Diagram of the system for addressing climate change
①Governance
Our group recognizes the changes caused by climate change as an important risk. In order to respond to the effects of climate change, our group has established a Sustainability Committee consisting of the general managers of the production and administrative divisions of each of our major group companies. The Board of Directors discusses the status of achievement of the initiatives and targets formulated within the Sustainability Committee.
②Strategy
Our group is drawing on the TCFD recommendations to identify the risks and opportunities that climate change poses to our business, and we are developing countermeasures for the following items, which we have extracted from two temperature scenarios: the 1.5°C scenario and the 4°C scenario.
Transition risks related to climate change
| Category | Impacts of Climate Change | Time axis | degree of influence | Countermeasures |
|---|---|---|---|---|
| Laws and Regulations / Policies | Costs are incurred for the company’s own emissions (Scope 1, 2). | Medium-term | Middle | (Vending machine operation retail business) ・Improving vending machine operation efficiency ・Making vehicles more energy efficient (hybrid, EV) (Beverage manufacturing business) ・Making manufacturing machinery and equipment more energy efficient |
| Laws and Regulations / Policies | In order to comply with stricter GHG emissions regulations, the cost of introducing renewable energy has increased. | Medium-term | Large | ・Promotion of energy conservation in manufacturing machinery and equipment ・Implementation of energy conservation activities in the office ・Restraint of cost increases through a review of power companies |
| Laws and Regulations / Policies | Increased costs due to replacing vehicles for vending machine management and introducing energy-saving equipment at factories. | Short-term | Large | Promoting the optimization of energy-saving investment periods |
| Market | If consumers become more environmentally conscious, their purchasing behavior will change, and profits will decline. | Short～ Medium-term | Middle | Calculation, disclosure and promotion of reduction of CFP |
| Market | Due to the rise in environmental awareness among consumers, the number of vending machines being removed is increasing, and the number of machines installed is decreasing. | Medium～ Long-term | Middle | ・Proposals for replacing vending machines with full-line vending machines and vending machines that can handle various product sizes ・Promoting the environmental performance of energy-saving vending machines |
| Evaluation | Decrease in investor confidence, increase in recruitment costs and financing costs from financial institutions | Medium-term | Middle | ・Ongoing disclosure of information to stakeholders ・Responding to external ratings related to climate change |
Physical risks related to climate change
| Category | Impacts of Climate Change | Time axis | degree of influence | Countermeasures |
|---|---|---|---|---|
| acute | Shortage of personnel in the event of an employee being affected by an increase in natural disasters | Short～Medium-term | Middle | ・Review of BCP and disaster prevention manuals |
| acute | Disruption of product procurement due to damage to beverage manufacturers | Short-term | Middle | ・Promotion of BCP measures in the supply chain ・Diversification of procurement routes |
| chronic | If the price of raw materials rises or it becomes necessary to switch to alternative raw materials, costs will increase. | Medium～ Long-term | Middle | ・Diversification of raw material procurement sources ・Review of sales prices |
| chronic | Due to global warming, the working environment for installing and managing vending machines has deteriorated, and operating costs have increased. | Medium～ Long-term | Middle | ・Implementation of a work style that avoids the peak summer temperatures by working flexible hours ・Improvement and review of the work environment |
Opportunities related to climate change
| Category | Impacts of Climate Change | Time axis | degree of influence | Countermeasures |
|---|---|---|---|---|
| Energy Source | The introduction and expansion of solar power generation and electricity storage technology has reduced the cost of purchasing electricity. | Short～Medium-term | Middle | ・Considering the introduction of in-house renewable energy generation |
| Market | If consumers become more aware of the need to stockpile against natural disasters and the market expands, the profits of products suitable for disaster prevention stockpiling will increase. | Short～Medium-term | Middle | ・Strengthen sales of products suitable for disaster stockpiling (emergency drinking water) |
| Market | Demand for beverages to prevent heatstroke is increasing, and profits from the vending machine operation retail business and beverage manufacturing business are increasing. | Medium～ Long-term | Large | ・Strengthen the production and sales of beverages to prevent heatstroke ・Develop a sales strategy for vending machines that matches the rise in average temperatures |
| Resilience | By promoting decarbonization initiatives, the company’s reputation among stakeholders has improved, and its share price has risen. | Short～Medium-term | Middle | ・Promotion of emission reductions in line with reduction targets |
(Definition of impact level)
・Large: Significant impact, measures are essential.
・Medium: Not a significant impact, but measures will be necessary in the future.
・Small: No particular measures or responses are necessary at this stage.
(Definition of time axis)
・Short term: Up to 3 years.
・Medium term: 3 to 10 years.
・Long term: 10 to 30 years.
③Risk Management
In order to promote company-wide risk management, our group has established a Risk Management Committee and Compliance Committee, which are made up of directors and the presidents and general managers of major group companies, and we review various risks and opportunities related to business execution on an annual basis. We evaluate the priority of each risk and opportunity and report on them at board meetings.
The method for evaluating risks and opportunities is to evaluate each risk and opportunity on a three-tier scale based on time axis, impact, and difficulty of response, and then calculate the level of importance based on time axis and impact, and finally calculate the priority based on the level of importance and the difficulty of response.
④Indicators and Targets
In order to assess and manage the impact of climate-related issues on our business, our group calculates greenhouse gas emissions (Scope 1-3) based on the GHG Protocol standards. We have also set reduction targets for Scope 1 and 2 emissions of 46% by 2030 (compared to 2013) and NetZero by 2050, and are currently considering setting reduction targets for Scope 3 emissions.
ASEED Group GHG emissions (t)
| Item | 2023.3 | 2024.3 | Goal |
|---|---|---|---|
| Scope１ | 8,798 | 9,034 | <Scope1,2> ・Base year：2013 ・Target for 2030：△46% ・Target for 2050：△100％ |
| Scope２ | 4,868 | 5,259 | |
| Scope１+Scope２ | 13,666 | 14,293 | |
| Scope３ | － | 156,975 | |
| Scope１・２・３Total | － | 171,268 |
(注)
１．This includes greenhouse gas emissions from Shizuoka Roast System Co., Ltd. and Marusan Hagima-Tea Co., Ltd., which became subsidiaries in April 2023
２．As we have only started calculating Scope 3 from the fiscal year ending March 2024, we have not included Scope 3 or the total of Scope 1, 2 and 3 for the fiscal year ending March 2023.