The frequency of extreme weather events around the world is increasing due to climate change and other factors and is negatively affecting many ecosystems. TORIDOLL Group recognizes that the effects of climate change, including the increase in natural disasters, pose a major risk to our business.
Natural disasters such as large-scale floods and typhoons, as well as stricter environmental regulations, could impede the stable procurement of foodstuffs, and facility closures and reduced operating hours due to damage to the facilities would impede consistent business operations.
On the other hand, we believe that integrating eco-friendly equipment and providing eco-friendly products and services at our facilities will also contribute to reducing operating costs.
Our Group is committed to tackling the risks posed by climate change and we will continue our efforts to reduce CO2 emissions to curtail the temperature increase to less than 1.5 degrees Celsius.
CO2 Emissions Reduction Goals and Results
As one of our environmental management targets, our Group is aiming for a CO2 emissions level of 0.6t-CO2 / million yen in 2025 and has set a goal of reducing CO2 emissions by 1% or more every year as its mid-term environmental plan.
CO2 Data from TORIDOLL Group’s Primary Businesses
|Sales (million yen)||71,513||78,734||89,315||93,881||101,409||104,815||113,251||96,055|
|Total emissions (kt-CO2)||143.6||145.4||141.1||136.3||134.4||134.9||133.0||122.5|
|Emissions intensity (t-CO2/million yen)||2.01||1.85||1.58||1.45||1.33||1.29||1.17||1.28|
*This is the total from all branches operated by Marugame Seimen, Niku no Yamaki Shoten, and TORIDOLL Japan.
TCFD Recommendation Initiatives
As a company that provides food to people around the world, with natural resources at the core of our business, TORIDOLL Group understands the huge impact that climate change initiatives have on our management. Therefore, our Group respects the final “Recommendations of the Task Force on Climate-related Financial Disclosure” report from the Task Force on Climate-related Financial Disclosure (TCFD), which was established in 2017 by the G20 Financial Stability Board (FSB), and we are promoting disclosure in accordance with these recommendations. For this specific initiative, we will conduct a detailed analysis of climate change scenarios in FY2022. We will identify based on priority, business risks and opportunities, consider countermeasures, and review indicators and targets.
Sustainability Promotion Committee
TORIDOLL Group has a Sustainability Promotion Committee, which is chaired by the CEO and includes directors, executive officers, Holdings division heads, presidents of domestic subsidiaries, and the chief division heads of overseas subsidiaries as members. The Sustainability Promotion Committee functions as a cross-company entity to address a wide range of management issues, including environmental issues such as climate change and other social issues.
The committee also examines policies and plans for addressing issues and collaborates with each organization to monitor and evaluate progress.
Our Group’s Environmental Committee is chaired by the Sustainability Promotion Department head and includes division managers and other members.
The Environmental Committee reports directly to the Sustainability Promotion Committee and works to reduce CO2 emissions, conserve energy, reduce waste, promote recycling, and lessen our footprint on the environment to combat climate change.
The committee sets environmental targets and action plans each fiscal year and monitors and evaluates progress at monthly committee meetings. Activities are divided into projects based on themes, and while each respective organization implements them, the Environmental Committee Secretariat is in charge of coordinating these activities.
The CEO oversees environmental activities, including climate change response, through the above committee structure. More specifically, the CEO has the responsibility and authority to evaluate the effectiveness of environmental management led by the Environmental Committee and indicate any needed improvements through the Sustainability Promotion Committee that oversees it.
Environmental Management Section, Sustainability Promotion Department
TORIDOLL Group established the Environmental Management Section of the Sustainability Promotion Department as a section dedicated to handling environmental themes, including climate change. The section collaborates with business departments to promote activities, conduct branch audits, and coordinate activities with external partners to achieve environmental management goals.
TORIDOLL Group’s businesses are dependent on natural resources and climate change poses a major risk, but having an abundance of social capital in the form of stores also gives our Group opportunities to create new value.
Risks from climate change include material losses at stores and the halting of operations due to storms, higher costs due to carbon taxes, changes in consumer preferences, declining quality and fluctuating prices of raw materials, and unstable supply chains. Information on each identified risk is shared by the aforementioned committee, an overall plan is formulated, and related measures are implemented.
On the bright side, business opportunities can lead to resource efficiency improvements, innovations like sustainability-oriented products and branch operations, and associated branding enhancements. To help improve business sustainability, differentiate ourselves from our competitors, and establish a competitive advantage, we plan to oversee a scenario analysis in FY2022 and conduct an even more detailed analysis.
TORIDOLL Group has a Risk Management Committee, which is chaired by the CEO and includes directors, executive officers, Holdings division heads, presidents of domestic subsidiaries, and the chief division heads of overseas subsidiaries as members. The Risk Management Committee determines the priority level of a given risk, makes prompt decisions, and issues related instructions.
The Risk Management Section oversees the Risk Management Committee and answers to the Sustainability Promotion Department. This section provides consultation services to customers and employees, handles their accident reports, and gathers requests directly from stakeholders regarding risks and business opportunities. This framework allows issues to be shared promptly with the Risk Management Committee.
Indicators and Targets
TORIDOLL Group has set environmental management targets and is working to mitigate climate change.
Environmental management targets (Scopes 1 and 2)
- Total CO2 emissions - 2025: 150kt of CO2
- CO2 emissions intensity - 2025: 0.60t of CO2 / million yen
Total of branches operated by Marugame Seimen, Niku no Yamaki Shoten, and TORIDOLL Japan
- We will continue to conduct investigations in relation to Scope 3 and work with stakeholders to reduce CO2 emissions.
Our Group will also expand its energy conservation measures across our domestic branches and promote new initiatives to achieve our environmental management goals. For example, adopting experimental ZEB* branches, which is considered difficult to do in the restaurant industry.
*ZEB: Abbreviation for “net zero energy building,” a building that uses solar power generation and other natural energy sources to reduce the net energy consumed by the building down to zero.
|Transition risk||Policy & Regulations / Technology||Introduction of carbon tax||The introduction of a carbon tax increases costs by taxing each step of the value chain.||Taking the carbon tax into account with eco-friendly business practices and procurement of raw materials can improve resource efficiency.|
|Compliance with Environmental Regulations||Complying with environmental regulations leads to increased costs.||Reduce the cost of legal compliance and encourage new policies by promoting the use of eco-friendly materials.|
|Market / Reputation||Changes in Consumer Behavior||
Changes in consumer behavior lead to a decline in sales.
The brand image is damaged by not sharing information about environmental initiatives regarding products and services.
|Take advantage of new market opportunities by developing new products and services that address consumers’ concerns about climate change.
Improve the brand’s image by disseminating information on environmental initiatives.
|Physical risk||Sudden||Increase in weather anomalies||Frequent extreme weather events cause damage to facilities and logistics networks, halting operations.||Use a BCMS (Business Continuity Management System) to minimize damage caused by extreme weather, resume operations quickly to curb sales losses, provide employment opportunities for local residents, and contribute to the economy of the affected region.|
|Gradual||Increase in average temperature||Shortages in supply, price hikes, and quality declines due to reduced productivity of raw materials. Rising costs due to countermeasures against heat stroke and infectious disease, and reduced productivity due to declines in employees’ health.||Diversify suppliers for stable procurement, and take advantage of new market opportunities by developing new products and services with alternative raw materials. Increase employee productivity through better health management.|
Initiatives Related to CO2 Reductions
Proactive use of local ingredients in each country
TORIDOLL Group understands the importance of building trust with producers and agricultural cooperatives in each region and giving back to the community, and actively promotes the procurement of local foodstuffs when quality, supply stability, and costs are up to standard. For example, Marugame Seimen in Japan uses wheat and kelp from Hokkaido, sudachi from Tokushima, and domestic rice and radishes. We encourage the use of locally sourced foodstuffs in each country. For example, some Marugame Seimen branches in North America are using wheat grown in North America. These efforts to use locally grown foodstuffs help reduce CO2 emissions generated from the transportation of said foodstuffs.
Using FSC-certified paper to make takeout containers for tempura
The special paper takeout containers used at Marugame Seimen are made of ethically sourced (FSC-certified) paper. In addition, botanical inks containing plant-derived ingredients are used for printing, contributing to the reduction of CO2 emissions.
- *FSC certification system:
This certification system commercializes wood produced in well-managed forests from an environmental, social, and economic perspective. After an audit by the Forest Stewardship Council (an independent third-party certification body), a product is certified if it meets the stipulated standards.
Introduction of renewable energy
We are trialling the use of renewable energy at the Omiya-Nishi roadside branch of Marugame Seimen by installing a solar power generation system on the roof to achieve self-sufficiency. This is currently in the experimental stage, but if this initiative proves effective, we plan to implement this in stores across the Group that meet the required conditions and promote the rollout of renewable energy use. Shibuya Solasta, where our main office is located, also uses renewable energy.