Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]The basis for our strategy for addressing climate change is to contribute to the realization of a decarbonized society as announced in our long-term sustainability vision for 2050, the "Sustainability Challenge.† This policy is in line with the Japanese government's decarbonization policy.
When directly or indirectly participating in government policies, the Sustainability Committee (chaired by Sojitz President & CEO Masayoshi Fujimoto and made up of Sojitz directors and executives) confirms that the policies are in line with our goal to contribute to the realization of a decarbonized society.
In August 2018, we declared our endorsement of the TCFD, and we conduct scenario analysis on business areas (coal interest business and power generation business) where we expect climate change to have a major impact on our business and finances as one of our strategies within the TCFD framework.
The results of this analysis are reported to the Sustainability Committee. Based on the results, we established our goal to reduce the assets of our thermal coal interests by 2030 half or less as compared to the end of March 2019.
In light of recent growing trends towards decarbonization and the opinions contributed by external experts during our periodic stakeholder dialogues, we chose to accelerate the timeline of our decarbonization targets and announced our goal to reduce the assets of our thermal coal interests by half or less by 2025 and to zero by 2030.
This new goal was determined following deliberation by the Sustainability Committee and after receiving approval from the Management Committee, and we have confirmed that our decarbonization initiatives are in line with TCFD recommendations and Japanese government policies.
Thermal coal interests (based on book value) are steadily being reduced each year with JPY 30 billion in FY2019, JPY 25 billion in FY200, and JPY 10 billion in FY2021.