Responding to risks and opportunities

The Denka Group conducts scenario analyses based on temperature increases of 1.5°C and 3-4°C to identify risks and opportunities posed by climate change, and continues to verify the impacts expected in 2030 and the countermeasures to be taken. In terms of policies and regulations, while the introduction of carbon taxes and emissions trading (carbon pricing) and the risks of battery regulations and carbon border adjustment measures in Europe can be foreseen, the sales expansion of various products and businesses, such as LEAF, a carbonation admixture, and electronic materials used in xEVs, also presents opportunities. The Denka Group will continue to analyze and verify the risks and opportunities posed by the transition to a low-carbon society and decarbonized society set forth in the Paris Agreement based on the four pillars of governance, strategy, risk management, and indicators and targets, and will also promote the enhancement of qualitative information disclosure that complies with sustainability-related disclosure standards.
Furthermore, the Denka Group supports climate change-related laws and policies (such as the Act on the Rational Use of Energy and the Act on Promotion of Global Warming Countermeasures) and responds to these through various reports to governmental agencies based on law.