Addressing Climate Change (Disclosure Based on TCFD Recommendation)
TOYO recognizes that protection of the global environment and prevention of global warming are common issues for all humankind. We conduct business activities as our mission "Engineering for Sustainable Growth of the Global Community" and under the slogan "environmentally-friendly society" as one of our materiality. In November 2021, TOYO expressed its support for the recommendations of the Financial Stability Board (FSB)'s Task Force on Climate-related Financial Disclosures (TCFD), and based on these proposals, TOYO has formulated strategies and promoted initiatives.
We recognize that addressing sustainability issues such as climate change are important management issues. And the issues are not only reduces risks but also leads to business opportunities. From the perspective of raising corporate value over the medium to long-term, we have formulated the Basic Sustainability policies, and have established the system for the Board of Directors to properly supervise these initiatives.
The Sustainability Committee, an advisory committee to the Executive Committee, examines, promotes, and monitors climate change-related matters. The basic policies and important matters are discussed and authorized in Board of Directors after deliberation by the Executive Committee. See "Corporate Governance"
Based on our Basic Policy of the Internal Control System, TOYO identifies the events of potential risks, including changes in the business environment, clarifies the processes for classifying, analyzing, assessing, and responding to risks, and the divisions in charge and related regulations, develops and implements risks management system. In order to identify and respond to potential risks as quickly as possible, we periodically review and identify key risk items and implement risk management.
About identification and assessment of climate change-related issues, we are in line with the framework recommended by the TCFD, and analyzes important factors affecting our business through scenario analysis and reflects in the medium-term management plans and other strategies. See "Risk management and Security"
Risks and Opportunities/Scenario Analyses and Strategies from Climate Change
In line with the framework of the TCFD recommendations, the report is based mainly on (1) the 2.6°C scenario* (Stated Policies Scenario (STEPS) and (2) the 1.5°C scenario* (Net Zero Emissions by 2050 Scenario (NZE). "Transition risks" refers mainly to the risks that may occur in course of the decarbonization society (1.5°C scenario), and "physical risks" refer mainly to the risks that would result in the emissions reduction failure (2.6°C scenario).
* Refer mainly World Energy Outlook 2021 of the International Energy Agency (IEA)
Major risks and opportunities
Risks and opportunities/impacts in our business areas, especially in areas affected by climate change
Click to zoomSee "Materiality"
Initiatives and strategies
The above analyses are reflected in the Strategic Medium-Term Management Plan 2021-2025.See "Solution" for specific examples
See "Medium-term Management Plan 2021-2025"
Metrics and Targets
TOYO has set the following targets to reduce GHG emissions.
- Scope 1&2
- Achievement net zero emissions by 2050
- Reduce emissions 30% by 2030 compared to 2021 (based on GHG emissions per employee)*
- Scope 3
- We will contribute to the reduction of emissions by cooperating with stakeholders and providing technologies, products, and solutions (through the above strategies and initiatives).
*The amount of emissions (Scope1&2) in 2021 was approximately 12,800 tons (1.71 tons-CO2/person), and we will strive to achieve this goal.