The effects of climate change are becoming increasingly serious and climate change is considered to be a contributing factor in the frequent abnormal weather patterns and natural disasters currently occurring. Together, these events are impacting the supply chain for food, which is the foundation of the value provided by the Nichirei Group. We recognize the importance of appropriately responding to risks posed by shifts in the external environment caused by climate change. At the same time, we are considering and preparing multiple scenarios in which climate change could give rise to business opportunities. To this end, we are assessing climate change scenarios with respect to the four aspects of the recommended framework put forward by the Task Force on Climate-related Financial Disclosures (TCFD): governance, strategy, risk management, and metrics and targets. By conducting appropriate disclosures of relevant information, we hope to continue building a constructive dialogue with our stakeholders. It is in line with these ideas and because we support its recommendations that, in June 2020, we announced our participation in the TCFD Consortium. The Group has positioned climate change initiatives as one of the material matters for achieving its vision for long-term management goals toward 2030. As such, we are actively promoting initiatives to help resolve social issues related to climate change.

In October 2019, we began analyzing climate change scenarios as an interdepartmental Group project, headed by the president, and reviewed the scenarios across the Nichirei Group. Following discussion and review by the Group Environmental Protection Committee in May 2020, the Board of Directors approved low-carbon policies as a long-term environmental goal in June and disclosed them in August of the same year.
In October 2020, the director, executive officer responsible for implementing climate change strategies was appointed as project head. The project reviewed and analyzed climate change scenarios in relation to water-related risks arising from abnormal weather, which, out of the risks identified in FY2020, would have a particularly significant financial impact on the Group. Following discussion and review by the Group Environmental Protection Committee in May 2021, the Board of Directors approved goals (measures and KPIs) for water-related risks as one of the Nichirei Group material matters in June and disclosed those measures and KPIs in August of the same year.
The director, executive officer in charge reports at least once a year on the progress of the initiatives at Board of Directors meetings. Relevant strategies, goals and plans are revised as appropriate on the basis of these reports.

Worldwide, the Nichirei Group is developing a range of food-centered businesses that it expects will be impacted by climate change in various ways. We are conducting scenario analyses of how climate change might affect our business activities. We hope to better quantify the risks and opportunities identified in order to incorporate appropriate responses in our management strategy. In this way, we aim to become a sustainable corporate group.

Nichirei is a global operator of food-related businesses. Accordingly, we ensure that appropriate divisions manage the impact of a variety of risks (including climate change-related risks encountered through business activities) on business management from a holistic perspective, employing both rational and optimal methods. The risks are also discussed and reviewed by the Group Risk Management Committee, which is chaired by the president.
We believe that risks associated with climate change scenarios are major and could impact the entire Group. Thus, the Group Sustainability Committee, chaired by the president, reviews both physical and transition risks regularly, based on information gleaned from relevant reports and experts’ advice. In addition, the director, executive officer supervising environmental management reports to the Board of Directors.
We hope to better quantify the risks and opportunities identified in order to incorporate appropriate responses in our management strategy. In this way, we aim to become a sustainable corporate group.

We have set forth climate change initiatives as one of our material matters and have established the metrics and targets below for our key initiatives.

Group Measures:
Promote reduction of CO₂ emissions per unit of production and utilization of renewable energy at food factories and logistics centers, and disclose information based on the TCFD recommendations.
Group KPI:
50% reduction in CO₂ emissions (compared with FY2016; Scope 1 and 2 in Japan)

This will be a Group-wide effort, with specific targets also set for each operating company.