Disclosure of Information Related to Climate Change (Response to TCFD)

Disclosure of Information Related to Climate Change (Response to TCFD)

The Task Force on Climate-related Financial Disclosures (TCFD) is a task force established by the Financial Stability Board at the request of the G20 to reduce the risk of financial market instability related to climate change.
In June 2017, the TCFD released its final recommendations, recommending that companies understand and disclose risks and opportunities from the perspective of stabilizing financial markets and preventing asset value loss.
The Oji Group announced its endorsement of the TCFD in December 2020 and is working to enhance disclosure based on the recommendations.



  • The Corporate Sustainability Department of Oji Holdings acts and reports to the Director and General Manager of Corporate Sustainability Division on climate change issues (GHG emissions reduction, forest area expansion for CO2 absorption and fixation, etc.) as a secretariat of the Project Team on Climate Change.
  • The Director and General Manager of Corporate Sustainability Division brings up these matters at the Group Management Meeting and the Board Meeting.
  • Investment decisions related to decarbonization are made at the Group Management Meeting.
Project Team on Climate Change

Risk Management

  • The Oji Group has identified Group-wide and business line risks within the business execution by categorizing risks causing uncertainty or economic loss following the Group Risk Management Regulations. The responsible management and support departments will respond to all identified risks.
  • The Corporate Sustainability Department manages overall environmental risks, including climate change, for the entire Group.

Indicators and Targets

  • In September 2020, we formulated the Environmental Vision 2050, which calls for "Net Zero Carbon in 2050" and the milestone of "70% reduction in 2030 (compared to the base year of 2018).
  • To increase the probability of achieving our targets, we have formed a project team for working on GHG emissions reduction and expanding CO2 absorption and fixation by sustainable forest management. And also, we are working on the development of biomass raw materials and materials as a plastic alternative, water treatment applying paper manufacturing technology, and biomass power generation projects.
Indicators and Targets

Climate-Related risks and opportunities

Conducting scenario analysis

For the scenario analysis, the Corporate Sustainability Department organized the identified key risks and opportunities for the Oji Group into transition risks based on the 2°C scenario*1 and physical risks based on the 4°C scenario*1.

  • *1 :References: IPCC RCP 2.6 and IEA 2DS for 2℃ scenario, and IPCC RCP 8.5 for 4℃ scenario

The Oji Group recognized that Policy and regulatory risks such as carbon taxes and emissions trading schemes in the transition risk likely be limited because of promoting energy conservation, introducing non-fossil fuels such as biomass and waste, and expanding CO2 absorption and fixation by own forest.
And more, we recognized that Market risk and reputation risk due to using fossil fuels likely be small because of Zero coal-fired power generation by FY2050, and increasing the use of renewable energy by shifting from fossil fuels to non-fossil fuels.

In the physical risks, we are reducing the impact on our business of water damage and extreme dryness due to the intensification of extreme weather, etc., through our ongoing efforts to address business continuity by formulating BCPs*2 and implementing BCM*2, diversifying our raw material procurement, and taking measures to prevent water damage to our manufacturing facilities.

  • *2 :BCP (Business Continuity Plan), BCM (Business Continuity Management)

Climate-Related Risks and Potential Financial Impacts

You can see this table by scrolling horizontally.
Type Climate-Related Risks Potential Financial Impacts
Transition Risks Policies, laws and regulations Tighter regulation of GHG emissions
  • With the creation of forest carbon credits, the cost increase due to the introduction of an emissions trading system is limited.
Strengthen promotion of the use of renewable energy electricity
  • Increasing in levy
  • Purchase of electricity with renewable energy certificates
Increase in fossil energy prices
  • Strengthening of carbon taxes in each country, and expansion of introduction of carbon taxes
Market Increased interest in low-carbon products and services among consumers, etc.
  • Increasing divestment in companies that consume fossil fuels
  • Boycott of products and services that use fossil fuels
Reputation Negative feedback from stakeholders
  • Difficulty obtaining financing due to changes in the evaluation of company attitudes toward climate change
Physical Risks Acute Increasing severity of extreme weather events
  • Disruptions in the functioning of infrastructure networks, such as electricity and water supply, and critical services
  • Damage to own facilities
  • Disruption of supplier chains
Chronic Changes in precipitation and weather patterns and rise in average temperature
  • Worsening of tree growth due to changes in climate and ecosystems
  • Abnormal outbreaks of pests and diseases

Climate-Related Strategies and Responses

You can see this table by scrolling horizontally.
Type Climate-Related Risks Strategies and Responses
Transition Risks Tighter regulation of GHG emissions
  • Energy conservation and optimal operation of in-house power generation facilities
  • Optimizing the use of fossil fuels and the amount of electricity purchased
  • Expanding the use of non-fossil energy sources such as biomass, hydropower, and waste materials
  • Fuel conversion from fossil fuels to renewable energies, etc., and thorough and enhanced energy conservation
Strengthen promotion of the use of renewable energy electricity
Increase in fossil energy prices
Increased interest in low-carbon products and services among consumers, etc.
  • Further promotion of resource-recycling business model initiatives
  • Disseminate information on the implementation status of sustainable forest management and sustainable procurement policy
Negative feedback from stakeholders
  • Promote environmental education for young people in cooperation with environmental NPO and other external organizations.
Physical Risks Increasing severity of extreme weather events
  • Ensure business continuity by formulating a BCP
  • Implementing measures to prevent similar disasters through the horizontal dissemination of disaster information to ensure business continuity and the development of systems in the event of a natural disaster
  • Stabilize procurement by diversifying raw material suppliers and transportation methods
Changes in precipitation and weather patterns and rise in average temperature
  • Stabilize procurement by diversifying major raw material suppliers
  • Securing the volume of raw materials procured through the promotion of afforestation
  • Promote the selection of tree species suitable for the regions and climates in which we plant trees

Climate-Related Opportunities and Potential Financial Impacts

You can see this table by scrolling horizontally.
Type Climate-Related Opportunities Details Strategies
Resource Efficiency
  • Effective use of resources
  • Reduce water use and consumption
  • Increasing demand for clean water in areas with high water risk
  • Effective use of water resources cultivated through the papermaking business, and expansion of business related to water treatment
  • Enter the water treatment business for the production of water for daily use.
Energy Source
  • Expansion of non-fossil energy use
  • Increase profits by expanding renewable energy power business
  • Contribution to the realization of a decarbonized society
  • Expansion of the renewable energy power business, including biomass power generation and hydroelectric power generation
  • Reduce energy costs and environmental impact by utilizing waste energy such as wood residue, bark, and RPF.
Products and Services
  • Changes in consumer preferences
  • Development of new products and services through innovation
  • Responding to social issues by providing environmentally friendly materials
  • Development of biomass plastics made from carbon-neutral biomass
  • Development of biomass plastic materials as an alternative to fossil-based plastic packaging
Markets Expansion of the carbon credit trading market
  • Forest conservation through measures to revitalize the forestry industry
  • Creation and trading of carbon credits associated with forest absorption
  • Forest conservation in cooperation with local forestry cooperatives, etc., based on national and local government policies
  • Efforts to maintain and improve the productivity of plantation trees by increasing operational efficiency and preserving the environmental forest in forest area
  • Expanding the use of forest resources
  • Securing forest resources to produce carbon-neutral materials
  • Contribution to climate change mitigation through CO2 absorption
  • Promotion sustainable forest management (SFM), increasing CO2 absorption and fixation through SFM, creating employment and industry around SFM business areas.
  • Protecting and nurturing rare animals and plants and disseminating information on Oji Forest and Nature School, etc.