Climate Change Response and Information Disclosure

Kume Sekkei endorses the TCFD Recommendations published by the Task Force on Climate-related Financial Disclosures (TCFD) and will disclose information to help realize a carbon-neutral society.
The buildings we have design have provided comfort and richness to our lives, yet at the same time have imposed a burden on the environment.
However, buildings that impose an environmental burden are no longer acceptable.
It is necessary to re-examine past architecture, integrating it with today's cutting-edge technologies and concepts to propose buildings that can reduce CO2 emissions in the atmosphere.
Leveraging our corporate philosophy of “integrating design and technology,” we will further strengthen our design proposal capabilities and work to reduce both embodied and operational carbon emissions from buildings.

Specifically, we will proceed with the following measures:

■Conducting quantitative assessments of the climate-related risks and opportunities affecting society as a whole and the construction industry, and disclosing information regarding Kume Sekkei's climate change response

■Monitoring and reducing embodied carbon and operational carbon emissions in new construction projects

The TCFD recommendations encourage disclosing information on governance, strategy, risk management, and metrics and targets related to climate change that impacts business operations.
Kume Sekkei conducts analysis and information disclosure based on the TCFD framework.

Governance

  • Supervision by the Board of Directors regarding climate-related risks and opportunities, and the role of the management team in assessing and managing such risks and opportunities

Strategy

  • Identified short-, medium-, and long-term climate-related risks and opportunities
  • Impact of risks and opportunities on the organization's operations, strategy, and financial plans
  • Organizational strategy and resilience considering various climate-related scenarios, including 1.5℃ and 4℃ warming scenarios

Risk
Management

  • Process for identifying and assessing climate-related risks
  • Organizational process for managing risks
  • Process for identifying, assessing, and managing risks
  • Integration with the organization's overall risk management

Metrics and
targets

  • Disclosure of indicators used to assess climate-related risks and opportunities in line with our strategy and risk management approaches
  • Disclosure of Scope 1–3 GHG Emissions
  • Our targets and performances against targets for managing climate-related risks and opportunities

Governance

We deliberate on fundamental policies and measures concerning environmental issues at the Sustainability Committee (Chair: President and CEO).
The committee comprises directors, executive officers, and division heads responsible for GX-related matters. Its role is to deliberate on identifying and assessing climate-related risks and opportunities, while also overseeing the achievement of targets, such as reducing greenhouse gas (CO2) emissions, in our design supervision operations.
The GX Office, serving as the administrative body, will conduct awareness campaigns within the company through the Design Promotion Headquarters based on decisions made at the Sustainability Committee meetings. It will advance activities to achieve Kume Sekkei's environmental targets in collaboration with all headquarters.

Strategy

Starting in fiscal year 2025, we conducted scenario analysis to identify the most impactful items among “transition risks,” “physical risks,” and “opportunities” related to climate change for our entire operations.
In the scenario analysis, we established two scenarios (1.5℃ and 4℃) based on scientific evidence from sources such as the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA). We evaluated changes in the operational environment and their impact on Kume Sekkei across short-, medium-, and long-term periods.
The scenario analysis identified the following key risks and opportunities related to climate change:

Risk

Category Kume Sekkei's response Manifestation
period
1.5℃ 4℃
Transition risks Policy and
regulation
  • Carbon pricing
Providing solutions for
increased costs due to enhanced
regulations (carbon taxes, etc.)
Medium to
Long
Major Moderate
  • Introduction of ZEB/
    environmental building regulations
Improving ZEB design methodologies
and enhancing cost management
capabilities
Short to
Long
Major Major
Reputation
  • Risk assessment for construction materials
    and real estate due to
    intensifying
    and increasing
    extreme weather events
Understanding supply chain conditions
and providing solutions
Medium to
Long
Major Moderate
Technology
  • Increased costs for replacing with
    decarbonized products and new technologies,
    and regulations on existing products
    and services
Enhancing proposal and cost management capabilities for low-carbon buildings and ZEB renovations Short to
Long
Major Major
Energy source
  • Rising energy prices
  • Changes in the energy mix
Understanding energy-related trends and providing solutions Medium to
Long
Major Moderate
Physical risks Acute
  • Increased damage due to intensifying wind
    and water disasters
  • Increased risk of business interruption due
    to intensifying wind and water
    disasters
Establishing design technologies to reduce environmental risks Medium Minor Moderate
Chronic
  • Sea level rise
Establishing design technologies to reduce environmental risks Long Minor Moderate

Opportunities

Category Kume Sekkei's response Manifestation
period
1.5℃ 4℃
Market
  • Increasing demand for
    low-carbon building materials
Providing information on low-carbon
products and enhancing cost management capabilities
Long Moderate Minor
  • Expansion of the renovation market
Enhancing responsiveness
to the expanding renovation market
Medium to
Long
Major Moderate
Energy sources
  • Reduced operating costs by
    adopting renewable/energy-saving
    technologies and using low-emission
    energy sources
  • Assessment of opportunities and
    potential impacts involving products that
    enhance energy efficiency and reduce
    consumption
Establishing design technologies prioritizing
the adoption of renewable
and energy-saving technologies,
low-emission energy sources,
and energy efficiency
Short to
Long
Major Major
Products and
services
  • Development of new products or services
    through research, development,
    and innovation
  • Increased demand for goods and services
    resulting from changing consumer
    preferences
Creating consulting services tailored
to diverse needs
Deepening design technologies
focused on well-being
Short to
Long
Major Major
  • Increased demand for environmentally
    certified/low-carbon buildings and
    real estate
Enhancing expertise and providing
solutions for LEED+WELL certification
Medium to
Long
Moderate Minor
  • Increased demand for disaster-resistant
    buildings and real estate
Advancement and deployment of
BCP-compliant building (LCB) technologies
Short to
Long
Moderate Major
Resilience
  • Establishment of resilience plans
    (infrastructure, land, buildings)
Advancement and deployment of
BCP-compliant building (LCB) technologies
Short to
Long
Moderate Major

※LCB (Life Continuity Building)... Kume Sekkei's original concept, developed from the principles of BCP (Business Continuity Plan), refers to buildings resilient to disasters and capable of sustaining daily life after a disaster. It consists of three core principles: buildings remain intact; non-structural components (secondary members) do not break or fall; and lifelines are self-sufficiently secured.

Definition of Manifestation Period
・Short-term: 1 to 3 years
・Medium-term: 4 to 10 years
・Long-term: 10 years or more

Business Impact Assessment Criteria
・Major: Expected to have a significant impact on business strategy or financials
・Moderate: Expected to have a moderate impact on business strategy or financials
・Minor: Expected to have a minor impact on business strategy or financials

Risk management

Kume Sekkei believes that accurately identifying risks associated with corporate activities, preventing them, or minimizing their impact should they occur, contributes to enhancing corporate value and fulfilling our social responsibility to our clients. To this end, we have established a comprehensive risk management system across our headquarters and branch offices.
All significant decision-making matters are deliberated by the Executive Board and the Management Committee, where risks are identified and evaluated for each case, and the appropriateness of countermeasures to minimize impact is discussed should risks materialize prior to decision-making.
The Sustainability Conference identifies and evaluates environmental and social sustainability risks, including climate-related risks, to determine sustainability challenges and formulate strategies to address them. It also assesses the implementation status of these strategies and reports the results to the Executive Board.
Each department identifies risks inherent in its operational processes, implements necessary avoidance and mitigation measures, and conducts its operations accordingly. The Design Promotion Department and the Environmental and Engineering Department organize risk information and provide guidance and oversight in accordance with the Executive Board's decision-making policies.
Through collaborative management by the Executive Board and the Sustainability Conference, assessments of climate-related risks and other risks are shared and integrated into a comprehensive risk management process.

Metrics and targets

Kume Sekkei calculates and discloses its GHG emissions at the end of each fiscal year.
The following are the figures for fiscal 2013, which are used for comparison with fiscal 2024, the first year of information disclosure.
Our GHG emissions reduction policy aims to achieve net zero by 2050, and we will steadily implement initiatives toward the zero-carbon goal, such as allocating 100% of the electricity used at our headquarters to green power starting in April 2026.

Target categories and target values (KPIs) by scope

Target t-CO2/year Reference year emissions Actual emissions Target emissions
2013 2024 2030 2050
Shiomi Headquarters Scope 1 215 183 0 0
Scope 2 678 491 0 0
Kume Sekkei Group Scope 1 215 183 *A 0
Scope 2 799 604 *A 0
Scope 3 Not calculated 6,217 *A 0
Total 1,014 7,004 *A 0

*A : No numerical targets are set at this point, yet we will monitor emissions.

We continue to calculate embodied carbon and operational carbon emissions for design projects.
We plan to disclose numerical values as we monitor developments on the “Formulation of Rules for Building Life Cycle Carbon Assessment,” now under review by the Ministry of Land, Infrastructure, Transport and Tourism and related ministries.