Response to climate change

Global warming will not only increase global temperatures but will also significantly change the global climate. It has already begun impacting and causing damage to the natural environment and people's lives in many parts of the world.
Regarding climate change as an important issue, Japan Post Group will strive to mitigate the impact and adapt to it.

Commitment

Recently, abnormal weather due to the impact of climate change, such as rising temperatures and the increasing scale of typhoons, have already been observed, and the effects of these phenomena are expected to become even greater.
While Japan Post Group develops close-knit businesses for local residents through its network of 24,000 post offices across the country, the Group recognizes that climate change is an issue that could have a material impact on its businesses, leading to such possibilities as the disruption of the post office network and the delay of accompanying services.
The Group has adhered to a policy of reducing GHG emissions as one of its initiatives aimed at achieving the SDGs in Japan Post Group Basic Sustainability Policy and has been working to contribute to the creation of a sustainable society through such means as investment in green bonds. In addition, the Group declared its support for the recommendations of the TCFD, which was established by the FSB in April 2019, and strives for increased information disclosure by deepening analysis of the impact of climate change on the business of each Japan Post Group company based on the TCFD recommendations.
According to Japan Post Group Basic Sustainability Policy, Japan Post Group will continue to strive to undertake business operations adapted to the impact of climate change and will actively promote business and environmental conservation activities with consideration toward reducing our burden on the environment.

Overview of the TCFD recommendations Response of Japan Post Group
Governance
  • Climate-related risks and opportunities and the supervision of the Board of Directors should be described.
  • The role of the management team in evaluating and managing climate-related risks and opportunities should be described.
  • Japan Post Group has declared in Japan Post Group Basic Sustainability Policy that we shall strive to undertake business operations adapted to the impact of climate change and actively promote business and environmental conservation activities with consideration toward reducing our burden on the environment. In the Japan Post Group Medium-Term Management Plan, JP Vision 2025, announced in May 2021, one of the Group's main goals is to reduce GHG emissions and achieve carbon neutrality. The Group is undertaking initiatives to address climate change in accordance with its management strategies. The Japan Post Group Medium-Term Management Plan, JP Vision 2025, has been approved by the Management Committee and the Board of Directors of Japan Post Holdings (the "Company").
  • The President and CEO of Japan Post Group assumes ultimate responsibility for addressing climate change. The Board of Directors, of which the CEO is a member, supervises activities for that purpose.
    Process for the supervision of activities addressing climate change by the Board of Directors
    • The Sustainability Committee, chaired by the Executive Officer in charge of the Corporate Planning Department and it meets about four times a year, is an advisory body to the Management Committee, identifies the Group's climate risks and opportunities and discusses policies for activities addressing climate change, targets, the progress of these activities, and other matters.
    • The Sustainability Committee reports the results of its deliberations to the Management Committee and the Board of Directors and seeks the approval of the Board of Directors.
Strategy
  • Short-, medium- and long-term climate-related risks and opportunities identified by the organization should be described.
  • The impact of climate change-related risks and opportunities for the businesses, strategies and financial plans of the organization should be described.
  • The Japan Post Group addresses climate change through its management strategies. One of its main goals in its Medium-Term Management Plan, JP Vision 2025, announced in May 2021, is to reduce GHG emissions and achieve carbon neutrality.
  • The Group has identified risks and opportunities that climate change may have on its main business and has conducted a scenario analysis to determine their effects on its business portfolio.
    Climate risks and opportunities in the Group's main businesses and scenario analysis
  • The Group will further examine specific steps it will be able to take in consideration of the identified climate risks and opportunities and analyze the quantitative effects of the risks and opportunities within the business portfolio.
Risk Management
  • The process of the organization to identify and evaluate climate-related risks should be described.
  • The process of the organization to manage climate-related risks should be described.
  • The description should include how the process to identify, evaluate and manage climate-related risks is integrated into the overall risk management of the organization.
  • The Japan Post Group determines the major risks for the Group and discloses them in the business risks section of the securities report based on a survey of the management team.
  • The risk management division of the Company selects a certain number of risks to be assessed and determines their relative importance through the survey. In FY2021, management ranked climate change risk among the top risks, which are very important risks.
  • The division responsible for addressing climate change risks identifies management-level climate change issues and strives to make improvements. At Sustainability Committee meetings and other meetings, the Group discusses promotion plans, the effects of reduction efforts, improvements, and other issues to achieve the GHG emissions targets set out in the Japan Post Group Medium-Term Management Plan, JP Vision 2025, and reports the results of discussions to the Management Committee and the Board of Directors.
Indicators and Targets
  • Measurement standards (indicators) for the organization to use for evaluating climate-related risks and opportunities in line with its own strategies and risk management should be disclosed.
  • GHG emissions in Scope 1 and Scope 2, as well as Scope 3 if applicable, and related risks should be disclosed.
  • Targets for the organization to use for managing climate-related risks and opportunities and the performance compared with the targets should be described.
  • In the Japan Post Group Medium-Term Management Plan, JP Vision 2025, announced in May 2021, the Japan Post Group laid out the ultra-long-term goal of achieving carbon neutrality by 2050 and the goal of reducing CO2 emissions by 46% (from the level in FY2019) by FY2030 under the 1.5 °C scenario as a milestone for steady progress towards the ultra-long-term goal. The Group promotes activities addressing climate change through its management strategies.
  • Scope 1, Scope 2 and Scope 3 emissions of the Japan Post Group

Future response to the TCFD recommendations

While Japan Post Group have begun disclosing information by embarking on scenario analysis along with the TCFD recommendations, coverage of the scenario analysis is still limited. Going forward, we will deepen our consideration of countermeasures against the assumed impacts and will proceed with the analysis of other business in our group and analysis of the quantification of risks and opportunities.

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