Responding to TCFD Recommendations
CellSource analyzes risks and opportunities to understand the impacts on business activities that are related to climate change. The Company has organized its response in the following categories using the framework proposed by the Financial Stability Board (FSB)'s Task Force for Climate-related Financial Disclosures (TCFD).
| Governance | Oversight of Board of Directors | The decision-making function regarding the most important management issues (including climate-related opportunities and risks) belongs to the Board of Directors. The Board of Directors receives reports on climate-related matters discussed by the Compliance and Risk Council headed by the Representative Director, and oversees business execution and the risk management system. |
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| Management’s role in assessment and management | The Representative Director is the member of the management team responsible for climate change-related matters. The Representative Director is a member of the Board of Directors and head of the Compliance and Risk Council. The Board of Directors receives reports on progress of matters discussed by the Compliance and Risk Council regarding climate-related strategy, risk management, and metrics and targets, and oversees business execution and the risk management system. | |
| Strategy | Climate-related risks and opportunities identified over the short, medium, and long terms |
- Risks: The Company is not aware of serious climate-related risks that require large-scale business transformation and investment over the long term like the high-risk sectors defined by the TCFD. However, the Company will discuss responses to the following risks going forward.
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| Impact on the organization’s strategy, financial planning, etc. | The Company is aware that we need to follow regulatory developments closely, bearing in mind the possibility that new, tougher regulations will be enforced. At the same time, the Company sees opportunities such as the potential for the development of manufacturing processes that reduce environmental impact. | |
| Resilience of the organization’s strategy, taking into consideration different climate-related scenarios | The Company will discuss responses in diverse scenarios and strengthen resilience to prepare for an uncertain future. | |
| Risk management | Processes for identification and assessment | The Compliance and Risk Council will identify as companywide risks the climate-related risks that will have the greatest impact on the Company’s management. |
| Processes for management | The Compliance and Risk Council will regularly conduct risk assessment and formulate risk reduction measures for climate-related risks identified as having the greatest impact on the Company’s management, and monitor progress. | |
| Integration of above processes with overall risk management | A legal adviser of the Company will attend meetings of the Compliance and Risk Council as an adviser, providing appropriate advice from a professional perspective, and report to the Board of Directors. | |
| Metrics and targets | Metrics for assessment | The Company promotes environmental conservation activities with a medium- to long-term perspective. However, the Company’s business is still in its early stages. The Company thinks that it is difficult to set specific metrics and targets at this stage, although it will contribute toward Japan’s goal of becoming carbon neutral in 2050 amid the sharp expansion of its products and services. |
| Status quo | Renewable energy accounted for 35.2% of the Company’s electricity consumption in FY10/2023. | |
| Targets and results |
The Company is implementing the following initiatives with the goal of carbon neutrality in 2050.
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