We at Mitani Sangyo Group expressed our support for the recommendations of the Task Force
on Climate-Related Financial Disclosures (TCFD) in April 2023.
Going forward, we will continue to enhance information disclosure
(governance, strategy, risk management, metrics and targets) based on the TCFD recommendations,
and will strive to contribute to the realization of a sustainable society and further enhance our corporate value
by continuing to carry on business activities in an environmentally conscious manner.

What is the TCFD (Task Force on Climate-related Financial Disclosures) ?
The TCFD is a task force established by the Financial Stability Board (FSB) at the request of the G20 to reduce the risk of instability in financial markets related to climate change. The TCFD released its report in June 2017 recommending that companies understand and disclose the risks and opportunities posed by climate change.


Our Group has established a “Sustainability Committee” chaired by the President & CEO and made up of the responsible persons of related business divisions as well as advisors, to deliberate and decide on Group-wide sustainability policies and measures, and to manage the progress of these measures.
The results of these deliberations are regularly reported to the Board of Directors, which serves a supervisory role.
We have also established TCFD Subcommittee, which is a subcommittee of Sustainability Committee, made up of persons in charge from each business division, headquarters, and each Group company


We analyzed and examined the risks and opportunities posed by climate change, and the magnitude of their impact, on our Group’s core businesses of Chemicals, Resin, Electronics, Information Systems, Air Conditioning Systems, Housing Equipment, and Energy.
We also carried out scenario analysis to understand the potential impact of climate change risks and opportunities on our Group assuming multiple future scenarios, and we aim to use this information to assist us in formulating future strategies and responses.

(1) Assumptions for scenario analysis

Risks and opportunities related to climate change can be divided into “transition risks/opportunities” arising from measures to address climate change, such as policies and regulations, as well as changes in societal demands, and “physical risks” arising from natural disasters and rising temperatures, etc.
We have rated the magnitude of the impact of such risks and opportunities on our Group’s business activities on a three-point scale of “major,” “medium” and “low.”

Scenario Overview Main external scenarios referenced
1.5℃ scenario The rapid introduction of policies and regulations, and changes in the market, toward carbon neutrality in 2050 limit the increase in global average temperature to 1.5℃ above pre-industrial levels.
  • IEA Net Zero Emissions (NZE) by 2050 scenario
  • IPCC RCP2.6
4℃ scenario Little progress is made on policies, laws and regulations, and social initiatives to reduce CO2 emissions, and global average temperature increases to 4℃ above pre-industrial levels. Disasters and other impacts from climate change cause devastating damage.
  • IEA Stated Policies Scenario (STEPS)
  • IPCC RCP8.5

(2) Risks and opportunities identified

[Transition risks]

Climate change factor Impact on business Period Magnitude
of impact
Policy and
of a carbon tax
  • Increased energy and raw material costs
Mid to long term Major
  • Continue to strategically reduce GHG emissions based on reduction targets
  • Promote energy saving
  • Promote the introduction of renewable energy while checking the price of renewable energy and other factors as needed
  • Utilize the J-Credit System
  • Streamline manufacturing processes
Stricter GHG
  • Increased manufacturing costs due to stricter regulations on products and raw materials
  • Increase in capital investment for decarbonization
  • Shortage of materials, soaring cost of materials
Long term Medium
Technology Spread of
  • Decrease in market share due to delays in introducing technology
  • Increased capital expenditure and R&D expenses
  • Decline in human technological capabilities due to the rise of AI and robots
Short to long term Major
  • Develop and sell products and services that contribute to the realization of a recycling-oriented society through our Group’s own DX and innovation or through business and collaboration with partner companies who drive innovation.
  • Monitor trends such as energy shift, and respond in a strategic manner
Market Changing
  • Decreased demand for products that emit large amounts of GHGs
  • Additional costs to respond to stricter green procurement requirements
Long term Low
  • Increased procurement costs along with a switch to environmentally conscious raw materials
  • Expanded range of environmental pollutants resulting in discontinued products and raw materials
Mid to long term Medium
Reputation Change in
among investors
  • Criticism from stakeholders for inadequate disclosure of information, causing damage to the value of our brand
Short to long term Low
  • Proactively disclose information that is beneficial to shareholders and investors

[Physical risks]

Climate change factor Impact on business Period Magnitude
of impact
Acute Intensifying
natural disasters
  • Decrease in sales due to damage to production sites and shutdowns caused by natural disasters
  • Decrease in sales due to delays in procurement of raw materials and materials along with supply chain disruptions
  • Increased cost of resilience measures
  • Price hikes and decreased production volume due to shortage of naturally derived raw materials
Short to long term Medium
  • Strengthen BCP measures
  • Maintain multiple production systems and promote diversification of suppliers
Increase in
torrential rainfall
  • Frequent traffic accidents during commuting and transportation
  • Shutdowns due to flooding of rivers and landslides near business sites
  • Shutdowns due to power outage caused by lightning strike
Short to long term Low
Chronic Rise in average
  • Increased risk of heat stroke
  • Increased air-conditioning costs
  • Decreased productivity due to deterioration of the work environment
  • Increase in late-night work and longer construction periods along with changes in working hours
  • Increase in insurance premiums due to increased flood risk
Long term Medium
  • Utilize construction techniques
  • Carry out regular health inspections of buildings and infrastructure
  • Make improvements to the working environment
Decline in
  • Price hikes and decreased production volume due to shortage of naturally derived raw materials
Long term Low
  • Develop and improve naturally derived raw materials that are resistant to natural disasters
  • Utilize culturing techniques to explore new raw materials


Climate change factor Impact on business Period Magnitude
of impact
  • Increased demand for collecting of metals and other materials from solar panels
  • Increased demand for recycling of carbon fiber composite scraps and waste materials
  • Increased demand for CFRP (carbon fiber reinforced plastics) for electric vehicles, rockets, satellites, and other weight-saving applications
  • Increased demand for chemical products needed to produce bioplastics
  • Increased demand for products made from bioplastics
  • Increased demand for energy-saving equipment
  • Promotion of automation through the use of AI and RPA
Mid to long term Major
  • Develop and sell products and services that are effective in reducing environmental impact and utilizing resources effectively
  • Activation of the hydrogen energy market
  • Increased demand related to new markets for methanation catalysts, infrastructure for a hydrogen energy society, SAF (Sustainable Aviation Fuel), and the effective use of chemicals and their residues for production of synthetic fuels
  • Expansion of micro hydropower sales
Long term Medium
  • Understand needs and open up markets in the clean energy sector
Resource efficiency
  • Activation of environmentally conscious businesses that achieve energy saving from energy management/data analysis, etc.
  • Decrease in energy costs through the introduction of energy-saving and renewable energy technologies
  • Increased demand for data centers to help consumers cope with rising electricity costs
Short to long term Medium
  • Optimize control of energy consumption through the use of IoT/AI
  • Promote our data center business utilizing renewable energy
  • Entry into the GX market and the market for renovation/conversion aimed at reduced environmental impact
  • Increased demand for ZEB/ZEH along with more widespread use of subsidies
  • EIncrease in share price and stronger base for fund-raising along with expansion of our ESG investor base
Mid to long term Low
  • Utilize the J-Credit System
  • Increased demand along with review of supply chains and building of logistics and stock point locations
  • Increased demand for cloud services that enable advanced data security to prevent data loss
  • Increase in disaster prevention works to improve wastewater treatment performance, etc.
  • Increased demand for construction resiliency data building services
  • Increased demand for BIM modeling for disaster response facilities
  • Expanded lineup of seismic reinforcement products along with more resilient infrastructure
Short to long term Medium
  • Review supply chain and make proposals for logistics and stock point locations
  • Develop and sell products and services that contribute to improving resilience

Risk Management

Our Group has established a “Risk Management Committee” chaired by the director in charge of risk management in order to earn the trust of our stakeholders and fulfill our corporate social responsibility by endeavoring to understand the various risks faced by the Group and take measures against such risks in order to reduce the frequency of occurrence and minimize losses.
The Risk Management Committee deliberates and makes decisions on important company-wide risks and opportunities.
The “TCFD Subcommittee,” which is a subcommittee of the Sustainability Committee, takes the lead in identifying, evaluating, and managing risks related to climate change, and reports its outcomes to the Risk Management Committee through the Sustainability Committee.
The Risk Management Committee deliberates on the outcomes of risks analysis in each business division and Group company, and by the TCFD Subcommittee, and the outcomes of the Risk Management Committee’s deliberation are reflected in the implementation of risk countermeasures and the execution of business.
We have also established an environmental management system (EMS) based on ISO 14001 to respond to environmental issues, and the outcomes of EMS activities are reported to the Risk Management Committee.
Please refer to the following URL for more information on risk management.

Metrics and Targets

Regarding CO2 emissions, we aim to achieve net zero (carbon neutrality) by the fiscal year 2050. By the fiscal year 2030, we have set goals to reduce Scope 1 & 2 emissions by 46% compared to the fiscal year 2013, and to reduce Scope 3 emissions by 5% compared to the fiscal year 2023.
In addition, since we have many products and services that can contribute to reducing CO2 emissions, we will also consider setting a target for the amount of CO2 reduction that our Group’s products and services contribute to.

(Unit: t-CO2)
Scope Actual emissions Target emissions
FY2023 FY2030 FY2050
Scope1*1 + Scope2*2 2,517 1,175
(46% reduction compared to the FY2013)
(100% reduction compared to the FY2013)
(Scope1) 402 - -
(Scope2) 2,115 - -
Scope3*3(Category1,2,3,5,6,7)*4 262,590 249,460
(5% reduction compared to the FY2023)
(100% reduction compared to the FY2023)
*1 Scope 1: direct GHG emissions from owned or controlled sources
*2 Scope 2: indirect emissions, from the generation of purchased electricity, heat and steam
*3 Scope 3: all other indirect emissions in the value chain (upstream and downstream), including: purchased goods & services; capital goods; fuel & energy-related activities; transportation & distribution; leased assets; employee commuting; business travel; waste from operations; processing & use of products, investments & franchises.
*4 Category1: Purchased goods and services
  Category2: Capital goods
  Category3: Fuel- and energy-related activities (not included in Scope 1 or Scope 2)
  Category5: Waste generated in operations
  Category6: Business travel
  Category7: Employee commuting