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Climate change response (TCFD disclosure)
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- Climate change response (TCFD disclosure)
Information Disclosure Based on TCFD Recommendations
At Tanseisha, we assess climate-related risks and opportunities in our business activities and strive to proactively disclose and enhance information in line with the "Governance, Strategy, Risk Management, Metrics and Targets" framework recommended to companies by the TCFD (Task Force on Climate-related Financial Disclosures). We will also take concrete measures to address climate change.
*The TCFD (Task Force on Climate-related Financial Disclosures) is an international initiative established by the Financial Stability Board (FSB) in 2015 to encourage companies to disclose information on the financial impacts of risks and opportunities that climate change presents to their businesses.
Governance
System overview
At our company, we are promoting sustainability initiatives in accordance with the Tanseisha Group Sustainability Policy, which states, "Through our business of creating valuable spaces, we will address environmental and social issues and sincerely work to resolve them, thereby striving for the sustainable improvement of corporate value and contributing to the realization of a vibrant and sustainable society." We have established a "Sustainability Committee" to address sustainability-related issues, including climate change, and President and Chief Executive Officer serves as the chairperson of this committee. The committee's deliberations and progress are regularly reported to the Board Director, and important policies regarding sustainability are considered by the committee before being submitted to Director for deliberation and decision-making.
Furthermore, regarding "Climate Change Response," "Human Capital Management," and "Human Rights Response," subcommittees have been established under the same committee to address these specific themes.
Strategy
We view rising temperatures due to climate change, as well as the resulting social changes and disaster risks, as important issues and are actively working to address them. As part of this, we have undertaken to identify short-, medium-, and long-term risks and opportunities related to climate change and conducted scenario analysis. Specifically, we are considering two scenarios: a 1.5°C scenario and a 4°C scenario.
This approach is based on the international goal of limiting the rise in global average temperature since the Industrial Revolution to 1.5°C, as outlined in the Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) and the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP).
In addition, we referred to future forecast reports published by governments and international organizations and comprehensively considered transition risks (policies, laws and regulations, markets, reputation), physical risks (acute risks, chronic risks) associated with climate change, and opportunities (products and services, markets, resilience) that arise from responding appropriately to climate change.
Scenario assumptions
| Risk type |
Setting scenario |
Reference Scenario | Overview | Possible impact on our business activities |
|---|---|---|---|---|
| Migration Risk |
1.5℃ scenario |
International Energy Agency (IEA), "World Energy Outlook 2022" Net Zero Emissions by 2050 Scenario (NZE Scenario) | A scenario that limits the rise in average temperature to less than 1.5°C by the end of the 21st century. In order to achieve sustainable development, bold policies and technological innovations will be implemented, and as a result, the social changes that accompany the transition to a decarbonized society are likely to have an impact on business. |
- Carbon taxes and other regulatory compliance costs will be added to prices for high-emission materials such as steel and concrete. ・ Environmental Consideration design will be required across the entire market - Low-carbon materials and recycled materials will become more widespread, and their adoption will become commonplace. ・Initiatives for sustainability are accelerating, and differentiation from competitors is required |
| Physical Risk |
4℃ scenario |
Intergovernmental Panel on Climate Change (IPCC), "IPCC Sixth Assessment Report (AR6) SSP5-8.5 Scenario" | The average temperature will rise by about 4°C by the 21st century. It is more of a left-to-go situation, and no social changes will occur, but there is a greater possibility that abnormal weather and disasters caused by climate change will affect business. | ・The frequency of climate-related disasters occurring in our supply chain will increase, increasing the impact on our business activities and procurement. ・Frequent climate disasters around the world will make it difficult to procure raw materials. -Increasing and more severe heat waves will have a negative impact on field workers |
Scope of scenario analysis
| Item | Scope of scenario analysis |
|---|---|
| Region | Domestic |
| Target business scope | Business (including the entire upstream and downstream supply chain) |
| Company Scope | Overall consolidated |
| Definition of the Timeline | Short-term (within 1 year), medium-term (within 3 years), and long-term (more than 3 years) are assumed |
| How to assess impact | In accordance with our internal risk assessment method, we evaluate risks based on two axes: probability of occurrence and predicted financial impact. |
Scenario analysis results
Risks
| Classification | Risk Items | Timeline | Influence | Impact | Countermeasures |
|---|---|---|---|---|---|
| policy· Laws and regulations |
New regulations and social obligations emerge | Medium to long term | Increase in raw material procurement costs due to the introduction of carbon taxes and stricter regulations on high-emission building materials | Medium | ・Selection of alternative products and suppliers with low carbon emissions - Low carbon throughout the supply chain ・Reduce your company's emissions ・Price transfer to services |
| Market | Social trends toward a low-carbon society and the transition of business needs | Short~long term | Loss of opportunities to order Environmental Consideration facilities and sales decline due to delays in responding to climate change | Large | ・Development of low-carbon solutions ・Strengthening and promoting "Environmental Consideration design" and "Environmental Consideration construction" |
| Rising procurement prices for external resources and rising costs | Short~long term | Increased demand for low-carbon products and recycled materials leads to higher procurement prices and fewer sales opportunities | Large | ・Price transfer to services - Consider procuring alternative products ・Strengthening cooperation with suppliers of low-carbon products ・Multiple sources of procurement ・Cost reduction through waste reduction and utilization of surplus materials |
|
| reputation | Loss of reputation and trust due to insufficient efforts to reduce environmental impact, such as reducing greenhouse gas emissions and energy conservation | Short~long term | Failure to meet international greenhouse gas emissions targets or insufficient efforts to reduce environmental impact at the level required across all business sectors could lead to a decline in social trust and damage to corporate value. | Medium | ・Appropriate and proactive information disclosure using external experts, etc. ・Monitoring the occurrence of reputation-related events ・Strengthening efforts to reduce environmental impact |
| acute physical |
Intensified wind and flood damage and abnormal weather | Short~long term | Losses due to human and material damage (including to operating facilities), disruption of lifelines, and disruption of supply chains that hinder business continuity | Medium | ・Implementing disaster prevention measures and formulating disaster manuals ・Securing alternative suppliers in the event of a disaster, and diversifying suppliers |
| chronic physical |
Decreasing resources due to the normalization of rising temperatures | Medium to long term | Changes in forest vegetation have made it more difficult to procure resources and increased procurement costs | Medium | ・Securing alternative suppliers and diversifying suppliers |
| Worsening working conditions due to rising temperatures | Medium to long term | ・Sales decrease due to the extension of construction period caused by the increase in midsummer days and adjustment of work hours for health considerations - Increased costs for measures to improve the working environment - Concerns that the deterioration of the working environment will hinder the retention of personnel |
Medium | ・Improvement of working conditions throughout the supply chain ・Promotion of health management |
opportunity
| Classification | Opportunity Items | Timeline | Influence | Impact | Countermeasures |
|---|---|---|---|---|---|
| Resource Optimization | Improving the efficiency of material transportation (including the use of locally produced materials) | Short~long term | ・Reduction of transportation costs and CO2 emissions during transportation - Reduction in industrial waste disposal costs |
Small | ・Implementation of industrial waste reduction measures ・Considerations during design and selection of partner companies ・Strengthening the use of locally produced materials in cooperation with the local community - Promoting electrification |
| Products & Services | Changes and expansion of facility demand due to the promotion of sustainability | Short~long term | ・Sales will increase due to increased demand for facility renovations that are more comfortable and energy-efficient, and that incorporate disaster prevention measures, as outdoor environments deteriorate due to rising temperatures. ・Sales increase due to increased demand for facility renovations to foster environmental awareness toward a carbon-free society |
Large | ・Strengthening sales activities and expanding target audience ・Strengthening proposal capabilities ・Strengthening external communication |
| Use and development of materials, products and services with low carbon emissions | Short~long term | Increased sales due to increased demand for environmentally friendly products and services | Large | ・Development of low-carbon solutions ・Strengthening and promoting "Environmental Consideration design" and "Environmental Consideration construction" ・Strengthening internal awareness-raising activities and external communication activities ・Promote cross-departmental Environmental Consideration proposals by strengthening dedicated departments ・Expanding distribution and sales channels ・Proposal for indoor spaces that utilize carbon offsets |
|
| Market | Entering new markets | Medium to long term | Increased sales through the creation of new businesses that contribute to reducing carbon emissions | Small | ・Development of new renovation business ・Development of new businesses and new products (solutions) |
| Resilience | Creating new businesses using resources from the space creation business | Medium to long term | Securing new revenue sources and diversifying the risk of demand fluctuations | Small | ・Development of new businesses and new products (solutions) ・Promoting collaboration and co-creation with other companies and creators ・Developing new customers |
Risk Management
At our company, we continuously identify, evaluate, analyze, and take measures against issues that could have a significant impact on our operating results and financial condition, including sustainability issues, and that could hinder the smooth operation and growth of our business.
These business activity risks are identified and promoted by the Risk and Compliance Committee, chaired by President and Chief Executive Officer, based on the "Loss Risk Management Regulations." The risks are evaluated based on criteria such as the likelihood of an event occurring and the degree of impact if it does occur. Based on the evaluation results, risks that should be given particular importance from a management perspective are identified, and risk countermeasures that should be implemented from an overall perspective are determined and their implementation status is monitored.
Important choices and decisions regarding the identification, assessment, and mitigation of the above risks are reported to the Board Director and are linked to management's judgments and decisions.
Furthermore, climate change-related and human capital-related risks are identified and assessed by the Sustainability Committee mentioned above, reported to the Risk and Compliance Committee, and integrated into the overall risk assessment (risk recognition and evaluation) and risk mitigation processes for risk management.
Indicators and goals
1. Medium-Term Management Plan Objectives (Scope 1, 2)
Our company has set non-financial targets related to climate change in our medium-term management plan (FY2025-FY2027). Specifically, we aim to reduce Scope 1 and 2 greenhouse gas emissions by 40% compared to FY2022 (FY2021 | February 2021-January 2022) (*). For reference, greenhouse gas emissions (Scope 1 and 2) in FY2022 were 367 t-CO2.
*220.2 t-CO2, a reduction of 146.8 t-CO2 from 367 t-CO2.
2. Greenhouse gas reduction targets (validation of SBTs)
We are setting and promoting reduction targets in line with the Paris Agreement's goal of "limiting the rise in global average temperature to below 1.5°C."
Scope
| Classification | base year | target year | Reduction target (compared to base year) |
|---|---|---|---|
| Scope 1, 2 | 2024 (Fiscal year ending January 2025) |
FY2030 (Fiscal year ending January 2031) |
34.3% or more |
| Scope 3 | 2024 (Fiscal year ending January 2025) |
FY2030 (Fiscal year ending January 2031) |
17.3% or more |
Trends in greenhouse gas emissions
| Fiscal Year Ended January 2022 | Fiscal Year Ended January 2023 | Fiscal year ending January 2024 | January 2025 ( ) indicates connection |
January 2026 ( ) indicates connection |
|
|---|---|---|---|---|---|
| Scope 1（t-CO2） | 10 | 12 | 25 | 54 （56） |
47 （93） |
| Scope 2（t-CO2） | 358 | 281 | 287 | 301 （358） |
103 （269） |
| Scope 1, 2（t-CO2） | 367 | 293 | 312 | 354 （414） |
150 （362） |
| Scope 3（t-CO2） | 256,896 | 258,279 | 318,039 | 314,481 （343,930） |
349,261 （399,916） |
| Total (t-CO2) | 257,263 | 258,572 | 318,351 | 314,836 （344,455） |
349,411 （400,278） |
| Reduction rates for Scope 1 and 2 | － | 20.1％ | 15.0％ | 3.4% | 59.1% |
* For the January quarters of 2022, 2023, 2024, 2025, and 2026, the period covered is the one-year period from February 1st of the previous year to January 31st of the current year.
*This table covers only our company's display business and does not include other businesses such as facility management.
* Scope 2 emissions are calculated based on market standards.
* The consolidated figures for the fiscal years ending January 2025 and January 2026 were calculated by expanding the scope of calculation to include all businesses of our company and consolidated subsidiaries subject to the boundary criteria of the GHG Protocol. Some unit costs and calculation methods have been corrected to comply with the calculation requirements set forth by SBTi.
Validation of Science Based Targets (SBT)
Our greenhouse gas reduction targets in our business activities have been validated by the Science Based Targets initiative (SBTi) as scientifically-based "near-term targets" that are consistent with the "1.5°C target."
Greenhouse gas reduction targets aligned with SBTi standards
We have set reduction targets in line with the Paris Agreement's "1.5°C target" and are promoting efforts toward decarbonization.
Scope
| Classification | base year | target year | Reduction target (compared to base year) |
|---|---|---|---|
| Scope 1, 2 | 2024 (Fiscal year ending January 2025) |
FY2030 (Fiscal year ending January 2031) |
34.3% or more |
| Scope 3 | 2024 (Fiscal year ending January 2025) |
FY2030 (Fiscal year ending January 2031) |
17.3% or more |
Scope 1, 2: Direct emissions from the company (fuel use, etc.) and indirect emissions from the use of purchased electricity and heat.
Scope 3: Other indirect emissions across the entire supply chain (e.g., purchased products and services)
CO2 emission performance
To achieve our targets, we regularly calculate and disclose our Scope 1, 2, and 3 emissions figures. (Scope 2 is based on market standards.)
| Classification | FY2024 (base year) | Fiscal Year 2025 (Latest) | reduction rate |
|---|---|---|---|
| Scope 1, 2 Total | 525 t-CO2 | 362 t-CO2 | － |
| - Target of reduction | 525 t-CO2 (100% coverage) |
362 t-CO2 | 31.05 % |
| Scope 3 Total | 343,930 t-CO2 | 399,916 t-CO2 | － |
| - Target of reduction | 333,040 t-CO2 (Coverage rate: 96.8%) |
386,843 t-CO2 | ▲16.16 % |
| Total | 344,455 t-CO2 | 400,278 t-CO2 | － |
*Scope 1 and 2 cover 100% of the emissions within their respective boundaries. The target coverage rate for Scope 3 is shown as the ratio of the emissions targeted by the SBTi reduction target (333,040 t-CO2) to the total Scope 3 emissions (343,930 t-CO2) (333,040 ÷ 343,930 = 96.8%).
Main approaches to achieving goals
- Standardization of low-carbon materials
- - Promoting the use of wood in interior finishes (utilizing certified materials)
- - Reduction of total material volume through "sustainable design" and "sustainable procurement"
- - Improvement of the recycling rate
- • Reduce waste generation
- - Energy-saving design during the operational phase, etc.
Initiatives to reduce CO2 emissions in offices
We are working to reduce electricity consumption in the office by promoting improved air conditioning efficiency through keeping blinds closed during the summer, reducing lighting by turning off all office lights at a certain time after work and only turning on lights in necessary areas, consolidating servers in power-efficient data centers, expanding the use of public clouds, setting energy-saving settings for office equipment, and allowing employees to wear clothing that suits the work environment and situation, including the season and temperature, through a dress code-free system. In addition, we are promoting the introduction of a "telework system" for all employees, the establishment of satellite offices, and the use of shared office services, which contribute to reducing environmental impact by reducing energy consumption through reduced use of public transportation and by reducing paper usage through the digitization of documents.
Furthermore, our head office (Shinagawa Season Terrace), Kansai Branch (Osaka) (Grand Front Osaka), Nagoya branch (Chunichi Building), and Kyoto sales office (KDX Karasuma Building) use electricity generated from renewable energy sources installed in the buildings they occupy.
*Employee coverage rate of renewable energy use at business sites: 94.2% (as of February 1, 2026)