Disclosure based on TCFD framework

Takara Bio Group strives to proactively disclose information to its stakeholders by accurately assessing the risks and opportunities related to climate change, clarifying the impact on its business operations, and clarifying measures to be taken as we work towards the realization of a sustainable society and the sustainable growth of our Group. All assessments are based on scenario analysis in accordance with the Task Force on Climate-related Financial Disclosures (TCFD).

1. Governance

As a global company with operations around the world, Takara Bio Group regards climate change as an important management issue. Under the supervision of the Board of Directors, Takara Bio Group Sustainability Promotion Committee, the decision-making body for environmental issues, examines scenarios related to climate change, identifies risks and opportunities, and discusses countermeasures, which are reflected in the business operations of each group company. This Committee reports to the Board of Directors at least once a year and discloses information to stakeholders based on TCFD (Figure 1).

2. Strategy

Takara Bio Group recognizes that the global average temperature increase due to climate change will have an enormous impact on society, and believes that it is important to contribute to activities to curb temperature increases. Our Group is identifying the business impacts of climate-related risks and opportunities, and is formulating strategies to enhance its ability to respond to a 2℃ or lower scenario. Scenario analysis was carried out using a “2℃ or lower scenario,” in which the average global temperature increase is restricted to 2℃ or lower than pre-industrial levels, and a “4℃ scenario,” in which the average global temperature is increased by 4℃. This analysis evaluated the degree of impact on our business operations and the likelihood of these scenarios occurring, examined countermeasures, and summarized the risks and opportunities that would have a large impact on our Group in Table 1. In the scenario analysis, we referred to the Intergovernmental Panel on Climate Change (IPCC), RCP2.6 (2℃ or lower scenario), RCP8.5 (4℃ scenario), and WRI Aqueduct (global water risk mapping tool developed by the World Resources Institute).

2℃ or lower scenario

4℃ scenario

† Time axis
Medium-Term: up to 2030　Long-term: after 2030

‡ Impact
The impact of consolidated operating income or consolidated net assets is evaluated based on the following criteria: small (less than 1 billion yen), medium (1 billion to 3 billion yen), and large (3 billion yen or more)

§ Business Risks and Opportunities
Comprehensive evaluation considering financial impact and potential occurrence

3. Risk Management

Takara Bio Group has established the framework to minimize adverse effects and losses caused by the materialization of risks, including scenario analysis and the assessment of risks associated with climate change in line with TCFD recommendations. We are assessing the degree of impact and the risk level depending on the frequency of occurrence at major manufacturing sites where business continuity and financial impact are significant. Identified risks, opportunities and countermeasures are discussed by the Sustainability Promotion Committee, which is chaired by the President and is comprised of executive officers responsible for each of our business segments, and reports to the Board of Directors.

4. Indicators and Targets

In its Sustainability Management Promotion Policy formulated in June 2021 (Updated June 2023), Takara Bio Group focused on the environment as one of its key initiatives, and set a target of reducing CO2 emissions per unit of sales in fiscal 2026 to 50% of fiscal 2019 levels. As of fiscal 2024, our Group's CO2 emissions (basic unit) were 89% of the fiscal 2019 level (Table 2).
We will continue to review risks and opportunities and implement specific measures and reflect them in our medium- to long-term management strategy to enhance our management strategy against climate change.