Creating a comfortable dietary life through food tray containers
Information disclosures based on the TCFD recommendations
Support for the TCFD recommendations
In March 2022, FP Corporation expressed its support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
The FPCO Group will practices the three basic pillars of reliably delivering the most environmentally friendly products of the highest quality at the most competitive prices, whenever they are needed, and undertakes efforts to reduce its environmental burden through the value chain of procurement, development, manufacturing, logistics and recycling.
The recycling of used packaging that was started in 1990 when we recognized the risk of boycotting containers expanded from the initial six locations with the help of consumers, and has today taken root as a part of social infrastructure with more than 10,000 collection sites.
The FPCO Group has also promoted efforts to reduce its environmental burden in each stage of the lifecycle assessment (LCA) by reducing the amount of plastics used in its products, boosting productivity, improving loading efficiency and through other advancements. At the same time, we have provided CO2 reduction effects in the recycled product material manufacturing process as added value to customers, expanding sales opportunities as a result.
Moving forward, based on our understanding that growing demand for reducing CO2 emissions throughout the entire supply chain will be an important business challenge, and with the framework of the TCFD recommendations, we will make Group-wide efforts to (1) assume risk scenarios related to climate change and operate a resilient governance system, under which nothing is affected even in the face of major environmental changes, and (2) identify customer needs promptly and use them as opportunities for the sustainable development of our business.
| Requests |
Governance |
Strategy | Risk Management | Metrics and Targets |
|---|---|---|---|---|
|
Item Details |
Disclose the organization's governance regarding climate-related risks and opportunities | Disclose the actual and potential impact of climate-related risks and opportunities on the organization's businesses, strategy and financial planning when important. | Disclose how the organization will select, manage and assess climate-related risks. | Disclose indicators and goals used when assessing and managing climate-related risks and opportunities when such information is important. |
| Recommended Disclosures | a) Explain the system for the organization's board of directors to supervise efforts to address climate-related risks and opportunities. | a) Explain the short-, medium- and long-term climate change risks and opportunities selected by the organization. | a) Explain the process the organization uses to select and evaluate climate-related risks. | a) Disclose the indicators used to evaluate climate-related risks and opportunities in line with the organization's strategy and risk management processes. |
| b) Explain the roles of management in the evaluation and management of climate-related risks and opportunities. | b) Explain the impact of climate-related risks and opportunities on the business, strategic and financial planning of the organization. |
b) Explain the process the organization uses to manage climate-related risks. |
b) Disclose Scope 1 ,Scope 2 and relevant Scope 3 greenhouse gas emissions. | |
| c) Explain the resilience of the organization's strategy taking into consideration various climate-related scenarios, including a 2ºC or lower scenario. | c) Explain how the process the organization uses to identify, evaluate and manage climate-related risks is integrated into the organization's general risk management. | c) Explain the goals the organization uses to manage climate-related risks and opportunities and its track record for the achievement of the goals. |
Governance
Structure of Board of Directors Oversight and Roles of Managers
(Structure enabling the Board of Directors to monitor climate-related risks and opportunities)
Through the following processes, the FPCO Group assesses and manages climate-related risks and opportunities, and has build a structure for Board of Directors oversight with regard to climate-related policies, strategies and initiatives (FP Corporation Eco Action 2.0).
● Climate-related Risk and Opportunities
1) Important matters related to environmental issues are shared and discussed once a month at management meetings attended by directors, executive officers and the presidents of Group companies.
Example: Effects of improved loading efficiency (Reducing Scope 1 emissions by improving loading efficiency in in-house logistics)
Effects of improved productivity (reduced Scope 2 emissions through lower electric power usage)
Production volume of recycled raw materials and cost status (reduction in Scope 3 emissions by decreasing the use of petroleum resources), etc.
2) Matters that are of particularly high importance for management are discussed at Board of Directors meetings.
Example: Procurement of renewable energy through solar power generation (reduction of Scope 2 emissions by increasing renewable energy usage)
Impact on the collection, sorting and logistics of used containers in investment projects (reduction of Scope 1 and 3 emissions by shorting transportation distances), etc.
● Climate-related Policies, Strategies and Initiatives (FP Corporation Eco Action 2.0)
1) The Environmental Strategy and TCFD Promotion & Management Committee, which spans every sector of the organization, discusses Groupwide environmental strategies and TCFD promotion, and drafts related policies and strategies. In the operation of the Environmental Strategy and TCFD Promotion & Management Committee, the Sustainability Promotion Department, a dedicated environmental organization under the jurisdiction of the President, acts as the administrative office.
2) Under the Groupwide environmental strategy, working groups (WGs) in each of the product, production, logistics, sales and office sectors set their own targets and implement efforts aimed at solving social issues such as climate-related challenges.
3) Once a quarter, each WG reports on the progress of their efforts to the Environmental Strategy and TCFD Promotion & Management Committee.
4) Environmental Strategy and TCFD Promotion & Management Committee reports on the progress of policies, strategies and initiatives to the Board of Directors each year.
5) The Board of Directors conducts monitoring in light of various perspectives and knowledge in response to reports from the Environmental Strategy and TCFD Promotion & Management Committee.
(Roles of management in the evaluation and management of climate-related risks and opportunities)
The President and COO serves as the chairperson of the Environmental Strategy and TCFD Promotion & Management Committee and assumes responsibility for evaluating and managing climate-related risks and opportunities, formulating climate-related policies and strategies, and promoting Groupwide initiatives.
See below for more details about FP Corporation Eco Action 2.0.
Strategy
Risks and Opportunities
(Summary of transition risks and related opportunities) Short term: Within 1 year, Medium term: In 1 to 5 years, Long term: In 5 or more years
| Category | Item | Time of occurrence of risks | Expected impact on business | |
|---|---|---|---|---|
| Risks | Opportunities | |||
| Policies/ Regulations | Carbon pricing, carbon emission targets and policies in each country | Medium term | ●Raw material, manufacturing, and logistics costs increase due to introduction of a carbon tax. ●Conversion to renewable energy is demanded for achieving CO2 reduction targets, resulting in an increase in related costs, including the costs of purchasing equipment and green power. |
●Demand for eco-friendly products, which help reduce CO2 , may increase, leading to an expansion of sales opportunities. |
| Regulations on plastic | Long term | ●Increase in expenses resulting from the imposition of a tax on containers and packaging that uses virgin plastics, use of alternative materials, and other changes. |
●Opportunities to sell eco-friendly products using recycled materials and products featuring the reduced use of plastics are likely to increase. |
|
| Industries/ Markets | Increase or decrease of important products/product prices | Medium term | ●Increase in the cost of raw materials for products, resulting from an increase in fossil fuel prices. ●Generation of cost resulting from conversion from fossil-derived raw materials to alternative raw materials. |
●Opportunities to sell eco-friendly products using recycled materials and products featuring the reduced use of plastics are likely to increase. |
| Changes in the behaviors of customers and consumers | Medium term | ●It is likely that more sustainable products will have a competitive advantage and existing products will be boycotted, resulting in a decline in sales. | ●Growing momentum toward decarbonization in the overall supply chain may increase sales opportunities of eco-friendly products, which contribute to reducing CO2 emissions through the entire lifecycle. |
|
| Technologies | Widespread adoption of renewable energy and energy-saving technologies | Long term | ●Progress in the transition to renewable energy results in the generation of additional costs for introducing renewable energy equipment. | ●If the government introduces a measure to subsidize technologies contributing to energy conservation and renewable energy, the cost of capital investment and R&D can be reduced. |
| Reputation | Change in reputation among customers and investors | Medium term | ●Increase in costs of environmental management as well as disclosure and engagement costs. |
●Implementation of environmental initiatives will lead to a reduction in fund procurement costs due to green finance with lower interest rates. ●Increase in ESG investment. |
(Summary of physical risks and related opportunities) Short term: Within 1 year, Medium term: In 1 to 5 years, Long term: In 5 or more years
| Category | Item | Time of occurrence of risks | Expected impact on business | |
|---|---|---|---|---|
| Risks | Oppotunity | |||
| Chronic | Changes in precipitation and weather patterns | Medium term | ●Generation of supply chain disruptions resulting from an increase in precipitation and high wind and a loss of sales opportunities resulting from a delay in, or suspension of, production | ●BCP initiatives are likely to lead to a high evaluation by customers. |
| Rise in average temperature | Medium term | ●Price of electricity rises due to an increase in power demand in the summer, resulting in an increase in manufacturing costs. | ●BCP initiatives are likely to lead to a high evaluation by customers. | |
| Acute | Increasingly extreme weather | Short term | ●Generation of lost sales opportunities resulting from supply chain disruptions or delays or the suspension of production. ●It is likely that a decline in the asset value of facilities will result in an increase in insurance costs. |
●BCP initiatives are likely to lead to a high evaluation by customers. |
Resilience of strategies based on the scenarios and impact on businesses
The FPCO Group has conducted climate scenario analyses based on a 2030 target for a 2°C scenario where action to counter climate change is promoted (*), and a 4°C scenario in which no action is taken, and estimated the financial impact of the identified risks and opportunities.
As a result of the analyses, we confirmed that the effects can be curbed by expanding the procurement of recycled raw materials, expanding the sale of eco-friendly products, utilizing renewable energies, establishing new recycling methods, and so on.
(Main Assumptions of the Analyses)
| Items | Degree of temperature rise | 2030 Assumptions | Reference scenarios, reference materials | |
|---|---|---|---|---|
| Carbon tax |
2℃ |
11,000 yen / t-CO2 |
International Energy Agency (IEA) |
Net-Zero Emissions Scenario Sustainable Development Scenario |
| 4℃ | No introduction | Same as above | Stated Policies Scenario | |
| Plastic tax | 2℃ | 122,400 yen/t |
Same as above Centres for European Policy Network |
ETP2017 The EU Plastic Tax Greenwashing New Revenue for the EU Budget |
| 4℃ | No introduction | |||
| Electric power prices  | 2℃ | Increase of 1.2 yen / kWh (compared with 2020) | IEA | Sustainable Development Scenario |
|
4℃ |
Increase of 1.2 yen / kWh (compared with 2020) | Same as above | New Policies Scenario | |
| Crude oil prices | 2℃ | 14% decrease | Same as above | Sustainable Development Scenario |
| 4℃ | 83% increase | Same as above | Stated Policies Scenario | |
(*) At the COP26 conference held in November 2021, the 1.5°C target, which had been considered an ambition target since the Paris Agreement, effectively became the new target. While the FPCO Group has presently conducted its analysis based on the 2°C scenario for which a wealth of external data is available, we recognize that the 1.5°C scenario also has risks and opportunities consistent with the 2°C scenario and will implement measures to adapt to and alleviate climate change accordingly.
(Results of scenario analysis)
▲: Positive impact on P/L, ▼: Negative impact on P/L
| Impact Test Items | Risks | Financial impact if no action is taken | Response of the FPCO Group |
|---|---|---|---|
|
[2°C Scenario] |
Rising costs due to the introduction of a carbon tax |
▼ ▼ |
■ Reducing CO2 emissions throughout society through our products |
|
[2°C Scenario]
|
Rising costs due to the introduction of a plastic tax |
▼ ▼ ▼ |
■ Reducing Plastic Usage Through our Products - Expanded sale of eco-friendly products using recycled raw materials - Resource conservation through the utilization of foamed materials - Implementing capital investments to expand recycling capacity ■ Researching New Recycling Methods - Joint venture with DIC Corporation to achieve chemical recycling with the aim of the complete recycling of polystyrene foam containers ■ R&D of New Materials and Collecting Information - Launching biomass products and paper-based products on the market - Collecting information on materials in general ■ Coordination with Other Groups - We take part in the Clean Ocean Material Alliance (CLOMA) organized by the Ministry of Economy, Trade and Industry as a founding company and vice chair of the technical sub-committee - We belong to the Plastics Industry Federation, through which we share environmental issues in the domestic plastics industry and promotion initiatives that will lead to solutions |
|
[2°C Scenario] |
Rising costs due to a hike on electricity rates | ▼ | ■ Utilization of renewable energy
- Phased introduction of solar power generating facilities on the rooftops of our sites ■ Energy-saving initiatives |
|
[2°C Scenario] |
Lowered raw material costs due to falling crude oil prices |
▲ ▲ |
■ Reflecting product prices |
|
[4°C Scenario] |
Lower costs due to falling electricity rates | ▲ | ■ Utilization of renewable energy ■ Energy-saving initiatives |
|
[4°C Scenario] |
Rising raw material costs due to higher crude oil prices | ▼
▼ ▼ |
■ Reducing Plastic Usage Through our Products - Nationwide rollout of FPCO method recycling - Expanded sale of eco-friendly products using recycled raw materials - Resource conservation through the utilization of foamed materials ■ Reflecting product prices |
|
[4°C Scenario] |
Higher insurance premiums due to increased in weather-related disasters | ▼ | ■ BCP initiatives - Building a nationwide production and logistics network - Operation of a supply chain management (SCM) system - We have installed emergency power generators and stockpiled fuel at all of our major logistics sites nationwide, and ensure that 72 hours' worth of electricity power can be supplied |
|
[Common] |
Increased demand for eco-friendly products | Qualitative evaluation | ■ Expanding the sales of eco-friendly products using recycled raw materials ■ Coordinating with various retailers to draw attention to environmental concerns in stores and at the point of sale ■ Conducting recycling plants tours for business partners and regular consumers ■ Research and development of new materials |
Risk Management
Processes of identifying and assessing risks
The FPCO Group's aim is to continue to play a role in ensuring food safety and security in society by reliably delivering the most environmentally friendly products of the highest quality, at the most competitive prices, whenever they are needed. To accomplish this, the FPCO Group has defined material issues (materiality) in terms of the key risks and opportunities to the sustainability of its business model, and pursues a number of related initiatives. Material issues are prepared by the Environmental Strategy and TCFD Promotion & Management Committee, and are finalized after being approved by the Board of Directors.
Please check the following for more information about the FPCO Group's material issues.
Risk management process
(Company-wide risk management)
To manage company-wide risks including climate-related risks, we hold (monthly) meetings of the Corporate Management Committee and (weekly) information exchange sessions, in which directors, operating officers, and representatives of Group companies participate. We have thus established a system for preventing generation of risks and managing risks. Regarding climate-related measures, working groups (WGs) set up under the product, manufacturing, logistics, sales, and office divisions/teams, respectively, have independently set various targets and take steps to reduce CO2 emissions. The Environmental Strategy and TCFD Promotion & Management Committee receives reports on the progress and results of these initiatives and makes evaluations.
(Conduct of risk survey)
The FPCO Group periodically conducts risk surveys of each business site including plants and distribution centers with the aim of minimizing damage due to natural disasters such as major earthquakes, typhoons and torrential rain, and preventing fire and industrial accidents. The risk surveys involve dedicated outside consultants directly visiting business sites and assessing the level of danger of various accidents in order to identify risks, and conduct risks analysis and assessment. After discussion with business sites based on the details of these risk surveys, we take measures to avoid or mitigate the risks and verify the effects as a part of risk management system activities.
Metrics and Targets
Indexes used to assess risks and opportunities
At the FPCO Group, we have been striving to reduce the environmental impact with stakeholders throughout the entire product lifecycle. In the face of recent climate change caused by global warming, a social issue, we have set new medium- and long-term decarbonization targets for realizing a decarbonized society, as the responsibilities and roles that we should fulfill at the FPCO Group. As new target values, we aim to reduce annual CO2 emissions (Scope 1 and 2* ) by 31% by the fiscal year ending March 31, 2031 compared with the FY2020 result and achieve zero effective CO2 emissions (Scope 1 and 2) by FY2051.
（Greenhouse Gas Reduction Roadmap）
(Specific initiatives to achieve targets)
- For the Production Sector, we will introduce solar power generating equipment for in-house consumption, further promote the shift to renewable energies for purchased electric power, and actively install equipment with minimal CO2 emissions at our main plants.
- For the Logistics Sector, we will promote the shift to renewable energies for purchased electric power, and consider the introduction of electric vehicles for delivery trucks while taking economic rationality into account.
For the Office Sector, we will switch to renewable energies for the energy used in our offices, promote energy savings through the introduction of LEDs for lighting, and actively switch our fleet of sales vehicles to electric.
- In every sector we will strive to boost productivity and streamline management.
Targets and Results Used to Assess Ricks and Opportunities Indicators
| Indicators |
Targets | Results | Targets | |
|---|---|---|---|---|
| FY2020 |
FY2021 | FY2031 | ||
| CO2 emissions from FP Corporation's operating sites (Scope 1 and Scope 2) |
31% reduction by the fiscal year ending March 31, 2021 (compared with FY2020 levels) |
231,637ｔ | 243,446ｔ | 159,830t |
| Contributions to CO2 reductions through the sale of eco-friendly products* | 272,000 tons by the fiscal year ending March 31, 2021 (170% compared with FY2020) | 160,000t | 170,000t | 272,000t |
* Products that use recycled raw materials. As the process from producing raw materials for plastics from crude oil can be eliminated, this contributes to CO2 emission reductions throughout society.
CO2 emissions (Scope 1,2,3)
Please check the following page for CO2 emission results.