The Densan System Group has established a Sustainability Committee to deliberate and monitor sustainability issues from a medium- to long-term perspective, from social issues including environmental issues such as climate change, and to implement and lead the Sustainability of the Densan System Group. I'm here. The Sustainability Committee is chaired by the President and Representative Director, and consists of directors (excluding non-executive directors) and employees appointed by the President, as well as experts and experts in sustainability management commissioned by the President. It is held twice a year on a regular basis. Matters examined and deliberated by the Sustainability Committee are proposed and reported to the Board of Directors or Management Committee.
For the Densan System Group, we recognize that climate-related issues are a serious business risk, leading to rising raw material and fuel prices and electricity prices. On the other hand, in the data center business, we regard the use of renewable energy as an opportunity to provide new added value. I am responsible. As part of the process of reporting climate-related issues to the President and Representative Director, we will report on policies, plans, and progress for each initiative at the Management Strategy Meeting. The President and Representative Director evaluates initiatives aimed at resolving climate-related issues, seeks consistency with company-wide business activities, and makes necessary decisions regarding allocation of management resources, establishment of systems, promotion of initiatives, and revision of direction. Makes decisions, instructions, and advice.
The Group conducts scenario analysis for the purpose of evaluating the Group's resilience and financial impact against important risks and opportunities related to climate change. Using two scenarios (1.5°C/2°C scenario and 4°C scenario) for future climate change, we will analyze and analyze the impacts as of 2030 for the “information service business” and “receiving agent service business.” I am considering.
| Setting scenario | 2℃(1.5℃) scenario | 4℃scenario |
|---|---|---|
| Focusing on decarbonization and renewable energy to reduce GHG emissions | Avoid physical risks due to climate change | |
| Society of society assumed by the Company |
・Increased cost by introducing carbon tax according to CO2 emissions. ・The rate of electricity rates by utilizing green energy generated by renewable energy. ・The need for high environmental performance in the data center increases. ・Increases preferences for environmentally friendly services such as paperlessness. ・Increased office rent due to improvement in environmental performance. ・The price of materials for various services and so on. ・Promote conversion to electric vehicles. |
・An increase in air conditioning costs associated with the rise in temperature.。 ・The need for a strong data center that can be applied to abnormal weather increases. ・A decrease in the opportunity to go out in the summer due to an rise in temperature. ・Due to the increase in abnormal weather such as storms due to the rise in temperature, the number of failures such as outdoor equipment has increased. ・Natural disasters, suspension of transportation infrastructure and increased delays. ・The procurement of materials for various services, etc., is suspended due to the suspension of factories due to natural disasters. |
| Classification | Content | Impact | Our response / countermeasures | |
|---|---|---|---|---|
| ２℃ | 4℃ | |||
| Transition risk | With the spread of renewable energy, the energy cost increases due to soaring electricity rates that can be easily received. | ■■□ | - |
・Promote energy saving in corporate activities and suppress power consumption. |
| With the introduction of carbon tax, the effects of carbon tax are passed on to the GHG / CO2 due to increased tax payments and low -carbon actions, and the cost increases. | ■■■ | - |
・In the "information service business", the Green Energy Data Center by switching to CO2 free electricity reduces the CO2 emissions and reduces the tax burden. ・In the "storage agency service business", it is highly likely that the use of paper such as payment forms will affect carbon tax, promoting paperless storage agency, reducing CO2 emissions, and reducing tax burden. |
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| There is a risk of loss of new transactions and cancellation of existing transactions due to reputational damage caused by insufficient efforts to address climate change. | ■□□ | - |
・We believe that promoting approach to climate change will take measures to reduce reputation, and at the same time, the evaluation of initiatives will increase customer needs. |
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| Physical risk | Increased power cost due to increased cooling energy for maintaining working environment and quality control in business establishments due to an average temperature rise. | - | ■□□ |
・The aim is to reduce the efficiency of business establishments by introducing flexible working styles such as at home to reduce the cost of maintaining working environment. ・Incorporating office casuals to constant the indoor temperature, using the power saving function of PCs and multifunction machines to reduce power consumption. |
| Suspension of procurement of raw materials for various services due to suspension of factory operations due to natural disasters, etc. In addition, delivery delays due to the impact on logistics infrastructure. | - | ■■□ |
・We will reduce the risk of suspension of business by securing multiple suppliers (base) and contractors that take BCP measures in our supply chain. |
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| chance | Increased sales due to increased demand for new services that contribute to "relaxation" and "adaptation" of customer climate change. | - | ■■□ |
・In the "Information Service Business", the resilience of the Green Energy Data Center of Tono IDC and the reinforcement of energy -saving and renewable business infrastructure are developed, so customer needs are highly evaluated for reduction risk countermeasures. I believe that it can be expanded. ・The construction of a new paperless payment and cashless payment service, which changes to a payment slip, especially when the social system is transformed, is a major opportunity. |
| Increased awareness of corporate BCP measures. | - | ■□□ |
・Increased needs for strong data centers that can be applied to abnormal weather, increasing the number of proposals for utilizing data centers. |
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| Development of new services and products by intensifying abnormal weather (typhoons, floods, etc.) to change work style. | - | ■■□ |
・In the "Information Service Business", the promotion of teleworking has increased domestic security measures and DX solution sales opportunities. ・In the "storage agency service business", the number of payments handled due to increased purchases due to online shopping by acceleration of telework. |
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| Increasing the frequency of outdoor equipment such as outdoor equipment and the frequency of defects is expected to increase sales due to the need for monitoring services and the increase in maintenance services. | - | ■□□ |
・We believe that consideration of solutions such as prevention of system problems and early recovery in high -temperature and high humidity environments will be differentiated from other companies in the same industry. |
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Regarding climate -related risks associated with the promotion of the business, we will compare and manage the risks of the Group based on the "Risk Management Rules", and make decision -making decisions, budget -budget -budget, and discussions at management conferences, management strategy meetings, etc. We are continuously monitored by controlling based on performance comparison, internal audits, law compliance reporting systems, and the introduction of various regulations regarding the reliability of financial reports.
Based on the climate -related risks and opportunities confirmed at the management strategy meeting, each department promotes activities to achieve the goal. The achievement of environmental goals will be managed at the management strategy conference held every half term.
The Computing Systems Group reported that the business managers of each group company who are in charge of business activities reported at the business strategy session held three times a year at a business strategy meeting held three times a year. We have formulated a corresponding plan and monitoring further.
Reported climate-related risks (and opportunities) are submitted to the Sustainability Committee through the Management Strategy Council Secretariat
The Sustainability Committee will discuss the corresponding plans for each department twice a year in principle and report to the board of directors.
The Densan System Group recognizes the importance of reducing GHG emissions and introducing renewable energy in dealing with climate-related risks.
In addition, we believe that efforts to solve climate-related issues will create new value and lead to opportunities.
ＧWe will monitor the reduction rate of GHG emissions as an index.
We will promote information disclosure in line with the TCFD recommendations and engage in activities aimed at “limiting risks” and “creating and capturing opportunities” related to climate change.
Scope 1, Scope 2 and, if applicable, Scope 3 greenhouse gas (GHG) emissions
*1 Scope 1: Direct emissions of greenhouse gases by the company (company vehicles)
Scope2: Indirect emissions associated with the use of electricity supplied by other companies
*2 Scope 3: Indirect emissions other than Scope 1 and Scope 2 (emissions from other companies related to our company's activities)
| Scope1 and 2 | 2030 goals | Reduce total amount by 73 % |
|---|---|---|
| 2050 goals | Carbon neutral |
By switching to renewable energy, we will reduce CO2 emissions by replacing our company cars with electric cars.
