Contributions toward the achievement of SDGs32TCFD-based Information Disclosure on Climate ChangeWe believe that solving climate change-related issues is a top priority for realizing a sustainable society. The FANCL Group will tackle climate change from both mitigation and adaptation perspectives, taking into account the opportunities and risks that we can see from a long-term perspective looking to 2050. We are grateful for the blessings of nature and contribute to the preservation of the natural environment in all aspects of our corporate activities. To link these policies to specific actions, the Company expressed its support for the TCFD* recommendations on October 2020.*TCFD: The Task Force on Climate-related Financial Disclosures, which was established by the Financial Stability Board (FSB) at the request of the G20 to review how to deal with the disclosure of climate-related information and the response of financial institutions. The TCFD is chaired by Michael Bloomberg.Risk ManagementAt the FANCL Group, the department responsible for promoting the SDGs identifies the importance of climate change-related risks and opportunities that are related to the overall business, based on the level of impact on management and the possibility of their occurrence, and submits to the Sustainability Committee the details that need to be managed by the FANCL Group. We report matters of particular importance to the Board of Directors and take prompt action.Going forward, we will commence the quantitative analysis of the financial impacts over the medium to long term and proceed with disclosure in line with the information disclosure methods recommended by the TCFD.Indicators and TargetsIn the 3rd Medium-Term Management Plan announced in FY Mar/2022, we significantly expanded our goals related to climate change in response to global trends and national policies. We set net zero CO2emissions by FY Mar/2051 as a new quantitative target, higher than the existing Paris Agreement target of a 26% reduction in 2030 compared with 2013. As a specific measure, we are responding to climate change issues centered on the procurement of power with virtually zero CO2 emissions, including renewable energy.Three Key Themes ❶GovernanceWe established a Sustainability Committee to achieve the goals of the key themes, including climate change, and to improve corporate value. Chaired by President and CEO, the Committee iscomposed of directors serving as managing directors andexecutive officers. In addition to prior deliberation on the policiesand strategies to be resolved at Board of Directors’ meetings toenable the Board of Directors to fulfill its supervisory and monitoringfunctions, the Committee manages and evaluates the progressmade toward goals and conducts deliberations on measures.StrategyHaving formulated VISION2030, its long-term vision looking toward 2030, the FANCL Group has been developing its business inpursuit of that vision. We adopted the FANCL Group “SustainableDeclaration” in 2018 and, in 2020, extracted and qualitativelyanalyzed the business continuity risks due to climate change andthe business opportunities that could be seen to arise from theeffects of those risks.In our 3rd Medium-Term Management Plan, which we launchedin FY Mar/2022, we further clarified the environmental issues to beaddressed by the FANCL Group and set specific quantitativetargets, including “net zero CO2 emissions by FY Mar/2051.”More information about FANCL Group and the TCFD can be found herehttps://www.fancl.jp/en/sustainable/environment/tcfdEnvironmentTo achieve business activities in harmony with nature
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