Task Force on Climate-related Financial Disclosures Response
We will analyze the risks and opportunities related to the Task Force on Climate-related Financial Disclosures ("TCFD") recommendations and their impact on our business activities and disclose our ① governance (oversight structure and corporate stance), and ② strategy (short-, medium-, and long-term risks and opportunities for corporate management) based on the TCFD framework.
We are still continuing to consider the specifics and disclose information on the two items and scopes of the disclosure framework: ③ risk management (identification, assessment and management of climate change risks) and ④ indicators and targets (assessment indicators and targets for climate-related risks and opportunities).
Governance
We have established a Sustainability Promotion Committee with the aim of achieving sustainable growth and enhancing corporate value over the medium to long term.
The Committee is promoting ESG initiatives throughout the HIS Group, in cooperation with the Risk Compliance Committee, business execution divisions, domestic and overseas subsidiaries and affiliates.
As part of this effort, we will also work to strengthen governance on climate change, by examining and managing the monitoring methods of the TCFD.
Sustainability Promotion Structure
Strategy
We have listed the risks and details related to climate change, assessed the significance of each risk, and summarized our response measures.
The analysis for this fiscal year is limited to the travel business, which has the largest sales in the HIS Group, and the severity of risk is classified according to the region where the risk occurred.
In the future, we will broaden the scope of our analysis to include all businesses related to the HIS Group, as well as continuously review risks and consider and implement necessary countermeasures.
| Type of risk | Item | Impact ※1 |
period ※2 |
Measures |
|---|---|---|---|---|
| Physical risks due to climate change |
・Damage to tourism and various infrastructures, and a decrease in tourists due to natural disasters such as eruptions, earthquakes, and tsunamis |
①High ②Medium ③Low ④Low |
Short-Medium |
・Need to respond to customers and suppliers ・Confirm and ensure the safety of customers during their travels with the highest priority, and respond at local branches ・Provide up-to-date information to customers planning to travel ・Check the travel accident insurance subscription status of the customer during the trip, and follow up on the contact with the insurance company ・Omni-channel support ・Prioritize identification of the level of the impact on suppliers and share information on business travel initiatives |
|
・Occurrence of people unable to return home due to mass flight cancellations following natural disasters |
Low | Short-Medium |
・Share information about country restrictions globally and inform travelers ・Follow up with customers during their travel (Guidance to return to Japan, an extension of local stay, ensuring safety and security, cooperation with the Ministry of Foreign Affairs) |
|
|
・Immigration and admission restrictions and new laws and regulations enacted due to increased tourism pollution because of overtourism |
High | Long |
・Share information about country restrictions globally and inform travelers ・Develop new destinations ・Develop new products to reduce overtourism (cooperate with each government tourism office to create certified products) |
|
|
・Reluctance to travel and decrease in the number of tourists due to environmental protection |
Low | Long |
・Provide entertainment as an alternative to travel (Online travel experience) ・Stimulate travel demand |
|
|
・Cancellation of tours and decline in the ability to attract customers due to extreme weather |
Low | Medium |
・Quickly suggest alternative travel destinations ・Prepare multiple tour highlights |
|
|
・Increase in sickness during tours due to extreme heat |
Low | Medium |
・Offer support from local branches |
|
|
・Cancellation of transportation due to typhoon or stormy weather |
Low | Short |
・Share information about country restrictions globally and inform travelers ・Follow up with customers during their travel (Guidance to return to Japan, an extension of local stay, ensuring safety and security, cooperation with the Ministry of Foreign Affairs) |
|
|
・Cancellation of seasonal tours |
Low | Medium |
・Quickly suggest alternative travel destinations ・Offer multiple tour highlights |
|
|
・Infectious disease epidemics and lockdowns due to outbreak |
High | Long |
・Share information about country restrictions globally and inform travelers ・Follow up with customers during their travel (Guidance to return to Japan, an extension of local stay, ensuring safety and security, cooperation with the Ministry of Foreign Affairs) ・Quickly suggest alternative travel destinations ・Share information on the easing of restrictions in each country around the world and strive to resume travel |
|
|
・Effects of cooling consumer sentiment (for example consumers would spend less money on tourism due to increased infrastructure costs (electricity, gas, water, etc.)) |
①Medium ②Low ③Low ④Low |
Medium-Long |
・Provide entertainment as an alternative to travel (Online travel experience) ・Propose alternative travel destinations and micro-tourism ・Stimulate demand for travel |
|
|
・Data center (DC) outage due to natural disasters, functional deterioration, access overload, increased frequency of concentration, occurrence of data loss |
①Medium ②Medium ③Medium ④Medium |
Short-Medium |
・Review data center configuration ・Migrate servers to the cloud ・Make critical data redundant |
|
| Transition Risks (Risks related to the transition to a low-carbon economy) |
・Reduced profits due to restrictions on bus operation and taxation according to emissions because of stricter regulations on GHG (greenhouse gas) emissions |
Low | Long |
・Always have multiple travel destinations ready at the planning stage ・Use FIT tours proactively ・Provide information to travelers |
|
・Increased business operating costs due to the introduction of a carbon tax on GHG emissions associated with the use of fossil fuel-derived energy |
Low | Long |
・Use of renewable energy |
|
|
・Increase in bus fares due to soaring fuel prices, decrease in users due to increased fuel surcharges |
Medium | Long |
・Suggest for alternative travel destinations ・Use of renewable energy buses instead of gasoline vehicles |
|
|
・Decrease in users due to non-buying campaigns and protests from environmental groups regarding vehicles such as aircraft that emit GHG |
Low | Medium |
・Use of renewable energy |
|
|
・Declines in stock prices and rejection as investment candidates when our environmental awareness is evaluated as low |
Medium | Medium-Long |
・Disclose TCFD initiatives ・Strengthen and publicize environmentally friendly initiatives |
26 Jan 2023
※1 Impact
＜Section＞※By the number of passengers
①Japan (Tokyo,Okinawa,Kyoto)
②Hawaii・Guam・Korea・Taiwan
③USA・Italy・ France・ Australia
④Others
＜Indicators of impact＞
High: Losing more than 50% of sales in a single year
Medium: Losing 10% to 50% of sales in a single year
Low: Losing less than 10% of sales in a single year
※2 period
Short term: about 1 week
Medium term: 2 weeks to 3 months
Long term: 3 months or more
