Information disclosure according to recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
Given the international community’s commitment to achieving long-term goals of the Paris Agreement, Nippon Steel signed the statement of support for the Task Force on Climate-related Financial Disclosures (TCFD) in May 2019, considering the climate change as one of priorities that the planet is facing today. Based on the recommendations, we are committed to information disclosure on the climate change impact to our business activities.
For each transition factor and physical factor, we have identified risks and opportunities that may have a significant impact on our business in the areas of upstream procurement, direct operations, and downstream demand for products and services. We have then considered strategies for each scenario.
In conducting the scenario analysis, we referred to the two scenarios (the below 2°C and 4°C warming scenarios1) of the International Energy Agency (IEA) and evaluated them over a medium- to long-term time period, up to 2050. In addition, the 1.5°C scenario (IEA NZE2050), which assumes progress in reducing and eliminating carbon emissions, was also adopted as a reference scenario in the analysis. At the same time, we have formulated a new climate change countermeasure vision with the aim of achieving “carbon neutral in 2050” consistent with the 1.5°C warming scenario, and have decided to tackle development of breakthrough technologies aimed at carbon neutral, as a challenge for the management.
1 The below 2°C warming scenario is a case wherein much-needed measures will be implemented to keep global average temperature increase below 2°C (1.75°C) compared to pre-Industrial Revolution times.
The 4°C warming scenario is a case that global average temperature will increase by 4 degrees, without taking any economic or additional measures against climate change.
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1 Source for EV-related data: the NZE 2050 Scenario of the IEA Global Electric Vehicle Outlook 2022 EVs include battery electric vehicles (BEVs) and plug-in hybrid vehicles (PHVs).
2 Source for data on renewable energy and hydrogen: the NZE 2050 Scenario of the IEA World Energy Outlook 2021