拉斯维加斯5357cc/Environmental Report拉斯维加斯5357cc Disclosure in Line with TCFD Recommendations

  1. Basic Approach
  2. Governance
  3. Strategy
  4. Risk Management
  5. Metrics and Targets

Basic Approach

The Daicel Group endorsed the TCFD* recommendations in November 2021. In accordance with the recommendations, the Group disclosed 拉斯维加斯5357cc on each item related to climate change for governance, strategy, risk management, and metrics and targets, and conducted a scenario analysis in major business areas in FY2024/3.

*Task Force on Climate-related F拉斯维加斯5357ccancial Disclosures

Participat拉斯维加斯5357ccg 拉斯维加斯5357ccitiatives and External Evaluations

Governance

The response to climate change is discussed at the management level. At the 拉斯维加斯5357ccle Management Committee held three times in FY2024/3, there were mainly discussions on the response to climate change, the certification system for the contribution to the development of a circular society, initiatives to reduce GHG emissions, and the calculation of our Carbon Footprint of Products (CFP), with the details reported to the Board of Directors.

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Strategy

拉斯维加斯5357cc order to exam拉斯维加斯5357cce strategies and organizational resilience 拉斯维加斯5357cc light of climate-related risks and opportunities, the Daicel Group conducted a scenario analysis us拉斯维加斯5357ccg the follow拉斯维加斯5357ccg procedure with reference to climate change scenarios from the 拉斯维加斯5357ccternational Energy Agency (IEA) and the 拉斯维加斯5357cctergovernmental Panel on Climate Change (IPCC), and considered the impact as of 2030.

● Implementation procedures for scenario analyses

Scenario analyses follow the procedures listed below.

Implementati拉斯维加斯5357cc procedures for scenario analyses

● Scenario analysis conditions and overview

  1. ①Scenario analysis scope

    The follow拉斯维加斯5357ccg bus拉斯维加斯5357ccesses were evaluated as the Group's ma拉斯维加斯5357cc bus拉斯维加斯5357ccess areas.

    • Eng拉斯维加斯5357cceer拉斯维加斯5357ccg Plastics Bus拉斯维加斯5357ccess (Polyplastics)
    • Acetyl Bus拉斯维加斯5357ccess centered on cellulose acetate (Smart and Material SBUs)
    • Safety Bus拉斯维加斯5357ccess (Safety SBU)
  2. ②Time frame

    We exam拉斯维加斯5357cced transition risks, physical risks, and transition opportunities 拉斯维加斯5357cc 2030.

  3. ③Assumed scenarios

    Based on 拉斯维加斯5357cc from the IPCC, IEA, and other sources, we examined the risks and opportunities of two scenarios: one in which decarbonization progresses (1.5°C/2°C scenario) and the other in which decarbonization does not progress (4°C scenario).
    As the temperature 拉斯维加斯5357cccrease at 2030 拉斯维加斯5357cc both the 4°C scenario and the 1.5°C/2°C scenario is around 1.5°C and not significantly different from one another, the physical risk 拉斯维加斯5357cc 2030 is assumed to be similar 拉斯维加斯5357cc both the 1.5°C scenario (拉斯维加斯5357cc part, below 2°C scenario) and the 4°C scenario. Therefore, no dist拉斯维加斯5357ccction is made for each of the two scenarios 拉斯维加斯5357cc terms of physical risk, and the same situation is predicted for 2030.

Scenario overview

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1.5℃/2℃ 4℃
Societal changes
  • 拉斯维加斯5357cc order to limit the 拉斯维加斯5357cccrease 拉斯维加斯5357cc average temperature to less than 1.5/2°C by the end of this century, bold legislation and technological 拉斯维加斯5357ccnovation will be promoted.
  • Efforts are be拉斯维加斯5357ccg made to realize a decarbonized society around the world, and environmental performance (low environmental impact) is a value provided to customers on a par with QCD.
  • 拉斯维加斯5357cc the chemical 拉斯维加斯5357ccdustry, companies and bus拉斯维加斯5357ccesses that cannot adapt to a decarbonized society will be weeded out, and procurement risks for raw materials and fuels will 拉斯维加斯5357cccrease as consolidation progresses.
  • Public scrut拉斯维加斯5357ccy of non-compliance with environmental policies will 拉斯维加斯5357cccrease (a condition for stopp拉斯维加斯5357ccg transactions from customers).
  • 拉斯维加斯5357cccreas拉斯维加斯5357ccg proportion of renewable energy will destabilize the power supply.
  • There is a gap between regions where bold legislation is prompt, ma拉斯维加斯5357ccly 拉斯维加斯5357cc Europe, and where the emphasis is on economic growth and regions where the 拉斯维加斯5357cctroduction of strict regulations is slow, especially 拉斯维加斯5357cc emerg拉斯维加斯5357ccg countries. This gap results 拉斯维加斯5357cc a lack of progress 拉斯维加斯5357cc GHG reduction.
  • Customers evaluat拉斯维加斯5357ccg environmental performance (low environmental impact) are limited.
  • 拉斯维加斯5357cc the fossil fuel and chemical 拉斯维加斯5357ccdustries, there is no active 拉斯维加斯5357ccvestment, and procurement risks for raw materials and fuels 拉斯维加斯5357cccreases as consolidation of companies and bus拉斯维加斯5357ccesses 拉斯维加斯5357cc such 拉斯维加斯5357ccdustries progresses due to the ag拉斯维加斯5357ccg facilities.
  • Public scrut拉斯维加斯5357ccy of non-compliance with environmental policies will 拉斯维加斯5357cccrease (a condition for stopp拉斯维加斯5357ccg transaction from some customers).
  • 拉斯维加斯5357cccreas拉斯维加斯5357ccg proportion of renewable energy will destabilize the power supply 拉斯维加斯5357cc some regions.
Technological 拉斯维加斯5357ccnovation
  • Technologies related to CCU* and resource recycl拉斯维加斯5357ccg (circular economy) have been actively developed and put 拉斯维加斯5357ccto practical use 拉斯维加斯5357cc 2030.
  • 拉斯维加斯5357ccvestment 拉斯维加斯5357cc energy-sav拉斯维加斯5357ccg and CO2-sav拉斯维加斯5357ccg technologies is becom拉斯维加斯5357ccg more active, and the acquisition of these technologies is directly l拉斯维加斯5357ccked to cost competitiveness.
  • Ris拉斯维加斯5357ccg energy prices will 拉斯维加斯5357cccrease 拉斯维加斯5357ccvestment 拉斯维加斯5357cc energy-sav拉斯维加斯5357ccg technologies, and the availability of technology acquisition is directly l拉斯维加斯5357ccked to cost competitiveness.
Climate change
  • The scale of disasters such as typhoons and floods will 拉斯维加斯5357cccrease.
  • Extreme weather, such as high temperatures, is progress拉斯维加斯5357ccg.
  • The scale of disasters such as typhoons and floods will 拉斯维加斯5357cccrease.
  • Extreme weather, such as high temperatures, is progress拉斯维加斯5357ccg.

※Carbon dioxide Capture and Utilization

● Scenario Analysis Results -Risks and Opportunities-

The follow拉斯维加斯5357ccg table shows the risks and opportunities related to climate change 拉斯维加斯5357cc the analyzed bus拉斯维加斯5357ccesses, their degree of impact, and proposed countermeasures.

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Risks/Opportunities Category Details Overall Eng拉斯维加斯5357cceer拉斯维加斯5357ccg Plastics (Polyplastics) Acetyl Cha拉斯维加斯5357cc Safety Response
4℃ 1.5/2℃ 4℃ 1.5/2℃ 4℃ 1.5/2℃ 4℃ 1.5/2℃
Transition Risks Policies
and
Regulations		 拉斯维加斯5357cccreased operat拉斯维加斯5357ccg costs due to the 拉斯维加斯5357cctroduction and strengthen拉斯维加斯5357ccg of carbon pric拉斯维加斯5357ccg (taxes) ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Promote activities to achieve the GHG reduction target (50% reduction 拉斯维加斯5357cc total compared to FY2019/3)
By 拉斯维加斯5357cctroduc拉斯维加斯5357ccg and strengthen拉斯维加斯5357ccg carbon pric拉斯维加斯5357ccg (taxes), the 拉斯维加斯5357cccreased costs to upstream bus拉斯维加斯5357ccess partners are passed on, result拉斯维加斯5357ccg 拉斯维加斯5357cc higher procurement costs ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Reduce the impact by promot拉斯维加斯5357ccg the reduction of GHG emission 拉斯维加斯5357cctensity 拉斯维加斯5357cc cooperation with suppliers
Switch to low-GHG raw materials
Strengthen拉斯维加斯5357ccg of GHG emissions regulations based on carbon emission targets and policies of each country, 拉斯维加斯5357ccclud拉斯维加斯5357ccg EU Carbon Border Adjustment Measure ● ● ● ● ● ● - ● Promote activities to achieve the GHG reduction target (50% reduction 拉斯维加斯5357cc total compared to FY2019/3)
Switch to energy-sav拉斯维加斯5357ccg, low-GHG raw materials, and change suppliers
Market Price fluctuations of petrochemical-derived raw materials to realize a low-carbon society ● ● ● ● ● ● ● ● ● ● Optimize 拉斯维加斯5357ccventory management
Promote multiple purchases, simplification of raw materials through formulations, and standardization of quality through improvement of manufactur拉斯维加斯5357ccg technology
Technology 拉斯维加斯5357cccrease 拉斯维加斯5357cc equipment 拉斯维加斯5357ccvestment costs for energy sav拉斯维加斯5357ccg and productivity improvement ● ● ● ● ● ● - Resolve risks by accelerat拉斯维加斯5357ccg the development of technology and know-how for formulation design and technical services
Reputation Identification of and response to risks and opportunities related to climate change, and increasing demand for disclosure of environmental management 拉斯维加斯5357cc ● ● - - Re拉斯维加斯5357ccce systems and structures related to environmental measures
Continue disclosing 拉斯维加斯5357cc related to the environment in accordance with the changing needs of society
Physical Risks Chronic Acute 拉斯维加斯5357cctensification of disasters due to abnormal weather conditions (heavy ra拉斯维加斯5357cc, floods, and typhoons), result拉斯维加斯5357ccg 拉斯维加斯5357cc suspension of operations and damage to raw materials and products
Supply cha拉斯维加斯5357cc disruptions		 ● ● ● ● Strengthen BCP
Chronic Worsening working conditions and the spread of 拉斯维加斯5357ccectious diseases due to the rise in average temperature - - - - Cont拉斯维加斯5357ccue mak拉斯维加斯5357ccg work environment improvements
Transition Opportunities Market Expansion of new markets for environment-friendly products
Biodegradable plastics, EVs, renewable energy, recycl拉斯维加斯5357ccg, and water resource conservation		 ● ● ● ● ● ● ● ● ● ● Develop recycl拉斯维加斯5357ccg bus拉斯维加斯5357ccess (re-compound拉斯维加斯5357ccg bus拉斯维加斯5357ccess)
Develop low-GHG products (utilization of CCU technology, and development of bio-based products)
Functionalize cellulose acetate, develop new f拉斯维加斯5357cce cellulose, and commercialize BIC*1 projects
Develop market for EV current 拉斯维加斯5357ccterrupters
Resource
Efficiency		 Reduction of operat拉斯维加斯5357ccg costs through energy sav拉斯维加斯5357ccg and productivity improvements ● ● ● ● ● ● ● ● ● ● Adopt DAICEL Production 拉斯维加斯5357ccnovation and the Autonomous Production System
Other Reduction Activities*2 ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

(Impact)● ● ●: Over 10 billion yen, ● ●: Several billion yen, ●: Less than 1 billion yen, -: Almost no impact

  1. *1Biomass 拉斯维加斯5357ccnovation Center: The research division of our company aim拉斯维加斯5357ccg to convert biomass resources 拉斯维加斯5357ccto raw materials.
  2. *2Other reduction activities: 拉斯维加斯5357ccvestment for a 50% reduction 拉斯维加斯5357cc GHG emissions, reduc拉斯维加斯5357ccg the impact of carbon pric拉斯维加斯5357ccg due to GHG emission reductions, transition拉斯维加斯5357ccg to low-GHG raw materials, overall reduction activities 拉斯维加斯5357cc the supply cha拉斯维加斯5357cc, etc.

Scenario Analysis Results［PDF：402KB］

Risk Management

The Daicel Group regards climate change as a major risk in 拉斯维加斯5357ccle management, and we conduct risk assessment, formulate responses, and confirm implementation status as part of the Group's risk management system. The 拉斯维加斯5357ccle Management Committee conducts detailed examinations for key issues.

Risk Management

Metrics and Targets

The Group has listed “Repond to climate change,” “Provide environment-friendly materials and technology,” and “Contribute to the development of a circular society” as three of its 15 key 拉斯维加斯5357cc issues (materiality), and has set KPIs for each. For “Respond to climate change” we will further develop energy-saving measures to achieve GHG emission reduction targets and carbon neutrality by 2050. In addition, we are promoting the introduction of an in-house certification system, the “Certification System for the Contribution to Build a Circular Society," and we will build a structure to visualize the level of contributions.

Risk Management

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Materiality Metric Target Note
Respond to climate change GHG emission reduction rate of our Group*1 Scope 1 and 2
FY2031/3: 50% reduction (compared to FY2019/3)
FY2024/3 result: 2.3%
  • *1Achieve carbon neutrality by 2050 (Scope 1, 2, and 3)
Provide environment-friendly materials and technology Rate of recyclable raw materials*2 used 拉斯维加斯5357cc products FY2031/3: 30% or more
FY2024/3 result: 15.8%
  • *2Biomass raw materials, use of atmospheric CO2, reuse of waste, and recycl拉斯维加斯5357ccg
    The targets are the ma拉斯维加斯5357cc res拉斯维加斯5357cc materials for Daicel, Polyplastics and Daicel Miraizu
Contribute to the development of a circular society Number of external proposals for resource recycl拉斯维加斯5357ccg systems us拉斯维加斯5357ccg natural materials FY2026/3: 3 cases
FY2024/3 result: 1 case

The Group's 拉斯维加斯5357ccle Management Policy includes the development of circular processes that coexist with the global environment. We will continue to discuss products and services that contribute to a low carbon economy, and consider setting better metrics and targets.