We provide consulting services that solve companies’ management issues, so our business does not have a direct negative effect on the global environment through water pollution, deforestation, greenhouse gas emissions, etc.
However, as a member of international society, we understand the importance of protecting the global environment. Consequently, we take the following measures to better protect the environment.
For details of our Environmental Policy, please refer to the following.
Our clients are leading companies in various industries in Japan. Many of them aim to build a sustainable society.
Accordingly, we observe an increasing number of cases in which a client consults us in the pursuit of knowledge for developing and executing a management or business strategy that will enable them to better protect the global environment, while still expanding and developing their business.
Developing an External Communications Strategy Based on a Review of ESG Materiality
We provided comprehensive support to the communications department to ensure accurate communication of the company's ESG initiatives to investors and rating agencies. Additionally, we offered suggestions on the company's future ESG development.
Establishment of Methodology for Calculating Scope 3 GHG Emissions and Support for Reduction
We considered methodologies for calculating Scope 3 GHG (greenhouse gas) emissions and established calculation methods compliant with the GHG Protocol and ISO standards. This contributed to identifying and reducing emission sources throughout the company's value chain.
Low-Carbon Urban Development Policy Guidelines
We collected and analyzed a wide range of advanced examples of low-carbon urban development. Formulated a vision for sustainable urban areas and organized policies for their development.
The impact of climate change has been growing more serious with each year, with significant repercussions for the economy, society and the environment. International society is accelerating its shift toward the establishment of a low-carbon/carbon-free society, and the roles that companies will play have been growing increasingly important.
As a member of the global community, we understand the importance of protecting the global environment and support the Task Force on Climate-related Financial Disclosures (TCFD). In addition, we will contribute to driving decarbonization further and building a sustainable society, not only by developing our own environmental initiatives but also by supporting client companies. We believe these are our duties as one of the largest consulting firms in Japan.
We recognize that responding to climate change risks, which has become a global issue, is one of our most important challenges.
We have established a Sustainability Committee at the board level to oversee all sustainability matters, including those related to climate change.
Climate-related issues are formally discussed by the Board of Directors at least once a year, and the committee takes responsibility for their management and oversight.
Under the supervision of the Sustainability Committee, our sustainability efforts are handled primarily by the Corporate Headquarters, which checks the progress of each division and reviews policies and initiatives as necessary.
The Corporate Headquarters also discusses and considers risks related to climate change, and is promoting initiatives such as considering countermeasures to identified risks and opportunities and reducing CO2 emissions.
The Sustainability Committee receives reports on important matters discussed by the Corporate Headquarters, and will also deliberate and oversee policies and action plans for addressing climate change issues.
In determining the stock-based compensation to be granted to Directors (excluding Outside Directors and Directors who are Audit and Supervisory Committee members), Executive Officers, and other employees with executive status, the progress of initiatives aimed at achieving our sustainability targets, including the reduction of greenhouse gas emissions, may be taken into consideration.
We performed a scenario analysis based on risks and opportunities to be created by climate change, which are illustrated by examples in the TCFD recommendations.
We selected two scenarios for the analysis because it is necessary to select and set scenarios for multiple temperature ranges, including a 2°C or lower scenario. One is the 1.5°C scenario, in which the impact of the transition is realized. The other is the 4°C scenario, in which the physical impact of climate change is realized.
In this scenario, rigorous measures are taken to address climate change and the temperature increase is limited to around 1.5°C above pre-industrial levels as of 2100.
Measures to address climate change are strengthened, and transition risks increase regarding political regulation, markets, technology, reputation, and other matters.
*1 As the parameters for estimating impact, the RCP2.6 scenario was used referencing information from the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IAE).
In this scenario, rigorous measures are not taken to address climate change, and the temperature has increased to around 4°C above pre-industrial levels as of 2100.
This leads to greater physical risks, including risks related to serious natural disasters, sea level rise, and more frequent abnormal weather.
*2 As the parameters for estimating impact, the RCP8.5 scenario was used, referencing information from the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IAE).
The financial impact of climate change risk is likely to be due to the introduction of a carbon tax in line with the strengthening of government environmental regulations. Therefore, we have estimated the impact of the introduction of a carbon tax in 2030 and 2050 in the 4°C scenario and the 1.5°C or lower scenario, assuming that our GHG emissions will be the same as in fiscal 2023.
In addition, the estimates use scenarios from the International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA), as well as current carbon prices (emissions trading scheme, carbon tax, and energy tax).
Furthermore, since we plan to reduce GHG emissions in the future by introducing renewable energy sources, etc., the impact of the carbon tax is expected to be reduced when it is actually introduced.
Under our risk management system, we sort risks by type according to the risk management regulations established by the Board of Directors. We have set up a Compliance Promotion Committee and manage the risks on an ongoing basis. The Compliance Promotion Committee meets regularly on a quarterly basis and whenever necessary. It instructs each division to assess risks and report measures related to risk management and takes other steps as necessary in its efforts to identify risks. The Committee then selects risks to address preferentially before determining specific policies and measures to address the risks, thus managing risks appropriately.
We consider climate change risk to be one of our major risks, and the Corporate Headquarters is responsible for this. In order to understand and evaluate the impact of climate change on our company, the Corporate Headquarters will identify, discuss, and identify climate change risks and opportunities through scenario analysis.
In addition, the status of risk management and decisions regarding responses to significant risks are reported and recommendations are made to the Compliance Promotion Committee and the Board of Directors, and responses are implemented in an organized and appropriate manner.
Our company has set a goal of achieving net zero GHG emissions (Scope 1 and 2) associated with electricity use by 2025.
By relocating to Azabudai Hills, which will be powered by 100% renewable energy by 2024 and has implemented technologies to improve energy efficiency on a large scale, we have been able to switch the electricity used in our business activities to renewable energy sources.
As a result, we have achieved net zero for Scope 1 and Scope 2.
Going forward, we will continue to promote efforts to further reduce our environmental impact and achieve carbon neutrality, aiming to realize a decarbonized society.
We publicly commit to maintaining net-zero emissions for Scope 1 and 2 by 2050. We will offset any remaining emissions through measures such as the purchase of carbon credits.
We will take a long-term perspective and align our future capital investments with GHG reduction targets toward a decarbonized society.
Calculations were made for the Azabudai Hills Mori JP Tower Head Office and other facilities using power consumption and the emission coefficient stipulated in the Global Warming Countermeasures Promotion Act.
