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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

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

    Reference scenarios:

  • 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.

    ●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:

  • Cost increase due to tighter regulations such as a rise in carbon tax
  • Cost increase in response to measures for renewable energy
  • 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.

  • 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

    ●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:

  • 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.

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 Timing of occurrence
Transition risks
Policy and Legal Cost increase due to the introduction of a carbon tax Increase in costs due to the introduction of a 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 CO2 emissions targets and ZEB regulations Increase in costs of equipment replacement, etc. if policymakers set stricter targets or requirement ↓↓↓ Mid-term~Long-term
Market Increase in procurement prices of energy due to growing demand, etc. Increase in costs due to changes in the energy mix Short term
Reputation Customer defection if environmental initiatives are insufficient Decrease in sales if customers shift to environmentally friendly companies or services Medium term
Physical risks Impact on business from intensification of abnormal weather (e.g. suspension of operations, business shutdowns, decline in occupancy) Approximately hundreds of millions of yen in damage caused by past typhoons, and increasing frequency of typhoons, etc. may cause similar damage Medium term
Damage at facilities and buildings by abnormal weather (Repair costs for damage caused by floods and landslides) Approximately several billions of yen in damage from past typhoons, and increasing frequency of typhoons, etc. may cause similar damage ↓↓ Medium term
Opportunities Reduction in power and utility expenses due to energy efficiency improvement As a result of efficient energy use, electricity consumption decreased by 20%-▲ by 30% in fiscal 2030, ▲ by 30%-▲ by 45% in fiscal 2050 ↑↑↑ Medium term
Utilization of company-owned land and forests in the wake of expansion of renewable energy consumption Increase in supply of both solar and biomass power generation will likely create opportunities to increase asset utilization more effectively ↑↑ Medium term
Customer preference for low-carbon transportation, accommodation, and office buildings Increase in sales as eco-conscious customers may prefer our services/brands Short to medium term
Customer preference for disaster resilient facilities Increase in sales as eco-conscious customers may shift to our services/brands Medium term

Short-term: 1-3 years Medium-term: 4-10 years Long: 10 years or more


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.

    ●Major countermeasures
    Responding to Transition Risks

  • Reducing energy consumption through promoting energy conservation
  • Utilizing in-house power generation of renewable energy and external procurement
  • Response to Physical Risks

  • 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
  • Responding to Opportunities

  • 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.

For details, please refer to the Environmental Measures section.
https://www.seibuholdings.co.jp/en/sustainability/environment/ 

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.

Please refer to the following link for details on Seibu Group-wide CO2 emissions.
https://www.seibuholdings.co.jp/en/sustainability/esg_data/