Currently, there can be no doubt regarding global warming caused by anthropogenic greenhouse gas emissions. The amount and scale of damage caused by storms, floods, droughts and other abnormal weather is increasing, as is the sense of crisis due to the risk these present to the global economy.
At the Mitsubishi Materials Group, we have set up the Sustainable Development Department within the Management Strategy Division of the Strategic Headquarters, to plan and promote strategic initiatives for risks and opportunities related to global warming in coordination with group-wide management strategies. Furthermore, our “Climate Change and Energy Panel”, a specialized subcommittee of the “Sustainable Management Office”, promotes the examination of scenario analysis based on TCFD*1 recommendations, as well as discussion and sharing of information on measures to achieve GHG*2 reduction targets and other climate change measures. To monitor the panel, its activities are reported to the Strategic Management Committee and Board of Directors’ Meeting quarterly after being reported and deliberated by the Sustainable Management Office.
Through appropriate evaluation and management of our risk and opportunity related to climate change, we are looking into reflecting these in our medium- to long-term management strategies and risk management. We will continue to improve our response to climate change and actively disclose information based on TCFD recommendations.
In March 2020, the Group decided to endorse the recommendations of the TCFD and participate in the TCFD Consortium, which consists of companies, financial institutions and other organizations which support those recommendations. In March 2021, we established and analyzed scenarios based on the recommendations in order to ascertain the impact of climate change on the Group's business operations (risks and opportunities) and consider measures for reducing risks and securing opportunities. At present, we are updating the scenario analysis and considering indicators, targets and strategies, attempting to ensure consistency with the next Medium-term Management Strategy.
The Group answers questionnaires for the CDP (a non-profit organization) on a yearly basis. In fiscal 2022, the Group scored "B" for CDP Climate Change and "A⁻" for CDP Water (on an 8-step scoring scale from A to D-) in its assessment.
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In April 2019, we established the Sustainable Development Department within the Corporate Strategy Department (now known as the Management Strategy Division) to plan and promote strategic initiatives for risks and opportunities related to global warming in coordination with company-wide management strategies. Furthermore, the Climate Change and Energy Panel (a specialized subcommittee of the Sustainable Management Office that was established in April 2020) promotes the examination of scenario analysis based on TCFD recommendations, as well as discussion and sharing of information on measures to achieve GHG reduction targets and other climate change measures. To monitor the panel, its activities are reported to the Strategic Management Committee and Board of Directors’ Meeting quarterly after being reported and deliberated by the Sustainable Management Office. " (Matters for deliberation by and reporting to the Strategic Management Committee and Board of Directors)
We announced the Mitsubishi Materials Group's GHG emissions reduction targets (Scope 1 and Scope 2) in March 2021. In November 2021, we reviewed the content of these targets and set the medium- to long-term targets of reducing the emissions by 47% compared to FY 2014 by FY2031 (by 42% compared to the FY2021 level) (*1) and achieving net zero GHG emissions, or carbon neutrality, by FY2046, five years ahead of the previous plan.
Specifically for Metalworking Solutions business, ahead of other businesses, we set a target to switch all power used in manufacturing to practically CO2 emission-free electricity by FY2031, and to promote manufacturing activities to contribute to our customers as their "Global Craftsman Studio".
As for Scope 3 that includes business partners' GHG emissions, which is the emissions of the entire supply chain excluding Scopes 1 and 2, we started to collect actual data from FY2021. While working to improve calculation accuracy by sharing information with our business partners, we will project long-term reduction in consideration of their GHG reduction plans, etc. For this purpose, concerning the Category 1 and 3 emissions, which together constitute approx. 70% of Scope 3 emissions, we have set a target of reducing them by 13% by 2030 (compared to the FY2021 level) (*1), aiming for decarbonization of the supply chain related to our products.
We will begin to evaluate and utilize the carbon footprint of products (CFP)* and work to estimate GHG emissions of the products using recycled materials such as tungsten and copper scrap.
In addition, as one of our reduction measures, we have set a target of switching about 60% of the electricity used in our group's business to renewable energy by fiscal 2031.
(Regarding these targets, results and targets in the Cement Business were excluded because it is operated by Mitsubishi UBE Cement Corporation, which is an equity method affiliate. Results and targets in the Aluminum Business were excluded.)
In terms of plans for executing initiatives aimed at achieving our targets for the reduction of greenhouse gas emissions, in addition to energy-saving and utilization of existing technologies, we are also advancing considerations and discussions—primarily through our Climate Change and Energy Panel—including those regarding R&D and capital expenditure for driving new innovation.