Disclosure Based on the TCFD Recommendations

The Tomoku Group will continue to enhance the quality and quantity of information disclosure based on the TCFD recommendations that we started last year.

According to the IPCC’s 6th Assessment Report in August 2021, anthropogenic greenhouse gas emissions have increased, and the global median surface temperature has risen by 1.09°C from the pre-industrial period to the 2011-2020 average, and that it is unequivocal that human activities have warmed the atmosphere, the ocean, and the land.

Global warming is changing the climate and having a major impact on the global economy, society, and environment. We also recognize that reducing greenhouse gas emissions, a major factor in global warming, is an urgent challenge for sustainable growth. We will continue to actively disclose our initiatives and work to improve corporate value going forward.

1.　Governance

The Tomoku Group, considering the response to climate change to be one of our key corporate issues, manages these initiatives within the Sustainability Committee chaired by the President & CEO.
The Committee meets four times a year, with the participation of directors and officers. The TCFD Disclosure Project Team (hereinafter referred to as the TCFD Disclosure PT) has been established under the Committee as a subordinate organization to address climate change issues.

The TCFD Disclosure PT consists of the directors, officers, and managers of the corrugated container and display carton operations, the housing operations, and the transportation and logistics operations of the Group's major companies.
The Committee deliberates on and approves TCFD Disclosure PT proposals and reports, as well as provides instructions and advice to each division or company in the Group, when it is required.

The Committee reports to the Board of Directors at least once a year on the state of broader sustainability initiatives, including those related to climate change, and the Board of Directors deliberates on and makes resolutions on the progress (Figure 1).

Figure 1 Governance

2.　Risk Management

The Tomoku Group has established, developed and operates a comprehensive risk management system overseen by the Financial Risk Committee, the Compliance Committee, and the Sustainability Committee chaired by the President & CEO (Figure 2).

We regularly assess risk across the Group and separately identify high-priority risks within each committee while determining serious risks across the Group, then deliberating on and presenting resolutions to the Board of Directors.
Every Committee manages serious risks, meeting twice a year, even though each of the Group's companies plans and implements countermeasures based on the type of risk.

Figure2 Risk Management

Materiality

The Group has selected twelve materiality issues by classifying important issues from the perspective of their impact on all stakeholders and on the Group. We also carry out relative risk assessments, and we will work to resolve these materiality issues through business operations to contribute to a sustainable society (Figure 3).

Figure 3 Materiality Issues