Response Policy
The Sanrio Group applies its corporate philosophy of Minna Nakayoku (Getting Along Together) by seeking to use its business to create social value and sustainably increase its corporate value. We have identified 10 global material issues called Sanrio Materiality and are working to maximize the value of our business activities and contribute to solving social issues.
Addressing climate change is a priority initiative our materiality of “Consideration for the Global Environment.” We are identifying initiatives in our business activities that have a high impact on climate change and are implementing measures to reduce greenhouse gas (GHG) emissions. We also adhere to the TCFD recommendations to identify risks and opportunities associated with climate change and disclose information to stakeholders.
Governance
The Sustainability Committee, chaired by the President and CEO, examines issues concerning the sustainability of the Group. The committee examines specific initiatives and implementation methods for climate change measures and regularly monitors the progress status of each measure.
For details of the Sustainability Committee, please refer to Promotion Structure/Engagement.
Strategy
The Group follows TCFD recommendations for conducting scenario analysis and identifying risks and opportunities associated with climate change. In the 2023 scenario analysis, impact assessments were conducted for "transition risks and opportunities toward decarbonization" and "physical risks and opportunities from the progression of climate change" for the year of 2035.
Scenarios Used for Impact Assessment
| Scenario description | References | |
|---|---|---|
| 1.5°C and 2°C Scenarios | Scenario in which the global average temperature increase is limited to 1.5°C and 2°C compared to pre-industrial levels. This scenario assumes that strict environmental regulations will be introduced and large-scale investment in environment-related technologies will be made to achieve international goals. |
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| 4°C Scenario | Scenario in which the average global temperature rises by more than 4°C compared to pre-industrial levels. This scenario assumes delayed introduction of environmental regulations, countries unable to curb GHG emissions, and increasing frequency of abnormal weather events, such as heavy rains and floods, as climate change progresses. |
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Risks and Opportunities
Analysis of risk associated with the transition to decarbonization found risk of higher financial needs for the operations of stores and supply chains owing to the implementation of a carbon tax, stricter regulations on GHG emissions, higher allotted charges on renewable energy resources, and rising energy costs. Analysis of physical risks found risk of more frequent abnormal weather events could increase damage to facilities and stores and increase instances of loss of business opportunities.
Analysis of opportunities found that indoor theme parks, such as Sanrio Puroland, are less susceptible to impact from an increase in extreme weather events, which may enhance their competitive advantage.
We intend to further strengthen our competitive advantages by creating an organization that is highly resilient to social changes, including climate change, by responding to social trends and continuing to develop our shops, products, designs, licensing business, value experience business, and all other aspects of our entertainment business.
Major climate change risks affecting the Group
| Risks/opportunities | Impact on business | Estimated long-term financial impact | Calculation method | Countermeasures | |
|---|---|---|---|---|---|
| Transition risks |
Increased burden due to carbon pricing, etc. | Possibility of increased financial burden due to the introduction of a carbon tax, the strengthening of GHG emission regulations, and the increased burden of renewable energy surcharges | 156 million yen |
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| Physical risks | Damage to facilities and loss of business opportunities due to intensifying wind and flood damage |
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566 million yen |
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Response to biodiversity
The Company recognizes the importance of biodiversity and the need to reduce our impact on it. Although we have not yet established governance for biodiversity-related issues during the reporting year, we recognize it as a future challenge.
Risk Management
The Joint Compliance Committee, chaired by the director in charge of internal control, was established to strengthen the Group response to business operation risks by providing integrated, Group-wide risk management and compliance related to the environment, disasters, quality, information security, and import/export management.
Sanrio recognizes that transition risk and physical risk caused by climate change have potential environmental as well as economic and business impacts. The Sustainability Committee also monitors these and other risks related to sustainability, and if a risk is identified as requiring a response, the committee works with the Joint Compliance Committee to examine and implement countermeasures. The Joint Compliance Committee and the Sustainability Committee will continue to work together to evaluate and analyze the potential impact on business and to construct a structure to manage such risks.
Greenhouse Gas Emission Reduction Targets
The Group has set greenhouse gas (GHG) emission reduction targets for FY3/2027. We are working with all of our stakeholders to achieve targets of reducing Scope 1 and 2 emissions by 60% compared to FY3/2019 and Scope 3 emissions per unit of sales by at least 10%.
Initiatives to Reduce Greenhouse Gas Emissions
Please refer to ESG data for the status of progress toward the targets.
Measures to Reduce Greenhouse Gas (GHG) Emissions
All directly managed Sanrio stores have simplified packaging and converted from plastic to recycled paper shopping bags.
Sanrio Puroland has completed the installation of LED lighting at all of its facilities. For business trade with overseas companies, considering the high CO2 emissions of air transport, we make every effort to transport items by ship.
We believe these measures will both reduce our CO2 emissions and increase our business.