01.Governance
The Climate Change Task Force, which is overseen by the Sustainability Committee, is responsible for activities to combat climate change. Task force members periodically monitor risk factors concerning climate change, identify risks and opportunities related to these factors, and assess the potential effects on the operations of the World Holdings Group. Information about studies and decisions made by the task force is submitted to the Sustainability Committee, which passes the information on to the Board of Directors, at least once every year.
Sustainability Promotion System
02.Strategy
As prescribed by the TCFD, the World Holdings Group identified risks and opportunities created by climate change and analyzed various scenarios for the purpose of determining the potential effects of climate change on business activities and the group’s financial soundness. The process and scenarios that were used are as follows.
Process
Scenarios
The following table shows the results of a scenario analysis to estimate how climate-related risks and opportunities could affect the business activities, strategies and financial plans of the World Holdings Group.
Assumptions for scenario analysis
List of risks and opportunities
Abbreviations: HRE-Human Resources and Education, RE-Real Estate, IT-Information and Telecommunications, AP-Agricultural Parks
As a result of the scenario analysis, risk exposure to some extent was expected for the 1.5°C scenario, mainly caused by transition risk as a slow response to climate change lowers the volume of business, and for the 4.0°C scenario, mainly caused by lower sales due to physical risk as facilities of client companies are damaged and by lower employee productivity as temperatures rise. However, the scenario analysis confirmed that, due to the characteristics of the group’s core Human Resources and Education Business, climate change creates no significant direct financial risk or impact on business operations.
We will continue to use scenario analysis activities to determine how to adapt as the climate changes. Our objectives are to become more resilient to climate change and achieve sustainable growth of business activities and corporate value.
03.Risk management
The Climate Change Task Force, which is overseen by the Sustainability Committee, identifies risks related to climate change that may affect business activities. This unit also performs assessments concerning the likelihood of specific problems to occur and their severity. Information about these risks is submitted to the Sustainability Committee, which passes the information on to the Board of Directors. We use this framework for the proper management and oversight of risks as well as for the comprehensive management of risk with the Risk Management Committee across the entire World Holdings Group.
04.Indicators and targets
a.Indicators
The World Holdings Group uses the volume of GHG emissions as the primary indicator for assessing climate-related risks and opportunities. Scope 1 and 2 emissions from business operations are calculated.
*Emissions are calculated for World Holdings and consolidated subsidiaries in Japan. A GHG emission calculation and reduction assistance cloud service is used to perform these calculations.
Scope 1 and 2 emissions (Unit: t-CO2)
b.Targets
The World Holdings Group uses two targets for the management of climate-related risks and opportunities. One is the GHG emission reduction target of the Japanese government. Based on compliance with this target, the other is lowering GHG emissions to less than 65% of the 2023 level by 2040 and achieving carbon neutrality by 2050.
Reduction targets and actions for lowering emissions
Major actions for lowering Scope 1 and 2 emissions
Studies for installation of energy-conserving equipment at all business sites; rigorous energy conservation activities
Use of renewable energy (solar power and others)
Replace company vehicles with electric/fuel cell vehicles
