Analysis and Disclosure of Climate Change Risks and Opportunities Based on the TCFD Recommendations

Analysis and Disclosure of Climate Change Risks and Opportunities Based on the TCFD Recommendations

In October 2010, Casio set a target of achieving net zero greenhouse gas (GHG) emissions from its business activities by fiscal 2051.
In April 2021, Casio’s GHG emissions reduction target for fiscal 2031 was validated as consistent with the Well-Below 2°C scenario based on scientific evidence by the Science Based Targets initiative (SBTi), an international organization that reviews GHG reduction targets.
Casio is working to reduce GHG emissions and address global warming in accordance with long-term targets validated by internationally respected organizations.
Meanwhile, global warming is intensifying the severity of climate change around the world, and this is expected to have a major impact of corporate performance over the long term. If warming proceeds unchecked, the weather disasters that have already become apparent will be even more severe. Moreover, sea levels are expected to rise, having a significant impact on business sites located in coastal areas.
Casio’s business partners in the supply chain may also be affected by these developments, and disruptions to parts procurement, logistics, and other business operations can be expected.
In April 2021, Casio announced its support for the recommendations of the TCFD, which sets out standards for disclosure on business impacts related to climate change, and began disclosing information on the impact of climate change on its business activities. In the second year of disclosure, Casio decided to identify risks and opportunities involved in the long-term impacts of climate change using the scenario analysis method, to assess the impact of these risks and opportunities, and to consider the measures to be taken in response.
Casio held five rounds of scenario analysis between February and May 2022 for its four core businesses: timepieces, education, electronic musical instruments, and systems equipment. Casio appointed core staff from product planning, mechanical design, procurement, logistics, and sales and marketing divisions covering the entire value chain to conduct the analysis and contracted an outside expert to facilitate the process.
Since discussions faced some limitations due to the need to hold the main sessions online to prevent the spread of COVID-19, voluntary meetings were set up for further study of each product item. As a result, the assessments of impact became more varied in each session due to the differences in provision of value to users, market, and strategy between businesses.The final session closed with presentations to the officers responsible for each business and the officer responsible for finance and investor relations.
The results of the sessions were compiled by the Sustainability Promotion Office and, after deliberation by the Board of Directors, “Results of Assessment based on Scenario Analysis” was added to the section on Information Disclosure Based on TCFD Recommendations on Casio’s Sustainability website.
Casio will continue to carry out scenario analysis on a regular basis in the future to raise the level of precision as well as to further enhance the quality and quantity of information disclosed.