Environment
Initiatives to Address Climate Change
MEDIUS Guided by our corporate philosophy of “Contributing to Community Healthcare” and our sustainability philosophy of “Act today for a better tomorrow,” the Group is actively working to reduce its environmental impact in order to achieve both a sustainable society and corporate growth.Building on a foundation of legal compliance, we are advancing efforts to address global warming, promote resource recycling, and establish an environmental management system, while striving for continuous improvement through education and information disclosure. We aim to achieve harmony between our business activities and the global environment, and we will act as a responsible corporation.
Priority Areas
Legal compliance
We will strictly comply with environmental laws and regulations and fulfill our environmental responsibilities.
Act on global warming
We will work to identify and reduce greenhouse gas emissions in order to mitigate the effects of global warming.
Implement measures to establish a circular economy
We are working to track and reduce waste and promote the recycling of resources.
Establishment of an environmental management system
In order to systematically advance our environmental efforts, we will establish and operate an Environmental Management System (EMS) and strive for continuous improvement.
Promoting environmental education and activities
We are committed to environmental education and activities to deepen understanding of environmental issues and encourage sustainable behavior.
Information disclosure and continuous improvement
We will disclose the results and progress of our environmental activities and make continuous improvements through evaluation and review.
Organizational Structure and Governance
To integrate ESG aspects into our management strategy and practice sustainable management from a long-term perspective, we established a Sustainability Committee in June 2023.
The committee meets quarterly and is chaired by President and CEO Medius Holdings Co., Ltd., who is responsible for climate change response. It is composed of members including Director responsible for sustainability (who also serves as the Executive Committee Chair), other executive officers, and expert committee chairs. The committee is responsible for identifying key sustainability issues, formulating strategies and targets, managing and evaluating the progress of measures, and overseeing their implementation across the entire group.
Regarding climate change in particular, a specialized committee, the Social Coexistence Committee, has been established. The findings from each department are compiled and reported to the Board of Directors through this committee.
The Board of Directors oversees the executive team's efforts regarding climate change and provides feedback to the Sustainability Committee.
Strategy
The Analysis Process
Based on the risk and opportunity items outlined in the TCFD recommendations, we examined the risks and opportunities that climate change poses to our group's business in the following steps.
Furthermore, we conducted analyses of policy and market transitions (transition risks and opportunities) and physical changes due to disasters, etc. (physical risks and opportunities) using two scenarios: a 1.5°C scenario and a 4°C scenario.
Climate Change Scenarios
This scenario aims to limit the global average temperature to below 1.5°C compared to pre-industrial levels, as efforts to achieve carbon neutrality in order to mitigate the impacts of climate change become more active.
In the 1.5°C scenario, the impact of policy and regulatory risks within the transition risks is assumed to be greater than in the 2°C scenario.
1.5°C Scenario (Decarbonization Scenario)
This scenario aims to limit the global average temperature to below 1.5°C compared to pre-industrial levels, as efforts to achieve carbon neutrality in order to mitigate the impacts of climate change become more active.
In the 1.5°C scenario, the impact of policy and regulatory risks within the transition risks is assumed to be greater than in the 2°C scenario.
4°C Scenario (High-Emissions Scenario)
This scenario assumes that no progress will be made in climate change countermeasures, and that the global average temperature will rise by approximately 4°C by the end of this century compared to pre-industrial times. It is anticipated that the impacts of physical risks such as more severe extreme weather and rising sea levels will become greater.
Changes in Global Average Temperature Based on the 1850–1900 Reference Period
Evaluating the Impact of Risks and Opportunities and Selecting Countermeasures
In the 1.5°C scenario, external pressure to decarbonize will intensify, leading to a world view in which energy-saving equipment and environmentally friendly products are selected in the medical field, and we recognize that low-carbon products and our own emissions reduction activities will have an impact on improving corporate value. On the other hand, in the 4°C scenario, low-carbonization and decarbonization will not be promoted, CO2 emissions will tend to increase, abnormal weather and disaster risks will increase, and business activities may be affected by supply chain disruptions.
Risks Affecting the Business
| Risk | Classification | Driver | Risk details | Timeline | Impact |
|---|---|---|---|---|---|
| Migration Risks | Legal regulations policy | Introduction of carbon pricing Soaring carbon prices | For our company's emissions (Scope 1–2), costs are incurred | Mid-term | Large |
| Costs associated with energy conservation and the adoption of renewable energy will be incurred in order to comply with stricter GHG emission regulations. | Short-term to medium-term | Large | |||
| Technology | Renewable Energy Increase in Renewable Energy Sources | Electricity rates will increase as a result of changes in the power generation mix. | Mid-term | Medium | |
| Physics Risk | acute | Increasing severity of natural disasters | Due to damage to our facilities, we expect a decrease in revenue and an increase in costs resulting from the impact on inventory and the suspension of operations. | Short-term to medium-term | Large |
| Disruption of logistics networks will increase delivery costs | Short-term to medium-term | Large |
Opportunities that Impact the Business
| Opportunity | Classification | Driver | Opportunity Details | Timeline | Impact |
|---|---|---|---|---|---|
| Opportunity | Market | Expansion of the digital transformation market | Demand for digital health solutions is increasing as healthcare organizations undergo digital transformation. | Short-term to medium-term | Large |
| Resilience | Decarbonization Initiatives Strengthening | Highlighting decarbonization efforts will improve our external reputation and reduce our funding costs. | Mid-term | Large | |
| Resource Efficiency | Promotion of the Promotion of the Adoption of Energy-Efficient Products | Operating costs are reduced by introducing energy-efficient equipment at business locations | Short-term to medium-term | Medium | |
| Energy Source | Renewable Energy Introduction of Renewable Energy Sources | The introduction and expansion of solar power generation and energy storage technologies will reduce electricity purchase costs. | Mid-term | Medium |
*Time Horizon: Short-term: Within 3 years; Medium-term: 3–10 years; Long-term: 10–30 years
*Impact: High: 1 billion yen or more; Medium: 300 million to 1 billion yen; Low: Less than 300 million yen
Risk Management
The Process for Identifying and Assessing Climate-Related Risks
Climate change risks are identified and evaluated by the Sustainability Committee through each business division, the Social Coexistence Committee, and the Risk Committee. The Risk Committee evaluates once every six months, and in the future will evaluate the impact on finances and urgency as priority evaluation items. Risks that are deemed to be particularly important as a result of the evaluation will be reported to the Board of Directors through the Sustainability Committee as necessary.
Process for Managing Climate-Related Risks
The identified and evaluated risks are coordinated with the Risk Committee, which is responsible for risk management for the entire company, to build a company-wide integrated risk management system. The countermeasures considered by the Risk Committee are reported to the Board of Directors via the Sustainability Committee, after which they are discussed and considered by the Board of Directors and notified to the relevant group companies.
Integration Process for Company-wide Risk Management
Our group has established a "Risk Committee" as one of the expert committees of the Sustainability Committee. The Risk Committee meets once a quarter and is part of a system for managing risks across the entire group.
The Risk Committee aggregates and scrutinizes important risks that have been evaluated, analyzed, and reported by various committees, including the Compliance Committee, cross-group committees (such as the Information Systems Committee, Human Resources Committee, and General Affairs Committee), and expert committees of the Sustainability Committee (such as the Social Coexistence Committee and the Human Capital Committee). It then reports these findings to the Board of Directors in cooperation with the Sustainability Committee. Climate-related risks are also managed as integrated company-wide risks through collaboration between the subcommittees of the Social Coexistence Committee and the Risk Committee.
Indicators and Goals
To assess and manage the impact of climate-related issues on our business operations, our Group began calculating greenhouse gas emissions (Scopes 1–3) in fiscal year 2022 (July 2022–June 2023) in accordance with the GHG Protocol standards, andand we also conducted these calculations for fiscal year 2023 (July 2023–June 2024). Regarding the reduction of greenhouse gas emissions, we have set a target for our Group to reduce Scope 1 and 2 emissions by 42% from the fiscal year 2022 baseline by fiscal year 2030.Going forward, we will work to reduce greenhouse gas emissions not only within our Group but also across our entire supply chain.
Fiscal Year 2023 Greenhouse Gas Emissions (Scope 1–3)
| Scope | Scope 3 Categories | Emissions (t-CO2) |
|---|---|---|
| Scope1+2 total | 10,133 | |
| Scope 1 | 7,124 | |
| Scope 2 | 3,009 | |
| Scope 3 | 1 Purchase | 1,380,365 |
| 2. Capital goods | 4,837 | |
| 3. Other fuels | 2,034 | |
| 4. Transportation (upstream) | 1,666 | |
| 5. Waste | 143 | |
| 6. Employee Business Travel | 441 | |
| 7 Employee commuting | 1,044 | |
| 11 Use of the Product | 213,174 | |
| 12 Product Disposal | 81 | |
| Scope 3 total | 1,603,786 | |
| total | 1,613,919 | |
*Scope 3: 8 Leased assets (upstream), 9 Transportation (downstream), 10 Product processing, 13 Leased assets (downstream), 14 Franchises, and 15 Investments are not included in the calculation as they are not related to our business.
