Connectors - IRISO Electronics co.,ltd.


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〉

〈Governance and Risk Management Organization Chart〉


(1) Business Strategy

We have examined the risks and opportunities that climate change poses to our business. The risks and opportunities refer to "transition" risks and opportunities arising from changes in social demands, such as policies and regulations, and "physical" risks arising from intensifying extreme weather, and we have identified items that may affect our profits and losses, respectively.

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" emissions from electricity by 2025 and to reach carbon neutrality by 2050. As a result of calculating climate-related impacts on our group business by using the public climate scenarios, we have been playing a part in 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.
When it comes to specific measures to reduce emissions, we are committed to reducing energy consumption to mitigate negative impacts, replacing production equipment with energy-efficient appliances to improve energy use intensity, and focusing on xEV-related businesses and local production for local consumption to drive positive impacts. Besides, we have been using recycled materials for our products and improving production efficiency through reassessing the manufacturing processes.

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

Under the 4°C 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. Whereas the level of physical climate risks such as worsening extreme weather events and sea level rise would increase, restrictions imposed on future business and consumption activities would be less stringent than they are today.

Looking at the business impact under the 4°C scenario, we assume that climate change, such as warmer temperatures, would lead to increased health risks for employees working in areas where we run our business, and  then to higher response costs. Besides, supply-chain disruptions caused by extreme weather events could cause delays or suspension in material procurement, which would make it harder for us to continue our business.

The profit impact for FY2029 would be a decrease of approximately 690 million yen, premising that we will meet our long-term vision target of net sales of 100 billion yen by FY2029. (Note)

Under the 1.5°C 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.

When it comes to the business impact under the 1.5°C scenario, we anticipate that additional costs would be generated by rising energy prices, implemented carbon taxes and the expansion of the emissions trading scheme if global activities are intensified to achieve carbon neutrality, as well as that global xEV sales growth would cause the sharp rise in metal prices. Meanwhile, business opportunities for our products would increase as a result of growing demand for low-carbon technologies, including renewable energy and xEVs to build a zero-carbon society. 

The profit impact for FY2029 would be a decrease of approximately 950 million yen, promising that global xEV growth will enable us to meet our long-term vision goal of 120 billion yen in net sales in FY2029. (Note) 

Note: An estimated impact on gross profit, compared to the FY2020 level (unit: billions of yen) 

Under the 4°C Scenario Under the 1.5°C Scenario
Impact of electricity prices -0.2
Impact of fuel car market decline and xEV market expansion 65.5
Impact on raw material cost -70.6
Loss due to worsened extreme weather events and changes in rainfall and weather patterns. -0.67 -0.38
Other -0.2 -0.3
Total -6.9 -9.5

(Estimated value as of March 2024)

Risk Category and Impact Analysis

Risk Item Business Impact
Category Sub-category Further Sub category Timeline 
Risk Opportunity Impact Level
Transition Policy
Carbon Pricing
(Carbon Tax)
Mid- 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.
  • ・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.
Emissions Trading
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 for the purchase of GHG emissions allowances.
  • ・Reducing more GHG emissions than the reduction targets could lead to revenue increase through selling carbon credits.
Response 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.
  • ・Vehicle electrification and energy efficiency progress accelerated by the GHG emissions regulations, etc. and the connector market growth could lead to our sales and profit increase.
  • ・Increasing demand for energy conservation and related technologies in other markets, such as the industrial market (machinery/industrial machinery, smart grids, communications equipment, medical equipment, etc.) and the consumer equipment market (OA, video equipment, etc.), will lead to increased demand for connectors. With the technology we have cultivated in automotive connectors, we will be able to expand our business in low-carbon technology as a growth area, and if we launch a wide range of products, there is a possibility that sales and profit opportunities will increase.
Market Changes in Energy Cost
Mid- 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. 
  • ・If there is a sharp rise in energy prices caused by glowing global decarbonization trends and the rapid expantion of renewable energy use, energy-saving actions of other companies in the industrial market would be further accerelating. As a result, there is a potential for connector market expantion, which could lead to increae in the company's sales and profits.
Changes in Customer Behavior
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. 
Physics Acute Worsening Extreme Whether Events
(Typhoon, HeavyRain, 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
  • ・Increasing health risks of employees who work in areas that heat up faster than other areas 
  • ・Prevention of employees' worsening health and productivity decline would increase additional costs such as cooling running costs. 
  • ・If demand for air conditioners increases in geographical areas that heat up faster than other areas, it could lead to sales growth.  


  • 1 Transition risks and opportunities (chances) refer to risks and opportunities that have an impact on corporate revenue and financial conditions, which arise from policies, regulations, legal systems, as well as from changes in social demands and business environment associated with them.
  • 2 Physical risks and opportunities refer to the risks and opportunities that a company's revenue and financial status are affected by physical phenomena, including extreme weather events such as more intensified typhoons mainly due to increasing greenhouse gas emissions and rise in average global temperature and sea level.

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 as well as 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 target>

  • ・CO2 emissions from electricity: virtually 100% reduction by 2025
  • ・GHG (Scope 1-3) emissions: Achieve carbon neutrality by 2050

〈Sustainable Development Goal〉

・Numerical Target

Item Year Target Targets for the year
Electricity Consumption intensity
(Electricity Consumption/Net Sales at Plant)
2030 VS. FY2020
Use of EVs as company cars 2030 100%
Tracking of suppliers’ SCOPE1~3
emissions(CO2 emissions tracking)
2030 80% of
Procurement cost
After 2023: +10%/year

・Other Goals

  • ・ Product development for contributing to society’s carbon neutrality and review of power usage for supporting technological development, including chemical recycling, etc.
  • ・Choosing companies that have low CO2 emissions and renewable energy sources

For ESG data such as the company’s electricity consumption, greenhouse gas emissions, see this page.