The Glory Group considers climate change as an urgent issue to be addressed and promotes environmental management through initiatives including reduction of greenhouse gas emissions to contribute to sustainable society.
Glory's Environmental Policies address global warming and set forth the Group's 2050 environmental goals to achieve carbon neutrality by 2050 (i.e., net zero in Scope 1 and 2). Specifically, we aim to reduce CO2 emissions in our business activities and environmental impact in our value chain towards a net zero society.
Since November 2021, the Glory group has been supporting the Task Force on Climate-related Financial Disclosures (TCFD). We are committed to disclosing information regarding risks and opportunities that climate change presents to our business.
Towards carbon neutrality and sustainable society, we promote sound management practices to reduce the environmental burden in every aspect of our business activities. To ensure sound decision-making and supervision for our business execution, we have put in place the following procedure.
Climate-related issues are first dealt by the Environmental Management Committee, chaired by the executive officer who is delegated the authority and responsibility by the President for environmental management. The Environmental Management Committee deliberates upon climate-related matters, of which material issues are reported to and approved by the Sustainability Committee chaired by the President.
Finally, these issues are reported to the Board of Directors and this process is stipulated in the Sustainability Committee regulations.
Below is the list of our climate-related risks and opportunities with key drivers and possible impacts on our business over medium- to long-term.
Going forward, we will conduct analysis and evaluation throughout our value chain based on the multiple scenarios including B2DS (Beyond 2℃ Scenario).
The impact of climate-related risks and opportunities on the Company's business and the Company's responses are assumed as follows.
Risks & Opportunities | Key Drivers | Business Impacts | Financial Impacts |
Countermeasures | |
---|---|---|---|---|---|
Transition Risks | Government Policy & Regulations | Increase in social demand for reduction of greenhouse gas emissions |
|
Large |
|
Introduction of carbon tax & emissions trading |
|
Medium | |||
Broadening and increased complexity of laws and regulations |
|
Medium |
|
||
Market & Technology | Growing market demand for energy-saving products and services |
|
Medium |
|
|
Reputation | Growing demand from stakeholders for decarbonization |
|
Large |
|
|
Physical Risks | Acute | Intensification of natural disasters |
|
Large |
|
Chronic | Sea level rise |
|
Large | ||
Average temperature rise |
|
Small |
|
||
Opportunities | Products & Services | Growing demand for environmentally friendly products |
|
Large |
|
*Financial impact ; Large=1 billion yen or more, Medium=100 million yen or more and less than 1 billion yen, Small=less than 100 million yen.
The Risk Management Committee, chaired by the President, extracts and reviews potential risks in all areas including climate change and identifies material issues.
To address these risks, we apply an environmental management system and follow the PDCA cycle in alignment with Glory’s business activities.
Identified risks and opportunities are reviewed in the Environmental Management Committee.
The Glory Group uses CO2 emissions as key metrics for climate-related risks and opportunities. Based on the metrics, we have set FY2050 Environmental Goals towards net-zero CO2 emissions in Scope 1 and 2 by FY2050 as well as 2030 Environmental Goals by casting back from FY2050 milestone. Upon formulation of the Group’s 2026 Medium-term Management Plan (April 2024 - March 2027), we have reviewed our long-term environmental targets to be re-set based on the certification criteria of the SBT (Science Based Targets) initiative*. Regarding CO2 emissions from business activities (Scope 1 and 2), we have expanded the scope of calculation from our ISO 14001 certified locations in Japan (Himeji Headquarters and our domestic consolidated subsidiaries) to all our domestic and overseas consolidated subsidiaries, and revised our reduction target to 42.4% (vs. FY2022) to promote global efforts.
As specific measures, we will continue our initiatives, such as installing energy-efficient equipment at production sites, increasing the use of renewable energy through solar power generation, purchasing CO2-free electricity, and introducing environmentally-friendly company vehicles. We plan to set our new Scope 3 reduction targets for fiscal 2030 towards achieving carbon neutrality across our value chain.
*An initiative by the UN Global Compact, CDP (a coalition of institutional investors that promotes the disclosure of information on climate change measures), WRI (World Resources Institute), and WWF (World Wide Fund for Nature). The initiative encourages companies to set reduction targets that are consistent with scientific knowledge, with a view to limiting the increase in global average temperature due to climate change to 1.5 degrees celsius above pre-industrial revolution levels.
We monitor our CO2 emissions regularly and disclose the figures over time for;
Scope 1 - Direct emissions from our business activities
Scope 2 - Indirect emissions from purchased electricity
Scope 3 - All other indirect emissions from upstream and downstream activities in supply chains
We have established 3-year action plans and annual goals to reduce CO2 emissions. Our initiatives include installation of electricity usage monitoring system, LED lighting, and human detection sensors. We have also installed solar power system on the rooftop of the Head Office buildings for the use of renewable energy.
In fiscal 2022, CO2 emissions from our domestic sites decreased by 32.7% compared to fiscal 2013. The usage at our offices decreased as a result of teleworking measure to prevent the spread of COVID-19.
We calculate our CO2 emissions created by our supply chains to understand the current status and to reduce the environmental impact of our business activities. In Scope 3, we categorize these emissions to visualize the trend to control the CO2 emissions created outside our business activities.
Scope 3
Category 1: Purchased goods and services
Category 2: Capital goods
Category 3: Fuel and energy-related activities not included in Scope 1 or 2
Category 4: Upstream transportation and distribution
Category 5: Waste generated in operations
Category 6: Business travel
Category 7: Employee commuting
Category 8: Upstream leased assets
Category 11: Use of sold products
Category 12: End-of-life treatment of sold products
*Category 9, 10, 13, 14 and 15 are not applicable to our business.
Category 1 (Purchased products and services) and Category 11 (Use of our products) are the main target for CO2 reduction, as they account for approximately 88% of the Scope 3 emissions.