Transition Plan to a Decarbonized Economy

Transition Plan to a Decarbonized Economy

SCSK Group (below, "the Group") have developed a transition plan to a decarbonized economy with reference to reports by international organizations such as CDP*1. We will promote initiatives for each element of the transition plan to realize a decarbonized and recycling-oriented society.

  • *1 CDP "CDP Technical Note: Reporting on Climate Transition Plans," GFANZ "Financial Institution Net-zero Transition Plans," Fundamentals, Recommendations, and Guidance," TCFD "Guidance on Metrics, Targets, and Transition Plans," TPT "Disclosure Framework," United Nations' High-Level Expert Group on the Net Zero Emissions Commitments of Non-State Entities "Integrity Matters: Net Zero commitments by Businesses, Financial Institutions, Cities and Regions"
TCFD recommendations Elements of the transition plan Overview of the SCSK’s initiatives
Governance Governance ■ The status of sustainability-related initiatives is reported to the Board of Directors, and the Board of Directors provides appropriate supervision.
■ Factoring ESG performance, including performance in responses to climate issues, into calculations of Director Remuneration (performance-linked compensation)
Strategy Scenario analysis
  • ■ Conducting a TCFD scenario analysis for the entire Company using multiple scenarios (1.5 °C and 4 °C scenarios) based on the IEA and IPCC scenarios
  • ■ Evaluating the financial impact of the risks and opportunities identified through scenario analysis and developing countermeasures
Business plan ■ Providing services to facilitate decarbonization and increase companies' use of renewable energy to contribute to the creation of a decarbonized society
Greenhouse gas emissions reduction plan
  • ■ Utilizing renewable energy (solar power, non-fossil fuel energy certificates, I-RECs, etc.) and conserving energy in offices
  • ■ Considering long-term agreements to procure renewable energy (through PPAs) following a greenhouse gas emissions reduction plan
Financial planning
  • ■ Issuing green bonds to construct and renovate environmentally friendly data centers
  • ■ Planning to develop a financial plan to achieve greenhouse gas emissions reduction targets
Value chain engagement and Low carbon initiatives
  • ■ Establishing a “The SCSK Group Supply Chain Sustainability Promotion Guidelines” as a code of conduct regarding labor, health and safety, environment, etc.
  • ■ Asking our Core partners to exchange opinions on future reduction measures and to provide us with data on greenhouse gas emissions
Policy engagement ■ Requesting multiple organizations that SCSK is a member of to create policies regarding the disclosure of non-financial information and participating in discussions to establish rules for creating new markets
Risk Management Risks and Opportunities ■ Establishing an organizational structure and processes to minimize the identified climate-related risks and maximize opportunities
Metrics and Targets Metrics and Targets
  • ■ Establishing greenhouse gas emissions reduction indicators as (non-financial) performance indicators in the Medium-Term Management Plan
  • ■ Setting medium- to long-term greenhouse gas emissions reduction targets that have been certified by the SBT Initiative
Scope 1, 2 and 3 accounting with verification
  • ■ Calculating greenhouse gas emissions and obtaining third-party verification and assurance for highly reliable information disclosure
Others Training related to climate change issues and the environment
  • ■ Providing training to officers and employees annually on the latest environmental trends, the Group’s climate change issues and environmental initiatives
Initiatives related to biodiversity
  • ■ Working to maintain and conserve biodiversity and participating in the TNFD Forum
Stakeholder feedback mechanism
  • ■ Engaging in conversations with various stakeholders to promote sustainability management practices