Disclosure of climate-related information (disclosure based on TCFD)
The Sanki Engineering Group has endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and therefore discloses climate-related information in accordance with the required framework. Of the five material issues identified for sustainability management, we place the highest priority on contributing to a decarbonized society, and we are addressing climate change by mitigating risks and capturing opportunities.
1.Governance
The Sanki Engineering Group established the Sustainability Committee, chaired by the president and composed of members of the Board of Directors, to address climate change and sustainability issues in general. The committee discusses and makes decisions on key issues and actions for realizing sustainability management. All deliberations and decisions made by the committee are reported to the Management Meeting and the Board of Directors for review and approval. Issues that may have a significant impact on our business and management strategies are also presented to the Management Meeting and the Board of Directors for further discussion and approval, depending on their relative importance. The Sustainability Promotion Council, established as a subordinate body of the committee and composed of persons in charge of the related practical matters in each department, communicates the deliberations and decisions of the committee to the entire Group, discusses and supports specific activities to promote sustainability, and monitors progress.
Sustainability Promotion System
Risk Management
Our Risk Management Committee oversees and manages risks that impact the entire Group. It identifies and categorizes business-related risks, determines the subcommittees in charge and content of control plans, assesses the risks by quantifying their impact and frequency insofar as possible, formulates and implements priorities and response policies, and conducts periodic reviews. With regard to climate-related risks, the Climate Change Risk Subcommittee conducts scenario analysis to extract and assess the impact of climate change risks. The decided measures are submitted to the Sustainability Committee, Management Meeting, and Board of Directors for further decision and approval, depending on the relative importance of the assessed risk, and are then implemented by all the departments of the Group. Measures included in the Medium-Term Management Plan are incorporated into the execution plans of each division to manage their progress.
Strategies
Scenario analysis is conducted to gain an understanding of the medium and long-term impact of climate change on business. Risks and opportunities identified through the analysis are incorporated into Phase 3 of the Century 2025 medium-term management plan and addressed as part of the plan.
Scenario Analysis and Financial Impact Assessment
We analyzed 1.5°C and 4.0°C scenarios in terms of relations to policies and market trends, and we also analyzed physical changes engendered by events such as disasters. For each scenario, causes of Group-wide risks and opportunities have been identified and their degree of impact on business verified and assessed in the three stages of high, medium, and low.
| Adopted Scenarios | Reference Scenarios | |
|---|---|---|
| 1.5°C scenario | Net zero is reached by 2050 by taking stringent measures against climate change, and the temperature increase in 2100 is limited to 1.5°C or below from the level of the Industrial Revolution | ・IEA: Net Zero Emissions by 2050 (NZE) ・IPCC: Shared Socioeconomic Pathways (SSP1-1.9) |
| 4°C scenario | Stringent measures against climate change are not taken, and the temperature increase in 2100 is around 4°C from the level of the Industrial Revolution | ・IEA: Stated Policies Scenario (STEPS) ・IPCC: Shared Socio-economic Pathways (SSP5-8.5) |
Risks and Opportunities
Indicators and Targets
In February 2022, we established the Sanki Carbon Neutral Declaration as a longterm goal, and we have incorporated our carbon transition plan into the mediumterm management plan. We will address climate change by focusing on reducing greenhouse gases based on the following indicators.
－ Sanki's Carbon-Neutral Declaration －
The Sanki Engineering Group is making serious efforts to address the climate change crisis facing the world and aims to achieve carbon neutrality for the Group’s own GHG emissions (Scope 1 and 2) by 2030 and for GHG emissions including the supply chain (Scope 1, 2, and 3) by 2050.
Sanki Engineering Group supply chain emissions
Sanki Engineering Group’s Initiatives for Achieving Carbon Neutrality by 2050
The Sanki Engineering Group has positioned contributing to a carbon-free society as one of its materiality (key issues) and is committed to achieving carbon neutrality by 2050. Given that climate change is directly connected to our business as a total engineering company, we are working to reduce CO2 emissions in all areas of our business operations, including our supply chain, while also promoting energy conservation and energy creation proposals to our customers. To further accelerate our efforts, we are bolstering our SANKI YOU Eco Contribution Point system, which converts the reductions in CO2 emissions that customers have achieved based on our proposals into points as a means of supporting environmental conservation activities. These initiatives will expand the scope of carbon neutrality.
