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Duskin positions the risks and opportunities associated with climate change as critical management issues. In order to advance information disclosure based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), we classify and study climate-related risks as risk associated with the transition to a low-carbon economy and risk associated with the physical impacts of climate change.
We established the Sustainability Committee, which consist of the Outside Directors, the Operating Officers, and the Standing Audit & Supervisory Board Members. This committee, serving as an advisory body to the Board of Directors, studies and deliberates the basic policies and key issues associated with climate change. We also established the Quality Assurance & Environment Committee, which studies and determines agreements concerning environmental conservation and improvement issues, and the Environmental Liaison Committee, which manages the progress of environmental policies, as sub-organizations under the Sustainability Committee. This structure helps the Board of Directors to identify and monitor actual risks and opportunities, and to enhance climate change-related governance.
Unusual weather and other effects of climate change are becoming increasingly serious, and how to respond to climate change has become an issue of global concern. To help realize a decarbonized society, which is a target established in the Environmental Policy, we are analyzing multiple scenarios in the near-future time span from 2030 to 2050 concerning physical changes brought about by climate change around the world as well as socioeconomic trends. Based on these analyses, we estimate the financial impact on Duskin's business performance, investigate what kind of measures to take in response and formulate strategy.
To contribute to achieving a decarbonized society, we have established two targets to be met by 2030: shifting 50% of the energy consumed for the Duskin Group's business activities to renewable energy by 2030 and reducing CO2 emissions at company-owned facilities by 46% from their 2013 level. In FY2020, due to the coronavirus pandemic, employee travel and commuting declined, with the result that Scope 3 energy consumption and emissions were lower than the previous year. Also, to ensure accurate and transparent information disclosure, Scopes 1, 2, and 3* energy consumption and CO2 emission figures have been certified as accurate by a third party.
2013 (Base year) |
2017 | 2018 | 2019 | 2020 | Compared with base year |
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Scope 1* | 13,155 | 13,139 | 12,776 | 12,325 | 12,365 | -6.0% |
Scope 2* | 20,381 | 21,191 | 20,318 | 19,555 | 19,430 | -4.7% |
Scope 3 | 536,614 | 428,916 | 406,461 | 424,851 | 410,666 | -23.5% |
Total | 570,150 | 463,246 | 439,556 | 456,730 | 442,461 | -22.4% |
We conducted a qualitative provisional climate change risk assessment to evaluate the possibility of climate change having a significant impact on the financial performance of our businesses. Through a careful review of the results, we have identified the key drivers that could ultimately have a major impact on the business continuity of the Duskin Corporate Group and franchisees. We will continue to employ scenario analysis to evaluate and assess the risk posed by these key drivers.
Category | External environmental changes | Key drivers | Impact on business | Financial impact | |
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Transition risks |
Policy, legal regulations |
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Technologies |
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Markets and reputation |
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Physical risks |
Acute |
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Chronic |
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Category | External environmental changes | Key drivers | Impact on business | Financial impact | |
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Opportu- nities |
Resource efficiency |
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Energy sources |
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Markets |
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Based on our Environmental Philosophy, established in 1998, Duskin has defined our Environmental Policy as "striving to achieve the joint objective of engaging in sound business activities and environmental conservation to provide products and services that are safe, reliable, and environmentally friendly throughout each phase of their lifespan, from production to after-use."
We engage in business activities that reduce negative impacts on the environment whenever possible as part of designing, development and selection of products and services; plant operation; distribution, sales and promotional activities; and offices, facilities and equipment.
Duskin's Direct Selling Group and Production & Logistics Group are putting environmental management initiatives into action in line with ISO 14001. Its approach is based on the concept Plan-Do-Check-Act (PDCA).
Based on our EMS, we conduct ongoing inspections every year and renewal inspections every three years. During FY2020, Duskin Group complied with environmental regulations.
Initial environmental training sessions are conducted as part of an educational program for our new employees. By raising environmental awareness, we strive to develop employees who work to conserve the environment throughout all their business activities.
Duskin established a system for renting cleaning tools in Japan. As reflected in this rental system, Duskin operates its business based on the idea of repeated use, shared use, reduction of waste and disposal. To contribute to the creation of a recycling-oriented society, we will make effective use of limited resources while at the same time engaging in the 4Rs (Refuse, Reduce, Reuse and Recycle) throughout the entire product life cycle.
Because we are making use of Earth's resources, we have continuously engaged in endeavors to save them. This year in particular, which marks our 50th anniversary, Mister Donut will further evolve our approach to environmental conservation.
All used items are collected from customers, and 97% of the collected items are processed in the laundry plants and reused. The remaining 3% unusable items are utilized as fuels. All products are repeatedly used until their usable life ends. Dust and dirt on mops and mats are also recycled into materials for cement.
Water shortage is aggregating on a global scale. It also presents the risk of negative impacts on the business continuity, so reducing water use and reusing water is important. Although Japan is not yet faced with chronic water shortage, we see this is not unrelated with Duskin Group.
At Duskin, a Founder's quote of "Return what we borrow from nature to its original state" has been passed down since our founding, and serves as our basic philosophy for conserving water resources.
Duskin plants use large amounts of water in the laundry process for mops and mats. Therefore, we apply standards for the volume of water used during the laundry process as a reference value for our plants and strive to manage and reduce water intake volumes.