
Sustainability
Sustainability
- HOME >
- Sustainability >
- Sustainability >
- Information Disclosure in Line with TCFD and TNFD Recommendations
Social changes | Factors | Value Chain | Risk/ Opportunity |
Relevant Business | Impact on Business | Impact | |
---|---|---|---|---|---|---|---|
FY2030 | FY2050 | ||||||
Enhancement of our company initiatives and regulations for environmental conservation (transition) |
Enhancement of nature-related regulations | Upstream | Risk | All | Increase in raw materials procurement costs due to tightening environmental laws and regulations for materials sourcing, processing, and production of intermediate products. | High | High |
Direct Operations | Increase in operation costs in our plants due to the enforcement of regulations on pollution. | Mid | High | ||||
Increase in operation costs due to the introduction of tax on plastics; Generation of additional costs for replacing production equipment and switching packaging materials by introducing biomass plastics and other recyclable materials. |
Mid | High | |||||
Growth of demand from investors and others seeking initiatives for nature-related issues | Direct Operations | Risk | All | Declines in the ESG rating, the Group’s reputation, the market capitalization and difficulty in financing due to the delay in countermeasures against climate change, such as the massive use of fossil-derived raw materials. | High | High | |
Opportunity | Rises in the ESG rating, the Group’s reputation, and the market capitalization through progressive approaches and information disclosure. | High | High | ||||
Downstream | Risk | Agri | Reputational risk related to product safety | Mid | Mid | ||
Market changes due to increasing demand for environmental consideration | Downstream | Risk | Agri | Decline in agrochemicals’ sales by introducing regulations on the use volume of agrochemicals. | High | High | |
Reduction of the use volume and decline in sales of agrochemicals due to the expansion of organic beverage and food markets. | High | High | |||||
Reduction of the use volume and decline in sales of agrochemicals by using various technologies, such as big data, drones, and farm management software. | High | High | |||||
Opportunity | Growth of demand for biological agrochemicals; increase in opportunities to develop new agrochemical products. | Mid | High | ||||
Increase in sales of new agrochemicals that adapt to Smart Agriculture (such as drone agrochemicals spraying*) * It contributes to the reduction of the use volume of agrochemicals. |
High | High | |||||
Increase in sales of agrochemicals* for agricultural products in countries and territories where farming lands are being expanded for food production due to population growth. (*Those products that contribute to the prevention of farmland expansion by improving yields and environmentally friendly.) | High | High | |||||
Increase in sales of agricultural business other than agrochemicals, such as investments into agriculture-related technologies development for Smart Agriculture and breed improvement. | Mid | Mid | |||||
Transition・Physical |
Market changes due to degradation of ecosystem services and increasing demand for environmental consideration | Upstream | Opportunity | All | Increase in sales of low-carbon products by switching to biomass-derived raw materials | Mid | High |
Environmental degradation・Rising temperatures (physical) |
Degradation of ecosystem services | Upstream | Risk | All | Increase in raw materials procurement costs due to water scarcity, floods, or similar risks in materials sourcing and processing and production of intermediate products; Supply shortage of those materials due to the suspension of or limitation to production. |
High | High |
Direct Operations | Agri | Decline in production capacity (such as shortage of cooling capacity) and increase in products/materials management costs due to water scarcity caused by drought and heat waves | Low | Low | |||
Market changes due to degradation of ecosystem services | Downstream | Risk | Agri | Reduction of planted area due to increase in frequency and intensity of storms/floods and difficulties in securing irrigation water. Changes in the distribution of planting and reduction in planted area due to temperature rise. |
Low | Low | |
Opportunity | Increase in existing products’ sales and opportunities for the development of new agrochemicals due to the spread of pest insects, weeds, and pathogens and the development of their resistance. | High | High |
All: All business・Planning and Development Division, Agri: Agricultural Chemicals business