Climate Change Initiatives

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.

At the MJC group, President and Representative Director is the chief executive of risk management to mitigate and reduce substantial risks to the business, ensuring continuous operation.

To monitor whether risk‑management activities are being appropriately implemented by the departments responsible for risk response, the Group has established the Compliance and Risk Management Committee.The committee conducts risk assessments and determines policies for risk countermeasures, promoting risk‑management activities across the entire organization.

The committee reports their findings to the Management Committee, then the Board of Directors deliberates them.

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 in 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. As part of our initiatives, we have reduced greenhouse gas (GHG) emissions by adopting renewable energy and energy-efficient equipment at our major production facilities. Additionally, we regularly share information with our key supplier partners to help minimize GHG emissions throughout the supply chain. To strengthen our Business Continuity Plan (BCP) and Business Continuity Management (BCM), we perform risk assessments using hazard maps for each production site and implement appropriate risk mitigation measures. We also establish alternative procurement routes for raw materials and diversify our production locations to improve the resilience of our entire supply chain. With regards to opportunities, we examined items that are important for achieving the Group’s strategy and strengthening our management foundation under both the 4°C and 2°C scenarios.

While aiming to contribute to society through our business activities, we assessed the potential impacts on our business operations. As a result, we are working on initiatives such as developing products that improve production efficiency, thereby contributing to energy conservation and reducing environmental impact.

• *¹ GHG: Greenhouse Gas
• *² Figures after reduction through the procurement of renewable energy (figures for 2024 and 2025 are calculated using the CO₂ reduction factors from the respective preceding fiscal year)
  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

The Group started adopting renewable energy in 2024 to contribute to a carbon-neutral society. We are steadily decreasing Scope 1 and 2 GHG emissions at our main domestic production facilities. Although energy use is expected to rise due to new plants and the expansion of existing plants to meet higher production demands, we have established a medium-term target to lower total GHG emissions across the Group. This target uses 2024 as the baseline and assumes a consistent 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*³ of production.

• *³ 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