• Governance
• Strategy
• Risk Management

• Metrics and Targets
• Related Information

Climate change is greatly impacting society and Epson sees it as a significant societal problem. The goal of the Paris Agreement is to achieve decarbonization and limit the global average temperature to well below 2℃ above pre-industrial levels and try to limit the temperature increase to 1.5℃. To achieve this, Epson is working to reduce total emissions in line with a 1.5℃ scenario¹ by 2030. Furthermore, Epson coordinated the revision of Environmental Vision 2050 with the announcement of the Epson 25 Renewed Corporate Vision. To attain our goals of becoming carbon negative and underground resource free² by 2050, we are working to decarbonize and to close the resource loop. We are also providing products and services that reduce environmental impacts and developing environmental technologies.

¹ Target for reducing greenhouse gas emissions aligned with the criteria under the Science Based Targets initiative (SBTi)
²  Non-renewable resources such as oil and metals

We analyzed scenarios based on the TCFD framework to quantitatively assess the financial impact of climate-related risks and opportunities on Epson's strategy. In a 1.5℃ scenario in which there is rapid decarbonization of society, we found that there is transitional risk of an increase in operating costs due to market changes, policies, and legislation, but we expect to limit the financial impact by strengthening products and services based on inkjet technology and paper recycling technology.
Epson will spend approximately 100.0 billion yen (approximately 25.0 billion yen from 2021 to 2025 and approximately 75.0 billion yen from 2026 to 2030) over a period of 10 years ending in 2030 to accelerate decarbonization, close the resource loop, and develop environmental technology. The solution to climate-related risks aligns with the materialities we have set of achieving sustainability in a circular economy and advancing the frontiers of industry and will lead to opportunities for business expansion with Epson's low environmental impact products and services that save electricity and reduce waste. These products and services will help to mitigate customers' environmental impact and control climate change.
Based on the results of these analyses, Epson will continue to try to maximize its opportunities while addressing recognized risks in order to achieve decarbonization, which we believe is a rational goal both for society and for Epson.
On the other hand, even in a 4℃ scenario in which global warming has advanced because the world failed to take additional measures, we found that the impact of physical risks on our domestic and overseas sites due to the damages arising from weather extremes would be small.

Main Climate Change Initiatives

Epson has determined that achieving sustainability in a circular economy and advancing the frontiers of industry are material matters. To achieve these, we are reducing greenhouse gas (GHG) emissions by leveraging our efficient, compact, and precision technologies to drive innovation. We have been implementing activities at regular meetings of the Environmental Strategy Council and its subcommittees to realize our Environmental Vision 2050. In FY2023, we reviewed the status of implementation of activities and submitted deliberations and reports to various management meetings, focusing on the following initiatives.

In the 2023 fiscal year, Epson created a Global Environmental Strategy Promotion Office, the mission of which is to draft and carry out corporate environmental strategy. It also established environmental subcommittees for each environmental topic. These organizations will strengthen collaboration with the operations divisions to accelerate environmental action, heighten the feasibility of the environmental vision, and further increase the resilience of the climate change strategy.

Epson identified and evaluated scenarios in the categories of transition risk, physical risk, and opportunity to evaluate the importance of climate-related risks and opportunities. Seven risks and opportunities were singled out for evaluation. We evaluated the business impact and financial impact of each on the basis of the scenarios corresponding to temperature increase of 1.5℃ presented by the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) as well as on the basis of internal and external information.

The results of evaluating climate-related risks and opportunities based on scenario analysis are as follows.

Actualization  Short term: < 10 years Medium term: 10-50 years Long term: > 50 years
Financial Impact Small: < 1 billion yen Medium: 1-10 billion yen Large: >10 billion yen

Epson implemented the following initiatives in FY2023 to promote decarbonization, close the resource loop, develop environmental technology, and mitigate environmental impacts on the customer's end.

¹ Small financial impact: less than ¥1 billion.
² Excluding some rental properties housing sales sites.
³ Assessed using IPCC climate change scenarios RCP 2.6 (2℃), RCP 8.5 (4℃).
⁴ A major domestic site with a long-term flooding risk (end of 21st century).
⁵ Comparison of actual results for FY2022 to FY2023 forecasts at the time of announcement of Epson 25 Renewed.

As the environment in which we operate grows more complex and uncertain, effectively dealing with risks that could have a significant impact on corporate activities will be essential in order to carry out business strategies and business objectives.
Epson sees climate-related issues as risks that could significantly impact management and manages them appropriately.

Climate-Related Risk Identification, Assessment and Management Process

Epson aims to achieve the medium- and long-term greenhouse gas (GHG) emission reduction targets to realize Environmental Vision 2050. For this reason, we are working to reduce environmental impacts throughout the value chain by improving the environmental performance of our products, utilizing renewable energy, enhancing our business activities and taking other steps based on our efficient, compact, and precision technologies.

Scope 1, 2, 3	Reduce GHG emissions by 55% compared to FY2017 by FY2030.

¹ Target for reducing greenhouse gas emissions aligned with the criteria under the Science Based Targets initiative (SBTi)
Scope 1: Direct emissions from the use of fuel, etc., by the reporting company
Scope 2: Indirect emissions from purchased energy
Scope 3: Emissions from the reporting company's value chain