* An abbreviation for Executive Leadership Team. Management organization in CCBJI Group including CEO and function heads Cost increase due to introduction of carbon pricingCost increase due to energy conservation, GHG emission regulationsCost increase due to tighter plastics-related regulationsCost increase due to water use regulationsDecrease in manufacturing efficiency and manufacturing volumes due to extremeweather conditionsBusiness shutdown due to extreme weather conditionsSupply risk due toextreme weatherpattern changesIncreased asset deterioration and energy costs due to precipitation, weather pattern changes, etc.Cost and GHG emissions reduction through efficient use of renewablesOur analysis considered that the 1.5/2°C scenario assumes a society where climate change response progresses, Key risks and opportunitiesOur new Sustainability Committee, comprised of ELT* members discusses and formulates strategies on sustainability issues, including climate change. The final decisions on strategies are made after approval by the Board of Directors.We explore actions to address risks and opportunities revealed by scenario analysis.The ELT meets weekly to discuss risks that arise in the course of business. Risks and opportunities are not only analyzed at the ELT’s weekly discussions, but also at quarterly Risk Management Forums, where they are analyzed in detail with feedback provided back to the ELT and Audit and Supervisory Committee.We have set our own medium- to long-term targets called CSV Goals, to reduce GHG emissions across the entire supply chain by 2030 and achieve net zero emissions by 2050. We take concrete actions toward achieving these targets while monitoring progress rates.PackagingManufacturingDistributionSales EquipmentDisclosures (TCFD) recommendations. Furthermore, we joined the TCFD Consortium and Climate Change Initiative, and implemented these measures to cut GHG emissions. We will continue to advance our initiatives and disclosure for climate change mitigation and adaptation through studies in line with the TCFD framework.intensifying transition risks including regulatory risks, and where social changes associated with the transition to a decarbonized society are likely to affect business. In contrast, the 4°C scenario assumes a society where climate change response is delayed, natural disasters and other physical risks intensify, and where rising temperatures and other climate changes are likely to significantly impact business.CollectionRecyclingMarket (Transition Risks)Decline in sales due to an inadequate response to changes in customer behaviorReputation (Transition Risks)Loss of reputation among investors and financial institutionsdue to inadequate responseProduct/Service (Opportunities)Customer demand increase for products thatcontribute to energy conservation andGHG reductionChanging customer preferences due toglobal warmingDetails on page 39Sustainability StrategyDetails on this pageTCFD DisclosureDetails on page 59Managing Risk andLeveraging OpportunitiesDetails on page 41Initiatives Based on CSV GoalsCustomer CommunityGovernanceStrategyRisk ManagementMetrics & TargetsAgricultureIngredientsRegulations(Transition Risks)Acute(Physical Risks)Chronic(Physical Risks)Resource Efficiency(Opportunities)65TCFD initiativesIn 2021, we published greenhouse gas (GHG) reduction targets in alignment with the Paris Agreement and scientific evidence. Our targets involve reducing Scope 1 and 2 emissions by 50% and Scope 3 emissions by 30% by 2030 (compared to 2015), while striving for carbon neutrality by 2050. In February 2022, we endorsed the Task Force on Climate-related Financial Addressing climate change-related risks and opportunitiesIn 2021, our TCFD Working Group, collaborated with the Board of Directors and each division to conduct a scenario analysis for the year 2030, covering all regions. We considered both a 1.5°C/2°C and 4°C rise in global temperatures, respectively, and studied actions to address the risks and opportunities revealed by the analysis.Disclosure Based on TCFD RecommendationsThe CCBJH Group considers Mitigation of and Adaptation to Climate Change as a material issue and is carrying out initiatives based on the TCFD recommendations with reference to updated TCFD guidance released in October 2021.
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