Environment <Initiatives to Address Climate Change>
■ Basic Concept
Extreme weather events and other impacts caused by climate change are becoming increasingly severe, and responding to climate change is now a global challenge. The DAIICHIKOSHO Group has positioned addressing climate change as one of its key issues. We are taking steps to reduce environmental impact while fulfilling the main mission in our Basic Policy on Sustainability – provide fun and happiness to society and contribute to healthy and enriching lives through karaoke.
■ Disclosure Based on TCFD Recommendations
DAIICHIKOSHO analyzes climate change risks and opportunities for the Group, incorporates them into business strategy and risk management, and discloses progress towards its goals in order to generate further growth while contributing to the decarbonization of society.
■ Governance
The Group has established a Sustainability Committee as an advisory body to the Board of Directors to consider and deliberate on basic policies and key matters related to climate change. The committee typically updates the Board of Directors on progress with climate change response measures about twice a year. It has also established a system to identify and monitor actual risks and opportunities as part of broader efforts to strengthen governance related to climate change.
■ Strategy and Risk Management
We have identified risks and opportunities that could affect the Group’s businesses in two categories – (1) transitional risks: policy and regulatory (tighter rules on greenhouse gas [GHG] emissions), market (changes in energy supply and demand), products and services (changes in demand for low-carbon products and the development of next-generation technologies), and reputational (changes in stakeholder views of DAIICHIKOSHO); and (2) physical risks: chronic (assuming 2°C rise in global temperature), resulting in environmental changes due to global warming, and acute (assuming 4°C rise in global temperature), resulting in increasingly severe natural disasters. We then explored measures to address these risks.
Scenario analysis assumptions |
Anticipated business impact |
Measures to be implemented |
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Risks |
Opportunities |
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Transitional |
Policy and regulatory |
Introduction of carbon tax |
Increase in business costs, supplier procurement costs and logistics costs due to the introduction of a carbon tax and carbon pricing |
Lower fuel costs from improved fuel efficiency of environmentally friendly vehicles |
Reductions in electricity use |
Market |
Energy prices |
Increase in business costs due to soaring prices for fossil fuels and electricity |
- |
Progressively switch to renewable energy sources, etc., and save energy |
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Products/services |
Customer needs |
Higher purchasing expenses due to increase in new product manufacturing costs (OEM manufacturing) |
Changes in customer values, increased demand for energy-efficient products, and potential new areas of demand |
Develop products, conduct joint development with OEM partners by anticipating customer needs |
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Reputation |
Stakeholders |
Increase in reputational risk from delayed response to climate change |
Increase in reputational opportunities through appropriate responses to climate change |
Appropriately disclose sustainability initiatives |
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Physical |
Chronic |
Rise in average temperature, changes in weather patterns |
Higher energy costs for air conditioning, refrigeration, etc. at business sites |
Increased use of karaoke facilities by addressing emerging customer needs, such as growth in indoor leisure activity |
Reduce GHG (CO2) emissions |
Acute |
Increasingly severe abnormal weather |
Higher risk of natural disasters at offices and stores in high flood risk areas |
- |
Coordinate with local communities during disasters |
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■ Indicators and Targets
To achieve carbon neutrality, we aim to reduce the Group's GHG emissions (Scope 1 and Scope 2) to zero in real terms by FY2050.
Specifically, we will help to realize a decarbonized society by saving energy and progressively switching to energy generated from renewable sources.
■ Future Initiatives
Starting from FY2021, we have begun calculating and disclosing CO2 emissions on a Group-wide basis. Going forward, we will continue to implement energy-saving measures and related disclosure.
We will also consider adopting the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
■ Initiatives to Reduce Environmental Impact
･Reducing the use of paper
Previously, DAIICHIKOSHO used up to 7,800 tons of paper each year to publish music guides for karaoke customers. Aiming to reduce our impact on the environment, we were the first company in the industry to develop a karaoke machine remote control device with an integrated digital music guide. We started selling the devices in 2002.
The devices have become very popular, with total sales exceeding 1.4 million units as of June 30, 2021. The wide uptake of the devices has seen a steep drop in the volume of paper needed to publish physical music guides from a peak level of around 7,800 tons annually to zero today.
*Publication of the physical music guides ended in March 2020.
Amount of paper used for physical music guides
Physical music guides
Remote control device with integrated digital music guide
■Environmental measures at karaoke rooms and restaurants
▶Waste oil recycling
▶Store uniform recycling and rental
▶Introducing LEDs for store lighting
▶Introduction of biomass straws
▶Use of recycled toilet paper
*BIG ECHO includes sub-brands such as Karaoke Mac