Environment

The Vertex Group’s business has deep ties to the global environment. We see our responsibilities toward environmental sustainability as a matter of course, and we are committed to reducing the environmental impact of our business activities.

scope 1 and 2Reduce CO₂ emissions(※1)by 50% of 2018 levels by 2030, and reduce scope 3(※2)CO₂ emissions(※1)
by  40%.

*1: Unconsolidated CO₂ emissions (scope 1, 2, and 3) for Vertex Co., Ltd.
*2: Scope 3 results will apply to category 1.

The Vertex Group understands that responding to climate change is an important management issue. As such, we have established a governance structure centered on the Sustainability Committee and overseen by the Board of Directors.

We have conducted a climate change scenario analysis regarding our concrete business for 2050.
Based on multiple scenarios published by the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC), we assumed two potential outcomes(*): a “2°C scenario,” where the impacts of transitional risks become apparent, and a “4°C scenario,” where the impacts of physical risks become apparent.As part of the analysis, for each scenario we identified key financial impact drivers related to climate change. We also identified relevant risks and opportunities as regards climate change, examined their potential business impacts, and assigned them three impact rankings of large, medium, or small. We will consider measures to reduce significant risks or to seize opportunities based on the results of these ranked evaluations.
 

* Potential outcomes
2℃ Scenario: The entire construction value chain works in collaboration towards decarbonization, resulting in a reduction in CO₂ emissions and carbon neutrality
4℃ Scenario: The progress of decarbonization is limited, and temperatures rise in Japan. There is more frequent flooding, along with greater demand for infrastructure related to disaster prevention, as well as reconstruction from natural disasters

Chaired by our President and CEO, the Sustainability Committee identifies and evaluates risk management issues related to climate change and regularly reports to the Board of Directors.

● Process of identifying and assessing risks related to climate change:
The Corporate Planning Department is responsible for promoting sustainability strategies, including those related to climate change. As such, it handles identifying and assessing climate change-related risks and opportunities for the Company and Group companies, reporting those to the Sustainability Committee.
The Sustainability Committee then evaluates the potential magnitude and scope of the climate change-related risks that have been identified. Once countermeasures have been considered in line with the level of seriousness of the risk, it sets targets and reports to the Board of Directors.
The Board of Directors oversees these measures and targets related to the risks.

● Process for managing risks related to climate change:
The Corporate Planning Department is responsible for planning, formulating, and managing strategies related to sustainability, including climate change. It promotes company-wide responses to climate change-related risks and reports on the progress of initiatives to the Sustainability Committee. It also reports to the Risk Management Committee regarding these risks.
The Sustainability Committee presents policies aimed at minimizing the identified and ranked risks, and via the Corporate Planning Department provides Company and Group company guidance for taking action. It further reports to the Board of Directors regarding initiatives and the progress towards established goals.

● Process for integrating risk management across the organization:
    The Risk Management Committee meets regularly to evaluate reports from each department managing risk. While assessing overall risks to the company, it discusses the best responses, and then reports to the Board of Directors.
The Corporate Planning Department is responsible for receiving reports regarding risks related to climate change and determining appropriate responses from the perspective of risk management for the entire organization.
The Board of Directors receives reports from the Risk Management Committee regarding integrated risk management and related initiatives, including risks related to climate change, and provides oversight.

One of our indicators regarding the management of climate-related risks is the rate of reduction of CO₂ emissions (scope 1, 2, and 3). We have set CO₂ reduction rate targets for 2030 and 2050 and aim to reduce CO₂ emissions through the implementation of key initiatives outlined in the next medium-term management plan.

*Unconsolidated CO₂ emissions (scope 1, 2, and 3) for Vertex Corporation.
*Scope 3 results will apply to category 1.