Issues of Materiality including climate change are reported to and discussed by the Sustainability Committee, which is chaired by the President and CEO and usually meets twice a year. Important discussion contents and decisions are proposed as "Reports & Deliberations" to the Board of Directors.
Since we launched an interdivisional TCFD project in 2021, we have held discussions on the identification of climate-related risks and opportunities, assessment of financial impacts and measures to address to them. After consultation was sought from Sustainability committee regarding discussion contents, they were proposed as “Reports & Deliberations” to the Board of Directors.
After the risks are identified, the department in charge of risk management and the division responsible for addressing the risks hold discussions to devise a policy and specific measures in response to the risks. To address the identified opportunities, we monitor and assess changes in the external and internal environments and incorporate the monitoring and assessment results in our business strategy according to necessity.
We have also included ESG metrics in our evaluation methods used to determine the level of compensation for executives in order to promote and enhance our environmental efforts, including efforts to combat climate change issues.