Information Disclosure Based on TNFD Recommendations
The Group recognizes that responding to natural capital is an important management issue and attaches great importance to strategy and flexibility in dealing with uncertain situation changes.
In accordance with the Group’s policy on climate change, we will aim at enhancing the corporate value through continuous consideration and information disclosure of the four items recommended by TNFD, and constructive dialog with various stakeholders.
In August 2023 the Group joined the Task Force on Nature related Financial Disclosures (TCFD) Recommendation、and participated in Task Force on Nature-related Financial Disclosures (TNFD) Forum.
In FY2024, we analyzed all of the business areas of the SCSK Group using the LEAP approach advocated by TNFD to evaluate the impact of natural capital on our business activities and the impact of our business activities on natural capital.
Assessment Using the LEAP Approach
The LEAP approach comprises a series of steps: locate (identify the company’s business activities, value chains, interfaces with nature and priority regions), evaluate (understand and evaluate dependencies and impacts on natural capital in these places), assess (identify and assess risks and opportunities related to the dependencies and impacts) and prepare (develop responses and disclose information)
〈Locate・Evaluate〉
We analyzed each of the SCSK Group's value chains using ENCORE(※1) to identify their dependencies and impacts on natural capital.
We organized the SCSK Group's assessed dependencies and impacts on natural capital using qualitative information, including information about the content of the SCSK Group's businesses and geographical information about its sites, and quantitative data such as greenhouse gas emissions data from each business site.
As a result, no immediate impact on the natural environment attributable solely to the SCSK Group was identified in terms of dependency on water resources in data center operations in particular and in greenhouse gas and waste emissions resulting from data center and office operations. For information about the Group's impacts related to greenhouse gas emissions and torrential rain and flooding risks, please see Disclosure of Information Based on TCFD Recommendations.
- （※1）ENCORE: A tool that makes it possible to understand potential dependencies, impacts, etc. on nature on an industry-by-industry basis.
〈Assess〉
We used the identified dependencies and impacts to identify the risks and opportunities facing the SCSK Group. To identify risks and opportunities, we referenced the TNFD guidance（※2）and reconsidered nature-related risks and opportunities that had been identified for the TCFD disclosure to ensure the identification process was exhaustive. We evaluated and identified the risks and opportunities from the perspectives of their importance to our stakeholders and to the SCSK Group, and we organized the SCSK Group's measures to address them.
- （※2）Guidance on the identification and assessment of nature-related issues: the LEAP approach（version1.1）
〈Prepare〉
We set targets for relevant metrics based on the analyses of the risks and opportunities. We will regularly review the risks and opportunities that were identified in this process, as well as our metrics and targets, and consider measures to address them.
