Addressing Climate Change

Strategy

We conducted scenario analysis to understand the impacts of risks and opportunities arising from climate change.

Method of Scenario Analysis

To clarify the impacts of climate change on the Group's business, we conducted a scenario analysis for 2030 using the following two scenarios. This time, we adopted the 1.5°C scenario, in which temperature increases are held in check by aggressive decarbonization policies, and the 4°C scenario, in which temperature increases progress due to limited decarbonization policies. As we performed analysis using each scenario, we referred to Representative Concentration Pathways (RCP) scenarios reported by the Intergovernmental Panel on Climate Change (IPCC) and scenarios reported by the International Energy Agency (IEA). RCP scenarios were used to analyze the physical impacts of climate change, such as disasters, while IEA scenarios were used to analyze the impacts of the transition to a decarbonized economy, such as the introduction of carbon taxes.

Climate change scenarios referenced in our scenario analysis

Results of Scenario Analysis

1.5°C scenario

In the 1.5°C scenario, impacts of the transition to a decarbonized society are expected, such as the introduction of carbon taxes and regulations on the use of fossil fuels. Risks to our business included an increase in operating costs due to the introduction of carbon pricing (carbon taxes and emissions trading schemes), an increase in the cost of complying with plastics regulations in the toy business, and an increase in procurement costs due to soaring raw materials prices. On the other hand, opportunities included increased productivity through improvements in energy-conservation technologies and acquiring new customers by providing environmentally friendly content.

To mitigate risks, we are working to introduce renewable energy such as solar power generation and reduce power consumption at amusement facilities and live event venues, as well as promote eco-driving activities and introduce low-emission vehicles in logistics divisions. In response to plastics regulations and soaring raw materials prices, we are not only using recycled materials, but also developing resource-saving products (capsule-less Gashapon, Eco-Amusement products, and Eco Medal certified products) and taking other initiatives to reduce the amount of plastics used through innovative product designs. We will continue to promote initiatives to reduce our greenhouse gas emissions and plastics consumption.

On the other hand, to capture opportunities, we are implementing environmentally friendly initiatives, such as collecting Gundam plastic model runners, disseminating information about the environmentally friendly design of products, conducting environmental education for children through Gunpla Academia (plastic model lesson package), and planting trees. In addition, we are developing content on the theme of sustainability. We will continue to take various initiatives and explore ways in which we can contribute to the promotion of sustainability in the world.

4°C scenario

In the 4°C scenario, physical impacts of climate change, such as more extreme weather events, are expected. As risks, the analysis showed the suspension of business activities due to damage at our business sites and supply chain. In addition, changes in weather patterns, such as extreme heat and increased rainfall, are expected to reduce sales of outdoor events/services. As opportunities, it was assumed that changing weather patterns would increase sales of home video games and toys and sales of indoor events/services due to more time spent at home and indoors.

To reduce risks, we have formulated the Basic Policy on Business Continuity Planning and are conducting drills to respond to disasters. In addition, by holding virtual events, we are developing services that are unaffected by extreme heat or rainy weather. These initiatives are also expected to contribute to the acquisition of opportunities, and in the future, we will develop a variety of services so that customers can use entertainment content regardless of the weather.

Transition risks and opportunities

Physical risks and opportunities

Risk Management

The Group Sustainability Committee discusses risks and opportunities related to sustainability, identifies material issues that the Group should address, and promotes sustainability activities throughout the Group. In this process, the committee cooperates with the Group Risk Compliance Committee, which oversees the Group's risk and crisis management system. Each Group company is implementing measures tailored to the characteristics of its own business in accordance with its material issues. The results are analyzed for each fiscal year, for the entire Group and for each business segment, leading to improved measures for the following fiscal year and beyond. The results of analyses are discussed by the Group Sustainability Committee, and then reports are made to the Board of Directors, which deliberates and supervises as necessary.

Indicators and Targets

To evaluate and manage the progress of its ESG management and the impacts of policy risks on climate change, the Group has set greenhouse gas emissions as an indicator and has established a medium-term target of reducing energy-derived CO₂ emissions at its sites by 35% by 2030 compared to fiscal 2019. Furthermore, our target for 2050 is to reduce the amount of energy-derived CO₂ emissions at Group business sites (offices, own plants, directly operated amusement facilities, etc.) to net zero. We will further promote energy-saving measures and introduce renewable energy to achieve these targets.

Medium- to Long-term Targets for Decarbonization

*Offices, own plants, directly operated amusement facilities, etc.

Bandai Namco Group CO₂ emissions

Note: Total of Scope 1 and Scope 2 emissions

Greenhouse gas emissions

(t-CO₂)