Efforts for TCFD Recommendations
Taiyo Holdings adopted the “Strengthening of Efforts for Sustainable Development Goals (SDGs)” as one of our basic policies under “Beyond Imagination 2030” Long-Term Management Plan as well, Taiyo Holdings has been actively engaging in efforts for sustainability, one of which is the commencement of its Floating Solar Power Business in 2014. Climate change measures are a key social issue currently facing global society, and also constitute a priority management challenge of Taiyo Holdings. For that reason, we have declared our support for TCFD *1 Recommendations in March 2022 and are also participating in the “TCFD Consortium,” *2 a forum for discussion among supporting corporations and financial institutions.
*1: A task force for considering corporate information disclosure related to climate change and the response of financial institutions that was established by the Financial Stability Board (FSB) at the request of the G20.
*2: A consortium established in 2019 to provide a forum for discussing effective corporate information disclosure and initiatives for utilizing the information disclosed in appropriate investment decision-making by financial institutions, etc.
Governance
The Sustainability Promotion Committee chaired by the President and Chief Executive Officer holds discussions laterally across the entire Group on areas such as progress in targets set in accordance with on priority challenges. For important matters, the Committee's policy is to report them to the Board of Directors and receive instructions.
Implementation Framework
Strategies
In order to conduct the scenario analysis considering the below 2°C and 4°C scenarios, we referred to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change, which identifies risks and opportunities associated with climate change, and the International Energy Agency's World Energy Outlook.
Taiyo Holdings reduce those risks and ascertain those opportunities in its future business activities and will develop products that tie into the resolution of social issues.
* These scenarios were applied to the Electronic Business.
Examples of Opportunities 1
The popularization of next-generation mobility has given way to the increased electrification of automobiles and use of electronics in them, bringing with them an increase in the substrate area used in a single automobile. This in turn has resulted in an increase in usage volumes of solder resist. Viewing this as an opportunity for our Electronics businesses, we will endeavor to further promote its development endeavors.
Automotive Substrates: Projected Sales Quantities*
* From “General Survey on Car-Mounted Electronic Devices & Components 2022” by Fuji Chimera Research Institute
(Figures for 2020 are actual values. Figures for 2025, 2030 and 2025 are projected values.)
Examples of Opportunities 2
Taiyo Holdings is actively pushing forward efforts for waste reduction that include making the switch from plastic containers to pouches and from cardboard to renewable cases, thereby contributing to waste reduction on the customer side as well.
Risk Management
Executing departments respond to the climate change risks identified and assessed by the Sustainability Promotion Committee. The Committee and the Board of Directors then continue to manage and monitor that response.
Metrics and Targets
We will further accelerate efforts to reduce CO2 emissions from our target for transitioning to renewable energy for our preexisting power consumption with a view to achieving carbon neutrality by 2050, the standard set by the Japanese government.
We aim to achieve a 40% reduction of CO2 emissions in our group in the fiscal year ending March 31, 2031 compared to the fiscal year ending March 31, 2017. In addition, we aim to achieve carbon neutrality in our electronics business in Japan and a 70% reduction in our medical and pharmaceuticals business in Japan, so that the entire group will achieve carbon neutrality by 2050.
We will promote the reduction of CO2 emissions and aim to reach our targets through measures that leverage the strengths of Taiyo Holdings, including our solar power generation business.
Going forward, Taiyo Holdings will continue to position the realization of a decarbonized society as a priority challenge and enhance its disclosure of information while simultaneously conducting business activities with a greater level of environmental consideration. In doing so, it will work towards making the realization of a sustainable society.
Image representation of reductions in CO2 emissions with a view to 2030 (Scope 1+2)
* Including Electronics Materials Business in foreign countries and other Business in Japan
