Under the Mid-term Management Plan CODE/CHORD 2030, which began in FY2026, the Hodogaya Chemical Group aims to provide value by balancing the pursuit of economic value with solutions to social issues. As a chemical company, Hodogaya Chemical takes climate change seriously and, based on the TCFD recommendations, for which it declared its support in November 2022, will continue to advance its initiatives and proactively disclose information.
The Sustainability Development Committee is responsible for promoting initiatives toward the realization of a sustainable planet and society in accordance with the Management Philosophy. Under the Committee, we have established the Global Environment Subcommittee, which promotes activities related to the preservation of the global environment, and the TCFD Subcommittee, which addresses the TCFD recommendations, in addition to the RC/QM Subcommittee, which promotes Responsible Care activities. The Risk Management Committee, which discusses Companywide risk recognition and evaluation as well as risk mitigation measures, also discusses, as environmental risks, the climate-related risks and opportunities identified by the TCFD Subcommittee. The matters discussed by each committee and subcommittee are submitted to the Board of Directors and Management Committee for deliberation or reporting, with management working together to address them.
As we advance the business strategies under the Mid-term Management Plan CODE/CHORD 2030, production volumes are expected to increase. We have classified the risks projected from a long-term perspective, looking ahead to 2030, into TCFD risk categories, are proceeding with climate scenario analysis, and from the results of our analysis, we are promoting new initiatives and opportunities for transition risks and physical risks.
| 1.5°C scenario |
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| 4°C scenario |
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| Risks and Opportunities | Risk | Opportunities | Measures | Impact on business | ||
|---|---|---|---|---|---|---|
| Transitional risk 1.5°C scenario | ||||||
| Policy/ Regulation |
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〇 |
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Increase in energy costs and raw material procurement costs due to the introduction of a carbon tax, etc. | ||
| Strengthening environment management | 〇 | Strengthen the internal structure by leveraging the knowledge gained thus far | Increased cost burden for maintenance and improvement of management system | |||
| Technology | Creation of new technologies for environmental friendliness | 〇 | 〇 |
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[Risk] Increase in R&D and manufacturing costs [Opportunity] Maintain and expand market share by providing products and services that meet demand |
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| Market | Eco-friendly market formation | 〇 | 〇 | Revise and strengthen business strategies by deepening market and customer needs, and improve R&D and manufacturing technology capabilities corresponding to them | [Risk] Increase in R&D and manufacturing costs [Opportunity] Maintain and expand market share by providing products and services that meet demand |
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| Reputation | Stakeholders making environment as important matters | 〇 | 〇 | Enhancing dialogue with local communities, officers and personnel, and shareholders and securing a system | ー | |
| Physical risk 4°C scenario | ||||||
| Chronic | Rise in average temperature | 〇 | 〇 | Labor saving and automation of manufacturing equipment | [Risks and Opportunities] Response to market changes, especially in the agrochemicals business |
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| Acute | Increase in earthquakes, typhoons, and floods | 〇 | Promote multiple purchases, strengthen BCP | Shutting down of factories and inability to procure raw materials | ||
| Segment | Opportunity |
|---|---|
Functional Colorants Segment |
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Specialty Polymers Segment |
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Basic Chemicals Segment |
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Agro-Science Segment |
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The Hodogaya Chemical Group has set the following non-financial target (climate change-related) in its Mid-term Management Plan CODE/CHORD 2030: a 38% reduction in energy-related CO2 emissions from the FY2013 level (non-consolidated). This target is reviewed by the Global Environment Subcommittee, discussed by the Sustainability Development Committee, and progress is confirmed by the Board of Directors and Management Committee.
“38% reduction in energy-related CO2 emissions from the FY2013 level (non-consolidated)”
Most of the greenhouse gases (GHG) emitted by Hodogaya Chemical are carbon dioxide. Energyrelated GHG emissions for FY2025 were 19,400 t-CO2*1. In anticipation of increased production volumes as our business expands, we will work to reduce energy-related CO2 emissions with a view toward FY2030 and FY2040. We have also implemented Internal Carbon Pricing (ICP), which assigns a price to carbon emissions, since FY2022. By establishing a framework that supports investment as part of our climate change measures toward a low-carbon society, we aim to reduce emissions by 38% in FY2030 compared with the FY2013 baseline.
*1 Non-energy-originated CO2 emissions are not included
*1 Non-energy-originated CO2 emissions are not included.
FY2025 non-energy-related GHG emissions were 16,300 t-CO2.
*2 Reduction targets for FY2030 and FY2040 are based on governmentannounced reduction targets by industry.
*1 Scope 1: Direct emissions
*2 Scope 2: Indirect emissions