Responses to Climate Change

Basic Policy

Climate change is a key management issue, and the JVCKENWOOD Group will work to avoid or reduce the impact of climate change on the Group throughout its entire value chain, including procurement, product development, manufacturing, and product and service provision.

To this end, initiatives to contribute to the mitigation of and adaptation to climate change are important. The JVCKENWOOD Group will endeavor to reduce CO₂ emissions in the Scope 1+2 and Scope 3 categories and to reduce energy use through reduction of production man-hours and installation of energy-saving equipment.

The JVC Kenwood Group has set a short-term mid- to long-term global carbon reduction target as follows.

■Reduction of CO₂ emissions generated from business activities

Responses to climate change: Achieve carbon neutrality by 2050
Scopes 1 + 2 Target:46.2% reduction from FY2019 levels by FY2030 (total, global)

In promoting our initiatives, we set the following KPI (Key Performance Indicators) and manage their progress.

Theme KPI
FY2023 FY2025 FY2030
Reduction of CO2 emissions (Scope 1 + 2)(compared to FY2019) -16.8% -25.2% -46.2%

■Reduction of CO₂ emissions through the use of purchased, transported, and sold products

Scope 3 target: 13.5% reduction from FY2019 levels by FY2030 (Categories 1, 4, 11* ,global)

*Category 1: Emissions associated with raw materials, parts, and purchased products; Category 4: Emissions associated with transportation of raw materials and products; Category 11: Emissions associated with assumed electric power consumption for the use of products sold

In promoting our initiatives, we set the following KPI (Key Performance Indicators) and manage their progress.

Theme KPI
FY2023 FY2025 FY2030
Reduction of CO2 emissions (Scope 3) (Categories 1, 4, 11) (compared to FY2019) -1.23% -4.92% -13.5%

Disclosure based on TCFD recommendations

In April 2023, the Group expressed its endorsement of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) established by the Financial Stability Board (FSB).
For details, see the website of Task Force on Climate-related Financial Disclosures

■Governance
The JVCKENWOOD Group recognizes that addressing climate change is one of the important issues in its sustainability promotion strategy. The Company appointed a director in charge of sustainability under the supervision of the Board of Directors, and established the Sustainability Management Office in April 2018 to establish a system for quickly implementing sustainability promotion strategies including those related to climate change.
The Sustainability Management Office is responsible for coordinating the implementation of company-wide climate change initiatives and progress management. It works with relevant divisions to periodically review material issues and key performance indicators (KPI), study and collect information about the potential effects of climate change on our operations, and enhance the disclosure of sustainability-related information.
In addition, the Sustainability Management Office actively communicates with relevant departments and sections and takes the lead in efforts to make sustainability part of our business operations, all with an eye to fostering awareness and understanding of climate change issues within the Group.
In addition, as a governance structure to address climate change, the Sustainability Committee was established that reports directly to the CEO in FY2023 as the primary organization to promote overall sustainability, including addressing climate change. It will formulate strategies and study measures for decarbonization. Augmenting regular meetings twice a year, the Committee holds ad hoc meetings as necessary, and reports its discussions to the Executive Committee and the Board of Directors. In addition, as a sub-organization of the Sustainability Committee, we have established a specialized subcommittee with the executive officer in charge of each theme (the Environment Subcommittee on climate change) to discuss and promote the identification of issues, goals, implementation plans, and specific responses for each theme. The Board of Directors monitors and oversees these committees and meetings and makes decisions.

Sustainability Promotion Structure

As specific activities for FY2023, the Environmental Subcommittee discussed the setting of targets under "JK Green 2030," which mainly focuses on " response to climate change," "effective use of resources," "environmental conservation and management," and " conservation of biodiversity," and these were approved by a resolution of the Board of Directors. In addition, as activities of the Supplier Subcommittee, efforts are being made to improve the accuracy of calculation and reduce emissions, especially for Category 1: emissions associated with raw materials, parts, and purchased , and Category 4: emissions associated with transportation of raw materials and products under Scope 3.

■Strategies
JVCKENWOOD Group conducted a scenario analysis in accordance with the TCFD recommendations to identify risks and opportunities, and to analyze and examine the impact level and countermeasures.

Identification of risks and opportunities in the JVCKENWOOD Group and impact on the business

As a countermeasure to the risks and opportunities identified, we will develop and introduce environmentally friendly products and products for disaster prevention and mitigation, and work to develop new markets. In addition, in conjunction with the new mid-term management plan “VISION2025”, we will return to domestic production in products for the Japanese domestic market, optimize the layout of production bases in consideration of total production volume, develop products with reduced environmental impact, study alternatives to natural resource facilities, and plan investments in measures such as the use of renewable energy power. We will respond to various risks by reducing energy consumption and emissions, improving the efficiency of processes in manufacturing, transportation, and other corporate activities through such measures as the following.


■Risk Management

We implement the risk surveillance process at all its business sites around the world every year. The purpose is to ensure the risk management activities are conducted through collaboration between its business sites and management. As the risk items for the risk surveillance process include natural disasters, we also identify, assess and manage climate change risks. For details of the risk surveillance process, see Enterprise Risk Management.

In terms of risk surveillance, we have added risk management (transition and physical risks and their classification items) in line with TCFD recommendations among the risk categories to be considered. This allows us to clearly manage the risks stemming from climate change, while also managing the progress of our response measures in a holistic manner in tandem with other general risks.

Risk categories Events
Categories subcategories Further subcategories
Climate risks Transition risks Policy and legal Introduction of carbon taxes
Regulations for Greenhouse Gas
Emissions / Duty of Greenhouse Gas Emissions reporting
Cost increase by an energy saving measures and the capital investment
Tighter regulation
Market Cost increase of raw materials, the energy
Changing consumer behavior
Changes in priority products/product pricing
Technology Delay in renewable energy and energy saving technology development
Increase in R&D investment for environmentally friendly products
Reputation Changes in consumer opinion
Changes in investor opinion
Brand damage
Physical risks Acute Intensifying extreme weather patterns(typhoon/Flood)
Cost increase by the BCP correspondence
Chronic Increase in average temperature
Floods
Rising sea levels

■KPI and Targets

The JVCKENWOOD Group has formulated and is promoting JK Green 2030. To address the risks of climate change, our short- to medium-term goals for Scope 1+2 are to reduce emissions by 46.2% from 2019 levels by 2030 and by 13.5% for Scope 3 over the same time span. We have set a long-term goal of achieving carbon neutrality by 2050.

For more information, see the website of Reduction of CO2 emissions


Collaboration with External Organizations


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