The MEISEI Group has conducted scenario analysis in accordance with the TCFD framework, using scenarios published by the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC) , in order to identify risks and opportunities from climate change and perform assessments from both qualitative and quantitative perspectives.
Specifically, we have performed analysis based on two world view assumptions, using a 4℃ scenario in which there is an average temperature increase of approximately 4℃ between the time of the Industrial Revolution and around 2100, as seen in the RCP8.5, IEA Stated Policies Scenario, etc., as well as a less than 2℃ scenario, in which there is an average temperature increase of 1.5-2℃ between the time of the Industrial Revolution and around 2100, as seen in the RCP2.6, IEA Net Zero Emission by 2050, etc. In addition, our analysis estimates the impact on the MEISEI Group in 2030.

Under the 4℃ scenario, it is assumed that we will not transition to a decarbonized society, and policies and regulations will not be strengthened, etc. It is expected, however, that there will be an increase in physical risk from factors such as more extreme weather events, including frequent torrential rains and typhoons, as well as increase in average temperatures.
Under this scenario, it is assumed that the risk that will most significantly impact the MEISEI Group is damage to the sites from flooding, storm surges, etc. Under the contrasting less than 2℃ scenario, it is expected that policies and regulations will be strengthened toward a decarbonized society, and as a result, there will be increased transition risks, including the introduction of carbon taxes and the spread of renewable energy. In this scenario, the risk item with the greatest impact on the MEISEI Group is assumed to be the increase in operating costs due to the introduction of the carbon taxes.
On the other hand, in addition to risks, we also identified multiple opportunities under the less than 2℃ scenario, which we assessed both qualitatively and quantitatively. It is expected that there will be an increase in opportunities to win orders for construction related to renewable energy, given the MEISEI Group’s advanced technical expertise in heat and cold insulation .
In order to capture such opportunities, we are endeavoring to develop technologies and enhance our construction capabilities on a daily basis.

With regard to the management of risks related to climate change and other aspects of sustainability, risks that apply to the MEISEI Group as a whole are managed in a comprehensive and unified manner by Directors executing business operations, systems for the management of such risks have been clarified, and committees covering each type of risk are established as necessary to identify problems and implement improvement measures, based on the “Risk Management Rules” related to the risk of losses occurring in each department that executes business operations.

Furthermore, a task force led by a Representative Director or a Director nominated by a Representative Director is established to comprehensively manage important issues reported to the Board of Directors by each department, including gathering information, assessing risk, prioritizing, and formulating countermeasures. In addition, a system is in place for receiving advice from third parties, such as legal counsel, as necessary, and preventing and minimizing the expansion of damage.

In order to assess and manage the impact of climate change issues on management, the MEISEI Group has set emissions of carbon dioxide (CO2), a type of greenhouse gas, as a metric, and 2019 as a base year.
In order to contribute to the international target of carbon neutrality by 2050, we will endeavor to implement initiatives to reduce CO2 emissions through solar power generation, introduction of hybrid cars, etc., and to promote businesses related to renewable energy.

The scope covers domestic facilities.