Climate Change Initiatives
In recent years, climate change has had a significant impact on the environment and the world.
MJC Group considers this fact to be a material matter. Following the Task Force on Climate-related Financial Disclosures (TCFD) framework, MJC Group analyses the key risks and opportunities related to climate change within the Group and discloses the results of its analysis of its impacts.
In addition, the Group is committed to saving energy and reducing GHG emissions to mitigate climate change.
Governance
The Group believes that sustainability is an important corporate activity. Therefore, MJC Group has established the governance structure to achieve medium to long-term improvements in corporate value.
For more information, see Sustainability Initiatives, Sustainability Promotion Structure.
Risk Management
At MJC, our president is the chief executive of risk management to mitigate and reduce substantial risks to the business, ensuring continuous operation. A Compliance Risk Management Committee has been set up to monitor activities throughout the Group, ensuring that each department’s risk management activities remain appropriate to any risks that may occur.
The committee reports their findings to the Management Board, then the Board of Directors deliberates them.
Strategy
Regarding the impact of climate change on our business, we have identified the risks and opportunities associated with climate change based on the two scenarios outlined by the latest Sixth Assessment Report by the IPCC (Intergovernmental Panel on Climate Change) and the IEA (International Energy Agency) - one in which the global average temperature rises by more than 4°C, and another in which the rise is kept to below 2°C (with some instances kept within 1.5°C) as agreed upon in the Paris Agreement.
In terms of transition risks under the scenario of a rise below 2°C, we have considered a timeline extending to 2030. For physical risks under the 4°C scenario, we have considered a timeline extending to 2050. Regarding opportunities, we have examined key items that are essential for achieving MJC Group’s strategy and strengthening our business foundation under both the 4°C and 2°C scenarios.
While aiming to contribute to society through our business activities, we have considered the impact on MJC Group’s business management. As a result, we are addressing climate change risks by comprehensively considering the timing when the identified risks may materialize, the business environment, and financial impacts. Furthermore, we are working to enhance our resilience by strengthening our Business Continuity Plan (BCP).
| Category | Climate Change Risks and Opportunities Identified | Impact Level | Timeline | ||
|---|---|---|---|---|---|
| Transition Risks | Policy / Legal Risks | 1 | Increased energy costs due to the introduction of a carbon tax | Medium | Mid-term |
| 2 | Increased costs due to higher electricity prices | ||||
| Market | 3 | Increases in raw material prices associated with decarbonization | |||
| Technology | 4 | Loss of sales opportunities due to delays in the development of energy-saving technologies | Low | Short-term | |
| Reputation | 5 | Decrease in sales due to increasing demands from the stakeholders for more environmentally friendly practices every year and the inability to respond to such demands | Medium | Mid- to Long-term | |
| Physical Risks | Acute Risks | 6 | Shutdowns and recovery costs incurred due to disaster damages to the Company | Low | Short-term |
| 7 | Decrease in sales due to supply chain disruptions, shutdowns or delays in shipments caused by extreme weather events | ||||
| Opportunities | Technology | 1 | Improved competitiveness via energy-saving product releases | High | Mid- to long-term |
| 2 | Improving the competitiveness of our products by manufacturing products using clean energy | ||||
| Reputation | 3 | Increased demand for our products due to the expansion of the semiconductor market, including infrastructure development and digitalisation to curb climate change | Medium | ||
| 4 | Improved competitive advantage in dealing with business continuity in the event of a disaster by building BCP measures | ||||
Timeline (Risk Emergence Period) Short-term: up to 5 years Medium-term: 5–10 years Long-term: over 10 years
Indicators and Targets
Total GHG*¹ Emissions Performance of the MJC Group (Consolidated figures including both domestic and overseas)
| GHG Emissions (t-CO₂) |
CY2020 | CY2021 | CY2022 | CY2023 | CY2024 |
|---|---|---|---|---|---|
| Scope1+2 *² |
12,306 | 13,030 | 13,469 | 13,851 | 14,488 |
| Reduction Amount | － | － | － | － | 1,022 |
- *¹ GHG: Greenhouse Gas
- *² Figures after reduction through the procurement of renewable energy (calculated using the CO₂ emission factor for FY2023)
Scope1： Direct emissions from the combustion of fuel and industrial processes by the company itself
Scope2： Indirect emissions from the use of energy such as electricity, heat, and steam supplied by other companies
To contribute to a decarbonized society, the MJC Group started the introduction of renewable energy in 2024 and will gradually reduce the Scope 1 and Scope 2 GHG emissions from our main production sites in Japan. Considering the anticipated increase in energy usage due to the completion of new factories and the expansion of existing ones in line with increased production demand, our medium-term goal is to reduce the total GHG emissions of the entire MJC Group by 20% by 2030, based on 2024 levels, assuming a stable supply of renewable energy.
In the long term, aiming to achieve carbon neutrality by 2050 ‐a global target‐ we will advance our emission reduction activities through initiatives such as increasing the proportion of renewable energy. Additionally, we will continue our efforts towards energy conservation, promoting the reduction of energy consumption per unit* of production.
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* Energy consumption per unit: A value that indicates energy efficiency
(The unit for domestic business sites is calculated based on energy usage and production numbers)
Refer to "Energy Usage" for more details