Addressing Climate Change and the TCFD

Please refer to the Environmental Management page for details.

The scope of the scenario analysis covers the entire value chain from research and development (R&D) to procurement, production, and service provision, with a focus on Japan, the Hakuhodo DY Group’s principal area of operation. To consider long-term assumptions for 2030 and beyond, analysis was conducted against two scenarios: a 1.5°C scenario, which assumed an average global temperature at the end of this century of no more than 1.5°C warmer than that prior to the Industrial Revolution (in some instances a 2.0°C scenario was also analyzed), and a 4°C scenario, which assumed a rise in average global temperature of around 4°C.

Analysis of the 1.5°C scenario confirms that while there is a risk of increased costs associated with the introduction of a carbon tax and higher electricity and other energy prices, there are opportunities to increase our corporate value through increased sales from clients that deal in low-carbon emission products and services due to changes in general consumer preferences, and the provision of services that contribute to decarbonization. On the other hand, this also means that a delay in carbon reduction efforts could be a business risk.

In the 4°C scenario, a severe increase in wind and flood damage, such as from typhoons and floods, could pose the risk of shutting down the office buildings that support our business, but we are taking measures, such as promoting telework, to ensure that our business could continue without delay even in an emergency.
These analyses and response measures were approved and implemented following discussions with the Group Sustainability Committee Chair and the Environmental Manager, who received a report from the Environmental Management Subcommittee. We will continue to conduct scenario analysis on an ongoing basis to enhance its quality and quantity and further integrate it into our management strategies to enhance our resilience for dealing with an uncertain future.

In September 2024, we conducted a review of our materiality in order to promote sustainability management based on our Global Purpose and the Medium-Term Business Plan.
The Group Sustainability Committee will manage progress on and review risks, including climate-related issues, on a case-by-case basis to establish an appropriate risk management system.

To achieve carbon neutrality in FY2050, the Hakuhodo DY Group has set an interim target of a 50% reduction in Scope 1+2 emissions in FY2030 compared to FY2023 (fiscal year ended March 31, 2024) and a 25% reduction in Scope 3 emissions in FY2030 compared to FY2023 (fiscal year ended March 31, 2024). To achieve this goal, we will not only conduct conventional energy conservation activities, but also aim to introduce renewable energy-derived electricity to account for 100 in FY2030.

We will continue to enhance the quality and quantity of information disclosure in accordance with TCFD recommendations, and will also consider expanding the scope of calculation and target setting, as well as participation in various initiatives.

Independent third-party assurance has been obtained from KPMG Azsa Sustainability Co., Ltd. for the Hakuhodo DY Group’s Scope 1, 2, and 3 CO2 emissions for fiscal 2024. For Scope 1 and 2 emissions, we have received third-party assurance for values for Hakuhodo DY Holdings and its domestic consolidated subsidiaries.