Initiatives for TCFD Recommendations
At the Canon Marketing Japan (hereafter, the "Canon MJ"), we endorsed the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD)*1 and are working on related initiatives.
Canon Marketing Japan also participates in the Task Force on Climate-related Financial Disclosures (TCFD) Consortium. *2
*1: TCFD was established by the Financial Stability Board (FSB) at the request of the G20. In June 2017, the TCFD published its final report recommending that companies and other entities disclose the following items of their climate-related risks and opportunities.
TCFD website <https://www.fsb-tcfd.org/>
*2: The objective of the TCFD Consortium is to discuss initiatives for the effective disclosure of corporate information and for the linking of the disclosed information to financial institutions and other parties' appropriate investment decisions.
Supervisory System of the Board of Directors
The Canon MJ Group has a system in place under which the Board of Directors supervises matters to be discussed and resolved by the Sustainability Promotion Committee, as they are important matters that relate to the core aspects of management and pertain to the entire organization. The Board of Directors receives reports on the risks and opportunities associated with climate change from the Sustainability Promotion Committee at least once a year and monitors and supervises the progress of measures related to such risks and opportunities.
Sustainability Promotion Committee
Matters concerning climate change are discussed by the Sustainability Promotion Committee. The Sustainability Promotion Committee is chaired by the president & representative director, who assumes overall responsibility for all sustainability-related matters, including climate change. The committee assesses the impact of climate change on our business at least once a year and holds discussions concerning our approach to minimizing the identified risks and seizing opportunities.
At the Canon MJ Group, we conducted scenario analyses to identify the various risks and opportunities posed by climate change to our business. Using the Intergovernmental Panel on Climate Change's Representative Concentration Pathway (RCP) scenarios of 1.5°C (RCP 1.9) and 4°C (RCP 8.5) as well as the International Energy Agency's Sustainable Development Scenario (IEA-SDS), the scenario analyses were carried out by selecting risks and opportunities that were shared throughout the Group as well as the Group's key businesses that have a significant impact on climate change. Climate change impacts are determined to be risks or opportunities based on short- or medium- to long-term (beyond 2030) time frames.
The Sustainability Promotion Division, which oversees matters related to climate change, takes the lead in identifying the risks and opportunities of climate change and assesses the circumstances of its impact on our business in cooperation with the relevant internal divisions and Group companies. The Sustainability Promotion Division also examines appropriate responses, which are reported and proposed for deliberation to the Sustainability Promotion Committee. The division also reports and deliberates on certain climate change-related impacts and matters to risk management divisions throughout the Company, thereby assuming the role of integrating the impacts of climate change into our Companywide risk management.
Metrics and Targets
Aiming to realize carbon neutrality, we are working to achieve our goal of reducing in-house CO2 emissions by 38% (compared with 2021) as part of our climate change countermeasures in the Canon MJ 2030 Medium-Term Environmental Targets. In 2022, we achieved a 4.6% reduction*1 in CO2 emissions compared with the previous year. In addition, the Canon MJ Group has aggregated and disclosed its GHG emissions.*2