Environment
Information Security Charter
Environmental Philosophy
Tomen Devices Corporation, a trading company which deals with semiconductors and electronic products, contributes to the creation of a sustainable society through the provision of environmentally friendly products and services.
Environmental Policy
- In our business activities, we will strive to prevent environmental pollution by providing more energy- and resource-efficient products and services.
- When starting any new business or service, we will take environmental conservation and resource protection into consideration.
- As a member of the community, all employees will actively participate in and support environmental conservation activities.
- We will observe laws relating to the environment, and similar regulations, global treaty and other industry standards.
- By establishing an environmental management system, we will set and re-adjust environmental goals and objectives in each enterprise and all departments, and also strive to implement continual improvement.
- We will document this environmental policy and post it on our Web site and within the workplace. We will ensure that all people who work at our organization are aware of this policy, and make it publicly available.
ISO14001
We have obtained ISO 14001 certification, the international standard for environmental management systems, for our head office and all sales offices in Japan.
By complying with the standard and conducting regular internal audits, we are striving to improve the effectiveness of our environmental management and the level of our environmental management.
ISO27001 | Company | TOMEN DEVICES CORPORATION
Climate Change（Disclosure based on TCFD recommendations）
Based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD*), we will actively disclose information to stakeholders from the four perspectives of “Governance”, “Strategy”, “Risk Management” and “Metrics and Targets” and promote management with greater awareness of climate change.
* TCFD: Task Force on Climate-related Financial Disclosures, established by the Financial Stability Board at the request of the G20, which recommends understanding and disclosing the risks and opportunities posed by climate change in terms of financial impacts.https://www.fsb-tcfd.org/
Governance
We recognize that addressing climate change is an important management issue. Under the supervision of the Board of Directors, the Sustainability Management Committee, an advisory body to the President, deliberates on important issues such as formulating basic policies on climate change and managing climate change risks and opportunities. The Sustainability Management Committee includes the heads of business and corporate divisions, and has established a system to make appropriate management decisions on climate change issues and promptly reflect the results in management.
Prior to deliberations by the Sustainability Management Committee, a Climate Change Working Group, comprised of members from each business unit, identifies and assesses climate change risks and opportunities.
We plan to proceed with a detailed analysis of risks and opportunities that are expected to have a significant impact on our business, and will consider how to respond to them and incorporate them into our strategy.
Climate Change-related Governance Structure Chart
Strategy
We conducted a scenario analysis based on climate change scenarios from the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC) and considered the impact of identified risks and opportunities on our business and policies on responding to the identified risks and opportunities.
We aim to reduce GHG emissions (Scope 1 and 2) by 50% from the 2019 level by 2030. Therefore, we set the period until 2030 as the time frame for the above scenario analysis.
Reference Scenario
| Category | Scenario outline | Key references |
|---|---|---|
| Below 2℃ scenario | Toward the realization of a decarbonized society, policies and regulations such as carbon pricing and energy conservation regulations will be strengthened, and demand for semiconductor products with high efficiency and low power consumption will increase. |
|
| 4℃ scenario | New climate-change-related policies and regulations are not introduced, and the shift of demand to high-efficiency semiconductor products with low power consumption is limited. Meanwhile, the risk of damage to our locations will increase due to the increasing severity and frequency of natural disasters. |
|
Identified risks and opportunities
Degree of Impact:
High: More than 6 billion yen
Medium: More than 1 billion yen and up to 6 billion yen
Low: Up to 1 billion yen
Timing of Risk Occurrence:
Short term: within three years
Medium term: three to six years
Long term: over six years
| Classification | Division | Climate Change Factors | Risk/ Opportunity |
Impact on Our Company | Degree of Impact | Timing of Risk Occurrence | Action Policies |
|---|---|---|---|---|---|---|---|
| Transition risk, Opportunity |
Policy, legislation |
Introduction of carbon tax | Risk | Increase in the cost of purchasing goods resulting from the introduction of carbon taxes causing suppliers' manufacturing costs to increase. | High | Short to medium term | Adjusting sales prices and switching to logistics operators with low GHG emissions |
| Stricter CO2 emission regulations | Risk | Increase in logistics costs resulting from progress in decarbonization using alternative aviation fuels such as SAF | Medium | Medium to long term | Reducing costs through the improvement of the efficiency of logistics leveraging the expertise of logistics partners | ||
| Risk | Decline in net sales resulting from direct sales from suppliers to customers, which are promoted to reduce GHG emissions from logistics | High | Medium to long term | Providing high-value added services, which are impossible in direct sales, by fully leveraging DX based on commercial rights and human resources (networks) | |||
| Technology | Improvement of transportation technologies | Opportunity | Decline in logistics costs as a result of the improvement of technology and the fuel efficiency of aircraft | Medium | Medium to long term | Adjusting sales prices and maximizing sales quantity | |
| Market | Increased demand for products and services adapted to climate change impacts | Opportunity | Increase in net sales of products including high-efficiency memory semiconductors with low power consumption, which will result from progress in the decarbonization of data centers which consume large amounts of power and electronic devices (such as smartphones and PCs) | High | Short to medium term | Increasing Samsung's share of the memory semiconductor and other markets as Samsung boasts world-leading energy-saving technologies | |
| Opportunity | Increase in net sales of high efficiency, low power consumption automotive semiconductors which will result from progress in the decarbonization of automobiles (computerization and electrification) | High | Short to medium term | Expanding the Company's market share across the entire automotive industry using the Toyota Tsusho Group's global network and sales expertise | |||
| Physical risk | Acute | Increased severity and frequency of natural disasters/extreme weather events (heavy rainfall, floods, typhoons, water shortages, etc.) | Risk | Loss of sales opportunities resulting from damage to our locations or supply chain | Medium | Medium to long term | Continuing to formulate, manage and operate the business continuity plan (BCP) |
| Chronic | Rise in average temperature | Risk | Increase in the cost of relocating logistics bases due to sea level rise | Medium | Medium to long term | Continuing to formulate, manage and operate the business continuity plan (BCP) |
Risk Management
Risks related to climate change are identified and assessed by Climate Change Working Group under the Sustainability Management Committee. Then the Sustainability Management Committee manages climate change risk in cooperation with the Risk Management Committee, which manages all risks for the company. The Risk Management Committee determines and prioritizes the importance of company-wide risks, including climate change risk, based on two evaluation criteria: “likelihood/probability of loss” and “scale of loss/impact on management.”
Metrics and Targets
Metrics
We have established GHG emissions(Scope 1, 2 and 3) as metrics for managing climate-related risks and opportunities.
Results
Trends in Scope 1 and 2 GHG emissions results
Trends in GHG emissions results (Scope 1 and 2)
※Scope 1 and 2 emissions are calculated on a calendar year basis (January to December) and total of the Company and consolidated subsidiaries
※The increase in emissions during year 2021 and year 2022 is attributed to the Company beginning to operate its own warehouses in January 2022.
Changes in the breakdown of Scope 3 emissions by category (Unit: t-CO2)
| Mar 2022 | Mar 2023 | Mar 2024 | |
|---|---|---|---|
| Category 2 - Capital goods | - | 145.93 | 940.44 |
| Category 3 - Fuel- and energy-related activities(not included in scope 1 or 2) | - | 9.84 | 9.18 |
| Category 4 - Upstream transportation and distribution | - | 1,634.33 | 1,684.45 |
| Category 5 - Waste generated in operations | - | 9.59 | 1.99 |
| Category 6 - Business travel | 39.99 | 115.4 | 218.31 |
| Category 7 - Employee commuting | 10.01 | 21.99 | 31.28 |
※Scope 3 emissions are calculated on a fiscal year basis (April to March) and only of the Company(non-consolidated)
● Category 2
Scope of calculation: Greenhouse gas emissions associated with construction, manufacturing, and transportation of capital goods acquired by Tomen Devices
Calculation standard: Calculated by multiplying the amount of the acquisition cost of non-current assets by emission intensity
Emission intensities from the Database on Emissions Unit Values for Accounting of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain (ver. 3.4) were used in accordance with the Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain Ver. 2.5.
● Category 3
Scope of calculation: a) Upstream (resource extraction, production and transportation) emissions of fuel purchased by omen Devices; b) Upstream (resource extraction, production and transportation) emissions of electricity and heat (steam, hot water, or cold water) purchased by Tomen Devices in the manufacturing process.
Calculation standard: Calculated by multiplying the amount of purchased fuel, electricity, and heat by emission intensity
Emission intensities from the Database on Emissions Unit Values for Accounting of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain (ver. 3.4) and LCI Database IDEAv2.3 by Sustainable Management Promotion Organization were used in accordance with the Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain Ver. 2.5.
● Category 4
Scope of calculation: Greenhouse gas emissions associated with air transportation for Tomen Devices' imports from outside Japan and its exports to countries outside Japan, and greenhouse gas emissions associated with domestic transportation (truck transportation) where Tomen Devices is the cargo owner
Calculation standard: Calculated in accordance with Ministry of the Environment “Greenhouse Gas Emissions Calculation and Reporting Manual” (version 5.0)
● Category 5
Scope of calculation: Greenhouse gas emissions associated with "disposal" and "treatment" of waste (excluding valuables) generated by Tomen Devices' business activities outside the company
Calculation standard: If the method of waste disposal can be verified, calculated multiplying the amount of waste discharged by emission intensity for each waste type and disposal method. Otherwise, multiply the amount of waste discharged by emission intensity for each type of waste.
Emission intensities from the Database on Emissions Unit Values for Accounting of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain (ver. 3.4) and LCI Database IDEAv2.3 by Sustainable Management Promotion Organization were used in accordance with the Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain Ver. 2.5.
● Category 6
Scope of calculation: Greenhouse gas emissions associated with business trips made by Tomen Devices employees in Japan
Calculation standard: Calculated by multiplying the amount of the travel allowances paid by the mode of transportation by emission intensity
Emission intensities from the Database on Emissions Unit Values for Accounting of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain (ver. 3.4) were used in accordance with the Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain Ver. 2.5.
● Category 7
Scope of calculation: Greenhouse gas emissions associated with the commutes of Tomen Devices employees in Japan
Calculation standard: Calculated by multiplying the amount of the travel allowances paid by the mode of transportation by emission intensity
Emission intensities from the Database on Emissions Unit Values for Accounting of Greenhouse Gas Emissions, etc., by Organizations Throughout the Supply Chain (ver. 3.4) were used in accordance with the Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain Ver. 2.5.
Targets
The Toyota Tsusho Group has set a target to reduce GHG emissions by 50% by 2030 (compared to actual emissions of 76.91t-CO2 in 2019) and to be carbon neutral by 2050. As a member of the Toyota Tsusho Group, we are working to reduce GHG emissions based on this target. Specifically, we will first implement thorough energy-saving activities within the TOMEN DEVICES Group (power saving in offices and other locations by use of LEDs etc.) and we will work to reduce CO2 emissions in our own logistics and other operations.
