Disclosure based on TCFD Recommendations
The JLL Group recognizes that climate change brings about significant risks and opportunities that will affect our business continuity and sustainable growth. Based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) established by the Financial Stability Board (FSB), we will actively promote the disclosure of our climate change initiatives according to four disclosure items.
Governance
Under the instruction of the Sustainability Committee, the Environment Subcommittee plays a central role in assessing specific measures and promoting activities related to climate change initiatives. The Environmental Subcommittee reports quarterly to the Sustainability Committee on the progress of activities, risk assessment and countermeasures, and receives instructions as appropriate. In addition, with regard to climate change risks, the Sustainability Committee works together with the Risk Management Committee to share information and take other actions.
Strategy
To identify risks and opportunities from climate change, we have set 1.5°C/2°C and 4°C scenarios based on information published by the Intergovernmental Panel on Climate Change (IPCC), and the International Energy Agency (IEA) while taking into account the global impact on energy conditions and social aspects. The Environmental Subcommittee analyzed the financial impact from the perspective of timing, likelihood of occurrence, and scope of impact. We evaluate quantitatively and qualitatively the magnitude of the impact on our Group’s business and consider countermeasures.
| Evaluation Axis | Overview |
|---|---|
| Temporal Perspective | The extent to which climate change impacts are expected to affect Group business (long term, medium term, short term) |
| Likelihood of Occurrence | The extents to which climate change impacts may affect Group business (high, medium, or low) |
| Scope of Impact | The extent to which climate change impacts will affect Group business (large, medium, or small scale) |
Transition Risk
| Category | Risk Factors | Impact on our Company | Countermeasures | |
|---|---|---|---|---|
| 1.5°C/2°C | 4°C | |||
| Policy/Regulations | Pricing progression of GHG emissions | Medium | Low |
・Promote energy-saving efforts in a systematic manner ・Utilize renewable energy |
| Technologies | Replacement of existing products and services with low-carbon options | Low | Low |
・Develop environmentally friendly products (low carbon emissions during manufacturing and use) ・Develop products that contribute to the efficiency of medical institutions (e.g., reduced operation time) |
| Markets | Changes in Consumer Behavior | High | Low |
・Develop environmentally friendly products (low carbon emissions during manufacturing and use) ・Develop products that contribute to the efficiency of medical institutions (e.g., reduced operation time) ・Proactively address and disclose information in response to climate change-related requests |
| Soaring raw material costs | Low | Low | ・Develop a collaborative climate change plan with supply chain constituents | |
Physical Risk
| Category | Risk Factors | Impact on our Company | Countermeasures | |
|---|---|---|---|---|
| 1.5℃/2℃ | 4℃ | |||
| Acute | Increased severity and frequency of extreme weather events such as cyclones and floods | Medium | High |
・Establish BCP plans for typhoons, floods, and other disasters ・Decentralize development and manufacturing functions ・Promote multiple procurement of raw materials and consider alternatives ・Study alternatives for logistics and early recovery plans ・Promote efficiency in the development and manufacturing verification process |
| Chronic | Changes in rainfall patterns, extremes in weather patterns | Low | Medium | |
Opportunities
| Category | Opportunity Factors | Impact on our Company | Countermeasures | |
|---|---|---|---|---|
| 1.5℃/2℃ | 4℃ | |||
| Resource Efficiency | Utilization of efficient transportation methods, efficient production and distribution processes | Medium | Low |
・Promote efficiency in transportation ・Promote efficiency in manufacturing processes ・Promote recycling of industrial waste |
| Utilize recycled resources | Low | Low | ||
| Products and Services |
Development and expansion of low-carbon products/services Changes in consumer preferences |
Medium | Low |
・Develop environmentally friendly products (low carbon emissions during manufacturing and use) ・Develop products that contribute to the efficiency of medical institutions (e.g., reduced operation time) |
| Markets | Access to new markets | Low | Low | ・Develop medical devices to treat new diseases |
| Resilience |
Participation in renewable energy programs. Adopting energy-efficient practices Substitution and diversification of resources |
Low | Medium |
・Promote multiple procurement of raw materials and consider alternatives ・Study alternatives for logistics and early recovery plans |
Risk Management
At JLL, the Environmental Subcommittee plays a central role in cross-organizational discussions regarding climate change risks. It regularly reviews the impact of the discussed risks and their countermeasures, and also checks the progress of those measures.
The Sustainability Committee receives activity reports from the Environmental Subcommittee on a quarterly basis, monitors the impact and progress of countermeasures, and coordinates responses by sharing information with the Risk Management Committee. The Board of Directors regularly receives reports from the Sustainability Committee, oversees the Committee, and decides on important matters related to climate change.
Indicators and Targets
We have set CO₂ emissions as a KPI for “Reduce environmental impact,” as one of our materialities, and use this indicator to manage progress in this area.
CO₂ emission reduction targets for FY3/2031 (consolidated) and the Group’s actual CO₂ emissions for Scope 1 and 2 (consolidated) are shown on the right.
We will continue to make steady efforts to achieve our CO₂ emissions reduction target.
CO₂ Emissions Reduction Target
50% reduction of CO₂ emissions by FY3/2031(compared to FY3/2021)
Note: Scope 1 & 2 Emissions* only (consolidated)
Note: Scope 1 & 2 Emissions* only (consolidated)
* Direct and indirect greenhouse gas emissions through the company’s operations
Actual CO₂ emissions (Scope 1 and 2, consolidated)
Unit: t-CO₂
| FY3/2021 Base Year |
FY3/2024 | FY3/2025 | |
|---|---|---|---|
|
Actual CO₂ emissions (Scope 1 and 2, consolidated) |
6,950 | 5,866 | 5,810 |
| Base year comparison | - | -15.6% | -16.4% |
Initiatives for Reducing Greenhouse Gas Emissions
Since introducing a solar power generation systems at Toda Factory in FY3/2018, JLL has subsequently expanded its installation to Ichihara Factory in FY3/2022 and Oyama Factory in FY3/2024. In February 2025, another solar power generation system will also begin operation at JLL Malaysia, and the total annual expected power generation for all group manufacturing sites will be 1,016.4 MWh, resulting in a projected reduction in CO₂ emissions of 532.3 tons.
The air conditioning systems in the clean rooms of factories where manufacturing operations are conducted are operated 24 hours a day, 365 days a year to maintain proper conditions within the rooms. However, we change temperature settings and ventilation frequency at night and on holidays to actively promote energy conservation.
Solar panels at JLL Malaysia
