Initiatives in Support of the TCFD Recommendations

In May 2022, the Nittobo Group has endorsed the recommendations made by the Task Force on Climate-related Financial Disclosures (TCFD).
In line with the TCFD’s recommendations, the Nittobo Group will disclose material information on climate change as follows.

TCFD

Governance

The Sustainability Committee, chaired by the Representative and Chief Executive Officer, was established in April 2021 as a body to implement the Nittobo Group’s initiatives to address climate change. The Sustainability Committee meets every quarter to plan and manage the progress of activities, such as gathering information on climate change issues, assuming risks, formulating countermeasures, and promoting internal education and awareness programs. Important matters discussed by the Sustainability Committee are reported to the Board of Directors for deliberation as necessary.

Strategy

We analyzed the impact of all Nittobo Group operations on climate change for the year 2030, with reference to scenarios drawn up by the Intergovernmental Panel on Climate Change (IPCC), the International Energy Agency (IEA), and other expert organizations.
The risks posed by climate change can be divided into those associated with transitioning to a low-carbon society (transition risks) and physical impacts (physical risks). Assuming a scenario in which the average global temperature increase is less than 1.5 degrees Celsius or 4 degrees Celsius above pre-industrial levels, we have identified items that are likely to have a high impact with respect to each opportunity and risk. We will continue to review our action plans as appropriate in response to changes in the external environment and reflect them in such plans.

2050

  • Social Changes

    1.5℃ scenario

    Policies and
    regulations
    • Promotion and expansion of
      renewable energy
    • Implementation of carbon taxes
    • Stronger environmental regulations
    Technology
    • Conversion to new energy sources
    • Promotion and expansion of high-
      speed high-capacity
      communications
    • Increased use of EVs
    Market
    • Transition to a recycling-oriented
      society through decarbonization
    Reputation
    • Increased demand for
      environmental measures from
      customers and investors

    4℃ scenario

    • Further rises in temperature
    • Increased severity of disasters
  • Opportunities

    • Market expansion (EV, communications,
      renewable energy, etc.)
    • Increased opportunities for existing products
      (thermal insulation, heat shielding, etc.)
    • Increased demand for environmentally friendly
      products
    • Increase in sales of products related to heat
      insulation, heat shielding, and national
      resilience

    Risks

    • Cost increases (energy, taxes, raw materials,
      equipment, etc.)
    • Restricted sales activities due to tighter
      regulations
    • Decreased sales due to alternative technologies
      and products
    • Procurement and operational risks, increased
      restoration costs

    Nittobo’s Response

    • Promote energy conservation, innovate
      processes, introduce new technologies
    • Develop environmentally friendly products and
      raw materials
    • Implement recycling
    • Strengthen BCP and supply chain

● Scenario Analysis (Details)

1.5℃ Scenario

Risk
Classification
Social Change Major Opportunities Major Risks Nittobo’s Response
Transition Policies and regulations

Expanded use of
renewable energy

Increased demand for
products for renewable energy-
related businesses

 

Develop environmentally
friendly products

Increased energy
procurement costs

Improve energy
efficiency through
energy conservation,
process improvements, etc.

Introduction of
carbon tax

Increased demand
for environmentally
friendly products

Increased demand for
existing products such
as high thermal insulation
and thermal barrier
products

 

Develop environmentally
friendly products

Expand sales of insulation
materials, roll screens,
SSG, etc. and develop new products

Increased costs due
to carbon tax

Improve energy efficiency
through energy conservation,
process improvements,
etc.

Stronger environmental
regulations

Increased demand for
environmentally friendly
products

Usage restrictions due to
tighter regulations

Develop environmentally
friendly products

Replace raw materials with
environmentally friendly
versions

Technology

Spread of low-carbon
and decarbonization
technologies

Reduction of CO₂ emissions
and improvement of
production efficiency through
the use of new technologies

Increased costs from
capital investment

Develop low-carbon and
decarbonization technologies

Expanding use of high-speed,
high-capacity communications

Increased demand for
products that reduce CO₂
emissions

Intensifying competition
due to alternative technologies
and products, declining
market share

Create higher value-added
low-dielectric glass cloth

Develop new technologies
and products

Increased use of EVs and
acceleration of fuel-efficiency

Increased demand for
EV-related and
lightweight products

Create higher value-added
GF for vehicles

Develop new technologies
and products

Market

Low-carbon society,
decarbonization

Transition to a recycling-
oriented society

Increased demand for
environmentally friendly
products

Increased demand for
existing products such
as high-insulation and
thermal shielding products

Costs increase due
to low-carbon and
decarbonization
measures

Develop of bio-soluble
GF products

Expand sales of insulation
materials, roll screens,
SSG, etc. and develop new products

Costs increase due to
recycling implementation

Utilize recycled yarn and
develop of biodegradable
fiber products

Reduce waste through
recycling

Reduce raw material costs

Reputation

Increased demand for
environmental measures
from customers and investors

Expand businesses that
contribute to environmental
responsiveness and improve
reputation among investors

Cost increases due to
environmental response
requirements

Develop environmentally
friendly products

Promote environmental
measures such as CO₂ emission
reduction, recycling, etc.

4℃ Scenario

Risk
Classification
Social Change Major Opportunities Major Risks Nittobo’s Response
Physical Acute

Intensification of climate
disasters (cyclones, floods,
etc.) due to rising
temperatures

Increased demand for
products related to thermal
insulation, heat shielding,
and national land
development

Difficulty in maintaining
operations at manufacturing
sites and increased
disaster recovery costs

Strengthen BCP and
supply chain, expand
sales of products related to
heat resistance, heat shielding,
and national resilience,
and develop new products

Expansion of existing
diseases and prevalence
of new diseases due to
rising temperatures

Increased demand for
in vitro diagnostics

 

High-value-added existing
products

development of
new products

Chronic

Intensification of
disasters

Increased demand for
products related to thermal
insulation, heat shielding,
and national land
development

Impact on raw material
procurement, plant
operations, etc.

Strengthen BCP
and supply chain

Risk Management

The Nittobo Group’s Sustainability Committee and Risk Management Committee are responsible for the planning and progress management of CO₂ emission reductions across the Group.
In order to identify and assess the impact of climate change on the Group’s operations, climate change opportunities and risks are identified, analyzed, and addressed appropriately by the Sustainability Committee and Board of Directors, as necessary.

Metrics and Targets

The Nittobo Group has identified “supplying products and services that help resolve energy and environmental issues” and “adapting to climate change and a resource-recycling society” as important material issues. These are society-wide issues that we will focus on through our corporate activities, and we are working to reduce the burden of climate change and prevent global warming by improving productivity, carrying out energy-saving activities, using energy efficiently through recycling, and utilizing solar power. In order to achieve carbon neutrality by 2050, we will advance initiatives towards decarbonization through our supply chain through all possible measures.

CO2 Emission

Nittobo Group’s CO₂ Emissions Reduction Targets

Nittobo Group’s CO2 Emissions Reduction Targets

Initiatives to Achieve CO₂ Emissions Reduction Targets

Initiatives to Achieve CO2 Emissions Reduction Targets

Structure for Achieving Carbon Neutrality by 2050

Structure for Achieving Carbon Neutrality by 2050