Sustainability

Information Disclosure Based on TCFD Recommendations

The Lintec Group recognizes that climate change has impacts on its business activities and positions it as an important management issue. We will strengthen our risk management system and responses to risks and find new business opportunities to make contributions for our sustainable growth and the development of a sustainable society. Moreover, we will proactively disclose information on our responses to climate change according to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and further improve our corporate value through engagement with stakeholders.

Slide to view.

Status of response

Reference

Governance

The Sustainability Committee (meeting four times a year, in principle) discusses policies and implementation plans and supervises their progress regarding specific measures related to sustainability, including responses to climate change-related issues. The committee is chaired by the president and comprised of all directors and officers in charge of promoting committees under the Sustainability Committee. The outcomes of discussions are reported to the Board of Directors.
Climate change-related issues are assessed firstly by the Environmental Committee, via the TCFD Subcommittee, and finally by the Sustainability Committee. Measures to respond to issues are implemented and managed at each site. The status of responses is put together by the Environmental Committee and reported to all directors and officers in charge at the Sustainability Committee.

Corporate Governance System

Corporate Governance

Strategy

Considering risks and opportunities associated with climate change as an important matter in developing its business strategies, the Lintec Group set out the following two scenarios and conducted scenario analysis for its domestic business up to 2030. Consequently, we identified risks and opportunities, as shown in the following table.
We will integrate measures to respond to these climate change-related risks and opportunities into initiatives we take under our long-term vision, LSV 2030, and will carry out analysis, covering our business outside Japan, from a longer-term perspective.

Reference Scenario

	4°C scenario	2°C scenario
Transition Risks	Transition scenario, International Energy Agency (IEA)
Transition Risks	Stated Policies Scenario (STEPS)^*1	Sustainable Development Scenario (SDS)^*1
Physical Risks	Climate change scenario, Intergovernmental Panel on Climate Change (IPCC)
Physical Risks	RCP 8.5^*2	RCP 2.6^*2

*1Source: IEA. World Energy Outlook 2021
*2Source: IPCC. Fifth Assessment Report

Risk/opportunity type			Major risks/ opportunities	Proposed responses
Transition risks/ opportunities	Policy and legal	Carbon pricing	Risk: Increased response costs and manufacturing costs with the tightening of laws and regulations on GHG emissions and energy use (e.g. introduction of carbon tax), and decreased sales due to drop in price competitiveness caused by price pass-through Opportunity: Generating revenue from emissions trading by keeping CO₂ emissions within the allowance	Reduce CO₂ emissions, which form the basis of carbon tax, by introducing energy-saving equipment and promoting renewable energy use
		Tightened regulation of CO₂ emissions	Risk: Investment unrecovered due to increased capital investment for saving energy and reducing CO₂ emissions Opportunity: Improved environmental awareness among employees and new business opportunities gained with the promotion of reduction efforts	Make planned capital investment Based on simulations of mid- to long-term CO₂ emissions Expand the scope of ISO 14001 certification and accelerate activities to promote energy saving
		Tightened regulations on VOC emissions	Risk: Investment unrecovered due to increased investment in development of solvent-less products and upfront capital investment Opportunity: Expansion in the printing- and industrial materials products-related business and paper- and converted products-related business with the development of solvent-less and environment-friendly products	Research and grasp customer needs and focus on developing technologies and products considering issues and opportunities
	Technology	Development of new technologies	Risk: Decreased sales due to loss of business opportunities with delay in developing products responding to climate change or failure of existing products to satisfy needs for environment-friendly products Opportunity: Expanded electronic- and optical-related business with increased semiconductor-related needs toward a carbon-free society Opportunity: Increased opportunities to sell environment-friendly products Opportunity: Increased contribution to the development of a recycling-oriented society and business opportunities Opportunity: Increased business opportunities with the promotion of power generation from renewable energy Opportunity: Increased opportunities to sell energy-saving products toward a carbon-free world	Enhance the production system of electronic- and optical-related business with aggressive capital investment Develop and enhance environment-friendly products (e.g. deplasticization, biomass, biodegradable, FSC-certified paper) Build resource collection systems Develop and enhance products contributing to promoting power generation from renewable sources Develop and enhance products contributing to promoting energy saving (e.g. highly functional window films, lighting films)
	Market	Changing energy costs	Risk: Increased utility costs due to rising prices of crude oil- and petroleum-based energy Opportunity: Cost reduction with in-house energy procurement	Accelerate capital investment for reducing environmental impact, such as reducing CO₂ emissions (introducing a cogeneration system, waste heat boiler, solar panels for in-house power generation, etc.)
		Changing important products	Risk: Decrease in orders received for major brands with the shift of customer needs to low CO₂ products Opportunity: Discovered customer needs and increased sales with the development of more environment-friendly products	Develop and enhance environment-friendly products (e.g. deplasticization, biomass, biodegradable, FSC-certified paper)
		Changing raw material procurement	Risk: Destabilized product supply due to increased dependence on suppliers with the accelerated move to petrochemical-free raw materials Opportunity: Stabilized supply chain with the review of suppliers	Sophisticate supply chain management
	Reputation	Changing reputation among customers	Risk: Lower customer rating due to delay in developing a system to address climate change and in launching and strengthening products responding to climate change Opportunity: Support from stakeholders won with enhanced efforts for a carbon-free world and a recycling-oriented world	More proactively disclose information and engage with stakeholders Enhance initiatives for reducing CO₂ and VOC emissions, promoting energy saving, reducing water usage, and conserving biodiversity
Physical risks/opportunities	Acute risks	Increased severity of natural disasters	Risk: Delayed product supply and decreased sales due to supply chain interruptions and plant operation shutdown caused by extreme weather events such as heavy rain Risk: Increased repair costs and disaster and damage insurance costs	Sophisticate supply chain management Develop disaster response manuals
	Chronic risks	Rising temperatures	Risk: Increased cooling energy costs in summer Opportunity: Increased sales opportunities for window films for automobiles and buildings	Promote in-house power generation using solar panels and cogeneration systems Develop and enhance highly functional window films
	Chronic risks	Destabilized amount of water secured	Risk: Shortage of industrial water due to decrease in groundwater	Reduce water usage by enhancing ISO 14001 initiatives, etc.

Lintec Group’s initiatives

Risk management

To reinforce its risk management system, the Lintec Group established the Corporate Risk Management Committee, comprising executive general managers and general managers of offices under the direct control of the president, in April 2018, and has since held committee meetings regularly.
As the system to promote sustainability activities was revamped and strengthened in April 2021, the purpose of the committee was redefined as: “to comprehend business risks and opportunities, establish policies to respond to them, and implement and verify the policies within the corporate structure.” The committee evaluates and analyzes risks, including natural disasters, based on issues recognized by committee members and the results of risk identification conducted annually with managers. Results of evaluation and analysis are reported to the Sustainability Committee and the Board of Directors to receive their instructions for response.
Meanwhile, the Environmental Committee collects, identifies, and evaluates climate-related risks, and reports the results to the Sustainability Committee, which examines the need for response and issues business instructions to officers in charge, as needed, via committees reporting to it. Officers in charge who receive such instructions implement measures in their departments. The Environmental Committee monitors the situation for changes on a continual basis and regularly determines whether the initially set indicator or target has been achieved or not.
The Lintec Group will continue to strengthen its risk management capability through coordinated efforts of committees and improve the risk management system for the sustainable growth of the Group.

Related information

Metrics and Targets

The Lintec Group recognizes that reduction of greenhouse gas (GHG) emissions is crucial in addressing climate change and accordingly promotes various measures in R&D, manufacturing, sales, and logistics. As a manufacturer, Lintec views these initiatives for decarbonization as its mission and as leading to new climate-related opportunities. In its long-term vision toward 2030, LSV 2030, the Lintec Group has set the following numerical target.

Target

Reduce CO₂ emissions by 50% or more by 2030 compared to FY2013

Results

CO₂ emissions
Organization covered: Lintec Corporation (Head Office, 10 production sites_*, and Research Center) and Tokyo Lintec Kako, Inc.

*10 production sites: Agatsuma, Kumagaya, Ina, Chiba, Tatsuno, Shingu, Komatsushima, Mishima, Doi, and Niihama

For other targets and indicators, see:

Sustainability