Disclosures Based on TCFD Recommendations
In October 2022, MedPeer Group (hereinafter, the Company) announced our support for the TCFD's (Task Force on Climate-related Financial Disclosures) recommendations. We will enhance the quality and quantity of our disclosures through solid governance and analyzing the risks and opportunities climate change possesses for our business.
Sustainability in society is vital for the Company's survival. To promote management that incorporates this perspective, we have established a Sustainability Committee chaired by our President & CEO.
In principle, the Committee meets yearly and discusses climate change responses as an essential agenda item. Its decisions are discussed at and reported to the Board of Directors as required, ensuring they are incorporated into the Company's overall management.
Sustainability Promotion Framework
We conducted scenario analysis to enable an understanding of the risks and opportunities arising from climate change.
Methodology of Scenario Analysis
To assess climate change impacts on our business environment in 2030, we conducted an analysis using a 1.5°C and a 4°C scenario. These scenarios were based on the RCP scenarios reported by the Intergovernmental Panel on Climate Change (IPCC) for analyzing physical risks from climate change. They were also based on scenarios the International Energy Agency (IEA) reported for analyzing risks associated with transitioning to a decarbonized economy (see Table 1).
Table 1: Climate change scenarios referenced in the scenario analysis
|1.5°C ScenarioSociety is decarbonized due to proactive policies||4°C Scenario Climate change progresses due to limited policies|
|Transition Risks||IEA NZE/SDS||IEA STEPS|
|Physical Risks||IPCC RCP 2.6||IPCC RCP 8.5|
Results of Scenario Analysis (Table 2)
Under the 1.5°C scenario, we expect to be impacted by the transition to a decarbonized society, such as introducing a carbon tax and promoting renewable energy and energy conservation policies. Risks to our business include the introduction of carbon pricing (carbon tax and emissions trading systems) and increased use of renewable energy, which will increase our operating costs. However, given our business type, we believe the impact of these risks will be limited. For opportunities, we assumed that our promotion of environmental initiatives would improve our external reputation, and that the Company will become easier to be selected as an investment destination. We will, therefore, consider proactively introducing environmental initiatives, such as using renewable energy, setting GHG reduction targets, and responding to ESG assessment organizations.
Under the 4°C scenario, we expect to be impacted by physical changes, such as increased extreme weather events. Risks include the possibility of our business activities being suspended due to damage to our business sites. We are striving to improve our business continuity, such as by introducing a remote work system and reducing risks to our business from extreme weather events. For opportunities, rising temperatures and increased disasters and diseases will likely create a greater need for digital transformation1 (DX) in medicine. Our business activities will enable the provision of relevant information to both healthcare workers and consumers. We will consider developing our services in a way that accounts for the impacts of climate change on trends in medicine.
1Changing society and lifestyles by enabling people to receive high-quality medical treatments and care at the separate stages of insurance, medical care, and long-term care by utilizing information technology and medical data.
Table 2: Scenario Analysis Results
|Impacts (Risks/Opportunities) from Climate-Related Issues）||Possible Occurrences||Importance Rating||MedPeer’s Efforts|
|Impacts of Transitioning to a Decarbonized Economy||Risks||Introduction of carbon tax and emissions trading||
- A carbon tax is introduced. We incur costs due to CO2 emissions from business activities such as electricity use.
- If an emission trading systemm has been developed and emission reductions are insufficient, we will incur costs such as having purchase emission credit.
- Reducing supply chain emissions by introducing remote work
- Reducing waste by promoting paperless procedures internally and externally
|Renewable energy/energy conservation policies||
- Electricity costs will rise as renewable energy sources are introduced.
- Rents will increase as office buildings are converted to ZEB and other energy-saving measures are introduced.（ZEB：Net Zero Energy Building）
- Using cloud services powered by renewable energy
- Restricting air conditioning use during nighttime hours
|Opportunities||Reputation amongst clients and investors||
- Ensuring our environmental initiatives are more advanced than other industry members will enhance our brand image and increase our revenue opportunities.
- If our response to climate change and other environmental issues is highly evaluated, we will be more likely to be selected for investment.
- Disclosures Based on TCFD Recommendations
|Physical Impacts of Climate Change||Risks||Increased average temperatures
Increased extreme weather events
- Rising temperatures will increase air conditioning costs at workplaces
- If workplaces are damaged by severe weather events such as typhoons and floods, our activities will need to be suspended and costs to address these issues will increase.
- Improved business continuity, including remote work
|Opportunities||Increased average temperatures
Increased extreme weather events
- The need for digital transformation (DX) in medicine will increase due to decreased opportunities to go outside as a result of rising temperatures and more extreme weather events.
- Development of DX support services for medical institutions
- Development of online medical consultation services
|Increased Average Temperatures
Increased Infectious Diseases
- Our information platform can provide information on climate change-linked diseases, such as increased heat stroke and outbreaks of new infectious diseases.
- Development of services that enable information on diseases to be shared
Risk management is conducted by our Risk Management Committee, which is chaired by our President and CEO.
The Committee holds regular meetings with each department to gather information on risks and aggregate company-wide risks. We evaluate these aggregated risks based on their frequency of occurrence and level of impact using our risk assessment methodology. The Committee also plays a central role in formulating countermeasures for significant risks, which are reported to the Board of Directors before being implemented.
Climate change-related risks are managed through collaboration between the Risk Management Committee and the Sustainability Committee and integrated into our company-wide risk management processes.
Metrics and Targets
We calculate greenhouse gas emissions (Scopes 1, 2, and 3) as a metric for assessing and managing climate change risks (Table 3). To help realize a sustainable society, we will consider our medium- and long-term targets with reference to the goals of the Paris Agreement.
Table 3: Greenhouse Gas Emissions [t-CO2]
|Scope1||Direct emissions from fuel use by MedPeer, Inc., etc.||-||-||-|
|Scope2||Indirect emissions from purchased electricity and other energy||122.2||137.1||2.5|
|Scope3||Indirect emissions other than Scopes 1 and 2||4,834.2||5,334.3||97.5|
Scope of calculations：
MedPeer, Inc. and 7 consolidated subsidiaries