Preventing Climate Change
Preventing Climate Change
Previous efforts
- *In April 2024, the above "ESG Committee" changed its name to the "Sustainability Committee."
CO2 emission results (thousand t-CO2)
The CO2 emissions (Scope 1, Scope 2) of the NST Group are as follows. We are also working to calculate indirect CO2 emissions (Scope 3) resulting from business activities through the NST supply chain.
Targets and initiatives related to reducing CO2 emissions
Based on increasingly severe environmental problems and growing demands for global decarbonization, the NST Group has established CO2 emission reduction targets consisting of a 30% reduction by fiscal 2030 (compared to fiscal 2018) and achieving carbon neutrality by 2050. For Scope 1 and Scope 2 reductions, we are carrying out a variety of energy conservation programs, including changing the lighting at Group company plants and offices to LEDs, and turning lights off during the lunch break. At the Head Office and some Group companies, we are steadily installing solar power generation systems and switching to CO2-free electricity from renewable energy sources. At other bases as well, we will continue to carry out energy conservation programs, switch to power from renewable energy sources, and systematically utilize environmental certificates (non-fossil fuel certificate, J-credits, etc.), in order to achieve our targets. In order to contribute to achieving global carbon neutrality, we are actively working to sell eco-products and propose eco-solutions, and are endeavoring to realize a low-carbon society.
At NST Coil Center (Thailand) Ltd., we introduced a solar power generating system in fiscal 2019 and have utilized it to reduce CO2 emissions. We also newly installed a solar power generating system at Neemrana Steel Service Center India Pvt. Ltd. in fiscal 2023. We will continue to actively study the introduction of solar power generating systems at bases in Japan and overseas, and make maximum effective use of renewable energy in order to broadly contribute to the creation of a low-carbon society.
Information disclosure based on TCFD recommendations
The NST Group has established “contributing to a decarbonized society and environmental conservation” as one materiality related to ESG management. By reducing CO2 emissions, proposing eco-solutions through our business, and other means, with the goal of becoming carbon neutral in 2050, we are aiming to achieve both preservation of the global environment and economic activity, and contribute to the creation of a sustainable society. In May 2022, we announced our agreement to the TCFD* recommendations, and we have been carrying out information disclosure in line with the TCFD framework regarding the impacts of our business activities on climate change.
- *Task Force on Climate-related Financial Disclosure
Governance
From the perspective of promoting sustainability, NST has constructed a Sustainability Promotion System intended to improve corporate governance, enhance ESG management, and further strengthen risk management. As part of this, the Sustainability Committee that is chaired by the President is held twice every year, and we consider basic policies and measures related to promotion of our ESG management, including matters related to climate, comprehensively and across the entire NST Group. The Environment Meeting is a subordinate body of the Sustainability Committee and carries out implementation and follow-up of various climate-related and other measures. The issues considered and discussed by the Sustainability Committee are reported to and discussed by the Management Meeting and Board of Directors at least once each year. The Board of Directors carries out regular supervision of this process, and provides instructions for action as necessary.
Strategies
The TCFD recommendations include performing analysis based on multiple climate scenarios when disclosing strategies. In our primary business area of steel, our company has analyzed risks and opportunities, and studied the impact on our business, using 2030 as the time frame and based on two scenarios: one scenario in which the measures necessary are carried out to limit the average rise in global temperatures to less than 1.5°C compared to pre-industrial revolution times, and one scenario in which these measures are not carried out and global average temperatures rise by 4°C.
Risk management
NST identifies the risks and opportunities resulting from climate change at the Environment Meeting, and operates an effective PDCA (plan, do, check, act) management cycle in order to carry out improvements. For identification, analysis, assessment, and action in response to climate change risks and opportunities, an internal cross-organizational project team (hereafter, the “TCFD Action Study Team”) has been established and is conducting studies. The Sustainability Committee considers and discusses the risks and opportunities which were identified by the TCFD Action Study Team, and then reports the results for discussion by the Management Meeting and Board of Directors.
Indexes and targets
In May 2021, the NST Group identified six priority issues (materiality) related to ESG management, one of which is “contributing to a decarbonized society and environmental conservation.” We have decided CO2 emission reduction targets for Scope 1 and Scope 2 consisting of a 30% reduction (as compared to fiscal 2018) in fiscal 2030 and achieving carbon neutrality in fiscal 2050, and are taking action to eliminate carbon emissions.
For the NST Group, because approximately 80% of CO2 emissions are caused by the use of electrical power, we are carrying out a variety of energy conservation programs including introducing solar power generating systems, switching vehicles to EV and other eco-friendly cars, and changing to high efficiency, energy-saving equipment, and are also systematically switching to power from renewable energy sources and utilizing environmental certificates (non-fossil fuel certificate, J-credits, etc.), in order to achieve our targets.
