Climate Change Initiatives
Initiatives Corresponding to the TCFD Recommendations
In December 2021, OBIC announced its agreement with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) established by the Financial Stability Board. In accordance with these recommendations, we will work to strengthen governance in regard to climate change, formulate strategies and targets based on analysis of risk and opportunity, and disclose information on the financial impact of these measures.
Background
We recognize that we bear a tremendous social responsibility to reduce the environmental impact of the Company to help mitigate climate change risk. By driving innovation in various technologies and enhancing management efficiency, we are working on promoting a knowledge-intensive business that is not dependent on increasing human and environmental resources (people and things).
Governance
We have established a Sustainability Promotion Committee that works under the direct supervision of the president and COO. The president and COO has also been designated as the person ultimately responsible for climate-related issues and receives daily reports from committee members regarding changes in the external environment and other issues concerning climate change, progress made on meeting the Company's targets, and proposals for new initiatives. If necessary, these reports and other information are shared with the Board of Directors and other relevant parties.
Strategy
Climate change risks and opportunities that concern the Company's business are as follows.
- 1Risks
Transition risks Regulatory Increase in the cost of business due to the introduction of new environmental regulations, such as carbon taxes Legal Litigation and halts in operation due to serious violations of environmental laws Reputational Damage to the Company's reputation due to an inability to conform to greenhouse gas emission regulations or the like Physical risks Impact on business operations or damage to Company facilities, etc. due to a major natural disaster caused by climate change - 2Opportunities
Products and services Increased demand for services through cloud centers that offer advanced environmental performance due to a growing need to reduce greenhouse gas emissions Resource efficiency Reductions in operational costs accompanying more efficient use of energy, such as electricity Resilience Increased demand for secure cloud centers that ensure business continuity in the event of a major natural disaster
Risk Management
We conduct risk management through a committee and a risk management system. Each quarter, relevant departments compile environmental data at the committee's request and this information is used by committee members for monitoring purposes, including to confirm the state of progress, conduct analysis, and identify issues. This ensures the continuous monitoring and management of risk.
Indicators and Targets
Greenhouse gas emission (Scope 1 and 2*1) reduction targets
| 2030 target | 50% reduction in emissions compared to FY2017 |
|---|---|
| 2050 target | 100% reduction in emissions |
- *1Scope 1: Direct emissions from fuel consumption at Company facilities
Scope 2: Indirect emissions from the use of electricity and heat at Company facilities
Response to CDP Questionnaires
CDP climate change surveys target companies with the highest aggregate market values globally and investigate factors such as their activities to reduce greenhouse gas emissions and initiatives for mitigating climate change.
We responded to the CDP questionnaire for FY2023 and received a A- rating.