Responding to climate change

  1. JAC TOP
  2. Sustainability
  3. Responding to climate change

In order to build a sustainable future, it is essential to address climate change, starting with the reduction of greenhouse gases (GHG). Doing so will make it possible to protect the global environment, maintain a balance between ecosystems and provide a better environment for future generations. In terms of how these issues affect JAC Group, as temperatures rise and the severity of natural disaster worsens, the potential impacts on JAC Group’s operations and performance, including shifts in the corporate recruitment business and cost structures, become increasingly significant.

To address this, the group takes climate change risk seriously and engages in sustainable business operations. Taking guidance from the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), we are establishing a governance framework, identifying and evaluating risks and opportunities to enable strategic planning, managing risks, and setting metrics and targets.


TCFD Logo

Governance

The company's governance structure defines management's role in assessing and managing climate change-related risks and opportunities as follows:

Strategy

JAC group develops strategies to address the risks and opportunities, which are identified and evaluated in relation to our business based on the 1.5°C and 4°C scenarios published by external organisations such as the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC).

Referenced scenarios

  1. 1.5℃ scenario
    • IEA 「NZE(Net Zero Emission by 2050)」
    • IPCC 「RCP 2.6」
  2. 4℃ scenario
    • IEA 「STEPS(Stated Policies Scenario)」
    • IPCC 「RCP 8.5」

IEA: International Energy Agency
IPCC: Intergovernmental Panel on Climate Change
RCP: Representative Concentration Pathways

Risks and Opportunities

The key opportunities and risks, timescales and financial implications that we have identified and analysed on the basis of the above scenarios are as follows:

Concrete Strategy

In an effort to reduce CO2 emissions, JAC Group has continued forestation activities in South East Asia since 2008, even before the SDGs were formulated. As a global recruitment company, we contribute to environmental protection on a global scale. This initiative is a part of our efforts to response to the Sustainable Development Goals (SDGs), which aim to contribute to individuals, communities and society as a whole. We will continue to restore forests through this activity as a company-wide project to contribute to the conservation and protection of precious flora and fauna and to the reduction of global CO2 emissions.
Our approach to risks and opportunities are also as follows.

Initiatives against risks

Diversification of customer portfolios
Given that the impacts of climate change are expected to vary in trend and timing across different industries, we aim to diversify our client portfolio across various sectors. This approach allows us to capture opportunities for increased job demand in other industries, even if there is a decrease in job opportunities in specific sectors due to climate change impacts, minimising the overall impact on our business. In this way, we will respond to the risk of declining sales.

Promotion of Energy Efficiency Activities ? Addressing Cost Increases
By enhancing energy efficiency activities, we can reduce electricity consumption and mitigate the impact of increased electricity costs associated with climate change. In this way, we will respond to the risk of increased costs.

Initiatives for opportunities

Strengthening the introduction of sustainability-related personnel
There is an increasing focus on decarbonisation and energy efficiency initiatives in various companies, leading to a rise in demand for mid-career professionals skilled in environmental and SDGs-related areas. We will seize this opportunity by searching and securing professionals with these skills and strive for business expansion. Further, by connecting these professionals with companies in need of their expertise, we can contribute to accelerating decarbonisation efforts at the societal level, supporting innovative technological developments, and helping mitigate climate change.

Risk management

In an increasingly complex and uncertain business environment, it is essential to effectively address risks that can have a significant impact on business operations in executing management strategy and achieving business objectives. We consider risk management a vital initiative for enhancing corporate value and have established the Risk Management Committee chaired by the Chairman, CEO, and Managing Director. The Committee is in charge of identifying and addressing various risks we may face.
Climate change risk is also recognised as one of the risks that can have a profound impact on JAC Group’s operations. Within this framework, we narrow down and monitor key risks, continually reassessing their implications and potential consequences.

Indicators and targets

The group has set a target to achieve carbon neutrality by FY2030 as our greenhouse gas emission reduction goal, encompassing Scope 1 to 3 emissions. We are committed to reducing GHG emissions in our business activities, procuring green electricity, and expanding GHG absorption through forestation efforts. Additionally, by placing personnel who foster innovation, we aim to drive the transition to carbon neutrality across society.

GHG Emission Status

The group has been calculating GHG emissions at all domestic and international locations, including subsidiaries, since FY2020.
In FY2022, total GHG emissions from Scope 1 and 2 increased by approximately 3.9% compared to the previous fiscal year, mainly due to office expansion and the opening of new offices. However, when considering the reduction achieved by adopting green electricity at certain locations starting in April 2022, total emissions were approximately 324 t-CO2, representing a reduction of about 30.5% compared to FY2021.
As for Scope 3 GHG emissions, we conducted calculations based on cost (monetary value) for Categories 2, 3, 5, 6, and 7, resulting in emissions of approximately 3,427 t-CO2, which represents an increase of about 74.7% compared to FY2021.
JAC Group has also obtained third-party verification from SOCOTEC Certification Japan Co., Ltd. for three consecutive years starting in FY2021.

Independent Assurance Report (2023)(978KB PDF)

Current status of greenhouse gas emissions

Initiatives for GHG reduction and absorption