Sustainability
Environment
Achieving a decarbonized society
Initiatives for Task Force on Climate-Related
Financial Disclosures (TCFD)
We position our efforts to address climate change as essential both for our own business development and for the sake of a sustainable society. Therefore, in FY 2022, we endorsed the TCFD’s recommendations to assess and disclose the financial impact of climate change-related risks and opportunities on our management, and we will take an active role in the climate change initiative to disclose this information.
Governance
Kyoritsu Maintenance has integrated climate change into its governance process, in which the Board of Directors, as the governing body for risk management, is involved in the process of managing climate change-related risks and opportunities, while the Sustainability Promotion Committee, which is subordinate to the Board of Directors, collects and classifies climate change-related information and develops and implements climate change-related policies under the Sustainability Policy.
Strategies
Since FY 2022, we have conducted scenario analyses to reaffirm the risks and opportunities associated with climate change, and for both the 1.5°C and 4°C global warming scenarios, we have assessed the expected events and financial impacts on the Company as well as the businesses affected from both transition risks and physical risks, setting the scale of financial impact to large, medium, or small along a timeline.
Risks and Opportunities in the 1.5°C Scenario
| Perspective | Expected Events | Risks | Opportunities | Expected Financial Impact | Businesses Affected | Anticipated Time Frame & Scale of Financial Impact | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dorm | Inn | Resort | Senior | Short- Term | Medium- Term | Long- Term | |||||
| Policy/Legal Regulations | Taxation on greenhouse gas emissions, such as carbon taxes | Carbon tax levied according to greenhouse gas emissions (Scope 1 and 2) | ー | Medium | Large | ||||||
| Rising prices for food, amenities, and equipment due to carbon taxes on business partners | ー | Small | Medium | ||||||||
| Tighter regulations on food waste | Reviewed cooking methods and new investments to reduce waste | ー | Small | Medium | |||||||
| Tighter regulations on plastic waste | Promote reuse and reduction of plastic to mitigate impact from regulations | ー | Small | Medium | |||||||
| Technology | Improved production efficiency of renewable energy | Lower renewable energy prices make reducing carbon tax burden easier | ー | Small | Medium | ||||||
| Improved efficiency of energy-saving equipment | Equipment efficiency improvements may lead to both efficiency gains through replacements and stranded assets from replacing existing products | ー | Small | Medium | |||||||
| Market | Shift in customer values due to growing climate crisis awareness and concerns | Greenhouse gas emission reduction efforts appeal to customers choosing residences | Small | Small | Medium | ||||||
| Reputation | Increased climate change concerns among investors and job applicants | Climate change response affects stock prices and recruitment efforts | Small | Medium | Medium | ||||||
Risks and Opportunities in the 4°C Scenario
| Perspective | Expected Events | Risks | Opportunities | Expected Financial Impact | Businesses Affected | Anticipated Time Frame & Scale of Financial Impact | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dorm | Inn | Resort | Senior | Short- Term | Medium- Term | Long- Term | |||||
| Acute | Increased frequency and expanded damage from typhoons, torrential rain, and the accompanying floods and landslides | Facility damage leading to repair costs | ※1 | Small | Small | Medium | |||||
| Facility damage leading to business suspension | ※1 | Small | Small | Medium | |||||||
| Supply chain disruptions due to traffic blockages preventing food and materials from being delivered, resulting in business suspension | ※1 | Small | Small | Medium | |||||||
| Traffic blockages preventing employees from commuting, resulting in business suspension | Small | Small | Medium | ||||||||
| Chronic | Rising average temperature due to global warming | Increased risk of heatstroke for customers, leading to behavioral changes and poorer health | ー | Small | Medium | ||||||
| Increased risk of heatstroke for employees, leading to changes in commuting and working styles | ー | Small | Medium | ||||||||
| Increased air conditioning costs | ー | Small | Medium | ||||||||
Risk Management
The Company recognizes that climate change is an important issue for the survival of corporations and believes that responding appropriately to climate change, not only in terms of risks but also opportunities, will lead to sustainable growth. As stated on page 33, the Sustainability Promotion Committee, which is delegated by the Board of Directors, evaluates the impact on our management in terms of both financial impact and likelihood of occurrence comprehensively, and then discusses priorities.
Indicators and Targets
We aim to reduce greenhouse gas (Scope 1 and 2) emissions by the year 2030 by 46% compared to 2013, to 44,063 t-CO2.
| Indicator | Description |
|---|---|
| Scope 1 emissions | GHG (greenhouse gas) emissions from fuel use by the Company (city gas/LPG/kerosene/A-fuel oil) Note: Usage is based on actual results and emission intensity is based on Ministry of Environment Database. |
| Scope 2 emissions | GHG emissions from electricity use by the Company (managed by classification into fossil fuel-derived/renewable energy-derived power) Note: Usage is based on actual results and emission intensity is based on figures published by contracted power providers. |
Reduction Plan
Electricity
From FY 2026 onward, we will gradually switch to procurement (electricity supply contracts) of power derived from renewable energy sources that do not emit CO2 and non-fossil fuel certificates, focusing primarily on facilities that use high amounts of electricity and receive high-voltage power.
City Gas
Starting in FY 2026, we will gradually switch to carbon offset city gas. We will gradually switch to carbon offset city gas, which allows the adjusted emitter coefficient in the GHG Accounting and Reporting System to be zero.
Global Warming
Countermeasures Report