The SKY Perfect JSAT Group views the issue of climate change as one of the issues that society faces that must be resolved immediately. We are actively working to solve this problem, not only through our own activities, but also by providing solutions to climate change through the use of our satellites and other solutions.
We believe it is important to deepen dialogue with our stakeholders, and will disclose the Group's management systems, initiatives, etc. based on the TCFD Recommendations.
Disclosing information
based on TCFD recommendations
The Climate-Related Financial Disclosure Task Force ("TCFD") was established in 2015 by the G20 Financial Stability Board (FSB).
The objective is to encourage companies to disclose climate-related financial information so that investors can make appropriate investment decisions while aiming to "keep the global average temperature at +2°C before the industrial revolution" as stipulated in the 2015 Paris Agreement.
In accordance with the recommendations of the Task Force on Climate-Related Financial Disclosure, the final report of TCFD released in June 2017, we will evaluate risks and opportunities based on scenario-analyses of the impact of climate change on our business, recognize the importance of impacts and reflect them in our management measures. In addition, we will work to strengthen the resilience of our strategies, strengthen our relationships of trust with stakeholders, and endeavor to disclose information appropriately.
Governance
We have formed a project to examine climate-related risks and opportunities (a cross-functional organization headed by the General Manager of the Corporate Planning Department, hereinafter referred to as the "Climate-Related Review Project") in which we identify and evaluate climate-related risks and opportunities. The results of these deliberations are reported to and discussed by the Risk Management Committee, which is chaired by the Chief Risk Management Officer (director in charge of Corporate Administration) appointed at the Board of Directors meeting. In addition, the Sustainability Committee, chaired by the director in charge of Corporate Administration, engages in and discusses the identification of important sustainability-related issues. Moreover, the Directors in charge of Corporate Administration, who are chaired by the two committees, regularly raise and report on issues at meetings of the Board of Directors, and supervision by the Board of Directors is appropriately implemented in the content examined in the Climate-Related Review Project.
The Chief Risk Management Officer is responsible for overseeing overall risk management activities, including identifying, responding to, improving, managing, and evaluating risks for the Group as a whole, including climate-related risks, in the Risk Management Committee. The Sustainability Committee, chaired by the director in charge of Corporate Administration, also considers initiatives to address climate-related issues in the context of important sustainability-related issues. The Climate-Related Review Project works with these two committees to raise issues related to climate-related issues, discuss strategies, and assess and manage climate-related risks, as necessary.
Climate Change Governance/Risk Management System
Strategy
We recognize the enormous impact of a 4°C rise in the global average temperature caused by climate change on society, and believe it is important to contribute together with moves aimed at curbing temperature increases to below 2°C. To meet our targets, less than 2℃, we assessed the impacts of climate-related risks and opportunities on our operations, as well as our strategy. To this end, we conducted climate change scenario analyses and selected climate-related risks and opportunities and assessed financial impacts for us, as recommended by TCFD.
In analyzing scenarios, we analyze climate-related risks and opportunities in the following processes based on scenarios of less than 2°C and 4°C drawn up by specialized organizations, such as the socio-economic scenario of IPCC (Intergovernmental Panel on Climate Change), "Common Socio-Economic Paths (SSPs, Shared Socioeconomic Pathways)" and "World Energy Outlook (WEO) 2020" of the IEA (International Energy Agency). The period covered by the analysis is 2030.
Importance assessment of climate-related risk
Climate-related risks and opportunities under 2°C/4°C scenarios
The results of the assessment of climate-related risks and opportunities based on scenario analysis are shown below.
Classification | Evaluation items | Time of emergence | Details | |
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Transition risk | Policy/Regulation | Carbon pricing mechanism | Long-term |
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Reputation | Medium-term | 【Space】
【Media】
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Reputation | Reputational changes of investors | Medium-term | 【Space】
【Media】
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Opportunities | Reputation | Changes in consumer preferences | Medium-term | 【Space】
【Media】
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Products and services | Development of Climate Adaptation, Resilience, and Insurance Risk Solutions | Long-term | 【Space】
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Ability to diversify business activities | Long-term | 【Space】
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Development and/or expansion of low-emission products and services | Long-term | 【Space】
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Market | Enters new market | Short-term | 【Space】
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Elasticity | Participation in renewable energy programs and adoption of energy-saving measures | Short-term | 【Space】
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Physical risk | Acute | Increase in repair responses in the event of a breakdown of an antennas (in-house or customer) due to a disaster caused by a storm, etc. | Short-term | No material impact due to expanded facilities |
Decrease in income due to inability to provide services | Short-term | There is a possibility that the service will be temporarily unavailable, but because long service interruptions are not anticipated, no material impact will occur. | ||
Lower customer satisfaction due to delayed repair response in the event of a flaw in the Antenna (in-house or customer) caused by inability to provide services or a storm, etc. | Short-term | No significant impact is expected as breakdowns are not anticipated to increase sharply. | ||
Increase in inundation and power outage damage at facilities, as well as the cost of restoring them, and the cost of prior countermeasures | Short-term | 【Space】 It is located at a high altitude, and the risk of flooding is low, and emergency power supplies are provided for power failures. Therefore, no serious impact will occur. 【Media】 No significant impact is caused due to the provision of waterproof walls, emergency power supplies, etc. |
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Increase in insurance premiums for facility damage due to storms, etc. | Medium-term | There is a possibility of a certain increase in premiums, but the financial impact is assumed to be limited. |
As a result of quantitative and qualitative evaluations of the likelihood and timing of the materialization of risks, the impact if they materialize, and the status of current countermeasures, none of these items were materially affected. Going forward, we will continue to conduct risk assessments to appropriately manage risks and consider business opportunities and other factors that can be obtained through the development of new businesses, which will lead to an increase in corporate value.
Risk Management
To identify and evaluate climate-related risks and opportunities in the SKY Perfect JSAT Group, we conduct scenario analyses, etc. in the Climate-Related Review Project, identify and evaluate climate-related risks and opportunities, and consider countermeasures for each risk and opportunity as described in the Strategy. In assessing the importance of risks and opportunities, members of Climate-related Review Projects discuss and evaluate them. The results of these reviews are reported to and discussed by the Risk Management Committee and the Sustainability Committee. In addition, the content of the review is regularly reported to the Board of Directors by the Director in charge of Corporate Administration, who is the chairman of both committees, and progress is managed.
Please refer to the organizational diagram of the above Governance.
Indicators and Targets
(a) Indicators and Target Indicators of Climate Change
Indicators | Target Indicators of Climate Change |
---|---|
GHG emissions (Scope1,2) | Short-term Target:-1% compared to the previous year
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Renewable energy use ratio | 100% by 2030
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(b) Trend of GHG emissions (Unit:t-CO2)
Indicators | FY2019 | FY2020 | FY2021 |
Scope1 | 10 | 8 | 10 |
---|---|---|---|
Scope2 | 12,672 | 11,415 | 10,218 |
Total | 12,682 | 11,423 | 10,228 |
- Major subsidiary, SKY Perfect JSAT Corporation (non-consolidated)
(c) Trend of Renewable energy use ratio(Unit:%)
Indicators | FY2019 | FY2020 | FY2021 |
---|---|---|---|
Renewable energy use ratio | - | - | Approx. 30% |
- SKY Perfect JSAT Group