Environment 〜Initiatives on the Environment〜
Climate change・Environment
Information Disclosure based on the recommendations of TCFD（Task Force on Climate-related Financial Disclosure）
The Company recognizes that climate change, which will significantly impact the earth, human beings, and corporate activities, poses risks and new business opportunities for the Group.
Based on the TCFD framework, the Company discloses its "Governance," "Strategy," "Risk Management," and "Metrics and Targets" as follows.
The Group will work with its business segments, investees, and strategic partners to achieve a sustainable society by appropriately addressing climate change.
1. Governance
To fulfill its social responsibility and achieve a sustainable society, the Company regularly reports to the Management Committee and the Board of Directors on the sustainability initiatives of each Group company. The Board of Directors oversees the Group's sustainability initiatives, including its response to climate change.
2. Strategy
We have analyzed the future changes in society and their impact on our Group through 2050 according to two scenarios: the 1.5/2°C scenario, in which progress is made in the transformation toward decarbonization, and the 4°C scenario, in which climate change measures are not implemented, and have identified the main opportunities and risks.
1）Perception of Opportunities
①Payment business: Increased demand for cashless and paperless payment services with low environmental impact, etc.
②Marketing business: Increased demand for advertising to environmentally conscious consumers using the latest technology, etc.
③Investment business: Expanding investment in startup companies that promote decarbonization through the “Earthshot Fund”
2）Perception of Risks
Transition risks：
- Increased power costs in data centers and offices due to the introduction of carbon pricing
- Increased costs of installing energy-efficient equipment, etc., if the government sets higher energy efficiency targets.
Physical risks：
- If data centers and office buildings are damaged, business activities will be affected by the destruction of buildings, communication failures, and others, resulting in reduced revenues and increased repair costs, etc.
- If chronic temperature rises continue, increased operating costs for offices, data centers, etc.
3. Risk Management
Physical and transition risks related to climate change that the Group should be aware of are evaluated and identified based on the results of periodic analyses conducted under TCFD recommendations and are used in both the formulation and implementation of the Group’s overall strategy.
4. Metrics and Targets
Given the nature of the Group’s business, the direct impact of climate change risk on our business performance is limited. We have yet to establish targets for reducing greenhouse gas emissions, but we will continue to examine these targets while keeping an eye on future trends.
※Please refer to our Sustainability Data for the details of Greenhouse Gas (GHG) emissions, etc. in the GroupInitiatives taken by the Group
Incubate the startups with promoting decarbonization by utilizing the investments through the “Earthshot Fund”
The Group established the Open Network Lab & ESG I “Earthshot Fund” for startups in the Sustainability field in 2021. The Fund has a mission to accelerate a social implementation of “New Context” for a sustainable society through building ecosystems with seed and early-stage startups for the next generation that Open Network Lab, a seed accelerator program, has supported. This Fund has been investing in startups taking Sustainability initiatives such as promotion of decarbonization as well as strengthening Environmental Social and Governance initiatives in the organization of the investees.
