Policy for Environmental Risks and Opportunities
HCM Group has positioned the uncertainty attributable to “climate change” and “water” as a serious management task in addition to the environmental risk analysis that we have conducted to date, and are formulating a CSV strategy aimed at minimizing the risks of “climate change” and “water”, while maximizing our business opportunities.
As we examine risks and opportunities under the categories of “regulation”, “physical impact”, and “others”, we quantitatively analyze occurrence frequency, occurrence time as well as impact level, and determine materiality.
1. Climate Change Risks and Opportunities
Regulatory Risks and Opportunities
Restrictions regarding air pollution and regulations such as carbon taxes are being introduced globally, and this is affecting business practices with respect to products and factories. However, we believe that promoting the energy-saving functions of products and cleaner emissions will lead to product competitiveness and further business opportunities. We believe that regulations and taxation systems that are beginning to be adopted around the world will bring risks and opportunities for business operations that encompass HCM’s products and production.
Risks and Opportunities Presented by Physical Factors
Extreme weather that is a frequent occurrence in recent years is said to be one of the effects of global warming. Owing to large typhoons and the flooding of rivers, production activities at plants, and transportation of parts and products, etc. have been affected throughout the value chain. It is thought that the impact of such abnormal weather will become a risk for business continuity.
Meanwhile, countries are beginning to promote adaptation. The disaster prevention and reduction technologies, products, and solutions that HCM have been working on can contribute to adaptation, and we believe this will be a new business opportunity for the HCM Group.
Other Risks and Opportunities
A wide range of environmental activities such as social contribution activities as well as climate change measures for products and factories will be evaluated by stakeholders. For that reason, we are expected to disclose these activities appropriately on an ongoing basis.
“Consite” conducted by the HCM Group is an IT solution which collects the operating status of products in real time and delivers reports containing environmental information to customers, and we believe that this type of customer service is a new business opportunity.
2. Water-Related Risks and Opportunities
Initiatives for Water-Related Risks and Opportunities
HCM Group recognizes that the shortage of water resources is a serious environmental issue equivalent to climate change. The waste and contamination of water resources will present a serious crisis not only to our own production activities but also to local communities. The HCM Group has conducted activities analyzing water intake risks utilizing the WRI Aqueduct Water Risk Atlas Tool at individual production plants and has attained a thorough understanding of the importance of water in each area.
We consider water risk as the water intake and drainage in a region with a production base. The amount of water intake is controlled on a per-unit basis, and for wastewater, a voluntary standard value is set, and measures have been taken to ensure thorough on-site treatment.
However, infrastructure development for water shortages, floods, etc. is required throughout the world. HCM believes that contributing to infrastructure development including water access and forest conservation through products and solutions will lead to the expansion of business opportunities.