Climate Change Initiatives
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- Climate Change Initiatives
This page provides information about the Happinet Group's initiatives on climate change.
Response to the TCFD Recommendations
In addition to materiality, the Happinet Group views climate change as one of the most important social issues that needs be addressed. In June 2023, we expressed our support for the TCFD recommendations and are disclosing climate change-related information utilizing the TCFD’s framework. By managing risks and realizing opportunities identified in accordance with the TCFD recommendations, we will contribute to the development of a sustainable society that is able to tackle the issues posed by climate change.
Governance
The Happinet Group has established a Sustainability Committee chaired by a representative director and comprised of executive officers in charge of each department. The Committee identifies material issues, formulates action plans, promotes measures, and monitors the status of targets for sustainability issues. In principle, the Committee reports the status of its activities to the Board of Directors at least once a year. The Board of Directors provides appropriate supervision of the progress of the Sustainability Committee’s activities, as well as direction with regard to awareness of and response to the Group’s issues. With the representative director and heads of each department promoting initiatives themselves, we have built a system that allows us to do business with an awareness of sustainability.
Strategy
A scenario analysis has been conducted in line with the TCFD recommendations, identifying climate change-related risks and opportunities for our Toys Business, Visual & Music Business, Video-Game Business, and Amusement Business. The scenario analysis was based on 1.5°C and 2°C scenarios in which transitional impacts become more apparent and on a 4°C scenario in which physical impacts become more apparent.
| Selected Scenario and Implications for Society | Main Reference Scenario | |
|---|---|---|
| 4℃ scenario: More aggressive measures are not taken, and the impacts of physical risks become apparent. | Physical | Representative Concentration Pathway（RCP6.0,8.5）、IPCC*1 |
| Transi-tional | Stated Policies Scenario（STEPS）、IEA*2 | |
| 2℃ and 1.5℃ scenarios: More aggressive measures are taken, and the impacts of transitional risks become apparent. | Physical | Representative Concentration Pathway（RCP1.9,2.6）、IPCC*1 |
| Transi-tional | Sustainable Development Scenario（SDS）、IEA*2 Net Zero Emissions by 2050 Scenario（NZE）、IEA*2 |
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- *1 IPCC: Intergovernmental Panel on Climate Change
- *2 IEA: International Energy Agency Energy Agency）
Climate Change-Related Risks
| Risk Type | Expected Impact | Financial Impact | Measures | ||
|---|---|---|---|---|---|
| 1.5/ 2℃ |
4℃ | ||||
| Transi-tion Risk |
Policy and Legal | (1) Increased energy procurement costs due to introduction of carbon tax | Medium | ― |
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| (2) Increased delivery unit price due to introduction of carbon tax | Medium | ― |
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| (3) Increased waste costs due to introduction of carbon tax | Medium | ― |
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| Market | (4) Decreased revenues owing to wider reuse market | ― | ― |
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| (5) Increased energy procurement costs due to increasing proportion of renewable energy | Medium | ― |
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| Physical Risk | Acute | (6) Decreased revenue due to damage to supply and distribution networks from abnormal weather | High | High |
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| Chronic | (7) Increased capital expenditure and electricity costs due to rise in average temperature | Medium | Medium |
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Climate Change-Related Opportunities
| Risk Type | Expected Impact | Financial Impact | Measures | ||
|---|---|---|---|---|---|
| 1.5/ 2℃ |
4℃ | ||||
| Opportu -nities |
Resource Efficiency |
(1) Reduced energy procurement costs from introduction of energysaving equipment, etc. | Medium | Medium |
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| (2) Reduced delivery costs from improved delivery efficiency | Medium | Medium |
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| (3) Decreased packaging material costs from move to environmentally friendly delivery methods | Medium | Medium |
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| Energy Source | (4) Reduced fuel costs by converting delivery vehicles to EVs | Medium | Medium |
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| Products and Services | (5) Increased revenues from more transactions and opportunities by promoting low-carbon measures at distribution centers | ― | ― |
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| (6) Increased revenues from incorporating sustainable and ethical consumption needs through the development and handling of environmentally friendly products | ― | ― |
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Risk Management
Within the Happinet Group, the Sustainability Committee formulates action plans, promotes priority measures, and monitors initiatives to tackle climate change, including the identification, evaluation, and management of climate change-related risks and opportunities. In principle, the status of the Sustainability Committee’s activities is reported to the Board of Directors at least once a year. The activities are managed by the Board of Directors and integrated into a Group-wide risk management process.
Metrics and Targets
The Group has set reducing environmental impact of the supply chain as one of its material issues.
Additionally, we are working to reduce our greenhouse gas emissions by establishing them as a metric used to manage the progress of measures to address climate change-related risks.
| Mid-term Target (by 2030) | Reduce CO2 emissions at Company locations by 50% (compared to FY 2013 levels) |
|---|---|
| Long-term Target (by 2050) | Virtually zero CO2 emissions at Company locations |
