Disclosure Based on TCFD Recommendations

The Task Force on Climate-related Financial Disclosures (TCFD) was established by the Financial Stability Board (FSB) at the request of the G20 to examine how to disclose climate-related risks and opportunities, and how financial institutions should respond to the disclosures. The TCFD recommends that all companies disclose climate-related information in line with the four thematic areas: governance, strategy, risk management, and metrics and targets. We will thus disclose our information in accordance with the four disclosure recommendations.


  • ・The Steering Committee is organized under the guidance and supervision of the Board of Directors. The Director and General Manager of the Administration Division serves as the Head of the Committee. The General Managers of the divisions have a key role in overseeing overall risk management policies.
  • ・Four times a year, the General Managers of the divisions examine climate-related risks and opportunities for our business, which arise from mid- to long-term climate change impacts, and take necessary measures in cooperation with the departments involved in the risk management.
  • ・The results are reported to the Steering Committee. If there is a case that may have a significant impact on our business, the results are reported to the Board of Directors, which makes necessary decisions after receiving a request for decision, twice a year.
  • ・The Audit and Supervisory Committee provides advices to the Steering Committee as appropriate.

〈Governance and Risk Management Organization Chart〉


1. Business Strategy

We assessed where and how the climate-related risks and opportunities have influenced our business. The risks and opportunities are identified as “transition” risks and opportunities that arise from changes in social demands such as policies and regulations, or as “physical” risks that arise from extreme weather events.

We performed scenario analysis by using the “science-based scenarios” piloted by the International Energy Agency (IEA) and other organizations to assess where and how our business would be influenced. At this time, the scenario analysis coverage is the entire supply chain of the Group, which includes the purchasing, development, manufacturing, sales, and disposal of products and services. We used two scenarios, the IEA 4°C scenario and 1.5°C scenario, to investigate and assess the climate change impacts in 2030.

We aim to achieve the “net zero” CO2 emissions from electricity by 2030 and to reach carbon neutrality by 2050. By using the publicly available climate-related scenarios at this time, we calculated climate-related impacts on our group business. As a result of the analysis, we believe that we can contribute to reducing global CO2 emissions by focusing our business on xEVs to lower carbon emissions as well as by reducing carbon footprint of our own business. 

2. Analysis of climate-related impacts on our business and finance

Under the 4℃ scenario

The 4°C scenario assumes that, if any actions were not taken to respond to climate change, the average global temperature would increase by approximately 4°C by the end of the 21st century compared to the level of pre-industrial times. While the level of physical climate risks such as worsening extreme weather events and sea level rise would increase, no stricter restrictions on business and consumption activities than they are today would be imposed in the future.

From what we understand, the business impact under the 4°C scenario would be the temperature-related health risks of employees who work in areas where we run our business, which would lead to higher response costs. Besides, supply-chain disruptions caused by extreme weather events could delay or suspend material purchasing, which would make it harder for us to continue our business.

The profit impact for the year ending March 31, 2030 would be a decrease of approximately 0.6 billion yen, premising that we will meet our long-term vision target of net sales of 100 billion yen by the year ending March 31, 2030.

Under the 1.5℃ Scenario

The 1.5°C scenario assumes that, if global efforts to reach carbon neutrality were accelerated, the average global temperature rise would be limited to about 1.5°C by the end of the 21st century compared to the level of pre-industrial times. While physical climate risks would not increase, restrictions on business and consumption activities would be more tightened by imposing taxation and legal regulations.

From what we understand, the business impact under the 1.5°C scenario would be additional costs generated by introducing carbon taxes and expanding emissions trading if global activities were intensified to achieve carbon neutrality. Meanwhile, opportunities for our products to meet the growing demand for low-carbon technologies including renewable energy and xEVs to build a zero-carbon society would increase.

The profit impact would be an increase of approximately 1.1 billion yen, promising that we will have net sales of 100 billion yen by the year ending March 31, 2030.

Risk Category and Impact Analysis

Risk Item Business Impact
Category Sub-category Further Sub category Time
Index Consideration: Risk Consideration: Opportunity Impact Level
Transition Policy and Regulation Carbon Pricing
(Carbon Tax)
Long Term
Revenue and Costs
  • ・The introduction of a carbon tax would cause a rise in transportation costs, which could have a severe impact on finance.
  • ・The extra costs added to product prices would decrease sales due to a decline in the price competitiveness of our products.
  • ・The extra costs not added to product prices would increase overhead costs if they were included in operating costs.
  • ・Early investment in low-carbon technologies and equipment could reduce energy costs and also avoid the risk of rising operating costs caused by the introduction of a carbon tax.
  • ・Minimizing the carbon pricing impact on product pricing could increase price competitiveness in the market.
Short-Long Term Revenue and Costs
  • ・As a result of the global decarbonization trend, emissions trading schemes are likely to be introduced worldwide, which would cause additional costs generated for responding to the trend, including costs for the introduction of equipment.
  • ・Falling short of meeting the emissions reduction targets would increase costs due to the purchase of GHG emissions allowances.
to GHG
Emissions Limit
Short-Long Term Revenue and Costs
  • ・The imposition of stricter GHG emissions regulations would increase overhead costs for responding to the global trends.
  • ・Falling short of meeting emissions reduction obligations would result in fines or additional costs generated for the purchase of GHG emissions allowances.
  • ・The GHG emissions regulations and global effort for achieving a low-carbon society are expected to increase global demand for electrification, energy saving, and related technologies.
  • ・Taking low-carbon technologies as our glowing business area and focusing our efforts on the development of these technology could increase its profit opportunities since it has been applying technologies that has been developed for automotive connectors to a wide range of products in the industrial market (machine tools and industrial machinery, smart grids, telecommunications equipment, medical equipment, etc.), as well as to those in the consumer market (telecommunications, OA and video equipment, etc.).
Market Changes in
Energy Cost
Long Term
Revenue and Costs
  • ・Sharp rise in energy prices caused by glowing global decarbonization trends and the rapid expansion of renewable energy use would increase operating costs since our products are manufactured at our group plants.
Changes in
Mid-Long Term Revenue and Costs
  • ・Falling short of meeting customer requests for renewable energy use or carbon neutrality would result in business opportunity loss and sales decline.
  • ・The global recognition of our sustainability and sustainable products could increase sales as the global trend for cutting GHG emissions has been shared across supply chains in the automotive industry.
Physical Acute Worsening
Whether Events
Debris Flow
and Storm Surge)
Short Term Revenue and Costs
  • ・Delay or suspension in material purchasing caused by supply chain disruptions would lead to business continuity crisis since we have global manufacturing and sales bases.
  • ・As a result of business stagnation, a decline in sales, an increase in response costs and other factors would worsen our financial position.
  • ・Opportunities for growing sales could be created if rising demand for disaster-recovery and rescue robot arose from increasing extreme-weather-related disasters.
Chronic Rise in Average Temperature Mid-
Long Term
Revenue and Costs
  • ・The health of employees working in areas that heat up faster than other areas would worsen.
  • ・Prevention of employees’ worsening health and productivity decline would increase additional costs such as cooling running costs.

Risk Management

  • ・Our climate-related risks are identified, evaluated and managed at the Steering Committee.
  • ・Based on the results of risk assessments conducted by each division, the need for measures and priorities are considered and reported to the Steering Committee.
  • ・As a result of the risk assessments, cases and responses that may have a significant business impact are reported to the Board of Directors, which makes necessary decisions on them after receiving a request for decision.
  • ・Each division creates and implements a risk mitigation plan under the instructions and guidance of the Board of Directors, which are provided as feedback at the Steering Committee.
  • ・The Company has also developed an environmental management system based on ISO 14001. The climate-related risk management includes the monitoring of risks such as compliance risk, which is based on the ISO management system.

Metrics and Targets 

As the following targets are set for reducing greenhouse gas emissions, we are working on solar system installation, plant automation, energy-saving practices through production efficiency improvement by increasing the efficiency of plating lines, and switchover to renewable energy. In the future, we will also respond to carbon pricing.

〈Reduction Targets〉

  • ・CO2 emissions from electricity: virtually 50% reduction by 2025, virtually 100% reduction by 2030 
  • ・SCOPE3 emissions: carbon neutrality by 2050

Please go to this page for ESG data including our electricity consumption and greenhouse gas emissions.