Nature-related Financial Disclosures (TNFD)
Basic Concept
To clarify the Company’s stance on its dependency on and impact on natural capital in its business, its assessment, and its commitment to addressing opportunities and risks, Konica Minolta has endorsed the principles and the recommendations of the Task Force on Nature-related Financial Disclosures (TNFD). In 2024, Konica Minolta registered as a TNFD Early Adopter company and joined the TNFD Forum. The Company assesses its dependency on natural capital, evaluates its impact, and discloses this information in accordance with the TNFD framework.
[Governance] Organizational Governance of Nature-related Risks and Opportunities
At Konica Minolta, the President holds ultimate responsibility and authority for all environmental management, including biodiversity conservation, and ensures its effectiveness. Appointed by the President, the Group Environmental Officer promotes environmental management, including biodiversity conservation, develops the Medium-term Environmental Plan, and periodically reports the plan’s progress to the Executive Committee and the Board of Directors, where it is discussed as a management priority.
| Date | Items Approved by the Board of Directors |
|---|---|
| 2008 | Long-term Environmental Targets (Eco Vision 2050): “Work to restore and conserve biodiversity” |
| 2020 | Five Materialities (including “Effective Use of Limited Resources”) |
| 2023 | “Reduce the use of global resources in our products by 90% or more by 2050 toward achieving zero use of global resources” and “Expand its contribution to reducing the use of global resources in products other than our own” |
Additionally, Konica Minolta considers the impacts of stakeholders that must be taken into account when assessing and managing nature-related dependencies, impacts, risks, and opportunities, in line with its Human Rights Policy and human rights due diligence. For more information on Konica Minolta’s Human Rights Policy and human rights due diligence, please refer to the “Human Rights” page on the Company’s website.
[Strategy] Impact of Nature-Related Risks and Opportunities on the Organization’s Business, Strategy, and Finances
Konica Minolta has set quantitative targets for 2050 in its long-term environmental vision, Eco Vision 2050, for "Effective Use of Limited Resources," one of its materialities. The Company will reduce the use of natural resources in its own products by 90% or more and expandits contribution to reducing the use of natural resources in products other than its own, aiming for zero use of natural resources (note). Konica Minolta seeks to transform its manufacturing to be less dependent on natural resources andenhance corporate value by aligning non-financial value with financial value through its business activities.
In creating its medium-term action plan, Konica Minolta references the TNFD recommendations announced in 2023 to evaluate the dependency on and impact on natural resources and biodiversity in its business. The Company extracts issues from the perspective of the nine global core indicators proposed by the TNFD to assess the dependency on and impact on nature in its business activities identifies risks and opportunities.
(Note) Natural resources: Resources that require new extraction, such as crude oil and mineral resources and are generally synonymous with depletable resources.
| TNFD Core Indicators | Impact on Konica Minolta | |||
|---|---|---|---|---|
| Natural change factors | Nine core indicators | Risk | Opportunity | |
| Dependence | Land/freshwater/ ocean-use change |
1. Total spatialland footprint | － | － |
| 2. Extent of land/freshwater/ocean-use change | － | － | ||
| Resource use/ replenishment |
3. Water withdrawal and consumption from areas of water scarcity | Supply chain: Reduced supply from high water stressed areas (Southeast Asia) due to water withdrawal restrictions | Textile dry process: Waterless dyeing systems in high water stressed areas (India, Turkey, Italy) | |
| 4. Quantity of high-risk natural commodities sourced from land/, ocean/, freshwater | Natural resources: Inadequate supply of high-risk natural resources due to stricter regulations Paper: Reduction in paper use and output opportunities due to restricted access to forest resources |
－ | ||
| Impact | Pollution/ pollution removal |
5. Pollutants released to soil | － | Toxic substance-free technology: Provide technology free of residual toxic substances |
| 6. Wastewater discharged | － | Digital printing/Textiles, Inkjet technology: Wastewater reduction technology in regions with severe water pollution (South Asia) | ||
| 7. Waste generation and disposal | End-of-life products: Mandatory recycling of products due to measures promoting a circular economy. Plastics: Demand for the use of recycled resources in products due to measures promoting a circular economy |
Recycled plastic technology: Increased demand for recycling technology, material technology, and sensing technology due to measures promoting a circular economy. | ||
| 8. Plastic pollution | － | － | ||
| 9. Non-GHG air pollutants | － | － | ||
<Implementation and Results of Natural Scenario Analysis>
Looking ahead to 2030, Konica Minolta has identified business risks that could affect its performance by 2030, as well as business opportunities that could be created by taking proactive measures to address these challenges. The Company has identified the relevant segments, categories, timeframes, and responses for potential risk manifestations or opportunities under two scenarios: one where nature is protected and restored through strengthened policies, and another where nature continues to deteriorate under current trends. These responses have been established with the mitigation hierarchy approach in mind.
The scenario analysis framework involves identifying the business areas subject to natural scenario analysis, determining significant nature-related risks and opportunities, examining nature-related scenarios, and formulating policies, and strategies for future responses. The analysis includes identifying, assessing, and prioritizing risks and opportunities, taking into account nature-related dependencies and impacts. This scope covers not only the Company's direct operations related to the global environment, such as biodiversity, climate change, and limited resources, but also adjacent areas of operation, as well as the upstream and downstream supply chain.
●When nature is protected and restored through stronger policies
Response to Nature-related Risks
| Impact on Konica Minolta | Natural change factors | Target segment | Classification | Timeline | Handling | |
|---|---|---|---|---|---|---|
| Increase in procurement and manufacturing costs | Demand for use of recycled plastic resources in products due to measures promoting a circular economy, etc. | Impact | Digital Workplace Business / Professional Print Business / Industry Business | Policy / Technology | Short to medium term | [Minimization] Products that meet the new environmental label standards, circular economy design, and public procurement and bidding requirements |
| Increase in product development costs | Mandatory recycling of end-of-life products | Impact | Digital Workplace Business / Professional Print Business | Policy | Medium-term | [Minimization] Products that meet the new environmental label standards, circular economy design, and public procurement and bidding requirements |
| Decrease in sales due to changes in demand for products and services | Limited access to forest resources due to forest ecosystem protection | Dependence | Digital Workplace Business / Professional Print Business | Policy / Market | Short to medium term | [Avoidance] Convert business to a revenue model that does not depend on print charges. |
Nature-related Opportunities
| Impact on Konica Minolta | Drivers of change in nature | Target segment | Classification | Timeline | |
|---|---|---|---|---|---|
| Business performance opportunities | Digital solutions to transform the printing industry supply chain | Impact | Professional Print Business | Products / Services | Short to medium term |
| Digital solutions to transform the apparel industry supply chain (South Asia) | Impact | Professional Print Business | Products / Services | Short term | |
| Transform customer workflows by converting production lines to inkjet and reducing water and solvents | Impact | Industry Business | Products / Services | Short to medium term | |
| Increasing demand for waterless dyeing systems in water-stressed regions (India, Turkey, Italy) | Dependence | Professional Print Business | Products / Services | Short to medium term | |
| Opportunities for sustainability performance | Increasing demand for plastic recycling technology, material technology, and sensing technology due to promotion measures promoting a circular economy | Impact | Digital Workplace Business / Professional Print Business / Industry Business | Sustainable use of natural resources | Medium-term |
| Technology free of residual toxic substances | Impact | Industry Business | Protection, restoration, and regeneration of ecosystems | Long term | |
●When nature continues to deteriorate with the continuation of existing policies
Response to Nature-related Risks
| Dependence and impact on Konica Minolta | Drivers of change in nature | Target segment | Classification | Timeline | Handling | |
|---|---|---|---|---|---|---|
| Lower profits due to a reduction in production capacity | Insufficient or interrupted supply of natural resources due to changes in climate patterns | Dependence | Industry Business | Chronic physical | Long term | [Avoidance] Product design and development not dependent on particular natural resources |
| Reduced production at production and procurement sites due to water resource depletion and water withdrawal restrictions (Southeast Asia) | Dependence | Digital Workplace Business / Professional Print Business / Industry Business | Chronic physical | Long term | [Minimization] Water risk assessment and water consumption reduction 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 | Dependence | Digital Workplace Business / Professional Print Business | Chronic physical | Long term | [Avoidance] Shift to a revenue model that does not depend on print charges |
Nature-related Opportunities
None
Classification of Risks and Opportunities
| Transition risks | Policy, market, technology, reputational, liability |
|---|---|
| Physical risks | Acute physical, chronic physical |
| Systemic risks | Ecosystem stability, financial stability |
| Business performance opportunities | Markets, capital flows and capital procurement, products/services, resource efficiency, reputational capital |
| Opportunities for sustainability performance | Sustainable use of natural resources, ecosystem protection, restoration, and regeneration |
Definition and Evaluation Criteria for Timeline
| Long term | 10 years or more |
|---|---|
| Medium term | 3 to 10 years |
| Short term | 1 to 3 years |
Drivers of Change in Nature
| Dependence | Total spatial footprint, extent of land/freshwater/ocean-use change, water withdrawal and consumption from water-stressed areas, quantity of high-risk natural resources sourced from land/ocean/freshwater |
|---|---|
| Impact | Pollutants released to soil, wastewater discharged, waste generation and disposal, plastic pollution, non-GHG air pollutants |
[Risk and Impact Management] Process Used to Identify, Assess, and Manage Nature-Related Risks and Impacts
Konica Minolta has positioned environmental risks, including forest ecosystems and biodiversity, as one of the key management risks for the entire Group, overseen by the Risk Management Committee. For businesses that depend on specific natural resources, the Company assesses and identifies production and procurement risks in its medium-term business plan and addresses them accordingly. The [Strategy] section outlines the process of identifying, assessing, and prioritizing nature-related dependencies, impacts, risks, and opportunities.
[Indicators and Targets] Indicators and Targets Used to Assess and Manage Nature-Related Risks and Opportunities
Under Eco Vision 2050, Konica Minolta's long-term environmental vision, the Company has set ambitious targets: “achieving zero use of natural resources by reducing natural resource use in our products by 90% or more by 2050,” “maximizing our contribution to reducing the use of natural resources in products other than our own,” and “working to restore and conserve biodiversity.” These goals are supported by management indicators in the Medium-term Environmental Plan 2025, which are linked to the Medium-term Business Plan (2023-2025) as milestones towards achieving the long-term targets. The Company has set targets to reduce the use of natural resources in its own products by 20% compared to fiscal 2019 and to create a 400,000-ton reduction in resource use for customers and society in products other than its own by the end of fiscal 2025. The Company formulates annual plans, checks progress quarterly, and considers additional measures as needed.
Additionally, for environmental compliance with laws, regulations, and ordinances in each country and region, Konica Minolta has set management indicators for wastewater volume, waste, and non-GHG air pollutants, and regularly monitors them.
For measurement control indicators for each product life cycle, please refer to the "Environmental Data (Excel)" on the "ESG Data Page" section on the Konica Minolta website.
