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Information Disclosure Based on the Recommendations of the TCFD


In June 2019 we announced that we support the recommendations of the TCFD*.

* Task Force on Climate-related Financial Disclosures: Established in 2015 by the Financial Stability Board (FSB) to promote the disclosure of climate-related financial information. In 2017, for the appropriate investment decisions of investors, the TCFD published recommendations to promote disclosure of information on the financial impacts of climate-related risks and opportunities.

The Taiheiyo Cement Group has identified a response to climate change as a top priority. The Group’s efforts are based on three scenarios for reducing CO2 emissions: application, development and innovation to achieve the reduction target of cement-related CO2 emissions that we state in our CSR Objectives for 2025 and long-term vision of greenhouse gas emissions reduction toward 2050.
In June 2019 we announced that we support the recommendations of the TCFD. Following its recommendations we conducted an evaluation and separate analyses, including scenario analysis, of the Group’s climate-related risks and opportunities.

TCFD Content Index
Recommended disclosures Our disclosure
The organization’s governance around climate-related risks and opportunities
  • Corporate Governance (pages 45–46)
  • Risk Management (pages 50–52)
  • CSR Management Promotion System (page 56)
  • Company-wide Environmental Management System (pages 60–61)
The actual and potential impacts of climate-related risks and opportunities for the organization’s businesses, strategy and financial planning
  • Top Commitment (pages 11–13)
  • Recognition of Our Business Environment (Risks and Opportunities) (pages 16–17)
  • Progress of the Medium-Term Management Plan and CSR Objectives (pages 20–21)
  • Special Feature 1: Taiheiyo Cement Group Efforts to Mitigate Climate Change (pages 24–27)
  • Business Activities (pages 30–41)
  • Initiatives Based on the Recommendations of the TCFD (pages 64–65)
Risk Management
How the organization identifies, assesses, and manages climate-related risks
  • Risk Management (pages 50–52)
  • CSR Management Promotion System (page 56)
  • Company-wide Environmental Management System (pages 60–61)
  • Initiatives Based on the Recommendations of the TCFD (pages 64–65)
Metrics and Targets
Metrics and targets used to assess and manage relevant climate-related risks and opportunities
  • Progress of the Medium-Term Management Plan and CSR Objectives (pages 16–17)
  • Our Long-range Vision of Greenhouse Gas Emissions Reduction toward 2050 (pages 24–25)
  • Mitigating Climate Change (pages 62–63)
  • Environmental Accounting (page 73)
  • GCCA Key Performance Indicators (page 92)

Setting Scenarios

We focused our scenarios, evaluation and analysis on the business risks and opportunities that climate change will pose to the Group by the year 2050. We sorted out events that will materially impact climaterelated risks and opportunities, based on climaterelated, long-term scenarios founded on science, such as the World Energy Outlook (WEO) and Energy Technology Perspectives (ETP) published by the IEA and The Fifth Assessment Report (AR5) published by the IPCC. Then we created two climate-related scenarios, 4°C and 2°C, that will have impact on the business operations of the Group. To follow up, we analyzed the business impacts in every scenario by size and time horizon (short, medium and long).

Process of Selecting Material Climate-related Risks and Opportunities and Scenarios

Conduct a benchmark survey on recognizing climaterelated risks and opportunities for the cement sector and identify relevant drivers.
Determine the causal relationships between climaterelated drivers, interim outcomes and implications. Then identify key drivers.
Create climate-related scenarios for each key driver, referring to the published climate-related long-term scenarios that were developed based on scientific grounds.
Evaluate the anticipated business impacts in each scenario.
Review responses to the business impacts, which are, in our view, positively or negatively significant to our evaluation.

Scenario Overview

Category Drivers 4℃ 2℃
Negative Positive Negative Positive
Policies for mitigating climate change
  • Carbon pricing (carbon taxes, emissions trading program)
  • Reinforcement of regulations on CO₂ emissions
  • Reinforcement of recycling-related regulations
  • Including the regulations on export/import of waste
  • Progress in the development of technology for CCUS (carbon capture, utilization and storage)
  • Increased competition in developing new cement materials and low-carbon technologies
  • Systemize design methods that incorporate CO₂ recovery by concrete
Population, economy and geopolitics
  • Growing population in emerging markets; urbanization and trend toward compact cities in Japan due to declining birthrate and aging population.
  • Such as dissemination of EVs and autonomous driving
  • Declining utilization rate of coal-fired power stations
Society and Infrastructure
  • Improved awareness of recycling
Rise in average temperature and changes in rainfall pattern Long termRises in average atmospheric temperature and seawater temperature and sea level rise.
  • A larger number of animals that transmit infectious diseases in wider areas
  • More frequent urban heat island effects due to changes in urban conditions
  • Reduction in national land due to sea level rise
Short termMore frequent heavy rains, drought, typhoons and flooding    

Policies for Mitigating Climate Change


Renewable energy is more widely used in developed countries. For example, no new coal-fired power stations have been constructed in those nations. Coal-fired power generation, however, continues to grow globally. Priority is placed on economic activities while restrictions on greenhouse gas emissions stay lax and the cost of emitting greenhouse gases (carbon price) is set low. There is no significant change in cement manufacturing. The recycling of mineral resources, such as fly ash, slag and other by-products further increases at home and abroad.


Efforts to mitigate climate changes are taken toward realizing a decarbonized society; however, efforts are not sufficient. Greenhouse gas emissions slowly increase.In terms of efforts toward zero greenhouse gas emissions, the operation of coal-fired power stations decline due to system reforms related to energy supply and demand. A shift takes place toward renewable energy and low-carbon energy such as LNG.Carbon taxes and emissions trading programs become popular.

Technologies, Society and Infrastructure


Global cement demand continues to grow due to growing populations, urbanization and the increased scale and frequency of natural disasters.In renewing cement manufacturing facilities, energy-saving equipment is introduced and capacity for the production of blended cement using less clinker is increased.Moderately low carbon taxes and market emissions prices discourage businesses from introducing CCUS (CO₂ capture, utilization and storage).The process-derived CO₂ emissions* per unit of cement output stay at the same level as the present.


Costs related to carbon emissions rise due to carbon pricing and the reinforcement of regulations on CO₂ emissions. The cement industry promotes research on low-CO₂ cement production and development of new technologies including those for saving energy while continuing investments to meet demand. The proportion of cement manufacturing facilities featuring CCS (CO₂ capture and storage) increases through the government’s policy for promoting CCS.Thus process-derived CO₂ emissions* per unit of cement output drop.

*CO₂ emissions do not include those derived from energy sources since they are generated by the calcination of limestone.

Rise in Average Temperature and Changes in Rainfall Pattern


Greenhouse gas emissions continue to grow, which makes it difficult to mitigate climate change.Flood damage associated with overflowing rivers and storm surges increases due to the rise in global average temperature and sea level.Flooding occurs more frequently worldwide due to torrential rains and massive typhoons. While our manufacturing and supply systems must be reinforced, demand remains strong for cement and concrete to strengthen urban and national resilience.


Greenhouse gas emissions are limited to the level that their concentration meets the 2°C target.Physical impacts due to a 2°C rise in average temperature, however,cannot be avoided. Changes in rainfall patterns also continue.Consequently, the production and supply system for cement and concrete must be enhanced. In parallel with mitigation actions, adaptive measures are required for enhancing urban and national resilience as well as the resilience of islands and low-lying coastal areas.

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