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Responding to Climate Change

Basic approach

The Group strives to protect the environment through its business activities in accordance with the Group Vision, which is the corporate philosophy that takes into account the natural environment and the global environment. In particular, we recognize that climate change poses serious risks, and we are actively promoting initiatives in this area.
In fiscal year 2021, we endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and participated in TCFD Consortium. Based on the recommendations, we will actively disclose information about both business risks and opportunities posed by climate changes from the perspectives of strategy and risk management.

Information disclosure based on TCFD recommendations

Governance

The Group will strive to address issues so it can help bring about a sustainable society by carrying out its wide-ranging businesses and services based on the “Group Vision,” which constitutes the Group’s philosophy, whereby the Company itself also aims at sustainable and dynamic growth.
The Company has been aggressively pursuing initiatives called “Sustainability Actions” toward realizing a sustainable society. Setting 12 key objectives organized under four broad categories to be tackled by the Company in particular, it has been moving forward with initiatives in line with the agenda.
In order to pursue these initiatives sustainably, aggressively and systematically, the Group has formulated the “Regulations for System Promoting Seibu Group Sustainability Actions” and has a promotional system in place. To promote Sustainability Actions groupwide, the Seibu Group Sustainability Committee has been set as the organization that strongly pushes forward with efforts by determining the direction of Sustainability Actions, monitoring their progress, and using other means. The Committee is headed and chaired by the President & Chief Executive Officer of Seibu Holdings and is composed of the Executive Officer in Charge of the Corporate Strategy Department of Seibu Holdings—the organization responsible for promoting Sustainability Actions and formulating group business plans—and the presidents of the main business companies in the Seibu Group. The Committee monitors initiatives based on the TCFD recommendations and decides on their direction through activities, such as keeping track of initiatives for reducing CO2 emissions, which are the main cause of global warming, and discussing how to identify and respond to climate change risks. The contents of discussions in the Committee are reported at meetings of the Board of Directors.
Click here for details of the promotion system.


Strategy

Making assumptions about the future impact resulting from climate change, the Seibu Group extracted risks and opportunities and discussed them in the Seibu Group Sustainability Committee.
Going forward, the Company will analyze and set assumed scenarios and then proceed to extract, analyze, and disclose impacts on the Company’s business, strategy and financial plans.

Major risks and opportunities

Category Risk items and impacts Timing of occurrence Impact
Migration risk Policy, laws and regulations Introduction of carbon tax (rises in electricity bills and fossil fuel expenses due to increasing electricity generation costs) Long term↓↓
Stricter compliance with carbon emissions targets, and ZEB regulations (incurring cost to address them [updating of equipment]) Medium term↓↓↓
Market Energy procurement costs (impact of changes in overall energy demand) Medium term↓↓
Reputation Loss of users due to excessive CO2 emissions compared to other companies Medium term↓↓
Physical risk Impact of exacerbation of extreme weather on business (increase in suspension of transport services and operations and reduction of operational rates) Medium term↓↓
Damage to facilities and buildings due to exacerbation of extreme weather (increase in renovation expenses and higher risks of flooding and landslides) Medium term↓↓↓
Decrease in the number of users as the intense heat of summer lowers their desire to go out Medium term ↓↓↓
Opportunity Reduction in power and utility expenses due to improved energy efficiencyMedium term ↑↑
Greater use of company-owned land and effective use of company-owned forests due to wider usage of renewable energyMedium term ↑
Users’ growing preference for transportation methods, accommodations, and office buildings that emit less CO2 Medium term↑↑
Increasing preference for facilities with high disaster preparedness and more investment by investorsMedium term↑↑

Timing of occurrence: 1 year in the short run, 1 to 4 years in the medium run, and 4 to 15 years in the long run


Risk Management

The Seibu Group Sustainability Committee will identify and evaluate climate-related risks. Afterward, the extracted and identified risks and opportunities will be dealt with sequentially in an appropriate and timely manner through corresponding Sustainability Actions by the Sustainability Actions Promotion System and suitable risk management by the Risk Management System. In addition, climate change risks are set as one of those in the “Risk Management Plan,” which is formulated annually based on the “Regulations for Seibu Group Risk Management,” and are controlled after being integrated into group-wide risk management.

Indicators and Goals

The Seibu Group has adopted "greenhouse gas reduction" as one of its Sustainability Actions agenda and has been actively striving to reduce emissions.
The Group has set environmental footprint reduction targets in a continued effort to reduce CO2 emissions and help prevent further global warming. The Group will set targets and manage indicators sequentially that are necessary for its active efforts in the future.


Our reduction target for Environmental Impact

The Group aims to reduce CO2 emissions per unit of operating revenue by 25% by fiscal 2030 compared to fiscal 2018.