Governance

Important matters relating to climate change are deliberated on and determined by the Board of Directors. Two specific bodies outlined below aim to continuously focus on identifying/assessing and promptly reflecting in business strategies the risks and opportunities that may significantly impact the sustainable growth and continuity of the Group.

Sustainability Committee

The President and Representative Director serves as chair of the Sustainability Committee, which is responsible for monitoring and managing risks and opportunities related to sustainability, including climate change.

SDGs Management Department

The SDGs Management Department is composed primarily of general managers of TV Asahi Holdings Corporation and TV Asahi. It is responsible for assessing and examining climate change-related risks and opportunities.

Matters deliberated by the SDGs Management Department are reported to the Sustainability Committee once a year and then reported to the Council of Executive Directors. Matters deemed important by the Council of Executive Directors are presented to the Board of Directors.

Note: In the above diagram, “Instruction” refers to instructions issued by either the council/committee chair or the board member in charge of the matter.

Strategy

Utilizing the scenario analysis methodology recommended by the TCFD, the Group has identified and assessed the future risks and opportunities for 2030 from both qualitative and quantitative perspectives. The Group has also considered and implemented measures relating to risks and opportunities deemed to have significant impact. The scenario analysis is based on the following two scenarios:
1. A “Below 2°C” scenario where the impact of transitioning to a low-carbon society is greater than the present.
2. A “4°C” scenario where the physical impacts of climate change are substantial.

1. “Below 2°C” Scenario Analysis

Analysis findings

The Group’s operating costs would increase as a result of taxation of CO2 emissions from business activities due to the introduction of carbon taxes aimed at reducing greenhouse gas emissions, and a steep rise in electricity prices due to the growing proportion of renewable energy used. If the Group’s decarbonization efforts are deemed insufficient as concern for climate change grows, a decrease in advertisement placements and decline in viewership is expected. Moreover, companies in industries that are vulnerable to transitional impacts to decarbonization are expected to be equally affected by the aforementioned factors.

Measures and Countermeasures

One way the Group is managing the impending carbon taxes and steep rise in electricity prices is reducing power consumption, such as switching to LED lighting. A 50% reduction target from FY21/3 to FY31/3 in the lighting power consumption of studio facilities at the TV Asahi Headquarters Building has been established. The Group is also targeting a 100% renewable energy ratio at the Headquarters Building by FY31/3 through initiatives such as switching to green power.

On the news reporting front, TV Asahi and BS Asahi became signatories to the SDG Media Compact in July 2020 and February 2020, respectively, and have been making efforts to delivering information that contributes to solving SDG-related issues including climatic and environmental matters. In 2022, both companies participated in the campaign “Promise of 1.5°C,” which was carried out by the United Nations and Japanese companies that are signatories to the SDG Media Compact, and broadcast information on a wide range of climate change issues. The campaign will be held again in 2023 and the Group looks forward to expanding its efforts that contribute to the sustainability of society.

In addition to collaboration with external organizations, the Group also implements its own initiatives, such as regularly slotting “SDGs Week” as part of its “The Future Starts Here Project.” Recently, TV Asahi covered the 64th Japanese Antarctic Research Expedition and reported on the impact of global warming in Antarctica and on the expedition’s research. The Group will continue to work on furthering public discourse through its content and by drawing on the characteristics of its media outlets.

Moreover, the Group will strengthen coordination with companies in industries that are vulnerable to the impacts of decarbonization by enhancing collaboration through monitoring market trends, creating more opportunities for dialogue, and other such efforts.

2. “4°C” Scenario Analysis

Analysis findings

Under this scenario, domestically, it is expected that extreme weather disasters, particularly storm and flood damages, will be more frequent and severe. Such calamities will impair the Group’s business facilities, news reporting activities, event functions, etc. and shall impact the Group financially. Moreover, revenue will also be impacted if business partners that are susceptible to weather disasters reduce their advertising placements after incurring disaster-related losses or opt to refrain from advertising in the aftermath of disasters.

Measures and Countermeasures

As response to such risks, the Group is working to create and secure a news reporting system to promptly deliver accurate information on and during extreme weather disasters. Specifically, as a reliable media outlet, the Group shall provide timely disaster and meteorological information, archive disaster information, work on improving the Group’s Business Continuity Plan and proactively make Group facilities available for community bases in the event of disasters.

Risk Management

The Group’s climate change-related risk management is conducted by the Board of Directors, Council of Executive Directors, Sustainability Committee, and the SDGs Management Department.

The SDGs Management Department receives regular reports from relevant divisions and departments on the following matters and monitors developments.
1. Reassessment of climate change-related risks and progress management of countermeasures
2. The necessity of expenditure on countermeasures and significant impacts on revenue

Findings are also shared with relevant business units within the company, and deliberations are made on how currently recognized sustainability-related risks are changing, as well as on the need for implementation of additional countermeasures. Matters that need to be reported to the Sustainability Committee are then presented. Upon receiving reports, the Sustainability Committee may seek input from external experts to help determine the need for countermeasures. If the risks are deemed to be significant, the Sustainability Committee will report such matters and response strategies to the Council of Executive Directors. The Council of Executive Directors will incorporate the risk analysis into other sustainability-related and other Group-wide risks and conduct reassessments. Risks that are deemed to be significant will be reported to the Board of Directors for deliberation and the Board of Directors will make final decisions on countermeasures and response timelines.

Key sustainability-related issues and the identification process

Note: In the above diagram, “Instruction” refers to instructions issued by the council/committee/department chair and/or the board member in charge of the matter.

Metrics and Targets

The Group uses greenhouse gas (GHG) emissions, electricity consumption, and the percentage of renewable energy used, as indicators to assess and monitor climate change impacts.

The Group is currently discussing its GHG emission reduction target and will disclose the target once established. As for recent track records, GHG emissions for FY22/3 totaled 23,501 tons, with Scope 1 emissions (direct emissions from business activities) accounting for 168 tons and Scope 2 emissions (indirect emissions from electricity consumption) accounting for 23,333 tons. Efforts to reduce CO2 emissions include utilizing co-generation system services, rooftop greening and taking advantage of daylight through the use of glass exterior walls.

The Group is targeting a 50% reduction by FY31/3 in lighting electricity consumption in its Headquarters Building studio facilities in comparison to FY21/3 levels. Measures such as switching to LED studio lighting are being taken and approximately 450 lights in Studio 3 and Studio 4 where changed to LEDs in January 2021, followed by 115 lights in Studio 5 in January 2023.

Regarding the transition to renewable electricity consumption, the Group has a target to achieve 100% at its Headquarters Building by FY31/3. To achieve the target, the Group is proactively switching to renewable energy, such as switching to green electricity generated from 100% renewable sources.