TNFD Analysis

① Analysis for natural associations (TNFD scenario analysis)

The TIS INTEC Group is analyzing the relationship between itself and natural capital and biodiversity - specifically, how we depend on and impact them - by following the LEAP (Locate, Evaluate, Assess, Prepare) approach outlined in the TNFD disclosure framework.

In the Locate and Evaluate processes, we analyzed our points of interaction with nature, as well as dependencies and impacts, focusing on the business activities of our data centers and offices, which are part of the Group's direct operations. We also utilized the WWF's^*1 Biodiversity Risk Filter (BRF^*2) to identify and assess the ecosystem dependencies and the environmental impacts of the Group's business activities.

In the Assess process, based on the findings from the Locate and Evaluate stages, we held discussions, including with related departments, to examine what potential impacts might arise for the Group in the future, and we assessed associated risks. For the location and facility requirements of data centers, we conducted evaluations using regional hazard maps published by government agencies and the tier standards of the "Data Center Facility Standards."

*1 WWF (World Wildlife Fund): An international NGO and the world's largest conservation organization
*2 BRF (Biodiversity Risk Filter): Tool for screening risks related to natural capital and biodiversity

② Nature-related correlations

Based on the analysis of nature-related items in ① above, we identified the points of contact between the TIS INTEC Group's main businesses and nature, and visualized the correlation as shown in the figure below.
For items related to climate change (specifically, "atmosphere" and "landslides, fires, heatwaves, and tropical cyclones"), we disclose the financial impacts under "Disclosure Based on the TCFD Recommendations."

③ Nature-related risks and financial impacts

Based on the correlation between the TIS INTEC Group and natural capital shown in ② above, we identified nature-related risks and assessed their potential financial impact in fiscal 2031, ending March 31, 2031.

*1 Maximum annual financial impact of the cost of countermeasures or damage expected if the risk materializes
Negligible: Up to ¥10 million; Minor: ¥10 - 100 million; Moderate: ¥100 million - ¥1 billion; Major: ¥1 - 10 billion; Extreme: ¥10 billion or higher

As a result of our analysis, we found that out of the six identified risks, five were assessed as having a "negligible" or "low" impact, indicating that the Group's relationship with natural capital is relatively limited.
On the other hand, as a risk with a "Moderate" impact, we identified "Increased liability for damages due to the tightening of legal regulations on the release of pollutants." In relation to natural capital, we confirmed that "Leaks of heavy oil A used for emergency power generation at data centers, or improper disposal of backup power-generation equipment", could cause environmental contamination and negatively impact the natural environment.
To mitigate this risk, we are taking the actions listed below and will continue these measures while monitoring any changes in risk.