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Information Disclosure Based
on TCFD Recommendations

Policy for Responding to Climate Change

The SKY Perfect JSAT Group views climate-change issues as one of the urgent issues facing society. In order to solve the issue of climate change, we will work to reduce greenhouse gas (GHG) emissions associated with its business activities.
In all our business activities, we are committed to reducing the burden on the global environment and strive to conserve resources and energy.
In our business, we are actively contributing to climate-change by providing solutions for the SKY Perfect JSAT Group through satellites and other means.

We recognize the importance of deepening dialogue with stakeholders and are disclosing the systems, initiatives, etc., of the SKY Perfect JSAT Group based on the TCFD Recommendations.
The SKY Perfect JSAT Group declared our support for TCFD in January 2023.

TCFD TCFD

What is the TCFD (Task Force on Climate-related Financial Disclosures)?

Against the backdrop of increasing climate change risks due to global warming, there is a growing movement to evaluate the financial impact of climate change on corporate business.
The Task Force on Climate-related Financial Disclosures (TCFD) is an international initiative established by the Financial Stability Board (FSB) in 2015 to encourage companies to disclose information on the financial impact of risks and opportunities that climate change poses to their businesses.

Governance

At the SKY Perfect JSAT Group, mainly the Sustainability Division, which serves as the secretariat of the Sustainability Department, and other related divisions work together to identify and examine climate-related risks and opportunities in details. Those findings are reported to the Sustainability Committee, which is chaired by the Director in Charge of Corporate Administration, for discussion. The Sustainability Committee consults with the Board of Directors on important matters. After deliberation by directors, matters are approved.
Identified problems and discussions held by the Committee are regularly reported to the Board of Directors by the Director in Charge of Corporate Administration (the chair of the Committee) to ensure appropriate supervision by the Board of Directors.
Identified risks are also reported to and discussed by Management Committee, which is chaired by the Chief Risk Management Officer (the Director in Charge of Corporate Administration) appointed from among the directors by the Board of Directors. The Risk Management Committee manages risks for the entire Group, including climate-related risks.
We consider the risks and opportunities of climate change to be important topics (related to materiality). Accordingly, the Environmental Conservation Committee, which promotes company-wide environmental efforts throughout the Group, works together with the Sustainability Committee to promote those topics.

Governance/Risk Management Systems Related to Climate Change

Governance/Risk Management Systems Related to Climate Change

Strategy

Scenario Analysis

The scenarios analyzed involve a temperature increase of 1.5°C, less than 2°C, or 4°C as projected in the Shared Socioeconomic Pathways (SSP), which are socioeconomic scenarios of the Intergovernmental Panel on Climate Change (IPCC), and the World Energy Outlook (WEO) 2022 of the International Energy Agency (IEA). See the following items for information on scenarios.

  • IEA Stated Policies Scenario (STEPS)
  • IEA Net Zero Emissions by 2050 Scenario (NZE)
  • IPCC: AR6 SSP1-1.9, AR5 RCP2.6, SSP2 RCP4.5, SSP3 RCP8.5

Timeline

The SKY Perfect JSAT Group has established a timeline for the formulation of our Group climate change strategy. The analysis is divided into three time frames: long term for 2030 and beyond, short term for less than one year, and medium term for the interim.

Businesses and Regions Covered

The analysis covers all of our businesses (space and media) and the entire globe. In addition, all of our sites may be affected by the manifestation of physical risks if extreme weather events increase due to climate change. Thus, we calculated the flood risk for all 13 of our sites, including domestic sites and overseas offices. Results revealed a riverine flood risk in the vicinity of the Yamaguchi Network Control Center for the year 2030. In contrast, the Yamaguchi Network Control Center is located on high ground and is equipped with an emergency power supply in the event of an outage, so it is unlikely to be seriously impacted. In response, we will enhance our business continuity plan (BCP).

Assessment of the Significance of Climate-related Risks

Based on the scenario analysis proposed by the TCFD, we identified climate-related risks and then quantitatively and qualitatively assessed the business impacts of the most significant risks and opportunities in each scenario. In light of the timing of the manifestation of each risk/opportunity and the magnitude of its impact on our financial plans and business strategy, we ascertained the status of our response to priority items, we examined our response, and we discussed and reviewed specific actions with management.

Transition Plan

The SKY Perfect JSAT Group has begun to formulate a transition plan for decarbonization to achieve carbon neutrality in 2050, as common global goal. In order to achieve Scope 1 and 2 carbon neutrality by FY2025, we will steadily work to reduce greenhouse gas (GHG) emissions by switching the Group’s electricity used by our Group's own offices and satellite control centers to substantial renewable energy and by expanding our efforts to reduce energy use. For Scope 3, we will work together with suppliers to reduce GHG emissions primarily by spreading green procurement among suppliers in order to achieve carbon neutrality for Scope 1-3 as a whole by the year 2050. We recognize the need to diversify our Scope 3 efforts in the future.
One of the strengths of the SKY Perfect JSAT Group is satellite-related services. By actively developing those services, we intend to both help decarbonize society as a whole and to grow our business.

Energy-saving initiatives:

・Conversion of indoor lighting to LED
・Increasing water volume in the heat storage tank installed in the Tokyo Media Center to accelerate heat storage and reduce losses during low-temperature water supply
・Reduction of the number of air conditioning units operating outside regular hours

Climate-related Risks/Opportunities in Scenarios Involving a Temperature Rise of 1.5°C, less than 2°C, or 4°C

The SKY Perfect JSAT Group reviewed our scenario analysis from March to May 2023 to increase the sophistication of our risk/opportunity items, worldview, timeline definition, transition plan, and disclosure. In terms of risks, there is limited impact on business and finances. We regard each identified opportunity as a chance and are considering incorporating a climate change perspective into our business strategy (including external communication).
The following tables list climate-related risks and opportunities in scenarios involving a temperature rise of 1.5°C, less than 2°C, or 4°C.

Risk Classification Events Details Timeline Priority Efforts
Transition risk Laws, regulations, and policies Introduction of a carbon pricing mechanism Common: Increased payment in conjunction with higher taxes resulting from the introduction of a carbon tax Medium term Low
  • ・Increasing the use of renewable energy sources
  • ・Promoting energy efficiency
  • ・Increasing prevalence of green procurement
Common: Increased indirect expenses due to the purchase of carbon credits for potential emissions
Common: The carbon tax and other CO2 emission-related costs levied on satellite/video equipment manufacturers and data centers will be passed on to the company, increasing its operating costs
Enhanced reporting requirements for GHG emissions Common: Increased pressure for truthful reporting on climate change and increased costs associated with the requirement for companies to obtain third-party subscribers certification Medium term Low
  • ・Early identification and appropriate disclosure of trends in climate change-related laws and regulations
  • ・Appropriate management of climate change-related information such as GHG emissions
Implementation of regulations on existing products and services Common: Decreased revenue due to the inability to conduct effective sales promotions as a result of rules set by the government and various industry associations restricting advertising, exhibitions, and other sales activities for companies that are not conscious of climate change
Common: Increased capital investment to reduce electricity consumption due to stricter environmental regulations
Medium to long term Low
  • ・Increasing the use of renewable energy sources
  • ・Promoting energy efficiency
Litigation arising from responses to climate change Common: Increased costs due to lawsuits filed by nearby residents and customers as a result of antenna accidents when satellite receiving antennas are damaged or malfunction due to disasters caused by storms Medium to long term Low
  • ・Conducting appropriate operation of required specifications regarding antenna wind speed resistance
  • ・Increasing the use of renewable energy sources
  • ・Promoting energy efficiency
  • ・Implementing a steady response to climate change by strengthening our governance system
Common: Increase in expenses to respond to litigation presumably in the event of delays in addressing climate change
Technology Increased investment in decarbonization of products and services Space: Increased procurement costs due to the use of decarbonized materials in equipment, facilities, satellites, and rockets, which will tack on additional costs for new R&D Medium to long term Medium
  • ・Stable procurement from multiple suppliers at reasonable prices
  • ・Monitoring of market and technology trends for manufacturers and the industry
  • ・Formulating long-term procurement plans that take long delivery times and increasing expenses into account in order to mitigate technical risks in procurement
Media: The use of decarbonized materials in broadcast-related equipment and facilities will increase procurement costs due to the additional costs of new R&D (*low priority for this item only)
Space: Increased rocket procurement costs due to the change in satellite launch fuel to non-fossil fuels such as hydrogen
Market &
reputation
Accelerating the switch to renewable energy Common: Increased electricity prices due to the switch to renewable energy sources Short term Low
  • ・Promoting energy efficiency
Consumer/customer behavior (e.g., changes in procurement conditions) regarding the response to climate change & increased stakeholder concerns Common: Risk of reputation damage or customers moving to other businesses using renewable energy sources if electricity is not generated using renewable energy sources Short to medium term Medium
  • ・Increasing the use of renewable energy sources
  • ・Developing businesses that contribute to decarbonization and actively disseminating information related to these businesses/Informing the public of our participation in climate change initiatives
  • ・Enhancing the business continuity plan (BCP)
  • ・Setting GHG emission reduction targets (a roadmap) and integrating them into strategies
    Space: ・Informing the public that our satellites operate using solar power
    Media: ・Providing programs/events related to the SDGs (producing and scheduling educational programs on the environment)
Media: Fewer new contracts and more cancellations as consumers shift to companies that respond to requests for information or content related to the environment when companies have a low awareness of climate change initiatives
Common: Decreased revenues due to the inability to comply with environmentally friendly conditions included in bidding requirements and company procurement policies
Common: A loss of reputation and revenue for services and companies due to a lack of awareness of climate change initiatives, including BCP compliance, and failure to achieve set targets
Physical risk Acute The occurrence of extreme weather events such as storms Common: Increased repair costs and lower customer satisfaction due to delays in repairs when antennas (our own and customers’) malfunction due to disasters caused by extreme weather events such as storms Medium to long term Low
  • ・Conducting appropriate operation of required specifications regarding antenna wind speed resistance
  • ・Enhancing the business continuity plan (BCP)
  • ・Reviewing of working environment and safety and health measures from a climate change perspective
  • ・Stable procurement from multiple suppliers at reasonable prices
Media: Extreme weather events, such as storms, have a negative impact on reputation and brand recognition due to the inability to provide service, and loss of revenue due to customer attrition
Common: Increased flooding of facilities and power outages due to extreme weather events such as storms, as well as costs associated with recovery (e.g., labor costs for overtime work) and increased costs for preemptive measures
Common: Increased insurance premiums for damage to facilities (offices, satellite control centers, base stations, etc.) due to extreme weather events such as storms
Common: Business interruption and increased costs due to the effects of disasters on employees
Common: Increased operating costs due to lower production efficiency of employees as a result of a deterioration in working conditions
Common: Decreased customer acquisition due to delays in delivery and halted manufacturing of equipment such as STBs and receiving antennas and their components due to extreme weather events such as storms
Chronic Changes in rainfall patterns and increases in average temperatures Common: Decreased revenues due to customer attrition and a greater frequency with which viewing fees are waived when customers in an area are unable to receive satellite communications/broadcasts due to an increase in heavy rainfall caused by changes in rainfall patterns Medium to long term Low
  • ・Enhancing the business continuity plan (BCP)
  • ・Promoting energy efficiency
    Media: ・Diversification of transmission methods
    Space: ・Site diversity
  • ・Expanding the NTN business
Common: Increased power costs due to increased power consumption by air conditioners to cool network equipment and facilities as a result of higher average temperatures around the world
Common: Increased costs due to damage to assets and equipment as a result of weather-related disasters
Common: Increased costs due to service outages caused by flooding, reduced power use, and power outages

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Risk Classification Events Details Timeline Priority
Opportunities Resource efficiency Recycling to enable low carbon emissions Space: Reducing procurement costs through the use of recycled rockets Short to medium term Medium
Market Promoting a response to climate change through government assistance Common: Increased revenue due to expanded government assistance for environmental efforts Short term Medium
Improved market valuation as a result of an active response to climate change Common: Actively addressing climate change will improve the company’s reputation, and support from investors will increase opportunities for funding Short term Medium
Space: Informing the public that the company is actively participating in renewable energy programs by investing in a venture company (Challenergy Inc.) that develops and sells wind turbines
Energy resources Actively using low-GHG-emitting energy sources Common: Decreased electricity costs as a result of reduced costs of procuring renewable energy Short term Low
Products and services Developing and expanding decarbonized products and services Space: Expanding optimal navigational assistance for ships via Spatio-i, which is an information platform that combines big space data and AI technology Medium term Low
Media: Expanded revenue from Zero-CO2-emitting Smart Home Electricity Use with SKY PerfecTV!
Space: Expanding the Solar Meilleur service to estimate the electricity generated by solar power
Expanding new services using images and data obtained from satellites Space: Using the features of disaster-resistant satellite communications to expand services suited to disaster preparedness and a BCP to local governments nationwide and companies that provide important public services such as power and gas Medium term Medium
Space: Expanding landslide risk assessment services using LIANA, which is a service that monitors slopes using satellite data
Space: Expanding services to facilitate observation of changes such as deforestation via Spatio-i, which is an information platform that combines big space data and AI technology
Increased opportunities to serve environmentally conscious customers Space: More contracts from environmentally conscious government agencies and private corporations by providing services with a low environmental impact through satellites, HAPS, or other facilities with low CO2 emissions Medium to long term Medium
Media: Being able to provide the content and services that customers expect and increasing revenue by addressing greater environmental awareness through fan-based marketing
Media: Providing services with a low environmental impact, which will result in more contracts for our Media Solutions Business from environmentally conscious companies
Space: Expanding revenues in conjunction with expanding services as a result of the operation of space data centers that do not emit CO2

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Risk Management

In order to identify and evaluate climate-related risks and opportunities for the SKY Perfect JSAT Group, the Sustainability Division (the secretariat of the Sustainability Department) and other related divisions collaborate to identify and evaluate climate-related risks and opportunities through scenario analysis. Those divisions also review countermeasures for each item involved in risks and opportunities. Assessment of the significance of risks and opportunities being examined is reported to the Sustainability Committee for discussion. The Sustainability Committee consults with the Board of Directors on important matters. After deliberation by directors, matters are approved.
Identified risks are also reported to and discussed by Management Committee, which is chaired by the Chief Risk Management Officer (the Director in Charge of Corporate Administration) appointed from among the directors by the Board of Directors. The Risk Management Committee manages risks for the entire Group, including climate-related risks.

Risk Assessment Criteria and the Process of Managing Climate Change-related Risks

We conduct assessments of potential risks in operations of the SKY Perfect JSAT Group, including climate change. To establish risk assessment criteria, we also refer to relevant laws and ordinances, international standards, and past accidents in similar businesses to determine the significance and impact of potential risks for each assessment criterion depending on the type of business and industry and the country or region in which the business operates.
In light of the differences in the timeline for and the nature of risks to our business, the Sustainability Committee responds to, mitigates, manages, and assesses climate change-related risks. The Risk Management Committee verifies the process by which the Sustainability Committee responds to climate change-related risks and it ensures the comprehensiveness of company-wide risk management.

Indicators and Targets

Climate change indicators and targets are listed below.

(a) Climate change indicators and targets

Indicator Target
GHG emissions (Scope 1, 2) FY2023 target: 70% reduction from the previous year
Percentage of renewable energy use 2025: 100%

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(b) Changes in GHG emissions (Unit: t-CO2)

SKY Perfect JSAT Corporation (non-consolidated)

Indicator FY2019 FY2020 FY2021 FY2022
Scope 1 10 8 10 13
Scope 2 12,672 11,415 10,218 5,535
Total 12,682 11,423 10,228 10,228

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SKY Perfect JSAT Holdings Inc. and its domestic consolidated subsidiaries

Indicator FY2019 FY2020 FY2021 FY2022
Scope 1 - - - 51
Scope 2 - - - 5,720
Total - - - 5,771

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(c) Percentage of substantial renewable energy use (trends)

Indicator FY2019 FY2020 FY2021 FY2022
Percentage of substantial renewable energy use - - Approx. 30% 93%

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We have begun using substantial renewable energy at our headquarters (April 2022), the Yokohama Satellite Control Center (the operational base for the Space Business) and the Ibaraki Network Control Center (January 2022), the Gunma Teleport Center (January 2023), the SKY PerfecTV! Tokyo Media Center (the operation base for the Media Business) (November 2022), and JSAT MOBILE Communications Inc. (January 2023). As of the end of fiscal 2022, the percentage of substantial renewable energy among electricity used by the SKY Perfect JSAT Group reached 93%. We will successively switch over the remaining sites and aim for 100% usage of renewable energy.