Responding to Climate Change Risks and Opportunities

Basic policy and response to climate change

Global initiatives have been undertaken aimed at reducing greenhouse gas emissions, which are believed to be the leading cause of climate change and global warming, since the adoption of the Paris Agreement in December 2015 at the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (COP21).

As a major global player in the access systems industry, the Sanwa Group promotes the realization of a low-carbon society by developing and supplying products with high energy savings and heat-insulating properties to improve the energy efficiency of buildings. In addition, to reducing greenhouse gas emissions generated through manufacturing, the Group has built an environmental management system (EMS) based on ISO 14001 and is using this EMS to reduce energy consumption.

Governance and risk management

The Sanwa Group recognizes climate change as a key management issue and one of the risks that we face. Risk management related to climate change is discussed at the Group CSR Promotion Council, and the director responsible for the Corporate Planning Unit submits reports to the Board of Directors. In this way, management is taking an active role in the decision-making process.

Risks and opportunities regarding climate change, and our response

After examining the risks and opportunities associated with climate change, the Sanwa Group assumes two possibilities: (1) a rapid transition to a low-carbon society worldwide; and (2) worsening of global warming due to the failure to implement climate change initiatives. Based on these assumptions, the Group is considering how to reduce risks and how to capitalize on opportunities.

In the case of the rapid transition to a low-carbon society worldwide, increased manufacturing costs are projected for the Company as a result of the introduction of carbon taxes, increased emissions trading, and tightening of environmental regulations. At the same time, since the reduction of greenhouse gas emissions will be required by many companies as a way to mitigate climate change, there is a possibility that demand will increase for the Company’s products, due to their advanced energy savings.

In the case of the worsening of global warming due to failure to implement climate change measures worldwide, as a result of concern over intensification of natural disasters, there is a possibility of ending up with a loss of business opportunities due to the stagnation of production and logistics from the Group’s suppliers. At the same time, this could be an opportunity for us to increase sales due to our extensive lineup of products, including waterproof shutters and doors, that protect lives and property from water damage, as well social demand for climate change countermeasures, including heightened awareness of disaster prevention.

Transition Risks

Classification Major risks Response to risks
Political measures ・Increased manufacturing costs due to the introduction of carbon taxes and greenhouse gas emission regulations ・Promotion of energy savings and updating facilities at manufacturing bases
Technology ・Increased investment costs for the transition to low-carbon technologies
・Increased R&D costs for eco-friendly products
・Prior investment in new technologies
・Research and investigation of alternative technologies
Market and reputation ・Increased energy costs and waste disposal costs
・Change in investors’ and consumers’ appreciation of climate change initiatives
・Reexamination of manufacturing processes and packing methods
・Reduction of waste through promotion of recycling and reuse
・Growth of sales for eco-friendly products

Physical Risks

Classification Major risks Response to risks
Acute
(short term)
・Slowdowns in production and logistics due to windstorms or typhoons, and the resulting deterioration of profits
・Increased recovery costs in the case of devastating damage to production sites, and production and logistics infrastructure due to abnormal weather; and long-term suspension of production and shipping
・Continual improvement of the business continuity plan (BCP)
・Development of employee safety confirmation system and its proper use
・Introduction of waterproof equipment
・Implementation of disaster prevention drills, regular assessments using disaster prevention checklists
Chronic
(medium to long term)
・Decline in productivity at production and construction sites as a result of higher temperatures in summer ・Introduction and renovation of cooling equipment
・Introduction of air-conditioned clothing, work-assist clothing, etc.

Opportunities

Classification Major opportunities Initiatives for opportunities
Products and services that help mitigate climate change ・Increased sales due to increased supply of eco-friendly products, such as those that contribute to energy savings and that use renewable energy, and greening products, as well as repair services ・Development of new products to meet the requirements for a low-carbon society and strengthening competitiveness
Products and services that help adapt to climate change ・Increased sales due to expansion of our services, including provision of waterproof products and disaster prevention products and repair services, that protect lives and property from natural disasters or water damage caused by global warming. ・Development of new products to respond to the intensification of natural disasters resulting from climate change; and strengthening competitiveness

Product development aimed at seizing opportunities

The Sanwa Group believes it is our responsibility as a manufacturer to develop and provide eco-friendly products that contribute to energy savings, as well as waterproof products or disaster prevention products that protect lives and assets from water damage caused by global warming, and that these are also business opportunities arising from climate change.

A growing need is expected for eco-friendly products, such as those that contribute to energy savings and that use renewable energy, and for greening products. This need is due to the trend toward a low-carbon society that aims at reducing greenhouse gas emissions worldwide and changes in consumer sentiment. For example, high-speed sheet shutters that can be opened and closed at high speeds (released in Japan, North America, Europe, and Asia) contribute to energy savings at plants and logistics centers around the world. These products improve airtightness and air-conditioning efficiency, and so contribute to reducing greenhouse gas emissions.

“Quick Saver”
high-speed sheet-type shutter
(Japan; Sanwa Shutter Corporation)
“Rapid Flex™”
high-speed sheet-type shutter
(USA; ODC)
“NovoSpeed”
high-speed sheet-type shutter
(Europe; NF Group)
High-speed sheet-type shutter
(Asia; Shanghai Baosteel-Sanwa Door)
“Quick Saver” high-speed sheet-type shutter
(Japan; Sanwa Shutter Corporation)
“Rapid Flex™” high-speed sheet-type shutter
(USA; ODC)
“NovoSpeed” high-speed sheet-type shutter
(Europe; NF Group)
High-speed sheet-type shutter
(Asia; Shanghai Baosteel-Sanwa Door)

In addition, demand is expected to grow for waterproof products and disaster prevention products to protect city infrastructure and people’s lives from rising sea levels resulting from climate change and torrential rainfall due to abnormal weather. Sanwa Shutter Corporation has a lineup of waterproof products depending on the application, environment, installation method, and so forth, in preparation for frequent large typhoons and torrential rainfall.

Water Guard Waterproof Shutter
(Sanwa Shutter Corporation)
Water Guard Single-tight Door
(Sanwa Shutter Corporation)
Water Guard Double-tight Door
(Sanwa Shutter Corporation)
Water Guard Waterproof Shutter
(Sanwa Shutter Corporation)
Water Guard Single-tight Door
(Sanwa Shutter Corporation)
Water Guard Double-tight Door
(Sanwa Shutter Corporation)

Please see the “Providing of Eco-Friendly Products” for the Sanwa Group’s product lineup that contributes to climate change mitigation and adaptation.

Indices and targets

Sanwa Shutter Corporation, the core operating company of the Sanwa Group, has set quantitative targets for three themes: reduce (reduction of logistics energy, facilities energy, and unit requirements of waste); create (market launch of eco-friendly products and eco-friendly design products); and purchase (promotion of green procurement). Sanwa Shutter Corporation has been promoting ways to reach these targets Discussions are held twice a year at the Quality, Environment, and CSR Promotion Council to review the progress toward each target, the results, and ways to improve.

TOP