The Environment

Konami Group's Efforts on Climate Change
Disclosure based on TCFD
Updated on October 30, 2024
Updated on October 30, 2024

Basic Concept in Responding to Climate Change

Countermeasures for global warming have become a common and long-term global challenge, with multiple countries and regions setting carbon neutrality as a goal for 2050. Konami Group aims to be an enterprise needed by the society by contributing to the development of a sustainable society through initiatives associated with its business areas. We are increasing our efforts to realize a decarbonized society to create a sustainable future where our next generation can live with peace of mind.

Our approaches to reduce greenhouse gas emissions include the installation of solar power generation system and the switching to LED lighting at company-owned facilities to reduce energy consumption. Specific details of our efforts can be found on the environment page of our website.

Konami Group announced our endorsement for the TCFD recommendations in May 2022 and began disclosing information in line with the recommendations. We disclose the impact of climate change on our business and greenhouse gas emissions.

Task Force on Climate-related Financial Disclosures (TCFD)

TCFD was formed by the FSB in 2015 following a request from the G20 to assess and disclose the risks and opportunities that climate change poses on business.

Core Disclosure Elements
Governance Disclose the organization's governance around climate-related risks and opportunities.
Strategy Disclose the impacts of climate-related risks and opportunities on the organization's businesses, strategy, and finance.
Risk
Management
Disclose how the organization identifies, assesses, and mitigates climate-related risks.
Metrics
& Targets
Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities.

Governance

Konami Group has established the Sustainability Committee, chaired by the Representative Director and President and attended by heads of each business unit. The committee is held four times a year to decide on initiatives regarding climate change. In addition, a Corporate Officer in charge of climate change has been appointed.

Decisions made by the Sustainability Committee are periodically reported to the Board of Director for review.

Initiatives are implemented by each business unit and group company while the Sustainability Committee Secretariat monitors the progress.

Strategy (Scenario Analysis)

Konami Group conducted a scenario analysis incorporating advice from external experts to measure the medium to long-term impacts of climate change on our business. Because it is difficult to accurately predict the future impacts of climate change, we used two possible scenarios for the analysis.

Scenario Predicted Future Image
1.5℃ Scenario
  • Active climate change measures will be implemented globally
  • A scenario in which the temperature rise is limited to 1.5℃ by 2100 compared to pre-industrial levels, in line with the goals of the Paris Agreement adopted in 2015
  • Major changes in policies toward decarbonization are expected. Some countries impose high carbon taxes to curb greenhouse gas emissions. Meanwhile, technological development for decarbonization will receive subsidies and other preferential treatment.
  • Demand for more eco-friendly products and services are increased due to change in consumer awareness of environmental issues.
4℃ Scenario
  • No progress on climate change measures
  • A scenario in which temperatures rise by nearly 4℃ by 2100 compared to pre-industrial levels
  • Limited outdoor activities are allowed due to raising temperatures.
  • The probability of an outbreak of infectious diseases will increase.
  • Required to correspond to the risk of damage to our properties and disruption in our supply chain as disasters such as typhoons, torrential rains, and forest fires become more severe.
【Global surface temperature change relative to 1850-1900】

【Reference Scenario】

  • IEA NZE(Net Zero Emission)
  • IEA STEPS(Stated Policies Scenario)
  • IPCC SSP5-8.5(Shared Socio-Economic Pathway)

Based on the risks and opportunities exemplified by the TCFD recommendations in each scenario above, we reviewed climate-related risks and opportunities for each business, considering reports from international organizations and industry associations, as well as our business characteristics. Then, for the risks and opportunities that were identified as material, we have assessed the degree of impact on our group.

<Business Impact Evaluation>
Category Description Business Impact
1.5℃ 4.0℃
Risks Cost Related to Carbon Tax Increase
  • Costs will increase with the increase in carbon tax and the introduction of emissions trading.
MediumLow
Raw Material Cost
  • Raw material cost such as aluminum will increase due to the increase in carbon tax.
  • Procurement cost will increase due to the expansion of recycled plastic use.
  • Paper procurement cost will increase due to depletion of forest resources.
LowLow
Energy Cost
  • Renewable energy procurement cost will increase, as will the air conditioning cost due to rising temperatures.
LowLow
Extreme Weather
  • Opportunity losses will occur as business activities stagnate due to extreme weather.
LowLow
Regulations on High Environmental Impact Products
  • Sales losses will occur due to existing products being subjected to regulation for their high environmental impact.
LowLow
Opportunities Products to Boost Decarbonization
  • Demand for products and services efficient in decarbonization will increase.
MediumLow
Environmental Education
  • Demand for environmental education will increase as consumer environmental awareness rises.
LowLow
Infectious Diseases
  • Demand for online services will increase due to the spread of infectious diseases, while the number of visitors to physical locations will decrease.
LowMedium

The results of the assessment confirm that there would be no material impact on our business under either scenario, thus we would be able to conduct a resilient management going forward.

We will also take measures to mitigate risks based on the results of the evaluation. In preparation for the increase in carbon tax, we will work to reduce CO2 emissions generated at our properties by introducing renewable energy and energy-saving equipment.

We will continue to collect information on climate change and periodically update our scenario analysis and business impact evaluation to further improve the resilience of management.


Installation of Wind Power Generation System

Switching to LED Lighting at Company-owned Facilities

Risk Management

Sustainability Committee Secretariat identifies, evaluates, and manages the risks in cooperation with each business unit. We regularly collect information on climate change based on the latest knowledge provided by external experts, and if new risks or opportunities are identified, we consider whether or not to update scenario analyses and business impact assessments. These results are discussed by the Sustainability Committee and reported to the Board of Directors as necessary.

<Climate Change Risk Management Process>
Identification / Evaluation
  • Sustainability Committee Secretariat identifies and evaluates the Risks.
  • Identify risks by extracting relevant parameters for scenario analysis in line with new regulations and conduct periodic assessments.
Management
  • Sustainability Committee Secretariat manages the Risks.
  • Evaluates and prioritizes the quantitative financial impact of each risk in the scenario analysis.
Reporting / Coordination
  • Sustainability Committee Secretariat reflects and discloses the Risks as a risk management item.
  • Reports risk assessment results to the Board of Directors and coordinate with group-wide risk management.

Metrics & Targets

Prevention of global warming by mitigating CO2 emissions is essential for realizing a sustainable society. To fulfill this responsibility and improve management resilience, Konami Group monitors CO2 emissions in its business operations and implements specific reduction measures.

CO2 emissions at our own sites (Scope 1, 2)

As a target for mitigating the environmental impact of our business operations, we support the greenhouse gas reduction targets announced by the Japanese government and aim to reach operational carbon neutrality.

<Total of Scope 1 and 2>

CO2 emissions in the supply chain (Scope 3)

In accordance with the GHG Protocol, which is the international standard for calculating greenhouse gas emissions, we have calculated and begun analyzing Scope 3 emissions, which account for upstream and downstream CO2 emissions in our supply chain.

In cooperation with each business unit, we analyze emission patterns and consider next actions.


KONAMI CAMPUS