TCFD提言に基づく情報開示

overview
Governance
strategy
Risk Management
Indicators and goals

overview

当社グループは、2020年11月にTCFD（気候関連財務情報開示タスクフォース）提言に賛同を表明し、「ガバナンス」「戦略」「リスク管理」「指標と目標」の4つのフレームワークに沿って、気候変動が事業に与えるリスクおよび機会の分析と、情報開示を行っています。今後も、分析の深化を進めるとともに、国内外の開示要請も踏まえながら、気候変動対応に関するガバナンスと事業戦略の強化を推進していきます。

Governance

Please refer to the "Sustainability Promotion System" page for details on governance related to TCFD.

Linking executive compensation to ESG indicators

Starting in fiscal 2022, we have incorporated ESG indicators into the individual performance targets of our executives. One of the ESG indicators we have incorporated is addressing climate change, such as reducing _CO2 emissions. By introducing incentives that link executive compensation with ESG indicators, we will strengthen executives' awareness of climate change countermeasures and promote ESG management.

strategy

Prerequisites

The Group regards climate change as a very important management risk in terms of business continuity, and is analyzing risks and opportunities for below 2°C and 4°C scenarios.* In addition to climate change, we also regard the worsening of typhoon damage due to global warming as a risk factor.

*The below 2°C and 4°C scenarios are projections of how much the average temperature will rise from before the Industrial Revolution to the end of the 21st century, as presented in the Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC), which provides scientific evidence for measures to combat global warming and is influential in international negotiations. The scenario with the lowest temperature rise (SSP1-1.9 scenario) predicts a rise of approximately 1.4°C, while the scenario with the highest temperature rise (SSP5-8.5 scenario) predicts a rise of approximately 4.4°C.

Below 2°C scenario
Strict environmental regulations and high carbon taxes will be introduced, and the world will achieve carbon neutrality in 2050. ₂ While achieving zero emissions, procurement costs are rising due to growing demand for biofuels and environmental regulations. Consumers are becoming more environmentally conscious, and the demand for plant-based foods is expanding.
Japan's temperature will rise by approximately 1.4°C compared to the end of the 20th century. The frequency and intensity of natural disasters in Japan (typhoons and floods) will increase, but will not worsen to the extent assumed in the 4°C scenario.

●4℃ Scenario
Although progress is being made in reducing carbon emissions, carbon neutrality will not be achieved by 2050. Natural disasters are becoming more severe and frequent, with the frequency of flood damage increasing at our own and our suppliers' production sites. Rising temperatures are causing declines in crop yields and deterioration in quality.
Japan's temperature will rise by about 2.3°C by around 2050 compared to the end of the 20th century. In addition, typhoons will become more frequent and stronger. Flood frequency will be about 2 to 4 times higher compared to the end of the 20th century.

Target period	Present -2050
Scope	All businesses of J-Oil Mills Group

気候変動によるリスク

Impact:
Major: Potential impact on business performance (over 10 billion yen)
Medium: Potentially a significant impact on business performance (1 billion yen to less than 10 billion yen)
Small: Small impact on business performance (less than 1 billion yen)

Urgency:
High: Within 1 year Medium: Within 5 years Low: More than 5 years

Scenario: 2℃/1.5℃ Item: Transition risk

minutes kind	Main risks	Risk Description	Impact	emergency Urgent Degree	Existing initiatives	Response direction (goal)
policy	Deteriorating business performance due to stricter _CO2 emission regulations	Risk of increased emissions trading costs and carbon tax burdens due to tighter _CO2 emission regulations (if _CO2 reductions are not achieved)	23億円/年（※1）	Medium	Reducing energy consumption (process optimization, energy conservation, introduction of highly efficient equipment, etc.) Utilization of renewable energy (use of biomass fuel, etc.)	CO₂排出量削減目標:2030年度50%削減（2013年度対比）、2050年カーボンニュートラル達成（Scope1、2）上記目標の達成に向け、1）CO₂削減の為の設備投資を中期的に拡大、対応費用:累計42億円（2025-2030年）　2）インターナルカーボンプライシング（ICP）を2023年4月より導入し、CO₂削減投資の意思決定に活用　3）更なる省エネと省エネ設備への切り替え、再生可能エネルギーの積極的な利用
policy		Increased expenditure due to rising electricity and fuel prices accompanying progress in climate change measures and changes in the energy mix Risk of increases in production-related costs, such as capital investment in renewable energy, and logistics-related costs	Medium	Medium
market	Lack of response to changing consumer needs, with an emphasis on sustainability	Decreasing sales due to delays in responding to consumer needs that emphasize sustainability (reducing food waste, reducing plastic usage, recycling resources, etc.) and responding to product demand	Medium	Medium	Development and sales of low-impact products such as long-lasting oil and PBF (※2) Based on the "Guidelines for Containers and Packaging," we will reduce plastic by adopting paper cartons, use biomass materials such as plant-based plastics, and strengthen our efforts in designing recyclable packaging materials. Environmentally friendly raw material procurement and improved traceability of raw materials	Regarding Scope 3 reduction, we have begun considering ways to reduce emissions from categories 1 and 4, which have high emissions, and are taking the following steps to reduce them. Continue to develop products and services that reduce the environmental impact, such as longer-lasting oil Plastic waste reduction goal: Zero plastic waste by fiscal 2030 Promoting the use of renewable resources such as paper and biomass materials 対応費用:7億円/年（バイオマス材等切替費用） Utilizing certification systems for soybeans and palm oil and promoting sustainable procurement through our own channels
reputation	Damaged reputation due to poor environmental response	Risk of decline in corporate value and stock prices, stagnation in lending, and difficulty in raising funds due to insufficient disclosure of information on climate change measures	Medium	Medium	Setting targets for resource and energy conservation, reducing _CO2 emissions, eliminating plastics, and making effective use of water resources, and appropriately managing and disclosing progress Minimizing environmental impact through sustainable raw material procurement and the use of AI in the value chain	Further promotion of various initiatives and information disclosure

Scenario: 4°C Item: Physical risk

minutes kind	Main risks	Risk Description	Impact	emergency Urgent Degree	Existing initiatives	Response direction (goal)
acute	Suspension of operations and disruption of logistics networks due to an increase in natural disasters	Damage caused by the suspension of operations at our own factories due to an increase in natural disasters (high tides, typhoons, flood damage, etc. caused by rising sea levels)	400 million yen	high	Implementing typhoon and storm surge countermeasures at production sites Reassessed domestic factories' flood risk using MLIT hazard maps and WRI's Aqueduct (※3) At high-risk locations, flood barriers will be installed on each building, and measures such as updating equipment to deal with storm surges will be implemented based on the estimated water level of a storm surge.	Regularly assess the risk of flooding at major production sites Other BCP measures to strengthen resilience
acute		Decrease in sales due to suppliers suspending operations due to an increase in natural disasters (high tides, typhoons, flood damage, etc. caused by rising sea levels) Decrease in sales due to the interruption of logistics network and suspension of operations at our own factories Warehouses were damaged, causing shortages and resulting in a decrease in sales Damage to factory assets due to natural disasters, and increased restoration costs due to the loss of assets	Medium	high	BCP (※4) response Formulating a BCP for the entire supply chain as part of the Group's risk management process Promote measures such as securing and managing appropriate inventories in preparation for delays or interruptions in the supply of raw materials, and purchasing multiple items of important raw materials In the event of a logistics network outage, the logistics company, logistics department, and sales department will work together to decide on a response policy.
chronic	Difficulties in securing a stable supply of raw materials due to reduced yields and changes in quality caused by rising temperatures and abnormal weather	Increased procurement costs due to a decrease in cultivated land area for major raw materials (※5) Increased costs to deal with reduced yields and lower quality of key raw materials Increase in procurement costs due to rising grain prices, etc.	large	Medium	Continuous inspection of major raw material sources Product specification optimization	Consideration of new varieties, new suppliers and supply chains Diversifying origins and introducing seeds and seedlings that are resistant to high temperatures and other climate change-related factors Conducting research into the impact of weather changes on raw material quality Development of oil extraction technology taking into account expected raw material quality

*1 IEA: International Energy Agency's forecast of emissions trading prices for developed countries in the NZE scenario (Net Zero Emissions by 2050 scenario) (2030): Calculated by multiplying 140 US$/t by the amount of emissions in fiscal 2024 and the average exchange rate for that period. The amount of risk decreased slightly from fiscal 2023 to fiscal 2024.
*2 PBF: Plant-based food
*3 Damage amounts were calculated based on risk assessments using Aqueduct, a global water risk assessment tool published by the World Resources Institute (WRI), and converted to annual damage amounts.
*4 BCP (Business Continuity Planning): Business continuity plan
*5 Main ingredients: soybeans, rapeseed

気候変動による機会

Scenario: 2°C/1.5°C

minutes kind	Main Opportunities	Opportunity Description	shadow sound Degree	emergency Urgent Degree	Existing initiatives	Response direction (goal)
Resource Efficiency	Reducing production and logistics costs	Reducing equipment operating costs by upgrading to energy-efficient equipment and optimizing production processes and locations Reduction of logistics costs through efficient delivery using modal shifts and new technologies	small	high	Started investigations to optimize oil extraction function Promoting modal shifts (obtaining "Ecoship Mark" certification) and reviewing long-distance "through delivery"	Optimizing our bases to ensure long-term stabilization of domestic oil extraction functions Steady preparations for the implementation of the physical internet Considerations for standardizing shipping standards and optimizing shipping routes to reduce _CO2 emissions and costs Introduction of renewable energy equipment Promoting the switch to biomass fuels and securing fuel suppliers
Energy Source	Reduce _CO2 and costs by introducing renewable energy	Reducing emissions trading costs and carbon tax burdens by promoting the introduction of renewable energy (solar panels, biomass boilers)	small	Medium	Introduction of on-site power generation at production sites Introduction of energy-saving equipment at production sites
market	Increased environmental awareness and ethical consumption (response to food crisis)	Increase sales of low-carbon products, services and solutions Sales growth due to increased demand for PBF products due to growing environmental awareness, increased ethical consumption, and the protein crisis	large	Medium	Development of long-lasting oil Sales of PBF products	Continue to develop products and services that reduce the environmental impact, such as longer-lasting oil and paper-packaged products PBF products contribute to the protein crisis and stable food supply Texture ingredients prevent deterioration over time and reduce food waste by maintaining texture
Resilience	Gaining trust by creating an optimal business portfolio that meets society's sustainability demands	By building an optimal business portfolio that is in line with sustainability through the promotion of energy conservation and renewable energy utilization, we will gain the trust of society, which will lead to increased sales and improved stock prices.	Medium	Medium	Transforming our business portfolio under the Sixth Medium-Term Management Plan, we will expand products and services that reduce environmental impact and solve social issues.	Further expansion of products that help solve social issues Consideration of establishing a biomass business, such as the production of SAF (※6) by securing bio-based raw materials Study on fixation of _CO2 through planting non-edible oil-producing trees and building SAF supply chains based on plantations Expanded disclosure of sustainability information
Resilience	Strengthening BCP measures	Contributing to society and improving corporate value through a stable food supply by ensuring a stable supply system in preparation for intensifying natural disasters due to climate change.	Medium	high	BCP response Formulating a BCP for the entire supply chain as part of the Group's risk management process Promote measures such as securing and managing appropriate inventories in preparation for delays or interruptions in the supply of raw materials, and purchasing multiple items of important raw materials	Regularly assess the risk of flooding at major production sites Other BCP measures to strengthen resilience

*6 SAF: Sustainable Aviation Fuel

In addition, the Company reviewed its materiality in 2021 and identified "climate change mitigation and adaptation" as one of its priority issues. It reviewed its materiality again in 2023.
Please see below for the process of identifying materiality and determining relative importance.

Materiality Progress

Risk Management

当社グループでは、代表取締役社長を委員長とする経営リスク委員会を設置し、年2回、取締役会、経営会議への報告を行っています。経営リスク委員会では、気候変動を含む全社の重要リスクについて短・中期の視点で管理し、防止と回避に努めています。当社事業が気候変動によって受けるリスクと機会については、サステナビリティ推進体制の下、サステナビリティ委員会とTCFD分科会で、中・長期の視点で管理しています。シナリオ分析結果を受けて特定されたリスクと機会の財務影響の定量評価および対応策の見直しを毎年行っています。議論された内容は四半期に1回、TCFD分科会が取締役会、経営会議へ報告を行っています。取締役会は、適宜必要な指示あるいは助言を行い、モニタリングを実施しています。今後も継続的に分析範囲の拡大と深掘りを行い、リスクの最小化と機会の最大化を図り、レジリエンスの強化に取り組みます。
サステナビリティ全般に関するリスク管理の内容については、「リスクマネジメント」ぺージをご参照ください。

Indicators and goals

2030年度までにCO₂排出量を2013年度対比で50%削減（Scope1、2）、2050年度までに排出ゼロにするカーボンニュートラルを掲げています。また、購入する原材料や商品の製造に関するCO₂排出量など、サプライヤーと連携し、サプライチェーン全体（Scope3）での削減も目指します。排出量の多いカテゴリ1やカテゴリ4に関しては、主要原料である大豆、菜種の生産段階における排出量情報について産地国団体から入手するなどして、算定精度の向上や削減目標の設定、削減方法について検討していきます。また、2023年4月に導入したインターナルカーボンプライシング（ICP）を活用し、CO₂排出削減に向けた投資および投資意思決定の促進を図ります。

Graph of CO2 emission reduction results and mid- to long-term targets

Main Initiatives

Reducing energy consumption (process optimization, energy conservation, introduction of highly efficient equipment, etc.)
Utilization of renewable energy (use of biomass fuel, etc.)