TCFD

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Governance

Basic Policy on Climate Change

We, the ValueCommerce Group (the Company and its subsidiaries), are committed to addressing issues surrounding climate change in order to achieve both a sustainable society and sustainable business growth for the ValueCommerce Group.

  • We will develop and operate a company-wide system to address issues surrounding climate change.
  • We will address climate change to the extent that is technologically and economically feasible, based on our understanding of the impact of our business activities on the climate.
  • We will strive to reduce business risks associated with the effects of climate change while maximizing business opportunities.
  • The Board of Directors will monitor the status of the ValueCommerce Group with regard to its climate change initiatives.

Governance System on Climate Change

Governance System

The Group (including all consolidated subsidiaries) shall promote and implement climate change initiatives under an integrated risk management approach that takes ESG-related risks into full consideration.

At least once a year, the Board of Directors discusses how the Group will address climate change as an issue for sustainable growth, with regard to goals and the progression of the business. In addition, external training is provided annually to directors to add to their knowledge on climate change.

The Audit & Supervisory Committee, which consists of independent outside directors, recognizes various issues related to climate change in the Group as risks and shall request reports from business divisions as appropriate.

The Risk Management Committee, which implements integrated risk management, is led by the President and Chief Executive Officer and meets at least four times a year to identify and assess risks, including climate change, for the Company and all consolidated subsidiaries. Each departmental manager in charge is responsible for responding to significant risks. In addition, the Risk Management Committee reports regularly to the Board of Directors on the status of the Company’s response to significant risks.

The ESG Promotion Project, which promotes ESG-related initiatives including climate change, is led by the Director and Chief Financial Officer and works with the Risk Management Committee, each division (corporate and business divisions), and each subsidiary to promote ESG-related measures.

Strategy

Process for identifying climate-related risks and opportunities

For each of our businesses, we identify physical risks, transition risks, and business opportunities related to climate change.

Scenario Analysis

We assess our business impact on the external environment for both the below 2°C and 4°C scenarios, and we continuously review our policies related to climate-related risks and opportunities. The external environment assumptions for the below 2°C and 4°C scenarios refer to external data such as multiple scenarios detailed in publications from the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC).

Risks and Opportunities

Transition risks
Classification of risks and opportunities based on TCFD recommendations Risks and Opportunities for the Group Business Impact
Less than 2°C		 Business Impact
4°C
Policy and Regulation
  • Increase in electricity costs due to a shift to power generation methods with lower environmental impacts, such as renewable energy
  • Increase in electricity costs due to the introduction of a carbon tax and rising levies on greenhouse gas emissions
  • Increase in operating costs due to compliance with CO2 emissions reduction obligations and emissions trading schemes
 Medium Small
Market
  • Decrease in profit due to lower advertising placements resulting from lower demand for products and services with high environmental impact
 Small Small
Reputation
  • Decline in reputation among stakeholders due to insufficient effort and inadequate information disclosure on climate change
 Small Small
Physical Risks
Classification of risks and opportunities based on TCFD recommendations Risks and Opportunities for the Group Business Impact
Less than 2°C		 Business Impact
4°C
Acute
  • Damage to data centers and other physical resources due to disasters, and increased costs due to restoration work
  • Decrease in profit due to destruction or falsification of data or service outage caused by system failure due to a disaster
  • Decrease in profit due to lower consumer purchase intentions
  • Profit decreased due to inventory shortages leading to loss of sales resulting from sluggish logistics and manufacturing
  • Decrease in profit due to stagnation of business operations and adverse effects on the health, safety and work of employees
 Minimal Small
Chronic
  • Increase in electricity costs for air conditioning due to higher average temperatures
 Minimal Small
Opportunities
Classification of risks and opportunities based on TCFD recommendations Risks and Opportunities for the Group Business Impact
Less than 2°C		 Business Impact
4°C
Labor practices
  • Improved health, safety, and satisfaction of employees, and retention and expansion of talented human resources
 Medium Small
Products and Services
  • Increase in profit due to rise in advertising placements resulting from higher demand for products and services with low environmental impact
  • Increase in profit due to rise in EC demand resulting from curbing of outings, etc.
 Small Minimal

Risk Management

The Group shall promote and implement climate change initiatives under an integrated risk management approach that takes ESG-related risks into full consideration.
The Risk Management Committee, which implements integrated risk management, is led by the President and Chief Executive Officer and meets at least four times a year to identify and assess risks, including climate change, for the Company and all consolidated subsidiaries. Each departmental manager in charge is responsible for responding to significant risks. In addition, the Risk Management Committee reports regularly to the Board of Directors on the status of the Company’s response to significant risks.
The ESG Promotion Project, led by the Director and Chief Financial Officer, supports the activities of the Risk Management Committee (i.e. the identification and assessment of risks) with regard to climate change.

Metrics and Targets

Scope 1, Scope 2 and Scope 3 results

ESG data is disclosed on the Sustainability page. For more information, please click here (ESG data)

Climate-Related Targets and Achievements

Aim to achieve virtually zero GHG emissions (Scope 1+2) by FY2030.

Unit FY2022 FY2023
GHG emissions (Scope 1+2) t-CO₂ 16 0
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