Disclosure of climate-related information (disclosure based on TCFD)
The Sanki Engineering Group endorses the recommendations of the TCFD (Task Force on Climate-related Financial Disclosures) and has implemented climate-related information disclosures based on the recommendations.
Among the five materialities (key issues) identified to realize sustainability management, the Sanki Engineering Group has positioned “contributing to a decarbonized society” as its highest priority issue, and is addressing climate change issues from the perspective of both risks and opportunities.
1.Governance
To address overall sustainability issues, including climate change, the Sanki Engineering Group has established a Sustainability Committee chaired by the President and composed of full-time directors.
The Sustainability Committee deliberates and decides on key issues and measures to realize sustainability management. The deliberations and decisions of the committee are reported to and overseen by the Management Meeting and the Board of Directors. In addition, issues that have a significant impact on business and management strategies are submitted to the Management Meeting and the Board of Directors for decision and approval, depending on their level of importance.
The Sustainability Promotion Meetings are organized by persons in charge from each subordinate unit of the committee to inform the entire Group of the deliberations and decisions of the committee, discuss and promote specific sustainability promotion activities, and confirm progress.
Sustainability Promotion System
Risk Management
The Sanki Engineering Group has established a Risk Management Committee for the purpose of comprehensively identifying risks that may hinder the normal business operations of the entire Group, preventing risks from materializing, and minimizing losses in the event that risks do materialize. The Risk Management Committee identifies and categorizes risks related to the Group’s business, defines the subcommittees under its jurisdiction and the content of controls, quantifies and evaluates the impact and frequency as far as possible, and formulates, implements, and periodically reviews priorities and response policies.
Risks related to climate change are identified through scenario analysis by the Climate Change Risk Subcommittee, and their impact is evaluated.
Depending their level of importance, the measures formulated are submitted to the Sustainability Committee, the Management Meeting, and the Board of Directors for decision and approval, and are then rolled out to all divisions of the Group. The measures addressed in the medium-term management plan are incorporated into the implementation plans of each department and progress is managed.
Strategies
We have conducted scenario analysis to gain an understanding of the medium- and long-term impact of climate change on our business, and incorporated the identified risks and opportunities into "Century2025 Phase 3," our medium-term management plan starting from FY2022, and are proceeding with our initiatives in unison with the management plan.
Scenario Analysis and Financial Impact Assessment
The analysis employed two scenarios: the 1.5 degrees C scenario, which assumes that the increase in global average temperatures in 2100 will be kept down to 1.5 degrees C or less compared to the level at the time of the Industrial Revolution, and the 4 degrees C scenario, which assumes an increase of approximately 4 degrees C. In each scenario, transition risks due to changes in policies and market trends, and physical risks due to disasters and other factors are estimated.
For each scenario, we identify risks and opportunities for the Sanki Engineering Group, evaluate the financial impact, and express the degree of impact in three levels: major, medium, and minor.
| Adopted Scenarios | Reference Scenarios | |
|---|---|---|
| 1.5°C scenario | A scenario in which strict measures against climate change are taken to achieve net-zero global temperatures in 2050, and temperature increase is kept down to1.5 degrees C or less above the level of the Industrial Revolution in 2100. | ・Net Zero Emissions by 2050 (NZE) according to the IEA (*1) ・Shared Socioeconomic Pathways (SSP1-1.9) according to the IPCC (*2) |
| 4°C scenario | Scenario that foresees temperature increases of approximately 4 degrees C over the level of the days of the industrial revolution as of 2100. | ・Representative Concentration according to the IPCC Pathways (RCP8.5) ・Shared Socioeconomic Pathways (SSP5-8.5) according to the IPCC |
- *1
- Acronym for International Energy Agency. This is an international organization that covers overall energy policies under the auspices of the OECD (Organisation for Economic Co-operation and Development), a body with ensuring energy safety and security as its goal.
- *2
- Acronym for Intergovernmental Panel on Climate Change, an organization established in 1988 by the World Meteorological Organization (WMO) and United Nations Environment Program (UNEP) with the goal of comprehensive assessment of climate change, impact, adaptation and mitigation policies.
Risks and Opportunities
Indicators and Targets
The Sanki Engineering Group considers greenhouse gas emissions to be its most important climate change-related indicator. As stated in the "SANKI Carbon Neutral Declaration," our long-term goal is to achieve carbon neutrality by 2030 for Scope 1 and 2, and by 2050 for Scope 1, 2, and 3. In addition, under our medium-term management plan "Century 2025 Phase 3," we are promoting "contribution to a decarbonized society" with the goal of achieving a 40% reduction in Scope 1 and 2 (compared to FY2020) and a 10% reduction in Scope 3 (compared to FY2020) by 2025.
－ 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
- *
- Categories 8 - 10 and 14 - 15 are not applicable.
- *
- Actual annual emissions are verified by a third-party organization.
- *
- Owing to a review of the scope of aggregation at construction sites, emissions have been recalculated retroactively to the base year.
Sanki Engineering Group’s Initiatives for Achieving Carbon Neutrality by 2050
To achieve carbon neutrality, the Sanki Engineering Group has planned and implemented various decarbonization measures in its medium-term management plan and other plans, and is making steady progress in reducing emissions as planned.
The slight increase in Scope 3 compared to the previous year is considered to be a change due to the type of equipment handled in Category 1 (purchased products and services) and 11 (use of products sold), which account for the majority of the total. We will further promote decarbonization measures in order to achieve reliable reductions over the medium to long term.
