TCFD Analysis
The TIS INTEC Group is undertaking the following initiatives (①-③) to assess its resilience in responding to climate change.
① Scenario analyses: Based on climate-related scientific evidence, such as Representative Concentration Pathways (RCPs), we examine two potential futures- a 1.5˚C scenario and a 4˚C scenario- to understand their respective worldviews and identify associated risk factors.
② Visualization of correlations: Based on the scenario analyses conducted in ①, we visualize the relationships between the core businesses of the TIS INTEC Group and its climate-related risks and opportunities.
③ Identification of specific risks and opportunities: Building on the correlations visualized in ②, we identify specific risks and opportunities. For risks related to the Group's businesses, we also reassess the projected financial impact in the fiscal year ending March 2031, taking into account the risk mitigation measures implemented to date (March 31, 2025). We then verify the effectiveness of these measures by comparing the projected financial impact with and without the implementation of risk mitigation strategies.
① Scenario analyses: Envisioning a 1.5˚C/4˚C world
The TIS INTEC Group conducted scenario analyses using the 1.5˚C and 4˚C scenarios, based on various scientific sources, such Representative Concentration Pathway (RCPs), Shared Socioeconomic Pathways (SSPs), and the International Energy Agency's Net Zero Emissions by 2050 (IEA NZE2050). Through these analyses, we envisioned the possible global conditions under each scenario and identified the climate-related risks and opportunities relevant to our business operations.
Table 1: Assumptions of each worldview (using 1.5˚C and 4˚C scenarios based on scientific evidence) and risk/opportunity factors
② Correlation map of climate change factors
Based on the scenario analyses outlined in ①, we visualized the correlations between the core businesses of the TIS INTEC Group and its climate-related risks and opportunities, as shown in Figure 1 below.
③–1 Risks and financial impacts
Based on analyses conducted in ① and ②, we identified and specified the climate-related risks across the TIS INTEC Group's business operations.
The risks were assessed in 2021 through a cross-organizational Climate Change Response Review Committee, and the financial impact after implementing risk mitigation measures was re-evaluated in 2024.
As key risk mitigation measures, we promoted the adoption of renewable energy (with an estimated adoption rate of 62.7%), enhanced information disclosure across the Group, and improved third-party evaluation scores (as of March 31, 2025). As a result, we confirmed that the financial impact after implementing the risk mitigation measures was significantly reduced (i.e., the risks were mitigated) compared with a scenario without such measures. Table 2 below shows the projected financial impact in the fiscal year ending March 2031, assuming that the current level of risk mitigation measures is maintained and no additional measures are implemented.
We will continue pursuing climate-related initiatives, including adoption of renewable energy, to further mitigate risks going forward.
Table 2: Identified risks and financial impact in fiscal year ending March 2031 (after implementation of risk mitigation measures)
③-2 Climate-Related Opportunities
Based on the information obtained via ① and ② above, we have identified and detailed specific opportunities.
Going forward, we will continue working to achieve the "low-carbon and zero-carbon" goals identified as key social issues the Group should address, to expand our portfolio of services that help resolve social challenges.
Solving Social Problems through Our Business
Table 3: Identified opportunities
④ Strategic resilience
Based on the financial impact of the risks identified in③-1, this section explains the resilience of the Group (its ability to maintain business continuity) in response to the scenario analysis results (1.5˚C/4˚C) presented in section ①. In the event of a transition to the 4˚C scenario, the risk of natural disasters associated with rising temperatures will increase, but the financial impact on the Group is expected to be limited. We have determined that we can continue our business operations without altering our current business model, demonstrating our resilience.
On the other hand, under the 1.5˚C scenario, there is a risk of customer attrition and declining social trust due to delays in climate change initiatives. Given the significant potential financial impact, it is clear that risk mitigation measures are necessary. These measures should be implemented in accordance with the "Metrics and Targets" outlined later, and their effectiveness must be continuously assessed.
To evaluate the effectiveness of our risk mitigation measures, we calculated and analyzed the three factors listed below. The difference in financial impact before and after implementing the measures (c. - a.) was found to be significantly greater than b. (the cost of implementing the mitigation measures). In other words, we confirmed that taking these measures can substantially reduce the financial impact (risk).
- Financial impact without implementing risk mitigation measures
- Cost associated with implementing risk mitigation measures
- Financial impact after implementing risk mitigation measures
Based on the above results, we believe that by continuing to implement the identified risk mitigation measures, we can reduce the financial impact (risks) on the Group and, in turn, enhance our overall resilience.
The TIS INTEC Group is committed to achieving a low- and zero-carbon society by setting targets for carbon neutrality. As a concrete transition plan, we have formulated a "Targets and Results of GHG reduction in Scope1 and 2 (transition plan)" which outlines our reduction targets and performance trends. We will continue working to steadily execute this plan.
Furthermore, by promoting the transition to a low- and zero-carbon society through our business activities, we aim to enhance our resilience while making a significant contribution to the sustainability of society as a whole.
Targets and Results of GHG reduction in Scope1 and 2 (Transition Plan)