Monex Group recognizes the importance of climate-related financial disclosures and is considering its response in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), while working to enhance its disclosures accordingly.
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Monex Group Environmental Policy
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Monex Group recognizes the importance of climate-related financial disclosures and supports the Task Force on Climate-related Financial Disclosures (TCFD).
Monex Group recognizes that climate change risks may affect a wide range of risk categories over the medium to long term and manages them as part of its enterprise-wide risk management process. The Group periodically identifies and assesses these risks and, if a material issue arises, manages it under the relevant risk category stipulated in the Integrated Risk Management Regulations.
Climate-related risk assessments based on scenario analysis—currently limited to credit risk and reputational risk—are incorporated into the risk categories managed by each Group company and are regularly reported to the Board of Directors.
Monex Group has identified major risks and business opportunities from climate change for all sites and businesses of the Monex Group, analyzed the impacts on the Group’s businesses as of 2030, and considered countermeasures against the impacts.
Based on the scenarios published by the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA), two scenarios were analyzed: the 4°C scenario, in which the global average temperature rises 4°C by 2100 compared to the average temperature before the Industrial Revolution; and the 1.5°C scenario, in which the average temperature rise is controlled to less than 1.5°C through carbon-neutral initiatives.
In the 4°C scenario, we have confirmed the expansion of physical risks such as floods and storm surges due to the intensification of abnormal weather.
In the 1.5°C scenario, with the background of the increased demand and adoption of renewable energy as well as the generation of innovations associated with the transition to a decarbonized society, there is a possibility that demands in capital markets of services that respond to climate change, such as ESG funds, will increase.
The Group’s efforts to address climate change are expected to contribute to lower employee turnover and reduced recruitment costs.
However, it is expected that the cost of companies will increase due to the introduction of policy regulations, such as electricity prices as well as carbon tax and other new tax systems.
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Causes |
Time Horizon |
Risk Impacts |
4 °C Scenario |
1.5 °C Scenario |
Countermeasures |
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Impact Level |
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Intensified abnormal weather |
Short to Long Term |
Damages to the equipment or business operation suspension due to the intensification of abnormal weather within the company or the risk of asset damage due to business stagnation caused by business partners |
Medium |
Small |
Formulation of business continuity plan and preliminary examination of emergency response measures |
|
Introduction of carbon pricing |
Short to Long Term |
Increased operating costs due to introduction of carbon tax and emissions trading transactions for the transition to a carbon-free society |
Small |
Medium |
Efforts to reduce GHG emissions, including setting reduction targets and introducing renewable energy to the group companies |
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Changes in energy costs due to growing demand for renewable energy and energy conservation |
Short to Long Term |
Increased operating costs due to increased energy costs from main power companies |
Small |
Medium |
Introduction of renewable energy |
|
Changes in recruitment costs associated with lower turnover due to environmental initiatives |
Short to Long Term |
Reducing recruitment costs as the company's efforts toward the environmental initiatives lowers employee turnover |
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Medium |
Group-wide ongoing efforts to address climate change |
- Impact Large: over 100 million yen, Medium: over 10 million yen but less than 100 million yen, Small: less than 10 million yen
Monex Group recognizes the importance of addressing climate change. The Group is carefully reviewing its disclosure of a target year and specific actions in light of the characteristics of its businesses, regulatory developments, and other relevant factors. It will continue to examine the matter and take appropriate action.
To help address climate change, the Group supports Japan’s Act on Promotion of Global Warming Countermeasures and participates in organizations and initiatives (collectively, “Organizations”) that it has confirmed are currently aligned with its own views and direction. Through this participation, the Group promotes climate change mitigation and adaptation.
- TCFD (Task Force on Climate - Related Financial Disclosures)
- JCI (Japan Climate Initiative)
In reviewing our participation in organizations, we have confirmed that there are no discrepancies or contradictions between our current climate change initiatives and theirs, and we will continue to confirm that there are no discrepancies or contradictions.
Monex, Inc., a major group companies, is a member of Japan Securities Dealers Association, Inc. The Japan Securities Dealers Association (JSDA) is an industry association whose purpose is to ensure the fair and smooth trading of securities and other transactions conducted by its members, to promote the sound development of the financial instruments business, and thereby to contribute to the protection of investors.
As a leader in the financial and capital markets, the JSDA recognizes the impact of environmental problems on the economy and society, and also recognizes its social responsibility to realize a better social environment and a sustainable society that provides security for future generations. In order to endeavor to The Association has set a numerical target to contribute to the reduction of CO2 emissions, which is to make maximum efforts to reduce CO2 emissions per square meter of floor space (electricity consumption per unit of electricity consumption) of all member securities firms by 51% or more in FY2030 compared to the FY 2013 level. Our Group supports the Association's target.
In addition, we supports laws, regulations, and policies related to climate change and energy consumption reduction (such as the Law Concerning the Promotion of the Measures to Cope with Global Warming (Global Warming Prevention Law) and the Law Concerning the Rational Use of Energy (Energy Conservation Law) in Japan) at its domestic and overseas bases, and is taking appropriate measures to comply with these laws, regulations, and policies. We are taking appropriate measures to comply with these laws and regulations.
As part of our efforts to decarbonize the world, we planted trees in Shinano-cho, Nagano Prefecture, using part of the sales commission from yen-denominated corporate bonds issued by Monex Finance, Inc. and sold by Monex,Inc. Although Japan is one of the most heavily forested countries in the world, its self-sufficiency rate for timber has long since fallen below 50% due to cheap imports from overseas. As the profitability of the forestry industry has deteriorated due to the decline in lumber prices, and as the population of forestry leaders ages, it has become increasingly difficult to maintain the cycle of (1) logging, (2) utilization, (3) afforestation, and (4) nurturing. Land that is not planted can cause landslides, etc. It is very important to plant trees that are expected to be used in the future and to nurture them while thinning the trees appropriately. Together with our customers, we are working to protect forests, secure precious water resources, and maintain biodiversity in the future.
