Disclosure based on TNFD Recommendations
Recognizing the importance of conserving nature*1, Hulic joined the TNFD Forum in August 2023 and endorsed the recommendations of Taskforce on Nature-related Financial Disclosures (TNFD). We now begin disclosing information on the four key areas outlined in TNFD framework—Corporate Governance, Strategy, Risk and Impact Management, and Metrics and Targets—in line with TNFD recommendations. For this disclosure, we have followed the LEAP Approach*2 outlined in TNFD recommendations to assess our dependence and impact on nature and to identify risks and opportunities.
- *1Nature: The four realms (domains) of Land, Ocean, Freshwater, and Atmosphere, including biodiversity, water use, forests, etc.
(Source: Recommendations of Taskforce on Nature-related Financial Disclosures, September 2023 edition) - *2LEAP Approach: A framework for companies to identify nature-related dependencies, impacts, risks, and opportunities, consisting of Locate (identifying points of contact with nature), Evaluate (diagnosing dependencies and impacts), Assess (assessing risks and opportunities), and Prepare (preparing for reporting).
General Requirements and Hulic Disclosure Items
Our disclosure items with respect to the general requirements of TNFD are as follows.
| 1. Application of Materiality |
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At Hulic, we have identified materiality related sustainability with the goal of contributing to a sustainable society. This identification process is based on an analysis of global social issues and the identification of those issues with particularly high material relevance to both Hulic and our stakeholders. Our nature-related materiality is "Contributing to actions for mitigating climate change and reducing our environmental impact." Related Page: Opportunities and Risks Related to Materiality and Our Actions |
| 2. Scope of Disclosure |
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| 3. Areas with Recognized Nature Issues |
| Recognizing that nature-related issues vary by region, we have designated Tokyo’s 23 wards, which account for approximately 70% of our real estate portfolio, as a priority area for this disclosure. |
| 4. Relevance to Other Sustainability Disclosures |
| We disclose information on climate change risks in line with the recommendations of Task Force on Climate-related Financial Disclosures (TCFD). This TNFD-aligned disclosure includes, in part, matters related to climate change and analyzes the relevance of nature-related issues to our business. We also disclose information on biodiversity conservation initiatives through our Integrated Report, website, and Sustainability Book. |
| 5. Time Horizons |
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Our time horizons for addressing environmental issues align with our Long-term Vision for the Environment and greenhouse gas emission reduction targets. Related Page: Information Disclosure Based on TCFD Recommendations: Strategy (Time Horizon for the Short, Medium, and Long Term) |
| 6. Engagement with Local Communities and Stakeholders |
| Through the formulation of our CSR Procurement Policy, green procurement initiatives, and other efforts, we collaborate with stakeholders to address social issues and build long-term, value-enhancing relationships. |