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Information Disclosure based on TCFD

The TIS INTEC Group has positioned its response to climate change, an increasing urgent global environmental issue, as a key management priority.
The Task Force on Climate-related Financial Disclosures (TCFD), established by the Financial Stability Board (FSB), released its recommendations in June 2017. These recommendations encourage companies to identify and disclose the risks and opportunities posed by climate change.
TCFD requires information disclosure in four core elements: governance, strategy, risk management, and metrics and targets.

Governance

Our sustainability management framework involves identifying key trends and discussing sustainability issues through the Corporate Sustainability Committee. The Board of Directors determines the priority issues and sets the direction for addressing them. These priorities and directions are then communicated to the executive side via the Management Committee and other, where specific initiatives and plans are discussed. The finalized plans are formulated through the Board of Directors, which also monitors and supervises their implementation.
The Corporate Sustainability Committee consists of the Chief Corporate Sustainability Officer (Chair), directors, Audit & Supervisory Board members, Corporate Sustainability Promotion Officer, division manager of the Corporate Planning SBU, and department manager of the Corporate Planning Department.

Our policy on climate change is addressed as a key sustainability issue under the Group's corporate sustainability management framework.

Strategy

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.

Figure 1: Correlation map of climate-related risks and opportunities

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.
The identified opportunities were also collated by the cross-organizational Climate Change Response Review Committee in 2021.
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).

  1. Financial impact without implementing risk mitigation measures
  2. Cost associated with implementing risk mitigation measures
  3. 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.

Carbon Neutrality Declaration

Targets and Results of GHG reduction in Scope1 and 2 (transition plan)

Risk Management

Among the Group's operations, the data center business is particularly closely linked to climate change issues. To estimate the potential impact of that business, the responsible division first conducts a simulation of the business scale in the fiscal year ending March 2031. Based on the information thus obtained, the financial impact of each identified risk item is then reviewed by the "TIS Energy Conservation Promotion Conference."
By regularly reviewing the identified risk items and their associated financial impacts, we will ensure continuous and proactive risk management.

Metrics and Targets

At its meeting held in 2021, the Climate Change Response Review Committee classified risks into three categories based on their characteristics: (1) Risks that can be mitigated through reductions in GHG emissions, (2) Risks related to the methods of reducing GHG emissions, and (3) Risks arising from the physical impacts of climate change. For each category, corresponding "Metrics and Targets" were then examined.
In conducting these examinations, we referred to the "Sustainability Disclosure Standards by Theme-Climate-related Disclosure Standards," published by the Sustainability Standards Board of Japan (SSBJ), as well as the "Industry-based Guidance for Software & IT Services (TC-SI)," published by the International Sustainability Standards Board (ISSB), taking into account their applicability to our operations.

Metrics

The TIS INTEC Group uses the GHG emissions reduction rate and the renewable energy utilization rate as key metrics when assessing climate-related risks.

Targets

For the two key indicators mentioned above - GHG emissions reduction rate and renewable energy utilization rate - we have established the following targets.

◇Short-Term Target 70% reduction in GHG emissions (Scope 1 + 2) compared with fiscal year ended March 2020
Scope: Consolidated Group
◇Medium-term target Achieve 100% renewable energy utilization (for offices and data centers) by fiscal year ending March 2031
Scope: Domestic Group companies
◇Long-term target Realize Carbon Neutrality Declaration
Scope: Consolidated Group

Carbon Neutrality Declaration

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Update : July 31, 2025, 15:25