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
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 CEO of Seibu Holdings and is composed of the President and Representative Director, President and COO of Seibu Holdings and 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.
We have held discussions on climate change related strategies including identifying risks/opportunities and assessing their impacts at the Seibu Group Sustainability Committee in the following steps. The Seibu Group Sustainability Committee will continue to monitor progress of these plans.
- STEP1: Identifying climate-related risks/opportunities
- STEP2: Defining a group of scenarios
- STEP3: Assessing business impacts
- STEP4: Planning/Implementing countermeasures
Businesses subject to scenario analysis:
Urban Transportation and Regional, Hotel and Leisure, and Real Estate
- Intergovernmental Panel on Climate Change (IPCC)
- Documents published by the International Energy Agency (IEA) (WEO2020, WEO2019, ETP2020, ETP2017, etc.)
STEP1: Identifying climate-related risks/opportunities
Based on the classification of risks and opportunities specified in the TCFD, we identified climate-related risks and opportunities that are likely to affect our businesses.
We now identified a transition risk that could have an impact (policies in each country, market, technology and reputation) and a physical risk (chronic risks: the rise in average temperatures, changes in precipitation and weather patterns & acute risks: extreme weather, etc.) in addition to opportunities with the transition to a decarbonized society.
(Please refer to STEP3: Assessing business impacts mentioned in the table below)
STEP2: Defining a group of scenarios
We deliberated on multiple scenarios in line with the TCFD’s recommendation, to cope with uncertainty in business.
- Cost increase due to tighter regulations such as a rise in carbon tax
- Cost increase in response to measures for renewable energy
- Attracting eco-friendly customers if energy consumption is greatly reduced due to the progress of energy saving.
- Increasing competitiveness by spreading ZEB/ZEH
- Cost reduction due to development of energy efficient technologies
- Business opportunities for biomass and solar power generation will expand
●2℃ or lower scenario in which the world works to keep the rise in the average temperature to less than 2℃
Risks in terms of transition aspects will be likely to surface as follows:
In terms of physical risks, the impact will be alleviated to a certain extent.
On the other hand, we consider opportunities as below are possible.
- Damage to property assets and, therefore, an increase in repair costs due to frequent typhoons and heavy rains
- Decrease in sales due to shutdown at facilities/transportation caused by disasters
Transition risks are unlikely to manifest.
●Scenario of 4℃ scenario in which the global average temperature at the end of this century rises by 4℃
Risks in terms of physical risks will be likely to surface as follows:
STEP3: Assessment of Impact
We assess the impact of the risk/opportunity items identified in STEP1 on different scenarios assumed in STEP2, quantitative analyses, and changes in key parameters assumed by external organizations.
|Category||Risk items and impacts||Contents||Impact||Period|
||Policy, laws and regulations||Increase in costs due to the introduction of a carbon tax||Increase in costs due to introduce of carbon tax (approx. ¥1.8 billion-¥2.5 billion in 2030 approx. ¥2.4 billion-¥4.2 billion in 2050)||↓↓↓||Medium term|
|Costs associated with stricter carbon emission targets and ZEB regulations||Increase in costs due to facility upgrades, etc. when response to government targets and strengthen enhancements is required.||↓↓↓||Mid-term～Long-term|
|Market||Increase in energy procurement costs due to increased demand, etc.||Increase in costs due to change in energy mix||↓||Short term|
|Reputation||Lack of users due to relatively high environmental impact||Decrease in sales due to the shift of environmentally conscious users to services with low environmental impact||↓||Medium term|
|Physical risk||Impact on business due to extreme weather conditions (suspension of operations, closure of business, reduction in capacity utilization)||Approximately hundreds of millions of yen in damage caused by past typhoons, and increased frequency of typhoons, etc. that cause similar damage||↓||Medium term|
|Destruction of facilities and buildings due to extreme weather events (Renovation costs, flooding, increased risk of landslides)||Approximately several billion yen in damage caused by past typhoons, and increase in frequency of typhoons, etc. that cause similar damage||↓↓||Medium term|
|Opportunity||Decrease in power and utility costs due to energy efficiency improvements||As a result of streamlining, electricity consumption decreased by 20%- by 30% in fiscal 2030, by 30%- by 45% in fiscal 2050||↑↑↑||Medium term|
|Expanding the use of company-owned land in line with the expansion of renewable energy and effective use of company-owned forests||Significant increase in supply of both solar and biomass power generation is expected, enabling effective use of our assets||↑↑||Medium term|
|Preference for transportation, accommodation, and office buildings with low CO2 emissions||By reducing environmental impact, environmentally conscious users prefer our services and increase sales.||↑||Short to medium term|
|Preference for facilities with high disaster prevention functions, investors' investment||By enhancing disaster prevention functions, users and investors with a high level of safety awareness prefer us, and this will have a positive impact on sales growth and stock prices.||↑||Medium term|
STEP4: Planning/Implementing countermeasures
We are proceeding with efforts to manage “risks” appropriately and turn “opportunities” into business opportunities. Meanwhile, the Seibu Group Sustainability Committee and other committees will continue to monitor the progress of these activities.
- Reducing energy consumption through promoting energy conservation
- Utilizing in-house power generation of renewable energy and external procurement
- Understanding and preparing response measures for floods and landslides at each facility.
- Use of insurance, etc.
- Implementation of emergency drills such as comprehensive disaster response drills
- Controlling energy consumption by replacing equipment appropriately
- Promoting solar power generation, biomass power generation, etc., making effective use of the company’s assets: land and forests, etc.
Responding to Transition Risks
Response to Physical Risks
Responding to Opportunities
For details, please refer to the Environmental Measures section.
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.
Please refer to the following link for details on 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.
Previously, we had set targets for reducing environmental impact in order to reduce CO2 emissions. In fiscal year 2022, we revised our targets for reducing environmental impact in order to further reduce environmental impact.
As a long-term goal, we set a new target of net zero CO2 emissions for fiscal year 2050.
To achieve our long-term target, we also established a medium-term target of a 46% reduction by fiscal year 2030 compared to fiscal year 2018, and set a short-term target of a 5% reduction compared to the previous fiscal year. In addition, we have established new targets for the introduction of renewable energy, which is essential for reducing CO2 emissions.
By continuing to reduce CO2 emissions, we will fulfill our social responsibilities as a company responsible for public transport and strive to manage risks and acquire business opportunities associated with the transition to a carbon-free society.
Our reduction target for Environmental Impact
CO2 emissions reduction targets
Long-term target: Net zero emissions in FY2050
Medium-term target: 46% reduction from FY2018 level by FY2030
Short-term target: 5% reduction on a year-over-year basis every fiscal year
Target rates of renewable energy
Long-term target: 100% in FY2050
Medium-term target: 50% in FY2030
Seibu Group's vision for society in 2050
We will make unified efforts to actively promote adequate measures for the “reduction of energy consumption,” “energy transition,” and “absorption of CO2 emitted” to achieve those targets and cope with associated climate change risks and opportunities.
Please refer to the following link for details on Seibu Group-wide CO2 emissions.
Internal Carbon Pricing System
We have introduced the Internal Carbon Pricing System to strongly advance our response to climate change. We apply an internal carbon price (7,000 yen/t-CO2) to some capital investments that can reduce CO2 emissions to aid investment decisions.