Nature-related Financial Disclosures (TNFD)
Basic Concept
Basic Concept
To clarify its stance on the dependency and impact of natural capital on its business, its assessment thereof, and its commitment to addressing opportunities and risks, Konica Minolta has endorsed the recommendations of the Task Force on Nature-related Financial Disclosures (TNFD). In January 2024, Konica Minolta registered as a TNFD early adopter company at the World Economic Forum’s annual meeting in Switzerland. Konica Minolta will assess its dependency on natural capital, evaluate its impact, and disclose this information in accordance with the TNFD framework.
[Governance] Organizational Governance of Nature-related Risks and Opportunities
In 2008, Konica Minolta’s Board of Directors approved the Company’s commitment to biodiversity restoration and conservation as part of its long-term environmental vision, Eco Vision 2050. In May 2023, the Board of Directors approved the targets including “zero use of natural resources by reducing their use in our products by 90% or more by 2050” and “maximizing our contribution to reducing global resources in products other than our own” as integral to the new medium-term business strategy focused on “using limited resources effectively,” a key component of the vision’s materiality.
At Konica Minolta, the President holds ultimate responsibility and authority for all environmental management, including biodiversity conservation, ensuring its effectiveness. Appointed by the President, the Group Environmental Officer promotes environmental management, including biodiversity conservation, and develops the medium-term plan. The Group Environmental Officer periodically reports the plan’s progress to the Executive Committee and the Board of Directors, where it is discussed as a management priority.
Additionally, the Group considers the impact of stakeholders who must be taken into account when assessing and managing nature-related dependencies, impacts, and opportunities related to nature, in line with our human resources policy and human rights due diligence. For more information on our human rights policy and human rights due diligence, please refer to the “Human Rights” section of our website.
[Strategy] Impact of Nature-Related Risks and Opportunities on the Organization’s Business, Strategy, and Finances
In May 2023, Konica Minolta decided to set quantitative targets for 2050 in its long-term environmental vision, Eco Vision 2050, focusing on “using limited resources effectively,” one of its key priorities. Specifically, the company aims to reduce the use of natural resources in its own products by 90% or more and maximize its contribution to reducing natural resources in products other than its own, with the goal of achieving zero use of natural resources (note). Konica Minolta seeks to transform its business model to reduce dependence on depleted natural resources in the provision of products and services. Additionally, the company aims to align non-financial value with financial value through its business activities to enhance corporate value.
In developing its medium-term action plan, Konica Minolta has assessed the dependency and impact of its business on natural resources and biodiversity, referencing the TNFD’s recommendations announced in September 2023. The company evaluates its dependency and the impact of its business activities on nature, identifying risks and opportunities through the lens of the nine global core indicators proposed by the TNFD.
(Note) Natural resources: Resources that require new drilling or mining, 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 through recycling-oriented society promotion measures, etc. | － | ||
| 8. Plastic pollution | Plastics: Demand for recycled resource use in products due to recycling-oriented society promotion measures, etc. | Plastic recycling technology: Increasing demand for recycling, material, and sensing technologies due to recycling-oriented society promotion measures, etc. | ||
| 9. Non-GHG air pollutants | － | － | ||
<Implementation and Results of Natural Scenario Analysis>
Konica Minolta has identified business risks that will affect its performance by 2030, as well as business opportunities that can be created by proactively addressing these issues. The Company has identified target segments, categories, timescales, and actions for potential risk manifestations or opportunities based on two scenarios: one where nature is protected and restored through strengthened policies, and another where nature continues to degrade under current policies. The mitigation hierarchy approach is outlined within these scenario responses.
The framework for conducting scenario analysis involves identifying business areas for natural scenario analysis, identifying significant natural risks and opportunities, examining nature-related scenarios, and considering the direction, policies, and strategies for future responses. The analysis includes identifying, assessing, and prioritizing risks and opportunities, encompassing nature-related dependencies and impacts. This spans not only the company's direct operations related to the global environment, such as biodiversity, climate change, and limited resources, but also adjacent operational areas and upstream and downstream in the supply chain.
●When we protect and restore nature through stronger policies
Response to Nature-related Risks
| Dependence and impact on Konica Minolta | Natural change factors | Target segment | Classification | Timeline | Handling | |
|---|---|---|---|---|---|---|
| Increase in procurement and manufacturing costs | Demand for use of plastic resources in products due to recycling-oriented society promotion measures, etc. | Impact | Industry Business, Business Technologies 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 | Business Technologies 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 | Business Technologies Business | Policy / Market | Short to medium term | [Avoidance] Convert business to paperless operation |
Nature-related Opportunities
| Dependence and impact on Konica Minolta | Natural change factors | Target segment | Classification | Timeline | |
|---|---|---|---|---|---|
| Business performance opportunities | Digital solutions to transform the printing industry supply chain | Impact | Business Technologies Business | Products/Services | Short to medium term |
| Digital solutions to transform the apparel industry supply chain (South Asia) | Impact | Business Technologies 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 | Business Technologies Business | Products/Services | Short to medium term | |
| Opportunities for sustainability performance | Increasing demand for plastic recycling technology, material technology, and sensing technology due to recycling-oriented society promotion measures | Impact | Industry Business, Business Technologies Business |
Sustainable use of natural resources | Medium-term |
| Providing 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 | Natural change factors | 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 | Business Technologies 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 | Business Technologies Business | Chronic physical | Long term | [Avoidance] Turn the shift to paperless into a business opportunity |
Nature-related Opportunities
N/A
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 |
Natural change factors
| Dependence | Total spatial footprint, extent of land/freshwater/ocean-use change, water withdrawal and consumption from areas of water scarcity, quantity of high-risk natural commodities 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: “zero use of natural resources by reducing natural resource use in our products by 90% or more by 2050,” “maximizing our contribution to reducing global 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. Specific targets include reducing the use of global resources in its products by 20% and generating a 400,000-ton reduction in global resource usage by sources other than its own products for customers and society. 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 “Overall View of Environmental Impacts Resulting from Business Activities” section on the Konica Minolta website.
