opportunities, then use them to evaluate our progress.

Initiatives Disclosed details
We disclose Scope 1, Scope 2, and Scope 3 GHG emissions Sustainability data
• Third-party assurance report
We disclose Non-Financial KPI in the Medium-term management plan Eight Non-Financial Programs