Weathernews : TCFD Disclosure(FY2023)

Published September 6, 2024 at 4:46 a.m. UTC

Source: MarketScreener

Disclosure based on TCFD Recommendations

September 6, 2024

Weathernews, Inc

Climate Change Initiatives and TCFD

The impact of climate change on people's lives and the economic activities of countries and companies is becoming more serious year over year, as evidenced by the occurrence of extreme weather events worldwide and the intensiﬁcation of natural disasters. Speciﬁc measures to deal with climate change and extreme weather events are also an important theme among the Sustainable Development goal targets (SDGs) by 2030.

In the context of these common global goals, and as a company whose domain is weather and climate and based on our philosophy "to help people in times of need," we believe that our mission is to realize a sustainable society for human society, business activities, and the global environment. In order to realize this mission, we have established key themes and materialities to focus on by leveraging our core competencies that will contribute to the achievement of the SDGs.

In June 2022, we also expressed our support for the Task Force on Climate-related Financial Disclosures(TCFD) recommendations. We will promote information disclosure (governance, strategy, risk management, indicators and targets) based on the TCFD framework regarding the risks and opportunities to our business posed by climate change, and together with our shareholders, investors, and a wide range of stakeholders, work to achieve a sustainable society.

1. Governance

In May 2021, we established the Sustainability Committee, chaired by the Chief Executive Ocer, as an organization to identify and manage basic policies and signiﬁcant risks and opportunities related to climate change. This committee identiﬁes issues related to sustainability, formulates plans for addressing them, and promotes and supports the eorts of the entire Weathernews Group. It also monitors the progress of these eorts and reports the results to the Board of Directors on a regular basis, thereby establishing a system that ensures appropriate management and supervision by the Board of Directors.

Supporter（Customers,communities,and sta）

General Shareholder Meeting

Corporate Governance Structure

appoint /dismiss

consult

Nomination Committee

Board of Directors

audit

Remuneration Committee

audit

appoint,

and

Business Execution Structure and Internal Control

supervise

report

dismiss,

President and executive ocers

report/advise

Sustainability Committee

EM meeting※1

Risk Management Committee

SSM meeting※2

Scoring Committee※4

AAC meeting※3

Investment Committee

appoint /dismiss

Audit &

Supervisory Board

	cooperate


			cooperate



Internal Audit
		cooperate




Oce	audit

appoint/dismiss

Accounting Auditor

Business execution organizations (in all countries)

audit

Organizational Design: Company with Corporate Auditors

As of August 2024

*1 Although we possess an Audit and Supervisory Board, the Nomination Committee and the Remuneration Committee serve as advisory bodies to the Board of Directors.

*2 Speed & Scope Merit Meeting : A meeting body to conﬁrm business progress and discuss proposals to adapt business to the changes in the market.

*3 Aggressively Adaptable Company Meeting : A meeting body to conﬁrm the progress of the business plan each month and to identify proactive measures to respond to changes in each market environment.

*4 Scoring Committee : A meeting body to quantitatively and gualitatively assess the execution and progress of the business plan, and to mutually evaluate compliance with the law and internal rules in light of internal control.

2. Strategy

Using two scenarios for future climate change, the "2°C Scenario" and the "4°C Scenario," we conducted a scenario analysis and assessment in the categories of "Transition risks," "Physical risks," and "Opportunity" to evaluate the signiﬁcance of climate-related risks and opportunities. The details of each of these risks and opportunities, as well as the results of the evaluation of ﬁnancial impact are as follows.

Qualitative assumptions for 2°C and 4°C scenarios

Scenario	Assumed Impact
	Scenario in which temperature increases are limited to the current level, and global warming is
2℃	halted. Social impact and damage from extreme weather events will be curbed by the shift to
	green energy through low carbon and carbon cycles.

	Scenario in which temperatures rise signiﬁcantly, and global warming progresses further. A
4℃	society based on conventional development using fossil fuels will continue, and extreme weather
	events will intensify.

Deﬁne business strategy and ﬁnancial implications

Risk /	Impact	Impact on Business Strategy	Impact amount (risk)
Opportunity	Level	Sales volume
	(opportunity)

	Large	Signiﬁcant company-wide damage	over 2 billion yen
		(requiring signiﬁcant time for business recovery)


Risk	Medium	Company-wide damage	over 1 billion yen
(requiring several years to recover business)


	Small	Not reaching company-wide level	under 1 billion yen
	(business recovery possible within one year)


		Societal needs for measures to cope with severe disasters and
	Large	mitigation/adaptation to climate change are expected to be very
	large globally and/or in Japan, and the services we provide as a	over 2 billion yen
		weather company are expected to signiﬁcantly contribute to
		social issues, thus making a signiﬁcant impact on our proﬁts.

		Societal needs for measures to cope with severe disasters and
		mitigation/adaptation to climate change are expected to be great
Opportunity	Medium	in Japan, and the services we provide as part of our mission as a	over 1 billion yen
weather company are expected to make a moderate contribution

		to social issues, which in turn is expected to have a moderate
		impact on the Company's proﬁts.

		We expect there will be societal needs in Japan for measures to
		cope with severe disasters and mitigation/adaptation to climate
	Small	change to a certain extent, and make a certain contribution to	under 1 billion yen
	societal issues through the services we provide as our mission

		as a weather company, resulting in a certain impact on the
		Company's proﬁts.

Risks and Opportunities

					Financial
Classiﬁcation	Description	Business	Details of possible risks and opportunities	Impact
domain
				2℃	4℃


		Carbon tax and	whole	Increase in oce electricity procurement costs due to the	Small	ー
		carbon price	company	introduction of a carbon tax and higher carbon prices.
	Policy and

	Regulations	Compliance with	whole	Increase in equipment renewal costs associated with conversion of	Small	ー

Transition		GHG emission	company	in-house power generation equipment to green energy due to
	regulations		stricter GHG emissions regulations, etc.
Risk
Market	Energy Prices	whole	Increase in electricity procurement costs due to higher energy	Small	ー

	company	prices.


	Reputation	Investor Rating	whole	Decrease in corporate value and valuation when climate change	Medium	ー
	company	and environmental initiatives are deemed insucient by investors.

	Acute	Intensiﬁcatio n of	whole	Flooding damage to some assets due to ﬂooding and high tide, etc.	ー	Small
	extreme weather	company	and temporary suspension of operations, business, etc.
Physical
Risks	Chronic	Sea level rise due	whole	Although the impact of sea level rise will be limited, operations and	ー	ー

	business will be temporarily suspended in the event of ﬂooding or
	to global warming	company

				high tide, etc.
		Increase in	whole	Increased attention and expectations for our services in response
	Energy	corporate value	Large	Large
	through	company	to the intensiﬁcation of natural disasters due to climate change,
	source
	environmental		thus increasing our corporate value.

		initiatives
			Sea	Development of new operational support services based on
			environmental indicators to respond to the shift to green energy
				for ships.

		Increased	Sea	Increased demand for support services for construction and	Large	ー
		demand for	maintenance of power generation facilities due to growing demand
		green energy		for oshore wind power generation.

				Growing share of green energy in electricity supply and demand,
	Product		Land	increasing demand for electricity supply and demand balance
	and			prediction services.
	Service
		Sea	Increased demand for support services that lead to reductions in

			fossil fuel consumption, and development of new transportation
			Sky
			planning support services that leverage synergies among nautical,
		Reduction of	Land		－
		aviation, land, and other businesses.	Medium

		fossil fuel use


			Internet	Increased demand for personal electricity supply-demand
			forecasting services in response to growing awareness of electricity
				conservation among individuals and households.
Oppor		Shift to		Increased expectations and demand for food waste minimization
-tunity	Market	Land	Medium	ー
Environmentally
	services as consumers shift to more environmentally conscious.
		Conscious Orientation
			Sea	Develop new compensation services for damage caused by
			extreme weather events, such as delays in vessel arrivals and
			Land
			cancellations of sporting events.


				Increased demand for business continuity risk measurement and
			Land	countermeasure services for ﬂooding risk of factories, warehouses,
			power plants, and other onshore facilities due to more severe
		Increasing needs
			natural disasters (in response to TCFD).
		for response


		solutions to the		Calculation of the impact of increased natural disasters on business,
		increasing number
	Resilience		increased demand for acute risk analysis services (2°C scenario).	Medium	Large
	of severe disasters	Land
		caused by extreme	Analysis of impact on crop growth and yield in each production area,
			increased demand for yield forecasting services (4°C scenario).
		weather events due

		to climate change

			Land	Increased demand for insurance services and health monitoring
			services for heat stroke risk during exercise and work due to rising
				temperature.

				Increased demand for personalized disaster prevention and
			Internet	mitigation information services due to a growing sense of urgency
				over the increasing number and severity of natural disasters.

3. Risk Management

As the business environment becomes increasingly complex and uncertain, it is essential to accurately address risks that could have a signiﬁcant impact on corporate activities in order to execute management strategies and business objectives. We have positioned climate change-related issues as a risk that could have a signiﬁcant impact on our management, and the Sustainability Committee appropriately examines and manages such issues. The content is also shared with the Risk Management Committee, the organization in charge of risk and crisis management based on business continuity as well as basic policies for risk management. We have established a system to establish basic policies for risk management, including management oversight prior to the occurrence of risks and policies for responding immediately after the occurrence of risks.

4. Indicators and Targets

We are committed to achieving a sustainable society by improving our technologies and solutions and promoting global partnerships that enable us to both reduce our environmental impact and maximize our corporate business proﬁts. The Speciﬁc indicators and goals for this initiative are as follows.

Year 2030				Net zero emissions for Scopes 1 and 2 *1


				Category *2	CO2 emissions (unit: tCO2)
					FY2022*4	FY2023*4
						FY2021
		Private power generation facilities in case of emergency	8	7	8
Scope1
	Company vehicles	21	23	23


				Japan	Head oce	3,075	3,325	347
		Oce
Scope2		Other	33	28	29


					Overseas	27	28	66

		Weather observation equipment *3	14	8	6
		Category 1	Purchased products and services	ー	20,797	13,290

		Category 2	Capital goods	ー	392	98

		Category 3	Fuel and energy activities not included in Scopes 1 and 2	ー	762	16
Scope3
	Category 4	Transport, delivery (upstream)	ー	111	128


		Category 5	Waste generated from operations	ー	25	41

		Category 6	Business trip	ー	1,050	1,318

		Category 7	Employee commute	ー	127	119

				Total	3,178	26,683	15,489

*Categories 8 - 15 are not applicable.

*1 We will also consider setting a Scope 3 reduction target through 2030.

*2 Scope 1: Direct greenhouse gas emissions (fuel combustion) caused by our business Scope 2: Indirect emissions from the use of electricity, etc. supplied by other companies

Scope 3: Indirect emissions other than Scope 1 and Scope 2 (emissions by other companies related to the activities of our business)

*3 Weather observation equipment are listed separately because the company operates these in locations other than its oces in Japan and overseas.

*4 Third-Party Assurance

In order to improve the reliability of our CO2 emissions results, we obtained third-party assurance from the Japan Management Association regarding direct CO2 emissions (Scope 1), indirect energy-derived CO2 emissions (Scope 2), and other indirect CO2 emissions (Scope 3) for the ﬁscal 2022 calculation.

We plan to obtain third-party assurance for the ﬁscal 2023 calculation as well.

Contact 】

Please contact us from the enquiry form on our corporate website.

https://jp.weathernews.com/contact/

Disclaimer	The Company has prepared these materials based on information currently available and conﬁrmed, as well as on
certain assumptions it considers reasonable, but actual results may dier from these materials due to various factors.