Governance/Risk Management
Governance
The Company has established the Sustainability Committee for the purposes of sharing sustainability-related information, including climate-related information, within the entire Group, considering actions to be taken, and monitoring the promotion and progress status of actions decided by the Board of Directors. The Committee comprises the Directors of the Company, the Presidents of Group companies and each General Manager of the Company. The chairperson serves as the person responsible for sustainability including climate-related issues. The results of the Committee’s discussions are reported to the Board of Directors, which decides on the policies for addressing climate-related issues. The Board of Directors also receives reports from the Sustainability Committee concerning actions taken and progress, and monitors the climate-related initiatives.
Risk Management
In its risk management process, the Company has established a management system that spans the entire Group, and also integrates and manages climate-related issues as risks for the entire company. Five departments and committees are involved in the Company’s risk management process, including the Board of Directors, the Sustainability Committee, relevant divisions and Group companies, the Corporate Planning Office, and the CSR Department.
Roles of committees and departments in the climate-related management system
- Board of Directors
- The Board of Directors decides on the final response policy for climate-related issues, receives reports from the Sustainability Committee on promotion and progress, and carries out supervisory duties.
- Sustainability Committee
- With respect to climate-related issues, the Sustainability Committee shares information throughout the Group, considers response policy, promotes initiatives, and makes recommendations and reports to the Board of Directors.
- Relevant divisions and Group companies
- Relevant divisions and Group companies provide information to the CSR Department on the climate-related risks and opportunities for which they are responsible. The heads of the divisions and the Presidents of Group companies attend Sustainability Committee meetings, sharing information and taking actions based on the response policy.
- Corporate Planning Office
- The Corporate Planning Office integrates climate-related risks reported by the CSR Department with overall risks.
- CSR Department
- The department in charge of promoting climate-related actions. In cooperation with relevant divisions and Group companies, the CSR Department identifies and evaluates the impact of climate-related risks and opportunities, and reports the results to the Corporate Planning Office.
Climate-related management system and risk management process of the Group
First, the CSR Department narrows the focus to climate-related risks and opportunities as defined by the TCFD, and works with the relevant divisions and Group companies to conduct interviews to ascertain views concerning the climate-related risks and opportunities (degrees of impact and the countermeasures, etc.) and gather emission-related data, and identifies all risks and opportunities. The results are reported to the Corporate Planning Office, which serves as the general risk management division, and the climate-related risks and opportunities are incorporated into overall risk management at this stage.
The integrated information is reported by the Corporate Planning Office to the Sustainability Committee, where it is shared across the entire Group, and response policy is reviewed and initiatives are promoted. The discussions by the Sustainability Committee are reported to the Board of Directors and serve as the basis for the Board’s decision on the final response policy. Then, the Board supervises the Sustainability Committee’s monitoring of the work and progress. Through the above-mentioned processes, the Company identifies, evaluates, responds to, and monitors climate-related risks and opportunities.