Endorsement of TCFD Recommendations
Task Force on Climate-related Financial Disclosures (TCFD) was launched by the Financial Stability Board (FSB) at the request of the G20 finance ministers and central bank governors. TCFD considers how companies should disclose information on risks and opportunities associated with climate change and enables appropriate evaluation by investors, thereby ensuring correct capital allocation, efficient financial markets, and a sustainable and stable economy.
In February 2020, FamilyMart endorsed the intent of the TCFD’s final report and discloses information on the four core elements of organizational management recommended by TCFD: Governance, Strategy, Risk Management, and Metrics and Targets.
Governance and Risk Management
To appropriately respond to a wide range of climate-related risks and opportunities that could have a broad impact on our value chain, FamilyMart centrally manages its risks and opportunities through the Sustainability Committee, which oversees sustainability activities across the entire Group.
The committee monitors natural disasters and trends in laws and regulations, considers response plans, sets climate-related targets and implementation plans (including the FamilyMart Environmental Vision 2050), and manages and evaluates progress in sustainability. Matters deliberated by the committee are reported to the Board of Directors as appropriate, for review of the annual budget and business plan.
Strategies
- Scenario Analysis Targets and Methods
FamilyMart conducted a scenario analysis in 2020 aimed at recognizing climate-related risks and opportunities, verifying the adequacy of our current climate change measures and applying the findings when formulating future business strategies. A number of scenarios were considered for various climatic and social environments and their impacts for both a 2°C and 4°C increase in global temperatures. The analysis considers up to 2050, the final target year for the FamilyMart Environmental Vision 2050.
- Analysis Details
[Business] Domestic convenience store business
[Scope] Raw material procurement, contract manufacturing partners (ready-to-eat meals), logistics, stores, and consumer use
[Period] Current to 2050 (Short-term: within 1 year, Medium-term: within 10 years, Long-term: 10 or more years
- Scenarios Employed
[Transition Scenarios] IEA World Energy Outlook 2019 Sustainable Development Scenario (2℃), Current Policies Scenario (4℃)
[Physical Scenarios] IPCC Fifth Assessment Report RCP 2.6 (2℃), RCP 8.5 (4℃)
- Analysis Steps
(1) Cover the possible impacts of each climate-related risk/opportunity factor on the value chain as described in the scope of analysis.
(2) Review (1) and organize risks with a higher likelihood of occurrence.
(3) Verify business impacts and calculate financial impacts under the 2°C and 4°C scenarios based on the adopted scenarios.
(4) Examine measures in response to the results of (3).
- Results
As shown in the results of the scenario analysis, a world with a 4°C increase in temperatures and in which current policies would be extended and natural disasters are expected to worsen due to acute physical risks, the risk of damage at all stages of the FamilyMart value chain—from raw material procurement to stores—would be greater than for a +2°C world with stringent climate change measures in place. The impact of rising temperatures would also likely result in relatively large changes in consumer behavior, and failure to introduce products that match changes in temperature zones could lead to lost opportunities. In a +2°C world, strengthened climate-related policies are to be expected, and investment costs will be incurred to comply with the introduction of carbon taxes and stricter regulations on CFCs and plastics.
Targets and Metrics
We are working to reduce risks and enhance opportunities related to climate change, and have set short- to long-term targets and metrics that cover each stage of our value chain.
Scope Emissions
FamilyMart is working to determine* and reduce our CO₂ emissions, not only in our stores but also along the entire supply chain—from suppliers’ raw materials procurement and product manufacturing through to logistics and even disposal by consumers.
In fiscal 2022, CO₂ emissions across the entire supply chain were 89% of the SBT base year (FY2018).
We will continue to work on improving the accuracy of our data collection and expanding the scope of calculations, as well as analyze the calculation results to strengthen our efforts to reduce CO₂ emissions throughout the supply chain.
*Calculated CO₂ emissions based on the Ministry of the Environment's Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain (Retail Industry), Ver. 1.0.
