Information Disclosure based on TCFD
The Task Force on Climate-related Financial Disclosures (TCFD) is a structure, established by the Financial Stability Board, with recommendations announced in June 2017 to encourage organizations to understand and disclose risks and opportunities brought about by climate change.
TIS—and by extension, the TIS INTEC Group—voiced its support for TCFD recommendations in June 2021.
TCFD requires information disclosure in four core elements: governance, strategy, risk management, and metrics and targets.
Governance
Climate change policy is evaluated and deliberated by the Corporate Sustainability Committee as an environmental measure and activity and reported to the Board of Directors. Climate change measures are evaluated and deliberated by the Management Committee and reported to the Board of Directors.
We also set up the TIS Energy Conservation Promotion as structures that consistently leverage awareness of risks related to measures aimed at mitigating the impact of climate change.
In addition, we take a flexible approach by setting up working groups and assigning specific issues for each to address. The cross-divisional Climate Change Response Review Committee was created in fiscal 2022 to identify and evaluate risks and opportunities related to climate change and facilitate disclosure in line with TCFD requirements.
Strategy
Climate-Related Risks and Financial Impacts
TIS identified groupwide climate-related risks over the short, medium and long term in 2022 and made a forward-looking assessment of financial impacts in 2030.
Picture of Climate-Related Risk
Climate-Related
TIS identified climate-related opportunities for the short, medium and long term in 2022.
Climate-Related Opportunities
Scenario Analysis
TIS implemented scenario analysis on a groupwide basis going all the way to 2050, using temperatures of 4˚C and 1.5˚C, based on scientific evidence and other factors presented by organizations, including the International Energy Agency. Specifically, the process drew on parameters, such as price of electricity, carbon tax and renewable energy costs, paralleling specific climate-related risks, to quantitatively evaluate each scenario as of 2030 and 2050. The results revealed that setting more difficult targets for the reduction of greenhouse gas emissions was, as a strategy, an approach that manifested a certain level of resilience.
The calculated values above are subject to fluctuation risk due to exchange rates.
Risk Management
TIS identified and assessed climate-related risk on a groupwide basis through the Climate Change Response Conference, a cross-divisional structure that opened in 2021. This conference produced an at-a-glance chart of climate-related risks, further analyzed and assessed these risks, classified and organized risks into three categories—risks that can be decreased by reducing greenhouse gases, risks related to methods for reducing greenhouse gases, and risks that accompany the physical impacts of climate change—and then considered approaches to deal with these risks.
TIS promotes discussion from a groupwide perspective through the Climate Change Response Conference on processes to manage climate-related risks, as presented in the image below, and takes steps to implement the necessary responses.
The Climate Change Response Conference has participation from divisions that oversee risk management across the Company, and discussions are starting with the integration of climate-related risk management and overall risk management at TIS.
Metrics and Targets
Metrics
TIS uses groupwide greenhouse gas emissions and financial impacts as metrics for evaluating climate-related risks.
For evaluating climate-related opportunities, TIS uses market scale, sales and other factors as reference values to assess opportunities.
Scope of data collection :
Scope1,Scope2 : TIS, INTEC, AGREX, QUALICA, AJS, TIS Solution Link, TIS System, TIS Tohoku, TIS Nagano, TIS West Japan, TIS Hokkaido, TIS Business Service,SorunPure, MFEC Public(from April 2022), Business Application(from April, 2022), Motif Technology Public(from April 2022), Hongson(from April 2022),MISO Digital(from April 2022 ), Prain Fintech(from April, 2022), Msyne Innovations(from April, 2022), Playtorium Solutions(from April 2022), and Data Café(from April, 2022 to June, 2022)
Scope3 : TIS, INTEC, AGREX, QUALICA, AJS, TIS Solution Link, TIS System Service, IUK, INTEC Solution Power, ULTRA(from May 2022), KOUSHI INTEC, TIS Chiyoda systems(from October 2020), TIS Tohoku, TIS Nagano, TIS West Japan, TIS Hokkaido, Registration Network, Nexway, Hokkoku INTEC Service,MicroMates, Miotsukushi Analytics(from August 2020), SKY INTEC, TIS Business Service, SorunPure, MFEC Public(from April 2022), Business Application(from April, 2022), Motif Technology Public(from April 2022), Hongson(from April 2022), MISO Digital(from April 2022 ), Prain Fintech(from April,2022), Msyne Innovations(from April, 2022), Playtorium Solutions(from April 2022), and Data Café(from April, 2022 to June, 2022)
For risks related to the Group’s greenhouse gas emissions, TIS has identified risks in the transition risk category: reputation risk due to lower trust in society should the Company be unable to achieve its groupwide greenhouse gas reduction target, market risk due to higher costs associated with programs to reduce greenhouse gas emissions and purchase costs for renewable energy, and regulatory risk due to higher costs reflecting tougher approach to carbon pricing.
Targets
The TIS INTEC Group aims to reduce greenhouse gas emission to manage climate-related risks.
Scope 1 + 2:Achieve carbon neutral status by fiscal 2041
(Cut greenhouse gas emissions by 100% relative to the level recorded in fiscal 2020.)
Scope 1+2+3:Realize net zero status by fiscal 2051