Governance
To promote sustainability management, we have established a "Sustainability Management Committee" chaired by the president and composed of all directors and managing executive officers. The Environmental Management Committee and the Risk Management & Compliance Committee, which are specialized committees under the Sustainability Management Committee, are working to solve problems such as climate change and natural resources capital for the Taiheiyo Cement Group, formulating action plans and conducting self-evaluations of activity results. The content is deliberated by the Sustainability Management Committee, and the results are reported to the Board of Directors.
Strategy
The Taiheiyo Cement Group's quarry operations are conducted with the recognition that limestone extraction for raw materials impacts nature, so we are continuously implementing measures to conserve the natural environment of our quarries and surrounding areas. In cement production, we utilize water resources for cooling plant equipment. We are working to analyze water risks and understand water usage to ensure appropriate use, as water-related challenges may arise in the future.
To clarify our interface with nature, we are advancing efforts to grasp risks and impacts on nature using a methodology based on the LEAP*1 approach under the TNFD*2 recommendations.
*1 Guidance developed by the TNFD, which stands for the four phases: "Locate," "Evaluate," "Assess" and "Prepare"
*2 Abbreviation for Taskforce on Nature-related Financial Disclosures. Task Force on Nature-related Financial Disclosures
Overview of Impact and Dependence on Nature
To grasp an overview of the impacts and dependencies on nature of each process in the Taiheiyo Cement Group's direct operations (scoping), we used ENCORE*3 to create a heatmap based on general sector classifications and conducted a primary assessment. Referring to these results, we will proceed by identifying priority areas in direct operations, diagnosing impacts and dependencies in detail, and defining risks and opportunities.
*3 A survey tool for the relationship between industry and nature, jointly developed by the international financial industry group NCFA and UNEP-WCMC
Risk and Impact Management
Based on materiality, we are formulating quarry restoration plans and managing water resources, and we understand the risks and situations of our quarries and plants.
Biodiversity
The Taiheiyo Cement Group's quarry operations extract limestone, so the impact on the environment and ecosystem in the development area is unavoidable. In quarry development, based on environmental surveys of the development area, including biodiversity and water resources, we conduct preliminary assessments of the impact of development with the cooperation of experts, and formulate development plans while exchanging opinions with stakeholders. We regularly monitor the surrounding environment and report on environmental impacts to stakeholders. In addition, based on the GCCA guidelines, we have set a target quarry restoration plan formulation rate of 90% or more.
Conservation of water resources
The water used at the Taiheiyo Cement Group's cement plants is not a raw material for cement products, but is mainly used for cooling plant equipment and evaporates. We are working to reduce the impact on water areas by recycling all water used in our plants (except for household wastewater), and we are analyzing water risks at our cement plants using the WRF*4. In addition, we are conserving water sources by managing water resources based on the GCCA guidelines.
*4 Abbreviation for Water Risk Filter, a water risk map developed by the World Wide Fund for Nature (WWF)
Indicators and Targets
We have positioned proactive efforts toward natural resources capital, such as the conservation and recovery of water resources and biodiversity, as an important management challenge in our environmental management policy, and we are conducting impact assessments and management in our business activities with the aim of achieving a nature-positive society. In the future, based on the recommendations of the TNFD, we aim to improve the accuracy of our assessment scope, review of priority areas, and analysis methods. We will also examine the indicators and targets to be managed based on the results of the assessment of the impact of our business activities.
