Initiatives for TCFD Recommendations

At the Canon Marketing Japan (hereafter, the "Canon MJ"), we endorsed the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and are working on related initiatives.

The Canon MJ Group has a system in place under which the Board of Directors supervises matters to be discussed and resolved by the Sustainability Promotion Committee, as they are important matters that relate to the core aspects of management and pertain to the entire organization. The Board of Directors receives reports on the risks and opportunities associated with climate change from the Sustainability Promotion Committee at least once a year and monitors the progress of measures related to such risks and opportunities.

Matters concerning climate change are discussed by the Sustainability Promotion Committee. The president & representative director, who is the chairperson of the committee, assumes overall responsibility for all sustainability-related matters, including climate change. The committee assesses the impact of climate change on our business once a year or more and holds discussions concerning our approach to minimizing the identified risks and seizing opportunities.

At the Canon MJ Group, we conduct scenario analyses to identify the various risks and opportunities posed by climate change to our business. Using the Intergovernmental Panel on Climate Changeʼs Representative Concentration Pathway (RCP) scenarios of 1.5°C (RCP 1.9) and 4°C (RCP 8.5) as well as the International Energy Agencyʼs Sustainable Development Scenario (IEA-SDS), the scenario analyses were carried out by selecting risks and opportunities that were shared throughout the Group as well as the Groupʼs key businesses that have a significant impact on climate change. The time of occurrence of risks or opportunities related to climate change impacts is determined based on short- or medium- to long-term time frames.

The Sustainability Promotion Division, which oversees matters related to climate change, takes the lead in identifying the risks and opportunities of climate change and assesses the situation in cooperation with the relevant internal divisions and Group companies. The Sustainability Promotion Division also examines responses and countermeasures for each risk and opportunity, which are reported and proposed for deliberation to the Sustainability Promotion Committee. The division also reports and deliberates on certain climate change-related impacts and matters to risk management divisions throughout the Company, thereby assuming the role of integrating the impacts of climate change into our Companywide risk management.

Aiming to realize carbon neutrality, we are working to achieve our goal of reducing in-house CO₂ emissions by 38% (compared with 2021) in the Canon MJ 2030 Medium-Term Environmental Targets. As of the end of 2023, we achieved an 8.4% reduction^* in CO₂ emissions compared with 2021.