Expression of support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
- The Furukawa Electric Group is promoting ESG management towards the achievement of Vision 2030 -
- Climate change has become an important management issue in terms of both risk and opportunity.
- We will strengthen relationships of trust with stakeholders based on efforts in line with the recommendations of the TCFD.
- We will contribute to the realization of as sustainable society through climate change countermeasures utilizing the TCFD.
Furukawa Electric Co., Ltd. (Head Office: 2-2-3, Marunouchi, Chiyoda-ku, Tokyo; President and CEO: Keiichi Kobayashi) agreed with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). As a result, we will analyze scenarios of the impacts of the climate-related risks and opportunities of the Furukawa Electric Group on business and finance and reflect the findings in management strategy.
Background
Climate change, thought to be a major factor in the abnormal weather that has occurred around the world in recent years, has the potential to intensify natural disasters and cause food shortages, water resource shortages and loss of biodiversity. While climate change is a risk for business activities, it can also provide opportunities for profit, such as innovation related to climate change. Consequently, companies are required to recognize these climate-related risks and opportunities properly, understand their financial impact, and disclose information. At the same time, in the area of finance, information on what kinds of scenarios companies have assumed in regard to climate-related risks and opportunities, and what kinds of countermeasures they have prepared to respond to future changes is becoming increasingly important because it connects to analysis of companies and appropriate investment decisions.
Based on the above, supporting companies are expected to disclose information on the four items of “governance, strategy, risk management, metrics and targets” in regard to climate-related risks and opportunities in line with the recommendations of the TCFD.
Details
Furukawa Electric agreed with the recommendations of the TCFD under recognition that risks and opportunities related to climate change have become an important issue in management. In combination with this, we also participated in the “Project to Support Scenario Analysis of Climate Risks and Opportunities in Line with the TCFD” implemented by the Ministry of the Environment. We will continue from now on to strive for the protection of the global environment emphasized in the “Furukawa Electric Group Vision 2030” through climate change countermeasures using the TCFD towards the realization of a sustainable society, and strengthen relationships of trust with stakeholders to connect to the improvement of corporate value.
Task Force on Climate-related Financial Disclosures
Following a request from the G20, the Task Force was established by the Financial Stability Board (FSB) in December 2015 to consider climate-related information disclosure and its handling by financial institutions. The Task Force compiled its “Final Report: Recommendations of the Task Force on Climate-related Financial Disclosures” in June 2017, encouraging companies and others to disclose four items in regard to climate-related risks and opportunities (governance, strategy, risk management, metrics and targets). As of February this year, 980 financial institutions and other companies and organizations around the world have expressed their agreement, with the total assets of the financial institutions that have done so reaching 118 trillion USD.
Furukawa Electric Group’s efforts towards the SDGs
Based on the corporate philosophy of “Drawing on more than a century of expertise in the development and fabrication of advanced materials to contribute to the realization of a sustainable society through continuous technological innovation,” the Furukawa Electric Group is conducting business activities centered on four core technological capabilities (metals, polymers, photonics and high frequency). Moreover, keeping in mind the “Sustainable Development Goals (SDGs)” adopted by the UN, we formulated the “Furukawa Electric Group Vision 2030,” which clarified the business areas of the Furukawa Electric Group, and are advancing efforts aimed at “creating solutions for the new generation of global infrastructure combining information, energy, and mobility to build a sustainable world and make people’s life safe, peaceful, and rewarding.
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