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

■Reduction of CO₂ emissions associated with business activities

• ・Scopes 1 + 2 Target：25.2% reduction by FY2025 from the FY2019 level (total and global)
• ・Scope 3 Target：Calculation of CO₂ emissions under Scope 3 and reduction of CO₂ emissions associated with business activities(global)

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

• ・CO₂ reduction through collaboration with business partners (upstream and downstream) for Scope 3 Categories 1,4,11^*(global)

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 (KPIs), 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.

The JVCKENWOOD Group will analyze risks and opportunities related to climate change, with regard to multiple scenarios including the “1.5°C scenario” in line with Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
In response to the physical risk of severe natural disasters and the transition risk arising from various regulations introduced to mitigate damage, we plan to expand product development in a manner that contributes to decarbonization, reduce costs associated with energy and resource conservation, and study opportunities that will contribute to further growth.

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 September 2022, we concluded a loan agreement for a Sustainability Linked Loan (SLL) with a Sustainability Performance Target (SPT) based on the Group's reduction rate of CO₂ emissions (Scope 1 + 2) and raised funds. The SLL loan aims to promote environmentally and socially sustainable economic activities and economic growth by setting SPTs based on the borrower's sustainability strategy and linking loan terms to the achievement of the SPTs, thereby motivating the borrower to achieve the targets.

For more details, please refer to Sustainable Linked Loan Financing (Japanese Only).

We identify natural disaster risks in the risk surveillance process mentioned above. For identified risks, we take approaches to raise awareness of disaster prevention among officers and employees on a regular basis by developing various manuals describing the responses to possible crises, as well as implementing emergency drills, business continuity plans (BCPs) and safety confirmation drills in the event of an emergency. With respect to natural disasters, six global affiliated manufacturing companies located in China and South East Asia where flooding occurs frequently, we have identified risks of facility damage and shutdown due to a flood or other disaster in these regions. In response to these risks, considering the avoidance of procurement suspension risk, as well as development backup, we have implemented countermeasures such as production in several regions, purchase from several suppliers, and supply chain procurement and transportation of parts and products from low-risk countries and regions. We also hold stocks in accordance with our BCP and secure stocks by using brokers to prevent a sudden cost increase and the suspension of manufacturing activities at the domestic and overseas production plants of the Group.

Initiatives to Save Energy