Information Disclosure based on TCFD Recommendations
Information Disclosure based on TCFD Recommendations
NSD announced to make its best effort to support the recommendations of the Task Force on Climate Change-Related Financial Disclosures (TCFD)*, and disclosed the information on the four elements, "Governance", "Strategy", "Risk Management" and "Indicators and Targets" based on the TCFD recommendation framework.
NSD will continue to face the issues of climate change from a medium to long-term perspective, to deepen the understanding of the impact on NSD’s business operation, and to disclose matters such as Governance, Strategy, Risk Management, and financial impact regarding climate change in an accurate and timely manner to increase the management transparency.
- *TCFD is an abbreviation for Task Force on Climate-related Financial Disclosures, the English name of the Task Force on Climate-related Financial Disclosures.
TCFD is a task force established by the Financial Stability Board (FSB) in December 2015. TCFD encourages companies and others to disclose information on “Governance”, “Strategy”, “Risk Management”, and “Metrics and Targets” related to climate change.
Governance
NSD established “Sustainability Management Committee (the Committee)”, chaired by the President & CEO, as a subordinate body to the Board of Directors for the purpose of promoting the Group's sustainability activities, including responding to climate change.
The members of the Committee are the leaders at each department responsible for corporate governance, resource and energy management, supply chain, health management, external disclosure. The Committee’s main role is to deliberate on sustainability initiatives for the entire Group (the Group), monitor the status of initiatives, collect information, and educate employees.
The Committee is held once every quarter in principle and the matters discussed by the Committee are regularly reported to the Board of Directors, and the Board of Directors makes resolutions on important matters.

Strategy
Based on the framework of the TCFD recommendations, NSD organized the "Risks" and "Opportunities" related to climate change that are expected to affect the Group's business.
Please see the【Figure 2】below:
Type | Potential Financial Impacts |
---|---|
Transition Risks |
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Physical Risks |
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Opportunities |
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Risk Management
At NSD, the Sustainability Management Committee plays a central role in managing the risks that climate change poses to our business.
The committee is composed of experts on climate change. It strives to collect information on the Group’s potential future risks and discusses appropriate monitoring methods suited to the nature of such risks.
Indicators and Targets
In order to deal with the problem of worldwide climate change, the Group has positioned "Climate Change" and "Energy Management" as one of the “Materialities” and is working to reduce CO2 emissions. The Group’s CO2 reduction targets are shown in【Figure 3】below:
Results(FY2020) Targets | Target Timing | Targets |
---|---|---|
2,406 t-CO2 (reference) | FY2030 | 42% reduction from FY2020 |
FY2044 | Achieve net-zero |