Response to TCFD
We believe that climate change is a factor affecting the planet, our activities, our customers and our supply chain.
We will promote climate change measures throughout the company and strive to enhance the quality and quantity of information disclosure based on the recommendations of the TCFD (Task Force on Climate-related Financial Disclosures).
To manage risks related to the global environment, including climate change, SMK has established the Environmental Conservation Committee to oversee and strengthen environmental protection activities throughout the Group.
The committee meets quarterly and reports to the CSR Committee, a subcommittee of the Board of Directors and the Executive Committee, which is chaired by the President and Representative Director. The Environmental Conservation Committee is chaired by the Vice President of the Environmental Division and consists of representatives from divisions, Works, and other related departments. The Environmental Conservation Committee manages greenhouse gas and waste emissions, and works to share and laterally spread information on energy conservation and waste reduction measures within the Group.
In 2021, the "Carbon Neutrality Task-Force" was established as a subordinate organization of the Environmental Protection Committee to strengthen cooperation on climate change measures within the Group, especially among Works and with the Group headquarters.
The Group's risks and opportunities related to climate change are described below.
For scenario analysis, we will confirm detailed information and make estimates based on it to enhance our analysis of risks and opportunities.
- Investment burden of high-energy efficiency equipment and renewable energy
- Impact on production activities of energy shortages due to the sudden change
in direction to stop the use of fossil fuels, and increased electricity costs.
- Greater obligation to reduce greenhouse gas emissions: Increased electricity
costs due to use of renewable energy menus.
- Changes in market/customer behavior: Decline in revenue due to inability
to keep up with changes in market/consumer preferences.
- Decrease in credit options and increased prices due to reduction of
greenhouse gas emission quotas in line with carbon neutrality
- Damage to production sites: Decrease in income due to reduced production
- Increased costs due to impact on employees (health, safety, etc.).
<Resource Efficiency / Energy Sources / Resilience>
- Reduce greenhouse gas emissions and electricity costs and strengthen
resilience by owning renewable energy power plants.
- Reduce greenhouse gas emissions through the use of highly energy-efficient
equipment and promotion of energy-saving activities.
<Product and service/market>
- Increase revenues by developing and offering products for low-carbon society
and markets. (Renewable energy, telework, EVs, bicycles, etc.)
Risk management related to climate change is handled by the Environmental Conservation Committee, which is under the umbrella of the Board of Directors, the Executive Committee, and the CSR Committee.
●To address the aforementioned risks, the company has implemented
the following measures
- Promote energy conservation activities (investment in high-efficiency
equipment, operational improvement activities).
- Promote possession of renewable energy power plants.
- Promote the development and provision of products aimed at a low-carbon
society (environmentally-friendly products).
- Decentralization and optimization of production sites.
In order to develop products for a low-carbon society, the Company has established its own standards for environmentally conscious design in accordance with the ministerial ordinances of the Ministry of Economy, Trade and Industry.
Specifically, they are largely divided into four categories.
1. Energy-saving and high-efficiency products with reduced power consumption
and standby power, and improved durability performance.
2. Resource-saving products that are smaller, lighter, thinner, and have fewer
3. Environmentally friendly products that use recycled materials,
easy to disassemble and repair, solderless, plating-free, etc.
4. Reduction of the load on the manufacturing process, including reduction of
input materials and ease of reuse.
In addition, products used in energy management, renewable energy, energy-saving home appliances, and bicycles are also positioned as products that contribute to the environment, and we aim to contribute to these markets.
Targets and Indices
Each year, we set management indices (environmental indices) related to the environment in order to contribute to climate change countermeasures and business cycles.
The environmental indices are CO2 emissions and waste emissions, which are indicated in terms of total emissions and emissions per unit of production value, respectively. The results are published annually on our website.
In the future, we will work to disclose the occupancy of sales of environmentally friendly products and calculate CO2 emissions in the supply chain.