TOA CORPORATION regards climate change as one of its most material issues, in December 2021, expressed its support for the final recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
TCFD is the international initiative established in 2015 by the G20 Financial Stability Board (FSB) to improve the disclosure of information on the financial impact of climate-related risks and opportunities.
The TOA CORPORATION Group discloses climate-related information in accordance with these TCFD recommendations.
Governance | The organization’s governance around climate-related risks and opportunities |
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Risk management | The processes used by the organization to identify, assess, and manage climate-related risks |
Strategy | The actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning |
Metrics and targets | The metrics and targets used to assess and manage relevant climate-related risks and opportunities |
The ESG Committee has been established to promote company-wide ESG activities of the TOA CORPORATION Group. The committee is chaired by the president and consists of one vice president, six general managers, a director who is a full-time audit committee member, and an outside director who is an audit committee member.
The ESG Committee meets twice a year to formulate basic policies and specific action plans concerning ESG activities, including responses to climate change, review the results of activities, and discuss measures. The results of the committee's deliberations are reported to the Board of Directors, and important decisions are communicated to business divisions (including branches) and group companies to establish a group-wide governance system. In the future, TOA CORPORATION will aim to share the policies and the plans related to ESG with partner companies.
The policies and systems for risk management of the TOA CORPORATION Group, including climate change, are deliberated by the "ESG Committee". In classifying risks and opportunities, including climate-related risks, we organize the possible events and impacts of each, and evaluate them based on "frequency of occurrence" and "impact of occurrence". For each risk and opportunity item, a lead department is established, and preventive measures are discussed. The Group's material risks and opportunities determined through these processes are discussed and approved by the ESG Committee and reported to the Board of Directors. The material risks determined by the ESG Committee are integrated into the Company's management strategy and other relevant documents.
The Board of Directors receives reports on climate change-related matters from the ESG Committee and oversees the progress of efforts to address climate change-related issues.
Based on the TCFD recommendations, scenario analyses were conducted to identify and evaluate risks and opportunities in our group and to understand the impact of climate-related issues on our business, taking all perspectives into account: short term (3 years), medium term (10 years), and long term (30 years).
In considering risks and opportunities related to "transition to a decarbonized society" and "physical change due to climate change", the following representative scenarios are adopted.
Based on these results, we are strategically addressing the following issues as specific responses and are maximizing business opportunities while limiting negative financial impact.
Classification | Risks / Opportunities | Impacts | Impact level | Countermeasures | |
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Transition scenarios | Risks | Introduction of carbon tax and strengthening regulations for decarbonization |
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Large |
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Changes in the energy mix |
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Medium |
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Opportunities | Growing demand for environmentally friendly buildings |
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Large |
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Increased demand for carbon-neutral facilities |
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Large |
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Increased demand for renewable energy |
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Large |
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Growing demand for creation of Blue Carbon |
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Medium |
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Improvement of evaluation against the efforts for climate change |
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Medium |
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Physical scenarios | Risks | Increase in the average temperature |
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Large |
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Aggravation of natural disasters |
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Medium |
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Opportunities | Market changes associated with climate change |
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Large |
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Increased construction demand due to sea level rise |
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Large |
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We have established key performance indicators (KPIs) for ESG-related initiatives and monitor their status. As one of KPIs, we have set the total greenhouse gas emissions (Scope 1+2 and Scope 3) as metrics, and established its reduction target based on SBT, in consideration of the impact of future climate-related risks and opportunities. These had certified as WB2°C target by the SBT initiative in September 2022. In addition, for Scope 1+2, Net Zero target by FY2050 was set in March 2023. We are managing the total amount of greenhouse gas emissions as a direct parameter affected by climate-related risks and opportunities and promote specific reduction measures.
Total emissions Scope1+2 |
More than 25% cut in FY2030 (Compared to FY2020) * Net Zero by 2050 |
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Total emissions Scope3 |
More than 25% cut in FY2030 (Compared to FY2020) * |
* The above targets were approved by SBT initiative as Science Based Targets (WB2°C targets) on September 2022.
Through supporting various climate change-related initiatives below, the TOA CORPORATION Group will promote ESG management from a more global perspective and create social value that is unique to TOA.
Addressing climate change (decarbonization and carbon neutrality) is a pressing issue that must be addressed globally, and the construction industry has an important role to play in this regard.
We have a long-term vision (TOA2030) and have announced a roadmap to achieve carbon neutrality by 2050 in our mid-term management plan.
In addition, we are further expanding our climate-related information disclosure in line with the final recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) and are making steady progress in our efforts to achieve this goal.
>Climate-related disclosure based on the TCFD
In FY2022, we established Carbon Neutral Promotion Department in the Corporate Planning Division to further promote decarbonization. Going forward, we will work to decarbonize our construction business in line with our carbon neutral roadmap. In addition to taking the lead in our own initiatives, we will steadily promote the realization of a decarbonized society in cooperation with various members of our supply chain.
Total GHG emissions of the TOA CORPORATION Group (by Scope) are shown below.
Item | Unit | FY2020 | FY2021 | FY2022 | Remarks |
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TOTAL | t-CO₂ | 1,908,590 | 2,283,793 | 1,659,188 | |
Scope 1+2 | t-CO₂ | 133,872 | 115,768 | 126,803 | |
Scope 1 | t-CO₂ | 128,628 | 111,428 | 124,134 | Direct greenhouse gas emissions by the reporting company itself |
Scope 2 | t-CO₂ | 5,244 | 4,340 | 2,669 | Indirect emissions from the use of electricity, heat, or steam supplied by others |
Scope 3 | t-CO₂ | 1,774,718 | 2,168,025 | 1,532,385 | Indirect emissions other than Scope 1 and Scope 2 (Emissions by others related to the company’s activities) |
* Third-party assurance has been received from Sustainability Accounting Co., Ltd.
* Scope 3 is the sum of categories 1,2,3,4,5,6,7,11,12,13.
Item | Unit | FY2020 | FY2021 | FY2022 | Remarks |
---|---|---|---|---|---|
Category 1 | t-CO₂ | 456,045 | 702,287 | 509,738 | Purchased goods and services |
Category 2 | t-CO₂ | 24,010 | 7,889 | 11,779 | Capital goods |
Category 3 | t-CO₂ | 19,467 | 17,496 | 19,977 | Fuel-and energy-related activities not included in the Scope 1 or 2 |
Category 4 | t-CO₂ | 12,801 | 15,425 | 17,740 | Upstream transport and delivery |
Category 5 | t-CO₂ | 604 | 891 | 814 | Waste generated in operations |
Category 6 | t-CO₂ | 2,012 | 2,258 | 3,135 | Business Travel |
Category 7 | t-CO₂ | 593 | 593 | 628 | Employee commuting |
Category 11 | t-CO₂ | 1,214,676 | 1,364,287 | 902,834 | Use of sold products |
Category 12 | t-CO₂ | 44,510 | 56,899 | 65,740 | End-of-life treatment of sold products |
Category 13 | t-CO₂ | 0 | 0 | 0 | Downstream leased assets |
* Third-party assurance has been received from Sustainability Accounting Co., Ltd.
As for actual GHG emissions in FY2022, for Scope 1+2, energy conservation activities, introduction of load control systems (introduced on some of our work vessels), use of electric and hybrid heavy equipment (introduced mainly in construction equipment for land-based work), fuel efficiency improvement (use of alternative fuel to diesel oil and combustion-enhancing additives), and introduction of renewable energy were carried out, and these measures resulted in a 5.3% reduction compared to the target of 5% reduction from the base year (FY2020) emissions.
For Scope 3, we reduced emissions by 13.7% compared to the base year (FY2020) target of 5% reduction by introducing construction materials with low environmental impact and building relationships with suppliers to decarbonize through the value chain (e.g., promoting the introduction of ZEB).
These results enabled us to achieve our targets in all Scopes.
CO₂ emissions from our domestic construction works are calculated based on sampling surveys, and CO₂ emission intensity (per 100 million yen of construction sales) and total CO₂ emissions are shown in the figures below. This total amount of CO₂ emissions is equivalent to Scope 1+2 for domestic construction works.
Item | Unit | FY2020 | FY2021 | FY2022 | Remarks |
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Offshore Civil Engineering | t-CO₂/100 million yen | 122.4 | 71.0 | 86.7 | |
Onshore Civil Engineering | t-CO₂/100 million yen | 69.9 | 68.1 | 54.1 | |
Building Construction Work | t-CO₂/100 million yen | 10.8 | 12.4 | 8.6 | |
Total | t-CO₂/100 million yen | 69.0 | 50.4 | 52.6 |
Item | Unit | FY2020 | FY2021 | FY2022 | Remarks |
---|---|---|---|---|---|
Offshore Civil Engineering | t-CO₂ | 75,491 | 48,923 | 55,317 | |
Onshore Civil Engineering | t-CO₂ | 22,935 | 27,724 | 20,833 | |
Building Construction Work | t-CO₂ | 6,154 | 6,960 | 4,590 | |
Total | t-CO₂ | 104,580 | 83,608 | 80,740 |
In FY2022, both emissions intensity and total emissions in offshore civil engineering decreased by 27-29% compared to the base year (FY2020). In addition, both emissions intensity and total emissions for onshore civil engineering and building construction work also showed a downward trend. Thus, the reduction of emissions in offshore civil engineering had a significant impact, and the total emissions of all domestic construction projects in FY2022 were about 23% lower than in FY2020. This result contributed to the reduction and target achieved of the Group's Scope 1+2 emissions.
As input resources corresponding to the above GHG emissions, the total energy consumption of our group is shown below.
Item | Unit | FY2020 | FY2021 | FY2022 | Remarks | |
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TOTAL | MWh | 492,663 | 434,297 | 495,302 | ||
Electricity | MWh | 10,738 | 9,412 | 8,884 | ||
Fuel | heavy oil | MWh | 313,444 | 253,842 | 297,601 | |
Light oil | MWh | 166,598 | 170,155 | 188,627 | ||
kerosene oil | MWh | 1,883 | 888 | 190 |
* Third-party assurance has been received from Sustainability Accounting Co., Ltd.
The above greenhouse gas emissions and energy consumption have been given assurance by an independent third-party.
>Independent Third-Party Assurance (PDF)