Preventing Climate Change
Preventing Climate Change
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 (Task Force on Climate-related Financial Disclosure) 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 and carrying out Group-wide initiatives aimed at achieving carbon neutrality.
CO2 emission results
Information disclosure based on TCFD recommendations
Governance
NST holds the Sustainability Committee that is chaired by the President 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 SDGs Strategy Subcommittee and Environmental Management Subcommittees are subordinate bodies of the Sustainability Committee and carry 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
In the NST Group, for 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 preindustrial revolution times, and one scenario in which these measures are not carried out and global average temperatures rise by 4°C.
Risk management
The NST Group identifies the risks and opportunities resulting from climate change, 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 was established and conducted studies. The Sustainability Committee considers and discusses the identified risks and opportunities, and then reports the results for discussion by the Management Meeting and Board of Directors.
Indexes and targets
The NST Group has set CO2 emission reduction targets for Scope1 and Scope2 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 credits and other environmental certificates, in order to achieve our targets.
