Nature-related Disclosures (TNFD)
ShareAnalysis and Evaluation
We have adopted the LEAP (Locate, Evaluate, Assess, and Prepare) approach recommended by the TNFD in order to conduct analyses and evaluations of our dependencies, impacts, risks, and opportunities in relation to nature. We also used the ENCORE nature-related risk analysis tool to assess nature-related impacts and dependencies across the Group’s entire value chain.
The upstream of the value chain starts with bauxite mining, alumina smelting, and electrolytic refining of virgin aluminum. As a user of virgin aluminum, we are keenly aware of the impacts of these activities, which include the diversion of rivers and construction of dams, soil and water pollution, potential noise and dust pollution, air pollution, and GHG emissions. Furthermore, the alumina smelting process is heavily dependent on ecosystem services as it uses vast amounts of water. In our own operations, we melt virgin aluminum and cast, roll, and process it to manufacture products. We recognize that the construction of our manufacturing facilities alters the land used and the operations of these facilities emit GHGs and could result in soil and water pollution. Of the four recognized categories of ecosystem services, these operations depend on provisioning services, particularly water as well as lumber used for packaging materials, and regulating services, which include wastewater purification and measures for mitigating floods.
In the downstream of the value chain, we are involved with a wide range of industries, including beverage, automobile, and aircraft manufacturing, as well as medical and food manufacturing equipment. Each of these industries depends on and impacts nature, and overall, their GHG emissions and water usage have a substantial impact. We recognize that the natural element we depend on is water, particularly with respect to the provision of water and regulation of its quality and amount used. Taking these nature-related impacts and dependencies into account, we have specified the nature-related risks and opportunities we face.
Risks and Opportunities
Locational Analysis and Priority Location Selection
In fiscal 2024, we conducted surveys and analyses of our major manufacturing sites using location data, focusing on water risks and biodiversity risks as high-priority environmental issues to address.
