Environmental InitiativesDisclosure in Line with TCFD Recommendations

Support for the TCFD recommendations

We consider climate change as one of our important business issues and, in May 2023, expressed our support for the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).

About TCFD

TCFD stands for the Task Force on Climate-Related Financial Disclosures and was established by the Financial Stability Board (FSB) at the request of G20 to discuss ways for disclosing climate-related information. In June 2017, the TCFD published its final report recommending that companies and other entities disclose the following items of their climate-related risks and opportunities.
- Governance: What kind of organizational structure do you use to discuss climate change? Is it reflected in your business management?
- Strategy: How does short-, mid- or long-term climate change affect your business management? How will you handle it?
- Risk management: How will you identify, assess and reduce risks of climate change?
- Metrics and targets: What indexes do you use to judge assessment of risks and opportunities and to determine the degree of progress toward the goal?

Governance

Snow Peak practices corporate activities based on its Mission Statement The Snow Peak Way, in pursuit of sustainability for the company itself and for society. To strengthen the structure for promoting this pursuit and continuously enhancing our corporate value, we have a risk management system in place by setting up the Risk and Compliance Committee under the Management Meeting. The Committee is chaired by the company's Chairman, President and Representative Director.
In the context of company-wide corporate governance and for addressing climate change and other sustainability issues and strengthening our governance, in May 2023, we shift to the structure where the Risk and Compliance Committee selects and identifies all important risks including climate change which are categorized into E (environment), S (social) and G (governance), assesses the degree of impact of the risks, formulates measures and controls their progress.
Risk and Compliance Committee identifies risks and opportunities relating to climate change, assesses their impact, formulates policies, goals and action plans relating to company-wide sustainability, and manages and assesses progress in comparison with the KPIs. At least semiannually, the Committee holds discussions or deliberations and makes decisions on issues concerning the management of the risks of climate change and action plans concerning major sustainability issues among others.
Discussions at the Risk and Compliance Committee are semiannually put to deliberation by the Management Meeting before being reported to the Board of Directors which, upon receiving a report on the Committee's activities, supervises and gives advice on the company's initiatives concerning climate change-related risks, opportunities and mid- and long-term goals. In this company, Chairman, President and Representative Director assumes responsibility for addressing climate change-related issues.

Climate change-related governance structure

Strategy

To address and mitigate climate change, we identified climate change-related risks and opportunities surrounding us, and using the two 1.5-2°C and 4°C scenarios, we analyzed the policy and market trends (transition risks and opportunities) and material changes due to disasters and other physical causes (material risks and opportunities). In the impact analysis we used the climate change scenarios published by IPCC (Intergovernmental Panel on Climate Change) and IEA (International Energy Agency). Representative examples from the scenarios are shown below.
The duration of impact is classified as short-term (3 years or less), medium-term (3-10 years) or long-term (10 - 30 years) in consideration of the external impact expected in 2030 and in 2050. For each element of risk or opportunity, we quantitatively and qualitatively examined the impact of approximately 50 possible items related to climate change drivers (causes) on our business operations and classified their impact into three levels: Large, Medium and Small.

Analysis methods

The Sustainability Office lead the selection of the 1.5-2°C scenario and the 4°C scenario respectively characterized by the shift to a decarbonized society and the progression of global warming. The different risks and opportunities were analyzed and assessed.

1．Analysis process

2．Definitions of the climate change scenarios

1.5-2°C scenario

This scenario is designed to examine a rise in the global average temperature that is within the range of 1.5-2°C in comparison with the pre-industrial level, assuming that carbon neutrality efforts intensify with the goal of curbing the impact of climate change. The 1.5°C scenario (NZE) assumes that, among the transition risks, policy and legal regulation risks will have a greater impact than in the 2°C scenario (APS).
＜Scenario used in analysis＞
1.5°C scenario
・IEA Net Zero Emission（NZE）
・IPCC SSP1-1.9
2°C scenario
・IEA Announced Pledges Scenario（APS）
・IPCC SSP1-2.6

4°C scenario

Measures to address climate change will not go beyond the current level and the global average temperature will rise about 4°C above the pre-industrial level by around the end of this century. This scenario assumes that the material risks intensify abnormal weather and the risks due to the sea level rise will have a greater impact.
＜Scenario used in analysis＞
・IPCC SSP5-8.5

Impact of risks and opportunities and measures

Scope of application　　　　　　　Whole company, suppliers, customers and investors
Transition risks　　　　　　　　　Assumed to materialize mostly in the 1.5-2°C scenario
Material risks　　　　　　　　　　Assumed to materialize mostly in the 4°C scenario
Timing of risk materialization　　Short term : within 3 years, medium term : 3-10 years, long term : 10-30 years
Impact　　　　　　　　　　　　　　Large : The financial impact and the scope of the impact are significant
　　　　　　　　　　　　　　　　　Medium : The financial impact and the scope of the impact are medium
　　　　　　　　　　　　　　　　　Small : Hardly any financial impact

Risk management

Process for sorting and assessing climate change-related risks

We established Risk and Compliance Regulations and the Risk and Compliance Committee to, in compliance with the COSO ERM framework, build a system for preventing, detecting, correcting and managing all risks that may arise in business operations including risks relating to climate change, and to decide how to handle the risks that do arise. The Committee is chaired by the company's Chairman who is also the President and Representative Director and its members include managers of business units, Directors and Audit and Supervisory Committee Members and others. Subordinate to the Risk and Compliance Committee, the Sustainability Secretariat Office identifies and assesses new risks accompanying climate change and specifies important risks considering their impact on the management of business, finances, operations and other matters.

Process of managing climate change-related risks

The company evaluates the importance of specified climate change-related risks in terms of the possibility of their occurrence and their impact. The Risk and Compliance Committee discusses and decides how to reduce the risks that are regarded as important. This is followed by discussion at Management Meetings before they are reported to the Board of Directors. The Board of Directors discusses the reported climate change-related risks. The policies of action that are determined are communicated via the Risk and Compliance Committee to the concerned divisions and their actions are monitored.

Integration into company-wide risk management

Subordinate to the Risk and Compliance Committee, which manages global company-wide risks, the Sustainability Office leads the discussion of climate change-related risks. The Committee periodically holds discussions to seek the agreement of both parties regarding their recognition of risks. Actions are taken and monitored to address urgent risks with the goal of ensuring company-wide risk management.

Metrics and targets

We have calculated greenhouse gas emissions (Scope 1 and 2) based on the GHG Protocol's standards for the management of climate change-related risks and opportunities. We have calculated the greenhouse gas emissions for the FY2023 (Scope 1 and Scope 2). As for Scope 3, we are currently in the process of calculating it, and we plan to disclose it as soon as it is completed.
In June 2023, we set the target of reducing Scope 1 and 2 greenhouse gas emissions 50.4％ by 2032. To achieve this target, we will promote measures such as the introduction of renewable energy and thorough energy saving. Going forward, we will stay committed to the reduction of GHG emissions by, for example, setting a Scope 3 emissions reduction target, recycling more of our products and strengthening engagement with major suppliers.

Metrics and targets