Azbil Supports TNFD Disclosure Recommendations and Registers as a TNFD Adopter
TOKYO, September 25, 2024: Azbil Corporation (Head Office: 2-7-3 Marunouchi, Chiyoda-ku, Tokyo; President & CEO: Kiyohiro Yamamoto) has expressed its support for the disclosure recommendations published in September 2023 by the Taskforce on Nature-related Financial Disclosures (TNFD*1) and registered as a TNFD Adopter*2 in August 2024. The disclosure recommendations require 14 recommended disclosures structured around the four pillars of governance, strategy, risk and impact management, and metrics and targets—specifically, material nature-related dependencies, impacts, risks and opportunities, and the metrics and targets used to assess and manage them.
As a TNFD Adopter, the azbil Group will be reporting on its progress (FY2025) in line with the TNFD disclosure recommendations. At the time of registering, we conducted a qualitative assessment of our potential impact and dependence on nature using ENCORE*3, an online analysis tool. This confirmed that our line of business has a limited dependence on nature; nevertheless, our impact on nature, as it relates to climate change, is relatively high owing to the greenhouse gas emissions that result from the mining of minerals for use in our products and from the transportation of parts and products. A summary of the results of this analysis appears in our annual integrated report, the azbil Report 2024. Based on this preliminary analysis, in line with the TNFD’s recommendations we will be conducting a full and detailed analysis using the LEAP*4 approach. We will also make further progress with proactive disclosure.
Guided by the philosophy of “human-centered automation,” the azbil Group will continue to take the initiative in addressing important global issues, aiming to make contributions that lead “in series” to a sustainable society and to achieve sustained growth.
Related information
The azbil Report 2024
https://www.azbil.com/jp/ir/library/annual/index.html
*The English version is scheduled to be published in mid-October
The azbil Group’s environmental initiatives
https://www.azbil.com/csr/basic/environment/index.html
*1 TNFD: An international initiative aimed at establishing a framework for companies and organizations to evaluate and disclose information on how much their business activities impact natural capital and biodiversity. https://tnfd.global/
*2 TNFD Adopter: A company/organization that has committed to start making disclosures aligned with the TNFD recommendations in their corporate reporting by FY2024 (or earlier) or FY2025.
https://tnfd.global/engage/tnfd-adopters-list/
*3 ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure): A tool to assess how much an organization impacts and depends on nature; it was developed in 2018 by Global Canopy (a not-for-profit based in the UK), the UN Environment Finance Initiative (UNEP FI), and the UN Environment Programme World Conservation Monitoring Centre (UNEP-WCMC)
*4 LEAP: Following scoping, LEAP involves four phases: Locate, Evaluate, Assess, and Prepare. It was developed by TNFD as an integrated approach to assessing nature-related issues—such as contact with nature, dependencies, impacts, risks, and opportunities—to prepare for TNFD disclosure.
* Posted information is accurate as of the date of announcement.