TAMRON agrees with the purpose of TCFD and will work on the development of the recommended framework and the disclosure of climate-related information.
We recognize climate change as one of our key management issues. TAMRON’s policy on risk response including climate change and other important matters are discussed and determined by the CSR Committee, which is chaired by the president and whose members are all full-time officers and divisional heads. The committee reports material matters to the Board of Directors. Systems are in place to report important matters to the Board of Directors to enable suitable supervision. Progress towards the targets laid out in Environment Vision 2050 are also checked at quarterly CSR Committee meetings.Risk management system
We conducted an evaluation of risks and opportunities based on the 1.5℃ scenario. We recognize the relevant risks and opportunities as shown in the table on the right. It will also be necessary to contribute to worldwide initiatives as part of the shift to decarbonized society to ensure the sustained corporate activities of TAMRON. TAMRON formulated Environment Vision 2050 for this purpose. We will contribute to a sustainable earth by reducing CO2 emissions to zero by 2050.
Risks and Opportunities
|Category||Items||Business impacts||Materialization timing||Possibility||Extent of impact|
|Transition risks||Burden of carbon taxes Renewable energy||
- Burden of carbon taxes and risk of increased costs due to renewable energy purchases
➡ When we estimate our CO2 emissions, carbon tax burdens and renewable energy purchase amounts in 2030 based on the 1.5°C scenario (NZE2050, World Energy Outlook 2021), there are risks of the following costs increasing
- Higher operating costs due to an increased burden from carbon taxes 309 million yen / year (breakdown: Japan 81 million yen, China 215 million yen, Vietnam 12 million yen)
- Increased operating costs due to higher burden from renewable energy purchases needed to meet 30% reduction compared with 2015
23 million yen / year (breakdown: Japan 17 million yen, China 1 million yen, Vietnam 3 million yen)
|Short term to long term||Large||Medium|
- Damage to corporate value or risk of suspension of trade through inability to respond to the shift to a decarbonized society
➡ While the TAMRON Group will adapt to a decarbonized society based on Environment Vision 2050, if concerns emerge among stakeholders about our response, there is a risk of declining net sales due to damage to corporate value, the suspension of trade or other developments.
|Physical risks||Cessation of business activities due to natural disasters||
- Risk of suspension of product supply as a result of factory shutdowns and disrupted supply chains due to natural disasters of increasing severity (flooding and localized torrential rain)
➡ As a result of assessing risks for our production sites (three sites in Japan and two overseas, in China and Vietnam respectively),
we confirmed that changes to future operational risks due to flooding (overflowing rivers) are limited.
➡ We will deal with short-term climate change risks related to the supply chain with business continuity planning (BCP).
|Opportunities||Expanded demand for infrastructure inspection lenses||
- Expanded sales of lenses used in inspections of infrastructure contributing to improved social resilience such as disaster prevention and mitigation
➡ We view this as a medium-to-long-term growth opportunity and aim to expand net sales through activities reflected in our management strategy.
1.5℃ Target Scenario
In a world with a 1.5°C global temperature rise, it is expected that
(1) renewable energy costs will rise, and
(2) carbon taxes will be introduced.
To achieve the 2050 target, we have set the goal of reducing CO2 emissions by 30% compared to 2015 levels by the year 2030, but to achieve this, the purchasing of renewable energy will be essential. As renewable energy is more expensive than conventional sources of power, it will impart a financial impact. In addition, to achieve sustained growth in production volume going forward, TAMRON expects its power consumption to rise. However, TAMRON will try to reduce its carbon tax burden by introducing renewable energies and cutting carbon volume through energy conservation. We recognize the risks and opportunities based on the scenario analysis results as shown in the risk table.
Risk management system
TAMRON views opportunities and risks associated with climate change as one of the important perspectives to be considered when formulating its business strategy. The CSR Committee chaired by the president revises the analysis and evaluation of opportunities and risks. In addition, a risk management officer has been assigned under the president to oversee and direct the control of important risks and responses to serious global events.
Indicators and Targets
We have set CO2 emissions—which account for 98% of our greenhouse gas emissions—as one of our key climate change indicators, and manage targets related to CO2 emissions.
In Environmental Vision 2050, we aim to achieve zero CO2 emissions in our business activities by 2050, and have also set the interim target of reducing CO2 emissions by 30% compared with 2015 levels by 2030.
We have also continued to calculate indirect emissions (Scope 3). Among Scope 3 emissions, since Category 1 emissions (emissions produced from all products purchased or acquired) account for a large percentage at approx. 69%, we will consider setting Category 1 reduction targets in the future.
2021 Environmental Targets and Results
|Target||3% reduction in CO2 emissions compared with 2015 levels|
|Results||5.6% reduction in CO2 emissions compared with 2015 levels|
|Medium- to long-term measures||Reducing total energy consumption through energy conservation while shifting to reduction with a focus on the introduction of renewable energies|