TOKYO, June 30, 2022 /PRNewswire/ -- Aucnet Inc. (hereinafter "Aucnet"), an information distribution support services firm, announced its support for the recommendations issued by the Task Force on Climate-related Financial Disclosures (hereinafter "TCFD" (*1)), and joined the TCFD Consortium (*2), which is made up of supporting companies and financial institutions.
Aucnet also launched on June 30, 2022 a website on the TCFD recommendations as well as information based on the four thematic areas of the TCFD's recommended framework: governance, strategy, risk management, and metrics and targets.
Under its sustainability policy, "Circulating Valuable Goods on a Global Scale - Circulation Engine -," Aucnet has been contributing to building a sustainable global environment since its establishment. With the help of partners around the world, Aucnet has built a circular distribution system that offers valuable goods to clients in various markets. By participating in the Japan TCFD Consortium and launching the website, Aucnet is committed to publicly disclosing its impact on climate change and pertinent information based on the TCFD's recommendations.
Aucnet's Four Thematic Areas under TCFD Recommendations
The Sustainability Committee, chaired by the President & COO, Shinichiro Fujisaki, works with the Risk Management Subcommittee, which manages risks related to the company, and shares responsibility for managing climate change-related risks and opportunities, implementing measures, setting KPIs and reporting on the progress. The Board of Directors, which is the managerial decision-making body, receives and supervises a report on climate change-related initiatives from the Sustainability Committee once a year.
Based on the TCFD recommendations, a predictive analysis was conducted to understand the business impact of climate-related risks and opportunities for Aucnet's consolidated subsidiaries. Based on the predictive analysis, the extreme weather conditions brought about by climate change and the introduction of policy regulations by governments were examined, and the risks and opportunities identified were reflected and addressed in Aucnet's strategies.
3. Risk Management
To establish a sustainability management system, a cross-sectional body called the Sustainability Committee has been formed to address all climate change-related matters and promote company-wide responses to the effects of climate change. In particular, climate change-related risks are identified by the Sustainability Committee in conjunction with the Risk Management Subcommittee. The identified risks are assessed by the Risk Management Subcommittee and then discussed and approved by the Board of Directors. Climate change risks are thus managed within the company-wide risk management process.
4. Metrics and Targets
On June 29, 2021, Aucnet established a sustainability policy and "Gross Circulation Value" (hereinafter: GCV) as an indicator to be used for specific future actions. Originally established as an indicator of the total circulated value of goods traded and circulated in the markets served by Aucnet, the definition was newly revised as an indicator to manage climate-related risks and opportunities. It is currently defined as an indicator that shows the impact of Aucnet's business activities on the economy and the environment in monetary terms. While the previous approach to the economic impact remains the same, the environmental impact is calculated by converting the "greenhouse gas emission reductions from used goods distribution and online trading" and the "greenhouse gas emissions emitted by Aucnet" into monetary terms.
As the scale of GCV expands, Aucnet is moving towards less goods being thrown away and not as many new goods being created. The number in 2020 for GCV was 428.8 billion yen. GCV is one of the key management indicators in Aucnet's medium-term management plan, and Aucnet aims to achieve a GCV of 1 trillion yen by 2025.
(*1) An international initiative established by the Financial Stability Board (FSB) in 2015 in response to the G20 to encourage companies to disclose information related to "Governance," "Strategy," "Risk Management" and "Metrics and Targets" and the financial implications of the losses and benefits that climate change presents to their businesses. TCFD Official Website: https://www.fsb-tcfd.org/
(*2) A forum established in 2019 to discuss initiatives to help financial institutions and others make appropriate investment decisions. Initiatives are promoted by companies, financial institutions and other entities which cooperate with the TCFD recommendations. Japan TCFD Consortium Website: https://tcfd-consortium.jp
Aucnet Company Profile
Company name: Aucnet Inc.
Head office: Aoyama OM Square, Kita-Aoyama 2-chome 5-8, Minato-ku, Tokyo (107-8349)
Representatives: Chairman & CEO; Kiyotaka Fujisaki, President & COO; Shinichiro Fujisaki
Date of establishment: June 29, 1985
Capital: 1,806 million yen (as of December 31, 2021)
Consolidated net sales: 36,710 million yen (as of December 31, 2021)
Number of employees (consolidated): 858 (as of December 31, 2021)
Business description: Information distribution support services business, including the organization and operation of online auctions
Listing: TSE Prime (securities code: 3964)
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Source: Aucnet Inc.