In December 2021, we declared our support for the recommendations published by the Task Force on Climate-related Financial Disclosures (TCFD),*1 established by the Financial Stability Board (FSB).
We are working to reduce our GHG emissions, at a pace that surpasses our GHG reduction targets approved by the “Science Based Targets Initiative (SBTi)*2” framework. In addition, we proactively disclose relevant information and  accelerate our response to climate change with a view to becoming carbon neutral by 2050.
Please refer to our website for more details on the climate change initiatives.
Implement Climate Change Initiatives

*1 TCFD(Task Force on Climate-related Financial Disclosures)
The TCFD is an organization established by the Financial Stability Board(FSB) to identify and publicize the financial impacts of the risks and opportunities created by climate change.
*2 An international initiative to prevent global warming by setting GHG reduction targets that are based on scientifically sound principles.

Climate-related information disclosure based on TCFD recommendations

We disclose the results of our analysis and discussion of the risks and opportunities posed by climate change in line with TCFD recommendations.
In the fiscal year ended March 31, 2024, we assessed climate-related transition risks and physical risks, identified material risks, and conducted a scenario analysis for the PCB-related equipment business. We also identified climate-related business opportunities.
Having implemented the same analyses for the semiconductor production equipment business, the display production equipment and coater business, and the graphic arts equipment business in previous years, we have now evaluated all four of the Group’s main businesses.
Please refer to the following PDF for more details.
 Climate-related information disclosure based on TCFD recommendations(May 2024)   
   * Actual values updated, October 2024

 Climate-related information disclosure based on TCFD recommendations(May 2023)   
   * Actual values updated, October 2023
 ​​Climate-related information disclosure based on TCFD recommendations(May 2022)

1.Governance

Climate-related risks and opportunities are discussed by the Group Risk Management Committee and the CSR Committee, both headed by CEO, to determine the course of action for risk management and manage the progress of the initiatives. Each committee meets at least semiannually and reports its decisions to the Board of Directors. In addition, we launched a TCFD project joined by external experts in which we are conducting scenario analyses and reassessments of risks and opportunities for our major businesses.
Climate change-related matters reported to the Management Committee and the Board of Directors in the fiscal year ended March 31, 2024 included the climate-related disclosure project and business activity decarbonization strategies.
Please refer to our website for more details on the corporate governance structure.
Corporate governance structure

2.Strategy

Scenario analysis process

We used two scenarios to assess the financial impacts in 2030 of major climate-related risks and opportunities for the semiconductor production equipment business, display production equipment and coater business,  graphic arts equipment business, and PCB-related equipment business by the following procedure. After examining multiple existing scenarios, including those published by the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC), we selected a 3℃ scenario that assumes the current situation continues with no progress made on climate change action and a 1.5℃ scenario that assumes substantial progress on climate change action.

  1. Assessments of the materiality of climate-related risks and opportunities in each operating business
  2. Consideration and creation of scenarios
  3. Assessments of risks and opportunities and financial impact, based on the scenarios
  4. Consideration of countermeasures

Scenario analysis results and financial impacts (Material risks and opportunities for the Group)

Types of risks and
opportunities
Details of risks and
opportunities
Financial
impact

3℃
scenario

1.5℃
scenario

Transition Risks Policy and Legal Regulations on existing products and services Increased manufacturing costs Low Medium
Technology Investment in new technologies Increased development costs Medium Medium
Market

Changes in market product needs

Decreased sales Medium High
Request for reduce emissions to the supply chain Increased manufacturing costs Medium Medium
Changes in the energy market Decreased sales Low High
Reputation Changes in reputation from clients Decreased sales Low Medium
Securing outstanding human resources  Increased management cost Low Medium
Opportunities Products and Services Development of new products that contribute to energy conservation, etc. Increased sales Medium High
Responding to customer requests for ESG compliance Increased sales Low Medium
Increasing severity and frequency of extreme weather events Increased sales Medium Medium
Market Increased demand for semiconductors due to higher performance and energy saving Increased sales High High
Manufacturing and selling products and providing services (Increased demand for power devices) Increased sales Medium Medium
Manufacturing and selling products and providing services (Increased demand for MEA and others) Increased sales Low High

Financial Impact Assuming 2030: Low; less than 2%, Medium; 2% or more but less than 10%, High; 10-30%

Moreover, regarding physical risks, we identified flooding and other risks at our own production bases and major suppliers. We conducted scenario analyses at each base and business and took measures to diversify our supply chain and protect against flooding at production bases to ensure business continuity. As a result, we assess that the impacts as of 2030 will be minor.

Climate-change initiatives and responses

To satisfy clients' need to improve their environmental performance, the Group is striving to reduce GHG emissions during product use in addition to reducing GHG emissions at business sites. In the semiconductor production equipment business, which is our core business, we are focusing on research and development to meet the needs for semiconductor manufacturing equipment that consumes less energy, water, and chemicals and that enables the production of advanced semiconductors that contribute to energy conservation. In addition to the Group’s independent efforts, we are also collaborating with industry organizations to further accelerate the development of environment-friendly technologies.

3.Risk management

The Group Risk Management Committee reviews risks including climate-related risks, from a bird’s-eye view across the entire SCREEN Group, identifies material risks, and decides on courses of action for risk management in the Group.
In the fiscal year ended March 31, 2023, as part of the TCFD project, we targeted PCB-related equipment business and analyzed which of the climate-related risks and opportunities identified are material to the Company. Each risk and opportunity was assessed in a 3 x 3 matrix based on its impact and probability. Based on our assessment of each business area, we have also identified significant climate-related risks and opportunities for the Group.

● Climate-related risk and opportunity evaluation standards
Climate-related risk and opportunity evaluation standards R2.jpg

We reflect climate-related risks and opportunities identified as material in our Group strategies and take appropriate countermeasures, under the leadership of the Group Risk Management Committee and oversight by the Board of Directors.

4.Metrics and targets

We believe our efforts to support decarbonization through our businesses will ultimately result in less climate-related risks and more opportunities.
The Group strives to reduce GHG emissions with the targets set for  reducing GHG emissions from business activities (Scope 1 + Scope 2) and from the use of sold products (Scope 3, Cat.11).
Please refer to the following our website for targets and performances.
Implement Climate Change Initiatives