Hulic Initiatives (Summary)

Information Disclosure based on TCFD Recommendations

Hulic has formulated Hulic Environmental Policy which embodied our Sustainability Vision and is executing environmentally friendly management. Aiming to continue sustainable growth while mitigating and adapting to climate change through our business activities, we announced our long-term vision for the environment, with 2050 as the target achievement year and are proceeding with efforts toward the realization of a carbon-free and a recycling-oriented society. Recognizing the importance of climate-related financial information disclosure, we expressed our support for the TCFD* recommendations in 2020 and started disclosing information in line with the recommendations after completing analysis and responses on the recommended framework.

  • *TCFD is an abbreviation for “Task Force on Climate-related Financial Disclosures”, which was established by the Financial Stability Board and has proposed a framework for disclosing climate-related information to investors.

Roadmap of Initiatives for Achieving the Vision

  • We are revising our related KPIs as we have brought forward the target years of net zero CO2 emissions and RE100, respectively from our initial plans.
  • *1TCFD is an abbreviation for The Task Force on Climate-related Financial Disclosures, which was created by the Financial Stability Board (FSB) at the request of the G20, and makes recommendations on climate change-related disclosures to companies and other organizations.
  • *2RE100 is an abbreviation of Renewable Electricity 100% and is an international initiative in which member companies aim to use 100% renewable sources for the energy required for their business activities.
  • *3A feed-in tariff (FIT) system for electricity that requires utility companies to purchase electricity generated using renewable sources for a certain period of time at a price specified by the national government.
    FIT electricity is not considered renewable energy as a portion of the cost of the electricity purchased by a utility company is added to the consumer’s bill so the tax payer must bear some of the costs. Therefore, achieving the 100% goal with FIT electricity is not considered RE100 by definition.

TCFD Disclosure Recommendations and Hulic Initiatives (Summary)

TCFD Disclosure Recommendations Hulic Initiatives (Summary)
Corporate Governance Corresponding Items Initiatives (Summary)
  • a)Board of Directors oversight of climate-related risks and opportunities
Board of Directors Oversight
  • Establish Board of Directors oversight and monitoring structure
  • Matters related to climate change are deliberated by the Sustainability Committee, which is chaired by the President and Representative Director, who is responsible for climate change
  • b)Management's role in assessing and managing climate-related risks and opportunities
Management Responsible for Climate Change
Strategy  
  • Analyze and evaluate climate change mitigation and adaptations relating to climate change risks and opportunities, based on a 2°C or lower scenario and a business as usual scenario
  • Examine validity of current strategies based on evaluation results
  • a)Short, medium, and long term climate-related risks and opportunities identified by the organization
Evaluation of Climate Change-related Risks and Opportunities
  • b)The impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning
Evaluation of Climate Change-related Risks and Opportunities
  • c)Describe the resilience of the organization’s strategy, taking into account different climate-related scenarios, including a 2°C or lower scenario
Risk and Opportunity Assessment
Risk Management  
  • The Sustainability Committee centrally deliberates climate change matters including risk management and reports to the Board of Directors
  • The Risk Management Committee evaluates and deliberates climate change risks from a Group-wide risk management perspective and reports to the Board of Directors
  • The Board of Directors receives reports from the Sustainability and Risk Management Committees and oversees climate change risks
  • a)Organizational process for identifying and assessing climate-related risks
Mechanism for Identifying and Assessing Climate Change Risks and Opportunities
  • b)Organizational process for managing climate-related risks
Mechanism for Managing Climate Change Risks
  • c)Describe how processes for identifying, assessing and managing climate-related risks are integrated into the organization’s overall risk management
Risk Management Committee
Metrics and Targets  
  • Set climate change KPIs (non-financial key performance indicators) and related indicators, disclose progress toward achieving targets on Hulic website, etc.
    • Reductions in CO2 emissions (compared to 2013 base year)
      40% reduction in 2025, 45% reduction in 2030, 100% reduction in 2050
    • Achieving RE100 by 2025
    • Number of times the Sustainability Committee engaged in climate change monitoring
    • Number of Environmental Advisory Council held
  • a)Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process
Key Performance Indicators (KPIs)
  • b)Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks
Total Energy Consumption and CO2 Emissions
  • c)Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets
Key Performance Indicators (KPIs)
  • We are revising our related KPIs as we have brought forward the target years of net zero CO2 emissions and RE100, respectively from our initial plans.
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