Climate-related Financial Information Disclosure (TCFD)
Strategy
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Impact of Climate-related Risks and Opportunities on the Organization's Business, Strategy, and Financial Performance
To address climate change risks, Konica Minolta has set the achievement of net-zero greenhouse gas (GHG) emissions across its entire value chain by 2050 as one of its five material issues. To achieve this long-term goal, Konica Minolta recognizes climate-related risks as business risks and integrates them into its medium-term business plans, environmental targets, and annual plans, covering everything from product planning and development to production, procurement, and sales.
Konica Minolta also aims to achieve “Carbon Minus” (making a greater contribution to reducing CO₂ emissions in society than its own emissions) by fiscal year 2025, viewing this as a driver of business growth. By integrating its core technologies and enhancing them with AI to enable workflow and supply chain transformations, the company is responding to the decarbonization needs of customers and society. This approach promotes the growth of businesses that play an essential role in the world.
Enhancing corporate value through such environmental initiatives is central to Konica Minolta’s growth strategy.
Climate Transition Plan
Konica Minolta has established "Science-based Targets (SBT)" aligned with the Paris Agreement and the 1.5°C target, and is developing phased transition plan across short-, medium-, and long-term horizons.
● Medium- to Long-Term Initiatives
As activities that anticipate the transformation of industrial structures, Konica Minolta is exploring innovative means to move away from fossil fuel dependence, such as introducing CO2-free fuels like hydrogen, ammonia, and methanation, and utilizing Carbon Capture and Storage (CCS) technology. Within the inter-company co-creation framework hosted by Konica Minolta (Environmental Digital Platform), various companies are gathering with a medium- to long-term perspective, actively engaging in technological development. Working groups share technological trends, roadmaps, challenges, and know-how, and discuss concrete measures.
For business opportunities, Konica Minolta is making prior investments in technology development themes for sustainable growth and accelerating innovation through promotion of digital transformation. For example, by leveraging the strengths of Konica Minolta's AI-enhanced sensing technology, the company is developing biomaterial manufacturing technology that synthesizes raw materials from non-fossil resources using microorganisms. Additionally, growth opportunities such as perovskite solar cells and recycled plastic technology are being pursued as company-wide reinforcement themes to establish a foundation for growth.
● Short- to Medium-Term Initiatives
Business Activities
<Green Products Activities>
Konica Minolta promotes and implements "Green Products Activities" to create environmental value by considering products that contribute to environmental impact reduction from the product planning stage. By expanding areas such as the industrial printing business, Konica Minolta significantly reduces CO2 emissions at customer sites, supporting customers in decarbonization efforts and promoting the realization of circular economy. Through on-demand production digital solutions that transform supply chains in the printing and apparel industries, functional materials with reduced product carbon footprints, and material and sensing technologies that contribute to improved separability and recyclability of used plastics, Konica Minolta transforms business models of mass production and mass disposal, contributing to the productivity improvement of customer companies.
<Green Factory Activities>
As a manufacturer, Konica Minolta promotes and implements "Green Factory Activities" to reduce the environmental impact of manufacturing. This includes introducing renewable energy at manufacturing sites and improving energy productivity in product manufacturing processes and equipment.
<Green Marketing Activities>
Konica Minolta conducts "Green Marketing Activities" to reduce environmental impact through the use of renewable energy at sales bases in various countries and regions, while also creating sales opportunities for its solutions by addressing customers' environmental management challenges.
These business-driven activities set "CO2 emission reductions across the product lifecycle achieved through company initiatives," "contribution to CO2 reduction," "reduction in the use of natural resources* by Konica Minolta," and "contribution to the reduction in the use of natural resources*" as key management indicators within the medium-term environmental plan, and are promoted as core activities of the management strategy.
* Natural Resources: Resources that require new drilling or mining, such as crude oil or mineral resources, and are generally regarded as depletable resources.
Company-wide Activities
<Internal Carbon Pricing>
In a management strategy centered on the industrial business, there is a possibility that Scope 1 and 2 emissions may increase. Therefore, Konica Minolta is implementing measures to control CO2 emissions by utilizing internal carbon pricing.
<Carbon Neutral Partner Activities>
Konica Minolta promotes and implements "Carbon Neutral Partner Activities" aimed at decarbonization together with suppliers. The company provides its expertise in energy saving and renewable energy introduction cultivated at its own sites to suppliers of materials, promoting carbon neutrality for the entire partner ecosystem, including suppliers, by supporting renewable energy goal setting and implementation.
<Environmental Digital Platform>
Recognizing that one company alone has limitations in addressing climate change, Konica Minolta established and operates the "Environmental Digital Platform," where companies across industries and sizes collaborate to co-create new environmental value. Through workshops, navigation maps, and technology/service matching, it accelerates highly effective initiatives.
Resilience and Business Strategy
Konica Minolta evaluates the financial impact of transition risks (policy and legal, technology, market, reputation) and physical risks (chronic and acute) by assuming a 1.5°C scenario and a warming scenario exceeding 2°C, using scientific scenarios such as IPCC RCP2.6/8.5 and IEA NZE2050. Based on these analyses, policies are formulated and reflected in business strategies at the Environmental Promotion Conference.
- For Konica Minolta's Long-Term Environmental Vision "Eco Vision 2050," please see here:
(Environment > Policy> Eco Vision 2050). - For Konica Minolta's adaptation to climate change, please see here:
(Environment > Addressing Climate Change> Adapting to Climate Change).
Implementation and Results of Climate-Related Scenario Analysis
Konica Minolta has identified business risks that could adversely affect the performance of the Group in 2030, and business opportunities that can be created by proactively addressing the challenges of climate change, assuming the following two scenarios: one in which the temperature increase is kept below 2°C (equivalent to 1.5°C) and a low-carbon global society is achieved, and one in which the temperature increase exceeds 2°C and the predicted physical effects of climate change materialize.
Scenario analysis is conducted through the following process:
- Identification of target business areas for climate change scenario analysis.
- Identification of important climate-related risks and opportunities.
- Review of existing scientific scenarios related to climate change.
- Clarification of risks, opportunities, and anticipated financial impacts for each scenario.
- Consideration of future response policies and strategies.
The climate-related financial impacts identified as a result of the scenario analysis are reported and deliberated at the Environmental Promotion Conference, which consists of business and corporate divisions of the Konica Minolta Group. The Group Environmental Officer, appointed by the Representative Executive Officer and President, instructs and deploys the future response policies, strategies, and measures.
● If the average global temperature increase is kept below 2°C (equivalent to 1.5℃) and a low-carbon global society is achieved:
Addressing the Risks of Climate Change
| Impact on Konica Minolta | Target Segment | Classification | Financial Impact | Timeline | Handling | |
|---|---|---|---|---|---|---|
| procurement and manufacturing costs | Stakeholder demand for renewable energy procurement and net-zero greenhouse gas (GHG) emissions | Digital Workplace Business, Industry Business | Market evaluation | Medium | Short-term | Introduce renewable-energy-derived electricity at production, R&D, and sales sites |
| Replacing fossil resources and fuels in production | Industry Business | Policies/Laws | Medium | Medium to long-term | Examine the introduction of CO2-free fuels, implement ICP, and optimize the procurement strategy | |
| Response to new emissions regulations and laws | Digital Workplace Business, Professional Printing Business, Industry Business, Imaging Solutions Business | Policies/Laws | Strong | Short to medium term | Develop energy-saving production technology | |
| Increase in product development costs | Response to the market and new regulations on product energy efficiency | Digital Workplace Business, Professional Printing Business | Policies/Laws Market | Medium | Short-term | Product energy-saving design in keeping with new environmental labeling standards, compliant with public procurement and bidding requirements |
| Decrease in sales due to changes in demand for products and services | Decrease in office demand due to acceleration toward a paperless society | Digital Workplace Business, Professional Printing Business | Market | Strong | Short to medium term | Transition to a revenue model not dependent on print charges |
The Opportunities of Climate Change
| Impact on Konica Minolta | Target Segment | Classification | Financial effect | Timeline | |
|---|---|---|---|---|---|
| Higher sales due to change in demand for products and services | Digital solutions that transform the printing industry supply chain | Professional Printing Business | Products/Services | Strong | Short- to medium -term |
| Functional materials with lower product carbon footprints | Industry Business | Products/Services | Medium | Short- to medium -term | |
| Digital solutions that transform the apparel industry supply chain | Professional Printing Business | Products/Services | Minimal | Short -term | |
| Materials technology and sensing technology that help improve the separability and recycling rate of used plastics | Industry Business | Products/Services | Minimal | Medium -term | |
| Transformation of the production process with inkjet technology | Industry Business | Products/Services | Minimal | Short- to medium -term | |
| Gas leak inspection systems that can contribute to the early detection of methane leaks and the reduction of emissions | Imaging Solutions Business | Products/Services | Minimal | Medium -term | |
● If the average global temperature increase exceeds 2°C and the predicted physical effects of climate change materialize:
Addressing the "Risks" of Climate Change
| Impact on Konica Minolta | Target Segment | Classification | Financial impact | timeline | Handling | |
|---|---|---|---|---|---|---|
| Lower revenue due to a reduction in production capacity | Insufficient or interrupted supply of natural resources due to changes in climate patterns | Industry Business | Chronic physical | Strong | Long-term | Product design and development not dependent on particular natural resources |
| Supply chain interruptions following large-scale natural disasters | Digital Workplace Business, Professional Printing Business | Acute physical | Strong | Medium-term | Establish business continuity management (BCM), decentralize production and supply of consumables by region | |
| Depletion of water resources and restrictions on water intake | Digital Workplace Business, Professional Printing Business, Industry Business | Chronic physical | Minimal | Long-term | Water risk assessment and reduction of water consumption at production and procurement sites | |
| Decrease in sales due to changes in demand for products and services | Limited access to forest resources due to abnormal climate and forest fires | Digital Workplace Business, Professional Printing Business | Chronic physical | Strong | Long-term | Transition to a revenue model not dependent on print charges |
The Opportunities of Climate Change
| Impact on Konica Minolta | Target Segment | Classification | Financial effect | Timeline | |
|---|---|---|---|---|---|
| Increase in sales due to changes in demand for products and services | Imageing solutions that contribute to disaster prevention and the mitigation of abnormal climate and natural disasters | Imaging Solutions Business | Products/Services | Minimal | Medium-term |
| Healthcare solutions utilizing diagnostic imaging at disaster medical sites | Imaging Solutions Business | Products/Services | Minimal | Medium-term | |
<Assumptions for Scenario Analysis>
- •Scientific scenarios used: IPCC RCP2.6/8.5, IEA NZE 2050, CPS
- Risk and opportunity classification: Transition risks (policy/legal, technology, market, reputation), Physical risks (acute physical, chronic physical), Opportunities (resource efficiency, energy, products/services, market, resilience)
- Definition and evaluation criteria of "Financial impact": "Strong" - additional cost or profit reduction of 1 billion yen or more; "Medium" - additional cost or profit reduction of 100 million to less than 1 billion yen; "Minimal" - additional cost or profit reduction of less than 100 million yen.
- Definition and evaluation criteria of "Financial effect": "Strong" - profit creation of 10 billion yen or more; "Medium" - profit creation of 1 billion to less than 10 billion yen; "Minimal" - profit creation of less than 1 billion yen.
- Definition and evaluation criteria of "Timeline": "Long-term" - 10 years or more; "Medium-term" - 3 to less than 10 years; "Short-term" - 1 to less than 3 years
Konica Minolta's Climate-Related Risks and Opportunities
