Responses to the TCFD Recommendations
KDDI announced our support for the Task Force on Climate-related Financial Disclosure (TCFD) in April 2021. We will strive to proactively disclose information based on the disclosure framework of governance, strategy, risk management and metrics and targets in accordance with the TCFD recommendations. We will also take concrete measures to address climate change and put them into actions.
KDDI has the Sustainability Committee, chaired by the President and consisting of key members of the Board of Directors etc., to deliberate on issues related to sustainability such as the resolution of social issues through businesses (SDGs), social contributions, and measures against climate change. The Committee is responsible for following up on and discussing important issues and initiatives related to climate change at KDDI, monitoring risks and opportunities, and approving reports and other matters. In the first half of the fiscal year, the Committee confirms the previous fiscal year's performance against targets, analyzes the causes and confirms countermeasures in the event that targets have not been achieved.
In the second half of the fiscal year, it confirms the progress of the current fiscal year's targets and sets targets for the next fiscal year.
In addition, the Board of Directors receives reports from the Sustainability Committee on climate change every quarter, and supervises and directs the implementation of measures for important issues and initiatives.
In May 2020, KDDI announced the KDDI Sustainable Action, KDDI's SDGs with an eye on 2030, and declared that we would aim to improve energy efficiency and achieve net-zero CO2 emissions by 2050, regarding conservation of the environment as one of the social issues. Specifically, we carried out two types of analyses: the 2°C scenario in which a carbonfree society will be rapidly realized (the increase in the global average temperature is held below 2°C above pre-industrial levels) in response to the Paris Agreement adopted at COP21, and the 4°C scenario in which physical impact will become apparent due to lack of measures against climate change (the increase in the global average temperature is held at 4°C above pre-industrial levels). As a result, we announced the upward revision of our CO2 emissions reduction target in July 2021 and raised it to "50% reduction in CO2 emissions by FY2030 compared to FY2019," believing that it was necessary to implement activities based on a target of higher standards than "7% reduction in CO2 emissions by FY2030 compared to FY2013" announced in March 2017. At the same time, we renamed the KDDI Environmental Conservation Plan "KDDI GREEN PLAN 2017-2030" set out in March 2017 into "KDDI GREEN PLAN 2030" and announced that we would further contribute to environmental conservation by promoting climate action, creation of a recycling-oriented society and conservation of biodiversity under the KDDI Environmental Charter.
Scenario Analysis Results
- The 2°C scenario in which a carbon-free society will be rapidly realized (a future in which the goal to hold the increase in the global average temperature below 2°C (including 1.5°C scenario) above pre-industrial levels is achieved)
Reference: IEA (International Energy Agency) World Energy Outlook 2018 Sustainable Development Scenario (SDS), IEA Energy Technology Perspectives 2017 Beyond 2°C Scenario (B2DS), ETP (Energy Technology Perspectives) 2017, 2020
|Analysis of Transition Risks||KDDI's Risks||KDDI's Responses|
|Policy and Legal||Carbon Tax||Carbon taxation risk ||Planning to switch from fossil fuel power to renewable energy powe|
|Tokyo Metropolitan Ordinance/Emission Regulations||Risk of increased costs of buying credits (allowances) for unachieved CO2 emission reductions||Purchase of emission credits for the second plan period to compensate for the expected unachieved emission reduction in the third plan period (approx. 50,000 t-CO2)|
|Introduction of New Technologies to Reduce Power Consumption and CO2 Emissions||Risk of increased costs for AI technology at base stations, development of new energy-saving technologies for various facilities, CCUS  development, etc.||Investment in the development of various technologies|
|Market and Reputation||Risk of losing corporate reputation and subscribers due to unmet targets and delays in renewable energy initiatives||Planning to switch from fossil fuel power to renewable energy power|
- Since the estimated CO2 emissions in FY2030 are approximately 500,000 tons-CO2, in the case of carbon tax of 7,700 yen/t-CO2, it is assumed that an annual tax of about 3.85 billion Yen will be levied.
- Carbon dioxide Capture, Utilization and Storage
- The 4°C scenario in which physical impact will become apparent due to lack of measures against climate change (the increase in the global average temperature is held at 4°C above pre-industrial levels)
Reference: IPCC (Intergovernmental Panel on Climate Change) Fifth Assessment Report
|Analysis of Physical Risks||KDDI's Risks||KDDI's Responses|
|Acute Risk||Increase in severity and frequency of disasters caused by extreme weather (typhoons, floods, etc.)||Risk of increased costs such as personnel expenses for emergency recovery in order to respond quickly to the restoration of the communication network||Preparation for efficient recovery operations by reviewing the BCP  and conducting disaster recovery drills|
|Chronic Risk||Increase in average temperature||Risk of increased air-conditioning power usage in data centers to cool servers entrusted to us by our customers||Installation of highefficiency air conditioning systems and replacement with renewable energy power|
- Business Continuity Plan
The Corporate Risk Management Division, which is in charge of risk management for the KDDI Group, identifies risks twice a year including those related to climate change and all operational risks that could have a significant impact on our financial and management strategies. Of the risks identified, those related to climate change are managed using an environmental management system (EMS) approach, utilizing the ISO environmental management system. With regard to the risks to be managed, each relevant department sets quantitative annual targets for risk reduction and evaluates the progress on a quarterly basis. Issues pointed out in the progress evaluation are reported to the Environment Subcommittee, a subcommittee of the Sustainability Committee, and risks and opportunities related to the entire company and all divisions are discussed and approved by the Sustainability Committee.
Metrics and Targets
Since the fiscal year 2012, KDDI has been calculating the greenhouse gas emissions (Scopes 1, 2, and 3) on a non-consolidated basis and since the fiscal year 2021 on an entire group basis of our supply chain to quantitatively understand its environmental impact and manage the risks and opportunities that climate change poses to the company. We will continue to promote activities to reduce greenhouse gas emissions based on the following indicators and targets.
|Categories||Emissions in FY2019 (t-CO2) (consolidated)||Targets
|Scope 1||Direct GHG emissions that occur from sources that are controlled or owned by the organization||25,169||by FY2030
50% reduction compared to FY2019
|Scope 2||Indirect GHG emissions associated with the usage of electricity, heat and steam provided by external actors||1,352,131||by FY2030
50% reduction compared to FY2019
|Scope 3||Indirect GHG emissions other than Scope 2 (emissions by external actors related to the organization's activities)||―||by FY2030
14% reduction compared to FY2019
- *KDDI and 28 major group companies
mediba Inc., KDDI Research, Inc., KDDI Technology Corporation, KDDI Engineering Corporation, Altius Link, Inc., KDDI Challenged Corporation, KDDI MATOMETE OFFICE CORPORATION, KDDI MATOMETE OFFICE HIGASHINIHON CORPORATION, KDDI MATOMETE OFFICE CHUBU CORPORATION, KDDI MATOMETE OFFICE KANSAI CORPORATION, KDDI MATOMETE OFFICE NISHINIHON CORPORATION, OKINAWA CELLULAR TELEPHONE COMPANY, Okinawa Telecommunication Network Co.,Inc., Japan Telecommunication Engineering Service Co., Ltd., Chubu Telecommunications Co., Inc., KDDI Cableships & Subsea Engineering Inc., UQ Communications Inc., BIGLOBE Inc., TELEHOUSE International Corp. of Europe Ltd. (UK), TELEHOUSE International Corp. of Europe Ltd. (France), TELEHOUSE International Corp. of America (US), TELEHOUSE Deutschland GmbH (Frankfurt), HKCOLO. NET Ltd. (Hong Kong), TELEHOUSE Beijing BEZ Co., Ltd. (Beijing), TELEHOUSE Beijing BDA Co., Ltd. (Beijing), TELEHOUSE Shanghai Co., Ltd. (Shanghai), KDDI Singapore Pte Ltd. (Singapore), TELEHOUSE International Corp. of Vietnam (Hanoi)