Sustainability Taking Action on the スポーツベッティング日本向け Recommendations
Based on the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), the Ryoyo Group discloses relevant information in four areas: governance, strategy, スポーツベッティング日本向け management, and metrics and targets
1.Governance
Our group recognizes that addressing sustainability issues is a critical matter that not only mitigates risks but also presents opportunities for profit. To strengthen governance and ensure the effective promotion of our group's sustainability initiatives, we have established a Sustainability Committee. The Sustainability Committee is chaired by the President and Executive Officer and comprises members appointed by the Chairperson, the Executive Vice President, and other Executive Officers. The committee discusses fundamental policies and activities aimed at promoting sustainability. Matters of significant importance discussed by the Committee require resolutions by the Board of Directors or an organization equivalent to the Board. Additionally, the progress of sustainability initiatives is reported to the Board of Directors, as necessary.
Corporate Governance Structure
2.Strategies
Using two perspectives--likelihood and スポーツベッティング日本向け--we identified future risks and opportunities related to climate change and assessed their importance. We focused on high-priority risks that are quantifiable and conducted financial スポーツベッティング日本向け estimations at three key time points: 2030 (short-term), 2050 (mid-term), and 2100 (long-term). Our Group is actively considering and implementing measures to mitigate these significant risks and seize emerging opportunities, and has confirmed that we possess sufficient resilience under the 1.5℃/2℃ and 4℃ climate scenarios.
Methodology for assessing materiality
Materiality is determined based on a matrix of evaluation of "Likelihood" (external reports, past impacts, and the Company's plans and policies) and "スポーツベッティング日本向け" (scope of スポーツベッティング日本向け, affected departments, and scope of スポーツベッティング日本向け for risks; market size, production capacity, and competitive advantage for opportunities).
Key Risks
| Key Risks | スポーツベッティング日本向け on Business |
スポーツベッティング日本向け Level |
Time Horizon |
||
|---|---|---|---|---|---|
| 1.5/2℃ warming | 4℃ warming | ||||
| Transition スポーツベッティング日本向け | |||||
| Policy and Legal / Regulatory | Adoption of carbon tax/emissions trading | Manufacturing and procurement costs for the products handled by our Group are expected to increase. | Mid-High* | Short-to Medium-Term | |
| Strengthening of Environmental Regulations | Compliance with decarbonization and life cycle assessments (LCA) will be required for our products. Delays in addressing these requirements may reduce sales due to lost business opportunities. | Mid-High | |||
| Technology | Advancement of low-carbon technologies、Proliferation of EVs | Growing demand for semiconductor-related raw materials (e.g., metals) may make procurement more difficult, reducing sales. | Mid-High | ||
| Market | Changes in raw material costs | Increased processing and transportation costs for semiconductor raw materials (e.g., metals) may push up procurement costs. | Mid-High | ||
| Reputation | Change in reputation among customers | Insufficient responses to climate-related challenges may reduce customer trust, leading to suspended transactions and fewer sales opportunities. | Mid-High | ||
Physical スポーツベッティング日本向け |
|||||
| Acute | More frequent and intense extreme weather and natural disasters | Flooding at operational sites may cause asset damage and result in additional costs for renting alternative office spaces to maintain business continuity. | Mid-High* | Medium-to Long-Term | |
| Damage to customers and suppliers may result in business suspensions and supply chain disruptions, reducing sales due to lost product sales opportunities. | Hight | ||||
| In the event of supplier damage, additional costs may arise from securing alternative products, along with increased inventory storage costs for business continuity planning (BCP). | Mid-High | ||||
| Chronic | More frequent droughts | Water shortages may delay semiconductor production, leading to decreased sales as product availability diminishes. |
Mid-High | ||
- * indicates risks for which financial スポーツベッティング日本向け has been estimated.
- * The assumed time horizons are: 2030 (short-term), 2050 (medium-term), and 2100 (long-term).
Key Opportunities
| Key Opportunities | スポーツベッティング日本向け on Business | スポーツベッティング日本向け Level | Time Horizon | |
|---|---|---|---|---|
| 1.5／2℃ warming | 4℃ warming | |||
| Product/ Service, Market | ||||
| Promotion of Renewable Energy Policies | Demand for semiconductor products such as energy modules that reduce power loss is expected to increase, leading to more order opportunities and higher sales. | High | Short-to Medium-Term | |
| Promotion of Energy Efficiency Policies | The growing need for automation and robotics to improve energy efficiency will drive increased demand for semiconductors, resulting in more order opportunities and higher sales. In particular, demand for collaborative robots handled by our Group is expected to rise. | Mid-High | ||
| Products that contribute to decarbonization, energy conservation, and heat mitigation are expected to see increased demand, leading to more semiconductor orders and higher sales. | High | |||
| Strengthening of GHG Emission Regulations | The widespread adoption of electric vehicles (EVs) will increase demand for EV-related semiconductors, resulting in more order opportunities and higher sales. | High | ||
| Acceleration of Climate Change Mitigation Measures | Advancements in AI technologies for climate forecasting and energy optimization will drive demand for high-performance processors (e.g., NVIDIA GPUs) and AI-specific semiconductors, leading to increased sales. | High | ||
| Weather Pattern Changes、More frequent and intense extreme weather and natural disasters | The expansion of remote technologies in daily life will create new opportunities for solutions utilizing advanced IoT technologies, contributing to higher sales. | Mid-High | Medium-to Long-Term | |
| Demand for environmental monitoring sensors and IoT-related products, such as weather and water level sensors, is expected to grow, leading to increased orders for semiconductors and electronic components. | Mid-High | |||
| Resilience | ||||
| More frequent and intense extreme weather and natural disasters | As part of BCP initiatives, diversification of supply chain routes will enhance our Group's competitive advantage, resulting in increased order opportunities and higher sales. | Mid-High | ||
| Growing demand for long-life storage batteries, high-efficiency charging systems, and advanced power transmission and distribution systems will lead to more semiconductor orders and increased sales. | Mid-High | |||
- * The assumed time horizons are: 2030 (short-term), 2050 (medium-term), and 2100 (long-term).
Business スポーツベッティング日本向け Assessment
As part of our climate スポーツベッティング日本向け assessment, we estimated the additional costs associated with identified high-priority and quantifiable risks. For transition risks, we calculated the potential cost impact of introducing a carbon tax. For physical risks, we assessed the additional costs and damages that could result from site inundation due to flooding or storm surges. These estimates were based on climate scenarios projecting temperature increases of 1.5℃/2℃ and 4℃, utilizing data from the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA).
The climate scenarios utilized
| The financial スポーツベッティング日本向け assessment method(s) used | Introducing Carbon Tax | Flooding | Storm surges |
|---|---|---|---|
| Warming Levels(2100) | IEA WEO | IPCC RCP | IPCC RCP |
| 4℃ warming | RCP8.5 | SSP5-8.5 | |
| 2℃ warming | APS | RCP2.6 | SSP1-2.6 |
| 1.5℃ warming | NZE | SSP1-1.9 |
Financial スポーツベッティング日本向け (Additional Cost) of Introducing a Tax System (e.g., Carbon Tax)
Using future projection data provided by the International Energy Agency (IEA), we estimated the additional costs that would arise from taxation based on greenhouse gas emissions associated with energy consumption at our domestic and international business sites. Under the 1.5℃ warming scenario, which represents the highest estimated スポーツベッティング日本向け, the additional cost would amount to approximately 0.01% of sales (equivalent to 0.4% of ordinary income) at most. Therefore, the financial スポーツベッティング日本向け is considered negligible.
Calculation Method
Current CO2 emissions* × Future carbon price
- * Does not include Ryoyo Electro's overseas emissions.
Future Carbon Price Scenarios Used
The following scenarios, described in the World Energy Outlook 2024 provided by the International Energy Agency (IEA), were adopted.
- 1.5℃ warming scenario ：NZE2050(Net Zero Emissions by 2050 Scenario)
- 2℃ warming scenario ：APS(Announced Pledges Scenario)
- ※Under the 4 ℃ warming scenario, it is assumed that no carbon tax will be imposed, resulting in no additional costs.
Financial スポーツベッティング日本向け of Extreme Weather and Severe Natural Disasters (Additional Costs Due to Flood and Storm Surge Inundation of Offices)
Using future projection data provided by the Intergovernmental Panel on Climate Change (IPCC), we estimated the additional costs of renting alternative office space required to maintain business continuity in the event of flooding or storm surge damage at our domestic sites. Under the 4℃ warming scenario, which represents the highest estimated スポーツベッティング日本向け, the additional cost would be approximately 0.07% of sales (2.0% of ordinary income) at most. Therefore, the financial スポーツベッティング日本向け is considered negligible. Furthermore, we confirmed that no damage to inventory assets would occur due to flooding of the Group's own warehouses or contracted external warehouses.
Calculation Method
Additional Costs and Damages Due to Natural Disasters (Future - Present) Additional costs were calculated by determining the inundation depth (current and future) of each site in the event of flooding or storm surges, using data published by public institutions. Based on actual flood damage records, office replacement costs were estimated for each site in accordance with the national calculation methodology.
The following future inundation scenarios provided by the Intergovernmental Panel on Climate Change (IPCC) were used
- Flooding: RCP scenarios from the Fifth Assessment Report (AR5), equivalent to 2℃ and 4℃ temperature increases
- Storm surges: SSP scenarios from the Sixth Assessment Report (AR6), equivalent to 1.5℃, 2℃, and 4℃ temperature increases
3.スポーツベッティング日本向け Management
In the process of identifying material issues (i.e., priority sustainability challenges), our Group identifies relevant risks and opportunities and evaluates their significance using a matrix based on two perspectives: the importance and スポーツベッティング日本向け on management, and the importance and スポーツベッティング日本向け on stakeholders.
For climate change-related risks and opportunities, we conduct a more detailed assessment, evaluating each item based on the likelihood of occurrence and the magnitude of its potential スポーツベッティング日本向け. Risks and opportunities identified as having "high" or "medium-to-high" importance are disclosed in the sections titled "Significant Risks" and "Significant Opportunities" under Section 2: Strategy. Taking into account their potential スポーツベッティング日本向け on our business, we plan to formulate specific response measures by the end of FY2025 and implement them in sequence thereafter.
For risks and opportunities assessed as below moderate in importance, we will continue to collect relevant information and monitor their potential financial impacts.
4.Metrics and Targets
In our climate change response, both risks and opportunities are closely linked to greenhouse gas (GHG) emissions. Accordingly, we have defined our Group's climate-related indicators based on GHG emission volumes by category, as shown in the table below.
We have set the following targets:
- Reduce Scope 1 and Scope 2 GHG emissions by 46% compared to FY2019 levels by the end of FY2030
- Achieve carbon neutrality by the end of FY2050
For Scope 3 emissions, we are committed to reducing GHG emissions across our entire supply chain.
GHG Emissions and Reduction Status
| Metrics | Scope | FY2019（Base Year） (tCO2) | FY2023(Result) (tCO2) | FY2024(Result) (tCO2) | Reduction Rate | |
|---|---|---|---|---|---|---|
| Base year comparison | YoY | |||||
| Scope 1 Emissions | Goroup Total | 394 | 347 | 285 | ▲27.7% | ▲17.9% |
| Scope 2 (Location-basedd) Emissions | Goroup Total | 1,671 | 1,538 | 1,395 | ▲16.5% | ▲9.3% |
| Scope 2 (Market-based) Emissions | Goroup Total | 1,607 | 1,430 | 1,379 | ▲14.2% | ▲3.6% |
| Scope 1+2(Location-basedd) Emissions | Goroup Total | 2,065 | 1,885 | 1,680 | ▲18.6% | ▲10.9% |
| Scope 1+2(Market-based) Emissions | Goroup Total | 2,001 | 1,777 | 1,664 | ▲16.8% | ▲6.4% |
| Scope 3 Emissions | Domestic Operating Companies¹ | - | 1,512,029 | 802,989 | - | ▲46.9% |
- Note:Domestic Operating Companies refer to Ryosan and Ryoyo Electro (exclude Styles)
Breakdown of GHG Emissions (FY2024 Actual Results)
Breakdown of Scope
| Method | Ryoyo Ryosan Group Total | Ryosan Group Total | Ryoyo Group Total | |||
|---|---|---|---|---|---|---|
| Domestic | Overseas | Domestic | Overseas | |||
| Scope 1 | - | 285 | 118 | 101 | 34 | 32 |
| Scope 2 | Location-based method | 1,395 | 958 | 182 | 208 | 47 |
| Scope 2 | Market-based method | 1,379 | 948 | 186 | 198 | 47 |
| Scope 1+2 | Location-based method | 1,680 | 1,076 | 283 | 242 | 79 |
| Scope 1+2 | Market-based method | 1,664 | 1,066 | 287 | 232 | 79 |
| Scope 3 | - | 802,989 | 527,056 | - | 275,933 | - |
| Scope 1+2+3 | Location-based method | 804,669 | ||||
| Scope 1+2+3 | Market-based method | 804,653 | ||||
- Note:The Ryosan Group's ovweseas figures do not include the figures of EDAL, ED-POWER, or EDAL RYOSAN.
- Note: The values for each category are quoted as the sum of the calculated results for each category, with decimal fractions truncated.
Breakdown of Scope 3
| Category | Ryoyo Ryosan Group Total | Ryosan Group Total | Ryoyo Group Total | ||||
|---|---|---|---|---|---|---|---|
| Emissions(tCO2) | % | Emissions(tCO2) | % | Emissions(tCO2) | % | ||
| Category 1 | Purchased Goods and Services | 740,855 | 92.3 | 524,239 | 99.5 | 216,616 | 78.5 |
| Category 2 | Capital Goods | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
| Category 3 | Fuel- and Energy-Related Activities (not included in Scope 1 or 2) | 225 | 0.0 | 183 | 0.0 | 42 | 0.0 |
| Category 4 | Upstream Transportation and Distribution | 6,210 | 0.8 | 1,977 | 0.4 | 4,233 | 1.5 |
| Category 5 | Waste Generated in Operations | 15 | 0.0 | 12 | 0.0 | 3 | 0.0 |
| Category 6 | Business Travel | 999 | 0.1 | 427 | 0.1 | 572 | 0.2 |
| Category 7 | Employee Commuting | 382 | 0.0 | 216 | 0.0 | 166 | 0.1 |
| Category 8 | Upstream Leased Assets | - | - | - | - | - | - |
| Category 9 | Downstream Transportation and Distribution | - | - | - | - | - | - |
| Category 10 | Processing of Sold Products | - | - | - | - | - | - |
| Category 11 | Use of Sold Products | 53,954 | 6.7 | 0 | 0.0 | 53,954 | 19.6 |
| Category 12 | End-of-Life Treatment of Sold Products | 344 | 0.0 | 0 | 0.0 | 344 | 0.1 |
| Category 13 | Downstream Leased Assets | 0 | 0.0 | 0 | 0.0 | 0 | 0.0 |
| Category 14 | Franchises | - | - | - | - | - | - |
| Category 15 | Investments | - | - | - | - | - | - |
| Total | 802,989 | 100.0 | 527,056 | 100.0 | 275,933 | 100.0 | |
- Note 1: "-" indicates items not subject to calculation.
- Note 2: Emissions were calculated for the domestic operations of the Ryoyo Ryosan Group (excluding Styles).
- Note 3: Values for each category represent the sum of calculated results for that category, with decimal fractions truncated.
- Note 4: The total Scope 3 emissions are calculated by summing the values from each category (retaining their decimal fractions) and then truncating the resulting sum to an integer. Therefore, this total may differ from the sum of the individual category emissions if those category emissions were truncated to whole numbers beforehand.