TCFD

Tamron agrees with the purpose of TCFD and will work on the development of the recommended framework and the disclosure of climate-related information.

Governance

Tamron recognizes various risks including climate change as important management issues. The CSR Committee, which is chaired by the president, deliberates and makes decisions about Tamron’s basic policy on risk response and other important matters. Systems are in place to report important matters to the Board of Directors to enable suitable supervision. Information decided on by the CSR Committee is also reflected in management plans.

Risk management system

Strategy

Tamron evaluated risk and opportunity using a “1.5℃” scenario. Tamron recognizes the risks and opportunities it faces based on the following table. It will also be necessary to contribute to worldwide initiatives as part of the shift to decarbonized society to ensure the sustained corporate activities of Tamron. Given this, in July 2020 Tamron will establish Environmental Vision 2050 and work to help create a sustainable earth by reducing CO2 emissions by 80% by the year 2050.

Risks

Risks Physical Risks
(1) Impact on production activities from manufacturing to sales due to damage to plants in Japan and overseas

Transitional Risks
(1) Damage to corporate value through inability to respond to the shift to a decarbonized society
(2) Rising burden of carbon taxes and renewable energy purchase costs
Opportunities (1) Increased demand for teleconferencing cameras as measure to deal with interruptions to public transportation

1.5℃ Target Scenario

In a world with a 1.5°C global temperature rise, it is expected that
(1) renewable energy costs will rise, and
(2) carbon taxes will be introduced.
To achieve the 2050 target, we have set the goal of reducing CO2 emissions by 30% compared to 2015 levels by the year 2030, but to achieve this, the purchasing of renewable energy will be essential. As renewable energy is more expensive than conventional sources of power, it will impart a financial impact. Costs are expected to rise by up to 4.5 yen per kWh from current levels. In addition, to achieve sustained growth in production volume moving forward, Tamron expects its annual power consumption to rise from the current 77 million kWh to 117 million kWh by the year 2030. In this case, our costs would increase by a total of around 160 million yen per year. Furthermore, if a carbon tax was introduced in Japan, China or Vietnam, where we maintain production facilities, we estimate that our taxes would amount to 240 million yen based on the IEA’s SDS 2025 scenario (carbon taxes predicted to be 6,000 yen / t-CO2 in developed nations and 4,000 yen / t-CO2 in developing nations). However, Tamron will try to reduce its carbon tax burden by introducing renewable energies and cutting carbon volume through energy conservation.

Risk Management

Tamron views opportunities and risks associated with climate change as one of the important perspectives to be considered when formulating its business strategy. The CSR Committee also revises the analysis and evaluation of opportunities and risks based on the changing external environment.

Key Risks and Opportunities

Indicators and Targets

Target CO2 emissions from Tamron’s corporate activities have been defined in Environmental Vision 2050. Each year, we will report on target values and past results as we move towards achieving these goals. Moreover, in addition to direct emissions (Scope 1) and indirect emissions from energy purchases (Scope 2), we are also considering the prospect of calculating and setting reduction targets for indirect emissions (Scope 3).

2019 Environmental Targets and Results

Unit sales basis Target 3.8% reduction in CO2 emissions compared with 2016 levels
Results 3.5% reduction in CO2 emissions compared with 2016 levels
Cause of the reduction shortfall Reduction activities focused on energy conservation only
Future Measures Reducing total energy consumption through energy conservation while shifting to reduction with a focus on the introduction of renewable energies