The effects of climate change are becoming increasingly serious and climate change is considered to be a contributing factor in the frequent abnormal weather patterns and natural disasters that we see currently. The Nichirei Group’s business benefits from nature. Therefore, in addition to its importance as a social challenge, we see climate change as a potential threat to business continuity.
In June 2020, the Nichirei Group expressed its support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and announced its participation in the TCFD Consortium. The Group has positioned climate change initiatives as one of the material matters it identified for achieving its vision for 2030. As such, we are actively promoting initiatives to help resolve social issues related to climate change.
In addition to appropriately responding to risks posed by shifts in the external environment caused by climate change, we will consider several scenarios in which climate change could give rise to business opportunities, and conduct timely disclosure.
In April 2022, the Nichirei Group established the Group Sustainability Committee, which formulates sustainability strategies,
including initiatives related to climate change, and manages the progress of those strategies. Chaired by the representative
director and president of the holding company, the committee comprises the director and executive officer responsible for
implementing climate change strategies, all other officers, including outside directors and outside Audit & Supervisory
Board members, as well as relevant personnel from the strategic planning and sustainability divisions of each operating
company. Climate change-related strategies and targets deliberated and reviewed by the committee are reported to the
Board of Directors of the Nichirei Group by the director and executive officer responsible for climate change initiatives.
Strategies, targets and plans are reviewed as appropriate.
Furthermore, in April 2022, to respond to a wider range of sustainability issues, including climate change, we established
the Sustainability Management Division within the holding company.
The contents of the scenario analysis being conducted from 2019 are also disclosed after deliberation by the Group Sustainability Committee mentioned above.
Worldwide, the Nichirei Group is developing a range of food-centered businesses that it expects will be impacted by climate change in various ways. We are conducting scenario analyses of how climate change might affect our business activities. We hope to better quantify the risks and opportunities identified in order to incorporate appropriate responses in our management strategy. In this way, we aim to become a sustainable corporate group.
We assessed the material risks and opportunities of the Nichirei Group based on two climate change scenarios, and identified general low-carbon policies (CO₂ emission reduction) as the most significant area of Group-wide risks and opportunities. We established long-term CO₂ reduction goals and launched initiatives.
In the first phase (during FY2025), we reevaluated our scenario analyses and financial impact assessments for transition risks associated with carbon and energy price regulations, referring to FY2021 scenario analyses that identified risks and opportunities by degree of importance. During the second phase, we will also reevaluate physical risks and disclose the results as they become available.
| Business | Risks | |||
|---|---|---|---|---|
| Foods Business | Chicken | Baseline scenario | General abnormal weather |
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| Rice | ||||
| Shrimp | Flooding, rising sea levels |
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| Vegetables, marine products, and meat and poultry products |
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| Common | 1.5℃ scenario | Low-carbon policies |
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| Environmental countermeasures within the supply chain |
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| Logistics | Baseline scenario | General abnormal weather |
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| 1.5℃ scenario | Low-carbon policies |
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| Business | Opportunity | ||
|---|---|---|---|
| Foods Business | Baseline scenario | Changes in weather patterns |
|
| 1.5℃ scenario | Strengthening of environmental countermeasures within our supply chain |
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| Increased environmental awareness |
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| Logistics | Baseline scenario | General abnormal weather |
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| 1.5℃ scenario | Modal shift |
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| Increased environmental awareness |
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●Financial Impact Calculation Results
| Risk type | Business risk | Financial impact |
|---|---|---|
| Transition risk | Impact of the introduction of carbon pricing and fluctuations in prices of energy procured | Negative impact of ¥5.0 billion (FY2031 Scope 1 and 2) Positive impact of ¥700 million (FY2051 Scope 1 and 2) |
We did not identify any new opportunities in reevaluating our scenario analyses. However, we did estimate the financial impact from the transition risk associated with the introduction of carbon pricing and fluctuations in prices of energy procured to be negative ¥5.0 billion for FY2031 and positive ¥700 million for FY2051.
Based on these results, we will reduce CO₂ emissions by shifting to renewable energy in ways such as using solar power generation and expanding the use of corporate PPAs.
The Nichirei Group ensures that appropriate divisions employ optimum methods to comprehensively manage the impact of a variety of risks (including climate change-related risks) on business management. The risks are also deliberated and reviewed by the Group Risk Management Committee, which is chaired by the representative director and president. The committee has been managing the Group’s responses to major risks related to business operations. However, due to the need to respond more quickly and accurately to various ESG-related issues, we discuss in the Group Sustainability Committee as a separate entity to deal with ESG-specific risks and opportunities, including climate change.
The Group Sustainability Committee works with the strategic planning and sustainability divisions of each operating company to identify important ESG-related issues and risks for the Group. The most important themes are then deliberated by the committee. Specifically, risks associated with climate change scenarios are positioned as critical risks for the Group, and the committee deliberates and manages responses to business risks and opportunities identified through scenario analyses.
Nichirei Group Material Matters (Materiality)
Realizing sustainable food procurement and a circular economy
| Group KPIs | Reduction in CO₂ emissions (Compared with FY2023; Scope 1 and 2 in Japan and overseas) | -42％（FY2031 Target） |
|---|---|---|
| Reduction in CO₂ emissions (Compared with FY2023; Scope 3 in Japan and overseas) | -25%（FY2031 Target） |