The Shin-Etsu Polymer Group develops business activities that embrace sustainable approaches and aim to reduce our businesses’ environmental impacts and contribute to achieving a sustainable society with a focus on the transition to a carbonfree society. Toward the goal of achieving “Carbon Neutrality by 2050”, we are working to reduce CO2 emissions related to all business activities of the Group.
The Group has endorsed the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, and will actively disclose information per four recommended disclosure areas: Governance, Strategy, Risk Management, and Metrics and Targets.
At the Group, we have established the Sustainability Committee, which is chaired by the president. Here, necessary discussions for enhancing sustainability management are held. This includes deliberations regarding climate change actions, such as reduction targets for CO2 emissions, and the receipt of periodic reports, including annual activity reports from business operation divisions. Important matters discussed at the Committee are reported to the Board of Directors and the Audit & Supervisory Board, where they are monitored and supervised. Also, as a part of our ongoing energysaving initiatives in the Green Activities, we regularly report on the progress in achieving targets set for our domestic and overseas plants.
In order to expand switching to renewable energy sources for electric power implemented at some plants in fiscal 2023 to the remaining plants, a roadmap for CO2 emission reduction linked to business growth as indicated in the Mid-term Management Plan has been formulated and put into action from April 2024.
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The Group has qualitatively assessed the financial impact of climate-related risks and opportunities in our major businesses for a future with heightened climate change. We base these assessments on the two scenarios, which reference multiple scenarios published by the IEA (International Energy Agency) and the IPCC (Intergovernmental Panel on Climate Change). Based on the scenario analysis, we assumed transition risks associated with changes in regulations, such as stricter GHG emission regulations and the introduction of carbon tax, and physical risks associated with extreme weather events, such as wind and flood damage. Transition risks are addressed by installing solar power generation equipment and purchasing renewable energy. Physical risks are addressed through risk assessment and supply chain management for sustainable procurement. In terms of product and service opportunities, we assumed a shift from gasoline-powered vehicles to EVs and the expansion of the digital network society. In response to these challenges, we will strive to capture opportunities by developing and launching new products for EVs, expanding sales of semiconductor-related containers, and developing and launching material products for electronic components.
At the Group, the Sustainability Committee identifies and evaluates climate-related risks and opportunities. Risks assessed to have a high impact on the business are reported to the Board of Directors and the Audit & Supervisory Board. In addition, strategies and targets are set to minimize identified risks and maximize opportunities. The status of these initiatives is regularly reported to the Board of Directors and the Audit & Supervisory Board.
The Group has set a CO2 reduction target for all group companies by 2050. We will promote measures such as switching to renewable energy, transitioning to energy-saving equipment in the future. We will also consider the introduction of solar power generation.
