As a company that plays a part in the supply chain of the automobile industry, we are aware of the extreme importance of taking appropriate measures against negative environmental impacts arising in the course of corporate activities. In support of the objectives of the 2050 Carbon Neutral Declaration released by the Japanese government, the Company has been proactive in disclosing greenhouse gas reduction targets and in the implementation of relevant measures. In particular, viewing climate change as a management risk as well as an opportunity, we have formulated an Environmental Road Map until FY 2050. In addition, we are steadily proceeding with our internal preparations to support the TCFD recommendations, and will strengthen our information disclosure on the effects of climate change. Moreover, in support of creating a sustainable society, we seek to contribute to the reduction of greenhouse gas emissions and fulfill our social responsibilities.
Information disclosure efforts in line with TCFD recommendations
G-TEKT is taking actions based on the recommendations of the TCFD (Task Force on Climate-related Financial Disclosures) in order to realize a sustainable society.
Governance
We have launched and promoted the GX project, headed by the President, Chief Executive Officer, to address important issues related to climate change. Within the GX project, the President, Chief Executive Officer appointed an Officer of the Company (Production Operations Director), who also serves as Risk Management Officer, as Chief Global Environmental Manager. Initiatives related to climate change, including the TCFD, are managed and promoted by the projectʼs secretariat, and the Officer of the Company submits reports on important matters and actual versus forecasts to the Executive Board.
In addition, the Corporate Business Planning Division, the secretariat of the GX project, has placed environmental responsiveness as a priority item for action.
Strategy
Our environmental strategy in our business activities is (1) energy-saving initiatives and (2) utilization of renewable energy (including in-house power generation).
Environmental initiatives through our products include: (1) contribution to the improvement of fuel and electric cost performance of automobiles through lightweight car body technologies, and (2) contribution to the spread of EVs through our EV-related parts business initiatives.
Indicators and goals
As an indicator for managing climate change risks and opportunities, we have set global emission reduction targets for Scopes 1, 2, and 3 CO2 emissions. In terms of G-TEKTʼs global Scopes 1 and 2 CO2 emissions, we are aiming for a 50% reduction in CO2 emissions in FY 2030 and a 100% reduction in FY 2040 compared to FY 2013.
We also aim to be carbon neutral as defined in Scopes 1, 2, and 3 by FY 2050, with cooperation in the supply chain.
Risk management
In order to understand and assess the impact of climate change on our business, the GX project, relevant departments, and the Central Environmental Promotion Committee collaborated in a discussion on climate change risks and opportunities. Through discussions, the project secretariat evaluates the financial impact and likelihood of occurrence and time horizon from the listed risks and opportunities, and attempts to identify significant risks and opportunities and calculate their financial impact.
We will share external factors such as global trends, including climate change, and changes in laws and regulations that affect business strategies, as well as internal factors such as the progress of each companyʼs environmental measures and future risks and opportunities, in order to examine strategies and measures.
Risks
| Strengthening of policies and environmental laws and regulations |
Increased costs (penalties) due to the introduction of high carbon pricing and mandatory reductions of greenhouse gases |
| Technology |
Changes in introduction costs, timing and demand for renewable energy, storage battery and energy-saving equipment, etc. |
| Climate change risks |
Impact on business continuity due to abnormal weather, large typhoons, flooding, rising sea level, etc. |
| Reputation |
Loss of credibility or reputation due to acting contrary to changes in awareness of customers and society |
Opportunities
| Resource efficiency |
Reduction of greenhouse gases and reduction of operating costs by increasing the efficiency of use of energy, raw materials, water, waste materials, etc. |
| Energy |
Cost reductions due to the transition to electricity derived from renewable energy (in combination with a decrease in electricity charges due to switching to new electric power providers) |
| Products |
Increased competitiveness due to development of low-carbon products |
| Resilience to change |
Enhancement of capabilities to respond to risks, manage organizations to adapt to climate change, and convert these into opportunities |
Measures
Reduction of CO2 during manufacturing and arising from business activities (strengthening of response to Scopes 1 and 2)
- More efficient use of energy through the improvement of productivity
- Energy-saving improvements to existing production equipment and buildings
- Increase in rate of electricity derived from renewable energy (in-house consumption through the introduction of power generation equipment or switching to purchases of electricity from renewable energy)
Contribution to CO2 reductions through development of low-carbon products and production technologies
- Contribution to environmental performance through weight saving technologies for auto body frames
- Assessment of environmental impact in the product life cycle (when introducing new technologies and before launching new models)
Reduction of CO2 arising in the supply chain (response to Scope 3)
- Cooperation with suppliers’ initiatives to reduce environmental impact
- Improvement of logistics efficiency in transportation