Responses to the TCFD Recommendations

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.

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

Reference: IPCC (Intergovernmental Panel on Climate Change) Fifth Assessment Report

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.

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.