Background and Approach
In recent years, the increasing seriousness of many environmental issues has led to a global revaluation of economic and social systems. The 2015 Paris Agreement catalyzed a social movement focused on the reduction of our environmental impact. This has included environmental regulations and the 2050 Carbon Neutrality Declaration by the Japanese government, the increase in ESG investing, and an increase in the environmental awareness of stakeholders. This is impacting corporate activities as well. Extreme weather and the damage caused by storms and floods have an enormous impact on people's lives and business activities. This has accelerated both efforts to establish a carbon-free society to mitigate climate change risks and initiatives to mitigate business continuity risks. Through its IT services, the SCSK Group provides robust support in addressing these changes in society. By supporting our customers in business transformation, enhancement of operational efficiency and other efforts using AI, IoT, cloud services and other technologies, we help our customers increase their energy efficiency and reduce their environmental impact. We support our customers' work to be prepared for disaster and preserve their business continuity by providing robust data centers, BCP solutions, and other services. Collaborating with our partner companies and customers in a wide range of industries, we work to reduce greenhouse gas emissions and environmental impact to facilitate our adaptation to climate change and the implementation of environmentally friendly business activities. At the same time, we will create and expand business opportunities to improve the global environment.
Information disclosure based on TCFD/TNFD
The SCSK Group recognizes that responding to climate change and natural capital is an important management issue and attaches great importance to strategy and flexibility in dealing with uncertain situation changes. Based on this belief, the Group supports the principles of the Task Force on Climate-related Financial Disclosures (TCFD※1) and the Task Force on Nature-related Financial Disclosures (TNFD※2). Based on these frameworks, the Company identifies and organizes climate change- and natural capital-related risks and opportunities across all business areas, and discloses its beliefs and initiatives in accordance with four requirements.
- ※1 Task Force on Climate-Related Financial Disclosures: A task force established by the Financial Stability Board in order to reduce the risk of instability in financial markets related to climate change.
The task force has presented a framework for companies who are voluntarily disclosing information on the climate-related risks and opportunities. - ※2 Task force on Nature-related Financial Disclosures: A task force founded by the United Nations Environment Programme Finance Initiative, the United Nations Development Programme, the World Wide Fund for Nature, and Global Canopy (an NGO from the U.K.) to facilitate businesses' disclosure of nature-related information and shift their financial flows toward nature-positive outcomes. The TNFD provides businesses with a framework for assessing and disclosing nature-related risks and opportunities. The SCSK Group joined the TNFD Forum in August 2023.
Governance
As regards the response to climate change and natural capital, Sustainability Committee, an advisory committee chaired by President and Representative Director, considers and confirms corporation-wide issues and measures. The content of consideration is passed over from the Sustainability Committee to Management Committee to be further discussed in the context of corporation-wide management; after that, the Sustainability Committee regularly reports to the Board of Directors for appropriate supervision.

Strategy
The SCSK Group identifies, assesses, and evaluates risks and opportunities related to climate change and natural capital, and organizes countermeasures for them.
Risk management
SCSK has established the Risk Management Regulations, so that we can appropriately manage risks that could have a material impact on the Group’s business. The Department supervising risk management collaborates with the Divisions responsible for individual risks to analyze risks based on external reports and advice from outside experts. The Divisions responsible for individual risks submit reports on the analyzed risks to the Sustainability Committee, which examines and identifies risks. The identified risk items are reported by the Divisions responsible for individual risks to the Department supervising risk management, and are appropriately managed in accordance with the Risk Management Regulations.
Metrics and targets
The SCSK Group is active in the area of environmentally friendly business, and it sees the transition to a carbon-free society and a nature positive economy which limits the loss of natural capital and facilitates its recovery as business opportunities. Accordingly, we will contribute to the development of a sustainable society through co-creation with our partner companies and customers in a wide range of industries.
The Group’s GHG Reduction Target
- Reduce emissions 47% by FY2030 compared to FY2019 (1.5°C target)
- Reduce emissions 100% by 2050
- Reduce emissions 28% by FY2030 compared to FY2019
- ※3 Scope 1: Direct emissions of greenhouse gases from a company’s own business activities
Scope 2: Indirect emissions of greenhouse gases associated with the use of electricity, heat and steam, etc., supplied by other companies. - ※4 Scope 3: Indirect emissions of greenhouse gases not included in Scope 1 and Scope 2 (emissions of other companies related to a company's own business activities).
Initiatives toward Reductioin of Greenhouse Gas Emission
Please see Initiatives toward achieving carbonIn neutrality
Management System for Climate Change Issues
Greenhouse Gas Emissions of SCSK Group

Progress Toward Scope 1 + 2 Emissions Reduction Targets
Progress Toward Scope 3 Emissions Reduction Targets※5
Reduction Target (Scope1+2)
2050 (Long term): Reduce emissions 100%
2030 (Middle term): Reduce emissions 47% (compared to 2019, Approximately 4.2% reduction annually)
2025 (Short term): Reduce emissions 25% (compared to 2019, Approximately 4.2% reduction annually)
Reduction Target (Scope3)
2030 (Middle term): Reduce emissions 28% (compared to 2019, Approximately 2.5% reduction annually)
2025 (Short term): Reduce emissions 15% (compared to 2019, Approximately 2.5% reduction annually)
- ※5 Increase due to Net One Systems Co., Ltd. having become a consolidated subsidiary as of December 25, 2024, and expansion of business.
Third Party Verification and Assurance
We have obtained third party verification and assurance from KPMG AZSA Sustainability concerning Scope 1, 2 and 3 emissions for the disclosure of greenhouse gas emissions. We will continue striving to disclose highly reliable information in the future.
FY22 Independent Assurance Report
FY21 Independent Assurance Report
FY20 Independent Assurance Report
FY19 Independent Assurance Report

