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Disclosure Based on TCFD Recommendations
Responding to TCFD Recommendations
Our Group’s VISION is “Let’s change everyday deliciousness. Let’s spread joy to the world.” To continue delivering safe and delicious food to our customers, it is essential to implement sustainable initiatives with an eye to the future of our business activities. In particular, since our Group uses a wide variety of marine, fishery, agricultural, and forestry resources as raw materials, we view climate change as a significant management risk and will disclose information related to climate change in accordance with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
Governance
The Board of Directors of the Group recognizes climate change issues as one of its important management challenges and is overseeing them. Specifically, when formulating business strategies and plans, the Board of Directors deliberates on the “risks” and “opportunities” related to climate change issues, and receives reports from each Group company and department as necessary and carries out oversight.
In addition, the Group has clearly positioned sustainability as a management issue for the entire Group, and has established a Sustainability Promotion Committee, chaired by the Representative Director and President, to promote sustainability initiatives. The Sustainability Promotion Committee reports to the Management Committee on the status of sustainability, including climate change response, as appropriate, and receives instructions and advice. Furthermore, the Representative Director and President will report on the status to the Board of Directors as necessary.
Strategy
Based on the framework recommended by the TCFD recommendations, the Group has identified the risks and opportunities that climate change poses to the Group and conducted an analysis using different climate-related scenarios. Going forward, the Group will continue to further deepen its analysis of risks and opportunities in order to minimize risks and maximize opportunities toward the realization of a decarbonized society.
In conducting the scenario analysis, we identified climate change-related risks to our Group and conducted a scenario analysis on those that were expected to have a particularly high impact on our Group. Based on the results of the scenario analysis, we organized the necessary measures to minimize risks and maximize opportunities. In particular, we conducted a detailed analysis of the impact of climate change on raw material procurement, which is expected to be the most important factor for our Group’s business continuity, focusing on fish species, production regions, etc.
Prerequisites for Scenario Analysis
In addition to identifying physical risks, transition risks, and business opportunities related to climate change, the Group assesses the impact of these climate change risks and opportunities on its business strategies and financial plans. The scenario analysis focused on Akindo Sushiro Co., Ltd. (domestic), the Group’s core business, and selected 2030 as the time frame for transition risks and 2050 for physical risks. Furthermore, the analysis was conducted based on scenarios such as the Sustainable Development Scenario by the International Energy Agency (IEA) and Shared Socioeconomic Pathways 5-8.5 by the Intergovernmental Panel on Climate Change (IPCC), with scenarios of below 2°C and 4°C.
Scenario analysis results
The main risks and opportunities for the Group in the below 2°C scenario include strengthened regulations and policies toward a decarbonized society, changes in consumer preferences, and a transition to a circular economy. Specifically, the introduction of carbon pricing is expected to increase energy procurement costs, leading to higher store operation and procurement costs, as well as increased costs due to plastic regulations and stricter food waste management. The Group is proactively working to decarbonize energy through the introduction of renewable energy and a shift to clean energy, installing energy-saving equipment, and switching from plastic to paper containers. We are also working to eliminate plastic by exploring the introduction of recycled and recyclable resources, and contributing to a circular economy by exploring the reuse of food waste, such as leftovers, as feed and biomass fuel. In this way, we aim to minimize risks and expand business opportunities through differentiation.
Additionally, the 4°C scenario assumes that rising temperatures will result in the manifestation of physical risks such as intensifying natural disasters, rising average temperatures, and changes in weather patterns. Specifically, the impact of intensifying natural disasters on the Group’s store operations and supply chain, and rising average temperatures and changes in weather patterns will have a pronounced impact on the ecosystem, affecting the Group’s procurement of raw materials. The Group will minimize risks by considering responses to physical risks when developing and operating stores, and will ensure the resilience of its supply chain through initiatives such as diversifying its procurement network.
The risks and opportunities identified in each scenario will be shared with the Sustainability Promotion Committee and the Internal Control Committee, and appropriate responses will be taken to ensure the Group’s resilience to climate change risks while maximizing the opportunities. We will continue to respond to climate change by refining scenario analysis and financial impacts, and by specifically reflecting risks, opportunities, and countermeasures in our management plans.
Financial impact and countermeasures
Financial impact and countermeasures
We conducted research and analysis into the climate change impact of major raw materials that are considered to have a large impact on our Group, based on reports from various research institutions and academic papers.The table below shows the results of our assessment of the procurement environment and outlook for resource volume for tuna, yellowtail/sea bream, shrimp, salmon, and rice, which are commonly used as sushi toppings.
With regard to fish, one of the main food ingredients, we conducted a literature survey for each species, dividing it into the main supply region and wild/farmed categories. Although there are some differences in production areas, because the difference in temperature rise will become significant from 2050 onwards, we made a common trend forecast for both the 2°C and 4°C scenarios up to 2050, but after 2050 we separately forecast trends for the 2°C and 4°C scenarios. As a result, we concluded that there is a low risk of a rapid decline in catch and production volumes for each fish species and rice until 2050.
On the other hand, we concluded that it is difficult to deny the possibility that, after 2050, rising sea temperatures under the 4°C scenario will have adverse effects on each fish species, although to varying degrees.
Furthermore, with regard to rice, there are concerns that a decline in quality due to rising temperatures in both the 2°C and 4°C scenarios could lead to a risk to the procurement of high-quality rice.
Based on the above assessment, we have considered the direction of measures to stabilize procurement. For all raw materials, we will promote the development and utilization of advanced aquaculture and cultivation techniques that are responsive to climate change (see “Initiative ②” below for an example). At the same time, for tuna, yellowtail, and sea bream, we will consider overseas aquaculture operations in addition to the domestic ones we have been using, and for shrimp and salmon, we will explore new sourcing countries and develop new aquaculture techniques. For rice, we will select production areas and varieties that are responsive to climate change, and support breeding projects to ensure quality.
Specific Initiatives to Address Climate Change Risks
Initiative 1: Installing Solar Power Generation Equipment in Stores
We are currently installing solar power generation equipment in our street-front stores using solar power purchase agreements. As of September 2024, we have installed solar power generation equipment in over 100 stores, and will continue to do so in the future. We are also considering installing additional equipment in existing stores and installing the equipment when opening new stores.
Initiative 2: Strengthening Support for the Aquaculture Industry and Diversifying and Stabilizing Procurement through the Use of Food Tech
In preparation for the risk of unstable fish supplies due to climate change, we have strengthened our support for the aquaculture industry. Specifically, together with Owase Bussan Co., Ltd., in which we have invested, we are developing and establishing aquaculture techniques and researching feeding methods.
We are also working on improving fish breeds using cutting-edge food tech such as biotechnology and genome editing technology.In addition, in April 2022, we established Marineverse Co., Ltd. in collaboration with Takuyo Co., Ltd., with the aim of achieving stable production and utilization of marine resources, and are conducting research and development of farmed fish seeds and feed.
Initiative 3: Contributing to Climate Change Countermeasures through the Effective Use of Resources
The cooking oil used at Sushiro and Sugidama Sushi Sake Sashimi is supplied as a raw material for SAF (Sustainable Aviation Fuel), a domestically produced sustainable aviation fuel.
By reusing waste cooking oil to produce domestically produced SAF, we aim to realize a recycling-oriented society that contributes to climate change countermeasures through the effective use of resources.
Risk Management
Our Group’s Sustainability Promotion Committee plays a central role in identifying, analyzing, and evaluating climate-related risks. The Sustainability Promotion Committee is chaired by the Representative Director and President, and requests each group company and department to formulate and report on countermeasures for the climate change-related risks that it has identified, analyzed, and evaluated, as appropriate and as necessary.
Furthermore, in order to identify all risks that threaten the sustainable development of the company and to establish a risk management system, the Group has established “Risk Management Regulations” and established an Internal Control Committee. The Internal Control Committee identifies, analyzes, and evaluates important risks to the Group’s management, and formulates improvement measures, thereby establishing a system for appropriate crisis management. The Sustainability Promotion Committee and the Internal Control Committee will also work together to address climate change-related risks.
Indicators and Goals
Our Group prioritizes reducing CO₂ emissions from our core business of operating sushi restaurants in Japan, and has set the following CO₂ emissions targets for Akindo Sushiro Co., Ltd.
| The goal | FY2030 | Reduce CO₂ emissions (Scope 1 + 2) per unit by more than 50% compared to fiscal 2013 |
| FY2050 | Carbon Neutral | |
| Base Year | FY2013 | CO₂ emissions (Scope1 + 2) 63,311t-CO₂ |
| CO₂ emissions (Scope 1 + 2) intensity 0.51 t-CO₂ / million yen |
Note: Based on emissions per unit of sales (denominator: 1 million yen). Ratio when CO₂ emissions in fiscal 2013 are set at 100.
| Results | FY25* | Scope 1+2 52,058 t-CO₂ |
| Scope 1 + 2 intensity 0.21 t-CO₂ / million yen | ||
| Scope 1 + 2 intensity reduction rate 58.82% |
*Akindo Sushiro Co., Ltd. (standalone) April 2024 to March 2025
The Group believes that in order to combat climate change, it is important not only to reduce CO₂ emissions from business activities, but also to develop technologies and promote businesses that contribute to reducing CO₂ emissions in society, and the entire Group will work on this.