Assessment and disclosure based on the TNFD framework​

In June 2021, the Taskforce on Nature-related Financial Disclosures (TNFD), an international organization that develops a framework for assessing and disclosing risks and opportunities related to natural capital and biodiversity, was established. In September 2023, the TNFD Final Recommendations, which outline the framework, were published.​ SEG, which upholds the principle of “Goho Yoshi” (Five-Way Win), recognizes that assessing nature-related dependencies and impacts (risks and opportunities) and responding appropriately to issues are essential elements for enhancing corporate value and achieving mutual prosperity with multistakeholders. Based on this recognition, the Group​ is working to conduct assessments in line with the LEAP approach, which is recommended by the TNFD.

Value chain analysis

The Group operates globally in five business segments: Environment & Energy, Info-communications, Automotive, Electronics, and Industrial Materials. The Group has recently undertaken LEAP-approach scoping (determining the scope of assessment) and, together with in-house experts, has organized the value chains for the main products in each​ business segment. The Group then used ENCORE, an analysis tool recommended by TNFD, to analyze dependencies and impacts on nature. The results are shown in the heat map below.

 

The analysis revealed that the Group’s business activities are dependent on, and have an impact on, nature — particularly in the upstream stage of the value chain, namely raw material purchases. In addition, the table below shows that copper accounts for the largest share of the Group’s raw material purchases. The Group has therefore identified the Environment & Energy and Automotive segments — which have high net sales and use copper for products as their main raw material — as important business domains.

 


Copper steel (iron) aluminum and resin (petroleum) are all included in the High Impact​ Commodity List of SBTs for Nature
The dierence between the sum of the sales figures for each​ segment and the total amount is due to consolidation elimination.

Future plans

This fiscal year, the Group plans to conduct analyses in line with the LEAP approach, giving priority to the Environment & Energy and Automotive segments, which are of high importance. The Group will continue to enhance the content of its disclosure and reflect it in its business strategies and policies.​ SEG, which upholds the principle of “Goho Yoshi” (Five-Way Win), will continue to promote initiatives aimed at coexisting with nature.​