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 direction of the Sustainability Committee, the Environment Subcommittee plays a central role in considering specific measures and promoting activities related to climate change. 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). The Environmental Subcommittee analyzed the scenarios and evaluated the financial impact on our business based on temporal perspective, likelihood of occurrence, and scope of impact.
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 activities 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 | Use of efficient means of transportation/efficient production and distribution processes | Medium | Low |
・Promote efficiency in transportation ・Promote efficiency in manufacturing processes ・Promote recycling of industrial waste |
| Use of recycling | Low | Low | ||
| Products and Services | Develop and expand low-carbon products/services Changing 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, adoption of energy conservation measures Resource substitution/diversification |
Low | Medium |
・Promote multiple procurement of raw materials and consider alternatives ・Study alternatives for logistics and early recovery plans |
Risk Management
The Environmental Subcommittee plays a central role in assessing risks related to climate change and regularly reviews risk assessments based on temporal perspective, likelihood of occurrence, and scope of impact, and responds according to priority level. The Sustainability Committee receives quarterly reports from the Environmental Subcommittee to check the status of risk management and works together with the Risk Management Committee to share information and take other actions.
| 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) |
Indicators and Targets
We have set CO₂ emissions as a KPI for “Reduce environmental impact,” which is one of the materialities, and progress is being managed. The targets and results over the past three years are as follows.
CO₂ emissions reduction target
50% reduction in CO₂ emissions by 2030 (compared to FY3/2021) (Scope 1 and 2 emissions*, consolidated)
* Scope 1 & 2 emissions: 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 |
FY3/2023 | FY3/2024 | |
|---|---|---|---|
|
Actual CO₂ emissions (Scope 1 and 2, consolidated) |
6,950 | 6,612 | 5,866 |
| Base year comparison | - | -4.9% | -15.6% |
Utilization of Renewable Energy
We have installed solar power generation systems at all three of our plants in Japan to promote the use of renewable energy. The total estimated annual power generation is 396.2 MWh, with a CO2 emissions reduction of 171.2 tons. In FY3/2025, we plan to start the operation of a solar power generation system at our Malaysia Factory.
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 Oyama Factory
