Risk management
CSR Management Committee regularly evaluates the materiality of a wide range of social, environmental, and economic issues through a structured process. In the most recent materiality assessment, climate change was identified as a critical risk and endorsed by the Board of Directors as an important issue that Murata should prioritize management oversight and actions.
Link: Material issues
On a strategic level, the Climate Change Committee provides oversight on Murata’s climate change agenda, including the continuous monitoring of evolving climate-related risks.
In fiscal 2021, we mainly used physical scenario analysis to evaluate the potential risks and opportunities posed by future climate change and the resilience of our business strategy. In fiscal 2022, we performed an in-depth analysis of transition opportunities and risks. Other efforts include a full-scale introduction of the sustainability investment promotion system in fiscal 2022, and low-carbonization initiatives with the perspective of unprecedented discontinuous challenges, including the adoption of the internal carbon pricing system. We have also embarked on Scope3 emissions reduction initiatives, and in fiscal 2022, visited and interviewed more than 10 suppliers.
On the operational level, ISO 14001 is enforced in our production facilities to drive continuous improvement while assessing environmental and climate change risks. Since 2018, Murata has also been capturing the latest information on global climate change in a timely manner through its regular membership with JCLP and has applied it to corporate efforts and actions.
Risks arising from climate change are incorporated into company-wide enterprise risk register under the supervision of the Risk Management Committee. For example, guidelines for responding to severe weather conditions are provided in our Business Continuity Plan (BCP) to minimize business disruption.
Link: Reinforcing risk management
Our participation in industry associations, such as Japan Climate Leaders' Partnership (JCLP) and JEITA, and global alliances, such as RE100, can help us gather insights into emerging risks and opportunities related to climate change.
For the participation in an industry association or the review thereof, Murata periodically checks for any significant discrepancies or deviations from the missions of the industry association in light of conformity with Murata’s aims and business activities. Withdrawal from an industry association will be considered if conformity with its missions is considered difficult.