TCFD
》 Main Goals 》 Value Creation Process
》 Materiality（Material Issues）
》 ESG Data
》 GRI Content Index 》 Outline of Activities
》 Website accessibility policy
》 Health and productivity management
》 Initiatives for Achieving SDGs 》 TCFD
》 Improvement of service quality
》 Annual Report(Integrated Report)
In July 2022, Artner announced its support for the recommendations from the Task Force on Climate-related Financial Disclosures (TCFD), and has rated climate change as a high-priority issue. With an aim to achieve a more sustainable society, we are committed to taking necessary actions and initiatives based on the environmental activity policy described below.
Environmental activity policy
・We will provide education to our employees in order to raise their awareness of environmental issues and promote environmental activities.
・We will comply with environmental laws and regulations and strive to disclose appropriate information. We will also collaborate with local communities and other stakeholders in an effort to achieve a more sustainable society.
| Disclosure based on TCFD recommendations |
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We will disclose information in accordance with the recommendations published by the Task Force on Climate-related Financial Disclosures (TCFD) of the Financial Stability Board (FSB). 》Governance 》Strategy |
Governance
As we have rated climate change as a high-priority issue, we have established the Sustainability Committee as a special committee for discussing sustainability-related issues including climate change. This Committee is established directly under the Board of Directors, and reports and submits the topics it discusses to the Board, which then deliberates and makes decisions on them. The content of such discussions will be disclosed externally and reflected in the Company’s management policies and various initiatives.
The main members of the Committee consist of Directors who are not members of the Audit and Supervisory Committee (including the President and CEO), Directors who are Audit and Supervisory Committee members, as well as division heads and managers. The Committee is held four times a year. The Committee promotes and manages the status of sustainability issues and initiatives, including those related to climate change.
The topics deliberated in the Committee are reported to the Board of Directors. The Board then deliberates and adopts the resolutions on important risks and opportunities related to climate change, gives instructions on how to deal with them, and supervises the progress of such initiatives.
The Company’s Board of Directors consists of eight members including five Directors who are not members of the Audit and Supervisory Committee and three Directors who are Audit and Supervisory Committee members. The Board of Directors meeting is held twice a month. The Board of Directors holds performance meetings around the 15th of each month to mainly deliberate on topics related to monthly business performance, and holds regular meetings at the end of each month to deliberate and decide on topics related to management plans and other important topics concerning business execution.
Strategy
Medium-Term Business Plan (fiscal year ending January 31, 2023 to fiscal year ending January 31, 2025) — excerpt from the business plan document
As our social environment continues to change on a global scale, we believe that dealing with social issues, such as initiatives based on the recommendations from the Task Force on Climate-related Financial Disclosures (TCFD), is an important managerial agenda.
We will strive to build an internal system of recruitment, training, and sales with carbon neutrality as a main pillar of our business activities.
Risks and opportunities
Artner conducts scenario analysis by identifying key risks and opportunities related to climate change and carrying out qualitative assessments of their impacts. For the first time in our scenario analysis, we included our main business area of engineer dispatching while using two scenarios (4°C scenario and combined 1.5°C and 2°C scenario) to examine the impact of climate change.
We extracted risks and opportunities, and the degree of impact on our business activities was evaluated on a three-point scale of large, medium, and small.
In addition, timeframes were defined as follows: “short-term (impact is apparent in less than 3 years)”; “medium-term (impact is apparent in 3 years to less than 10 years)”; and “long-term (impact is apparent in 10 years or later).”
| Risk item | Business impact | |||||||
|---|---|---|---|---|---|---|---|---|
| Large category | Medium category | Small category | Timeframe | Indicator | Consideration: risks | Consideration: opportunities | Evaluation (risks) |
Evaluation (opportunities) |
| Transition (1.5 and 2°C scenarios) |
Policies and regulations |
Carbon price (carbon tax) | Short- to long-term | Increased payment | The Company’s main business is the dispatching of engineers, and it has offices and training facilities to meet the needs of client companies. Therefore, if a carbon tax is introduced, there is a risk that overhead costs will increase with the use of electricity. | − | Medium | − |
| Renewable energy policy | Short- to long-term | Increased payment | There is a risk that expenditures will increase if the price of renewable energy rises due to the promotion of renewable energy policies resulting in an increased demand for renewable energy. | − | Medium | − | ||
| Energy-saving policy | Short- to long-term | Increased payment | The Company uses leased office space for its business and training facilities. There is a risk that the conversion of normal office buildings into net-zero energy buildings (ZEBs) will lead to an increase in expenditures because the cost of developing ZEBs will be added to the rent or the tenant fee. |
− | Medium | − | ||
| Technology | Advances in low-carbon technologies | Short- to long-term | Increased earnings Increased payment |
Our main customers are in the automotive industry, which requires us to provide engineers who can develop products related to low-carbon technologies. If we are slower than our competitors to respond to these technologies, our engineers’ skills may be considered obsolete and the demand for the dispatch of engineers may shrink, resulting in decreased sales. If new technologies need to be incorporated, costs for information gathering and training may increase. |
A low-carbon society may be promoted, which will lead to an increase in the demand for products using low-carbon technologies. In such a case, our sales may increase due to an increased demand for the dispatch of engineers to our existing clients and new clients. | Large | Large | |
| Market | Change in demand for important products | Short- to long-term | Increased earnings Increased payment |
Our main customers are in the automotive industry, which requires us to provide engineers who can develop products related to low-carbon technologies. If we are slower than our competitors to respond to these technologies, our engineers’ skills may be considered obsolete and the demand for the dispatch of engineers may shrink, resulting in decreased sales. If new technologies need to be incorporated, costs for information gathering and training may increase. |
Since the Company’s main customers belong to the automotive industry, actively attracting engineers who can deal with the design and development processes that support the shift to zero-emission vehicles (ZEVs) may lead to increased demand for the dispatch of engineers, which could result in higher sales. The advancement of low-carbon technologies has accelerated the speed of development of low-carbon business. Enhancing our recruitment and training systems as well as our services to meet the increasing number of requests from clients could lead to increased sales. If extreme weather conditions increase, along with a rising demand for seasonal products such as air conditioning products that can deal with higher/lower outdoor temperatures, this may lead to the manufacturers’ increased demand for the development of HVAC equipment, resulting in growing demands for the dispatching of engineers and increased sales. |
Medium | Large | |
| Reputation | Change in reputation from customers | Short- to long-term | Increased earnings Increased payment |
The momentum for decarbonization is growing throughout the supply chain. Clients may require their suppliers to reduce emissions and disclose relevant information. In particular, the automotive industry, which accounts for a major part of our customer base, is making much progress in this area than other industries. If our efforts are deemed insufficient, there is a risk that our reputation will be damaged, leading to a decrease in sales. In addition, significant costs may be required to address these issues. |
As the entire supply chain of the automotive industry is making an effort to reduce emissions, if we become recognized as a leader in addressing climate change issues, this could lead to increased sales. | Large | Large | |
| Change in reputation of our employees | − | If the Company’s environmental initiatives and the track record for dispatching engineers who have low-carbon skills are highly regarded by job seekers, the Company’s image may improve, which could serve as an advantage over other companies in recruiting talents. | − | Large | ||||
| Change in reputation from investors | Short- to long-term | Increased earnings Increased payment |
The trend toward decarbonization may require investors to consider factors such as the decarbonization efforts and GHG emissions of companies that they invest in before making decisions, which may incur additional costs. | If factors such as environmental initiatives and GHG emissions become more important in making investment decisions, and if investors see that the Company’s environmental efforts are advanced, this may lead to a rise in the stock price and an inflow of investment capital. | Medium | Medium | ||
| Physical impact (4°C scenario) |
Acute | Intensifying extreme weather events (typhoons, torrential rains, landslides, storm surges, etc.) | Long-term | Increased payment | If our clients are adversely affected by increased natural disasters causing operation downtime, etc., our sales may decrease due to reduced demand for engineers as a result of R&D budget cutbacks. Also, in the event that our offices and training facilities are affected by such disasters, costs for recovery and relocation may be incurred. |
− | Large | − |
| Chronic | Increased average temperature | Long-term | Increased payment | Rising average temperatures will increase the use of air conditioning, which may increase costs at all our business and training facilities. | If rising outdoor temperatures increase the need for safer and more comfortable indoor temperatures, the manufacturers’ demand for developing HVAC equipment will increase, which may result in an increased demand for the dispatching of our engineers and increased sales. | Small | Medium | |
Our response to different risks and opportunities
| Risk item | Response | |||
|---|---|---|---|---|
| Large category | Medium category | Small category | Examples of our response to risks | Examples of our activities to achieve opportunities |
| Transition (1.5 and 2°C scenarios) | Policies and regulations | Carbon price (carbon tax) | Set GHG emission reduction targets Switch the rent-a-cars that we use to EVs and other low-carbon vehicles |
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| Renewable energy policy | Reduce electricity costs through energy conservation initiatives at our offices | |||
| Energy-saving policy | ||||
| Technology | Advances in low-carbon technologies | Capture demand for the development of low-carbon products such as EVs and other low-carbon vehicles, as well as energy-saving and renewable energy equipment, etc. | ||
| Market | Change in demand for important products | |||
| Reputation | Change in reputation from customers | Contribute to the development of customers’ low-carbon products by dispatching engineers with low-carbon skills Acquire new clients by strengthening the low-carbon skillsets of our engineers |
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| Change in reputation of our employees | − | Provide a proven track record in the low-carbon business area | ||
| Change in reputation from investors | Contribute to the development of customers’ low-carbon products by dispatching engineers with low-carbon skills Acquire new clients by strengthening the low-carbon skillsets of our engineers |
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| Physical impact (4°C scenario) | Acute | Intensifying extreme weather events (typhoons, torrential rains, landslides, storm surges, etc.) | Formulate a BCP in preparation for the potential occurrence of natural disasters | − |
| Chronic | Increased average temperature | − | Respond to the growing demand for the development of air conditioning products | |
Risk management
In response to major changes in the business environment, the Company has established the Compliance and Risk Management Meeting as part of its effort to clarify the Company’s approach to risk management and future initiatives, and to practice risk management as an enterprise-wide commitment. This Meeting, established under the control of the Board of Directors, identifies risks that need to be addressed among various risks such as climate change, sets priorities for responding to such risks, and manages progress on an ongoing basis. The topics discussed in the Meeting are reported and submitted to the Board of Directors, which then deliberates and make decisions on such topics.
The main members of the Meeting consist of Directors who are not members of the Audit and Supervisory Committee (including the President and CEO), Directors who are Audit and Supervisory Committee members, as well as division heads and managers. The Meeting is held once per month.
Organization chart
Indicators and targets
We calculate our Greenhouse gas (GHG) emissions.
Our goal for FY2051 is to achieve net zero GHG emissions.
(Reduce CO2 emissions by 22.6t by FY2025 , compared with FY2021 levels)
Greenhouse gas (GHG) emissions (Scope 1 and Scope 2)
Unit： tCO2
| Description | Target | Result | |||||
|---|---|---|---|---|---|---|---|
| FY2051 | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | ||
| scope1 | Use of fuel for rent-a-cars | Net zero | 86.0 | 7.5 | 11.4 | 18.0 | 26.1 |
| scope2 | Use of electricity at our locations | 91.2 | 79.9 | 79.3 | 82.5 | ||
| Total | 98.7 | 91.3 | 97.3 | 108.6 | |||
*Fiscal year ended January 31
