We will set up a TCFD response project in order to support the Sustainability Promotion Committee. The project analyzes climate change response scenarios, risks, and opportunities, and then executes response measures. The results will be reported to the Sustainability Promotion Committee.
　Matters discussed by the committee will be reported to the Board of Directors for approval and instructions.
　The sustainability agenda reported to, approved by, or ordered by the Board of Directors will be communicated to relevant departments and group companies by the Sustainability Promotion Committee. Then, the departments and group companies will reflect the agenda in their management plans and operations. In addition, we will request that our suppliers cooperate with us, depending on the items included in the agenda.

We have analyzed and assessed the impacts of climate change on our company by 2040, in line with the guidelines recommended by TCFD, utilizing a business environment scenario analysis method.

WEO: IEA's World Energy Outlook 2020
IPCC: Intergovernmental Panel on Climate Change
A-PLAT: Climate Change Adaptation Information Platform

　To identify climate change risks and opportunities in a more specific manner, we have forecast changes in our business environments under the 1.5°C and 4°C scenarios and then identified possible risks and opportunities.
Of those, shown in the table below are the ones that can have major impacts on our management.

　Our scenario analysis indicated that some part of our operations can be affected by social and market changes associated with climate change, while there are also considerable business opportunities, such as expansion of renewable energy product markets.
　To achieve sustainable management and to grow, we need to act promptly, forecasting accurately how our business environments will change. We are currently studying possible measures.

　Our group has the Risk & Compliance Committee (RC Committee) in place as the governing body for compliance with laws and regulations, our articles of incorporation, and corporate ethics, and to establish a risk management system. The committee discusses matters important in terms of risk and compliance, and then determines policies. Individual risks are controlled and addressed by responsible departments under the RC Committee's supervision.

　Climate risk items are managed by the Sustainability Promotion Committee and are assessed and reviewed by the RC Committee as part of company-wide risk management. The results are reported to the Board of Directors.

　Toyo Tanso is accelerating its programs for the reduction of greenhouse gas emissions, aiming to become carbon neutral by 2050.
　The greenhouse gas emissions in the past years in Scope1, Scope2 and Scope3 were calculated in accordance with the GHG protocols. We are also working to set target levels so as to reduce greenhouse gas emissions.

We will set metrics and targets for risk and business opportunity management after adopting response measures for each risk and opportunity.