Our Support of the Task Force on Climate-Related Financial Disclosure (TCFD)

In September 2020, Denka announced its support of the TCFD and began participating in the TCFD Consortium.
Going forward, we will carry out ongoing assessments focused on risk and opportunities arising from climate change and other relevant factors, including changes in government policies, regulations and market conditions as well as technological breakthroughs in the course of across-the-board initiatives aimed at realizing the low-carbon society and decarbonized economy envisioned by the Paris Agreement. In line with the following process flow suggested by the TCFD recommendations, we will identify the impact our businesses may face going forward.

Governance and Risk Management

With regard to Denka’s response to medium- to long-term concerns arising from climate change, the Board of Directors supervises these policies. Meanwhile, the Sustainability Promotion Department is charged with overseeing company-wide initiatives to counter climate change under the instruction of the executive officer responsible for supervising the promotion of environmental countermeasures.
Related matters deemed particularly important, including the formulation of medium- to long-term targets, the revision of basic policies and priority measures and the determination and evaluation of management indicators are discussed by the Board of Directors and other bodies attended by top management, with the representative director making final decisions.

Metrics and Targets

Denka has positioned reducing the volume of CO₂ emissions from its operations as a matter of utmost importance in terms of environmental management in order to achieve a 50% reduction from FY2013 levels by FY2030 and achieve carbon neutrality by FY2050.
In addition to promoting energy conservation and expanding renewable energy sources, namely hydroelectric power generation, we are also studying the introduction of innovative technologies such as CCUS, which separates, recovers, utilizes, and stores CO₂ from plants at the source, and the use of hydrogen. Denka is also currently working on joint development with external research institutions with the aim of adopting such technologies by FY2030. Moreover, we will push ahead with efforts to reduce the environmental burden attributable to our entire value chain by expanding the scope of our initiatives to address issues associated with the total life cycles of our products.

Working with CDP to Enhance Our Environmental Management

Denka began responding to the CDP Climate Change Questionnaire in FY2015 with the aim of proactively disclosing information on climate change, including across our entire value chain, and to strengthen environmental management and increase corporate value with the aim of focusing on the use of sustainable resources and energy. From FY2019, we also expanded the scope of our responses to water security. Moreover, we take an objective view to analyzing our responses to CDP to examine and reduce/improve risks and opportunities through future insights into governance and climate change that are related to our environmental management policies.
In FY2021, Denka was awarded a place on the CDP A List for both climate change and water security, the second-highest on an 8-point scale.