Declaration of endorsement of TCFD recommendations and our responses to climate change

Endorsement of TCFD Recommendations

Driven by our management philosophy of “enriching the lives of people,” Nippon Television Holdings, Inc. (“NTVHD” or “we”) strives to provide accurate and timely news and information and high-quality content. In addition, we have focused our efforts on activities that contribute to society and aim to achieve Sustainable Development Goals (SDGs) through our TV programs and other initiatives, such as “24-Hour Television – Love Saves the Earth” and the “Good For the Planet” campaign.

On the other hand, climate change issues have become more serious and are increasingly posing a threat to the future of all living creatures.

In 2021, we announced our Sustainability Policy, in which we have designated contributing to the protection of the environment as one of our Material Issues. In the pursuit of decarbonization with the Nippon Television Group (the “Group”) working as one, we hereby announce that we decided to express our endorsement of the TCFD* recommendations. We will disclose the impacts that climate change may have on our business activities on an ongoing basis in accordance with the international recommendations, thereby performing our responsibilities as a reliable media company.

NTVHD will proactively address issues concerning climate change to ensure a sustainable future.

The abbreviated name for the Task Force on Climate-related Financial Disclosures. The TCFD recommends that companies, etc. disclose climate-related risks and opportunities in terms of their “governance,” “strategy,” “risk management,” and “metrics and targets.”

Overall Policy for Information Disclosure

We disclose information on each of the items concerning “governance,” “strategy,” “risk management,” and “metrics and targets” in accordance with the framework recommended by the TCFD recommendations, strive to strengthen governance related to climate change, and conduct analyses, etc. of risks and opportunities to ascertain climate-related impacts on management and take countermeasures.

Governance

In order to promote measures to address sustainability-related issues, the Sustainability Enhancement Committee (the “Committee”) will be established (Chairperson: Akira Ishizawa, Representative Director, President, and Chief Executive Officer), in which executive officers, etc. participate as the members.

Meetings of the Committee will be convened twice a year, to which persons in charge at business divisions of the Group companies are invited to form a working team, and the Committee will then cause the working team to examine countermeasures against climate change and other related matters.

The Committee will establish targets and plans for the entire Group based on the recommendations of the working team and implement these plans. In addition, the Committee will make reports to the Board of Directors from time to time on important matters and the status of its activities, and the Board of Directors will monitor the policy for countermeasures and implementation plans.

Strategy

Strategy: Summary of Scenario Analysis

Assuming changes in the business environment resulting from climate change and trends in policies for global warming and other related countermeasures, we examined the impacts that these factors may have on our business and management.

As analyses of multiple climate scenarios recommended by the TCFD recommendations, we assessed the relevant impact on Nippon Television Network Corporation (“Nippon TV”), which is engaged in the Group’s main business, the broadcasting business, based on a 1.5℃ scenario and a 4℃ scenario.

Global surface temperature change relative to 1850-1900

Source: Prepared by the Company based on the IPCC WG I Sixth Assessment Report (2021)

1.5℃ Scenario: A scenario that assumes that strict regulatory measures will be implemented to reduce the amount of greenhouse gas emissions (“GHG”) and that an increase in the global average temperature at the time of the end of this century will be within 1.5℃ compared to the global average temperature before the Industrial Revolution. In this scenario, a low carbon society would develop rapidly, forcing us to respond to laws and regulations and societal demands. Reference: Scenario SSP1-1.9 of IPCC (Intergovernmental Panel on Climate Change) and Scenario NZE2050 of IEA (International Energy Agency).

4℃ Scenario: A scenario that assumes that global warming countermeasures will not be thoroughly implemented and that by the end of this century the global average temperature will have risen approximately 4℃ compared to the global average temperature before the Industrial Revolution. In this scenario, the physical impacts of climate change will become more pronounced, such as more frequent abnormal weather events and more devastating natural disasters. Reference: Scenario SSP5-8.5 of IPCC and Scenario STEPS of IEA.

We examined the anticipated risks and opportunities in each scenario.

Strategy: Major Risks and Opportunities

1.5℃ Scenario (in which a low carbon society rapidly develops)

◎：Huge impact
○：Some impact
△：Slight impact

Items	Anticipated scenarios	Risks	Opportunities	Time frame of occurrence
Stricter GHG regulations	Increased business costs due to increased renewable energy prices, carbon taxes and emissions trading If renewable energy is procured by purchasing non-fossil fuel certificates, etc. for 30% of electricity consumed at the three business bases (Shiodome, Bancho, and Ikuta) of Nippon TV, electricity charges will increase by approximately 7%.	◎		Short/ medium term
Increases in program production costs	Price pass-through due to increased costs resulting from stricter regulations and carbon taxes, etc.	○		Short/ medium term
Increases in capital expenditures	Increased costs by installing more power-saving facilities due to stricter regulations	○		Short/ medium term
Reputation	Deterioration of our corporate brand image held by viewers and sponsors, etc. due to lagging initiatives to reduce CO₂ emissions	○		Short/ medium term
Reputation	Enhancement of corporate brand image by providing news coverage of disasters and rolling out campaigns for global warming countermeasures		○	Medium term
Changes in viewer preferences and sponsors’ needs	Increased environmental awareness programs and events in collaboration with sponsor companies, such as “24-Hour Television” and the “Good For the Planet” campaign, in which there is increased demand for content related to global warming and sustainability		◎	Short/ medium term
Changes in lifestyles	Potential for new businesses in the environmental area		△	Medium/ long term

In the 1.5℃ scenario, companies will be required to take stricter measures to reduce GHG emissions, and cost increases are expected due to the introduction of carbon taxes and increased demand for renewable energy.

On the other hand, due to increased public interest in climate change, the role of the media to communicate accurate information will become increasingly important. If a company is seen not to be playing an adequate role, the trust placed in the company by viewers and sponsors will inevitably be diminished. In addition, it is expected that there will be an increased demand in program production for content aimed at sustainability and realization of carbon neutrality.

4℃ Scenario （in which global warming becomes a serious issue）

◎：Huge impact
○：Some impact
△：Slight impact

Items	Anticipated scenarios	Risks	Opportunities	Time frame of occurrence
Higher average temperatures More frequent abnormal weather events	Increased costs of capital expenditures for more resilient broadcasting equipment Restrictions on outdoor news coverage and shooting	◎		Medium/ long term
	Increased interest of viewers in weather information and lifestyle information		○	Medium/ long term
More frequent and devastating meteorological disasters (typhoons, floods, and droughts, etc.)	Increased needs for disaster prevention information and news coverage of disasters		◎	Medium/ long term
	Increased risk of employees being affected by disasters and more difficulties in providing news coverage of disasters	○		Medium/ long term
Rise in the sea level	Increased risk of Shiodome headquarters being flooded by a storm surge	○		Medium/ long term
Spending less time going outdoors during summer (i.e., spending more time staying indoors)	Increased demand for television and video content Increased revenues in the television home shopping department		○	Medium/ long term
Increased health risks (heatstroke and new infectious diseases, etc.)	Increased costs for maintaining employees’ health, such as costs for air conditioning	○		Medium/ long term
	Increased interest in health-related programs and campaigns		○	Medium/ long term

In the 4℃ scenario, abnormal weather events will become recurrent and more devastating flood damage from typhoons and torrential rains as well as increased instances of damage caused by droughts, etc. are expected. In addition, higher temperatures in summer will cause an increase in the number of patients suffering heatstroke.

Since we are engaged in the business of broadcasting, which has a public nature, we will be required to play an even greater role as a news media in relation to disaster prevention and disasters. On the other hand, outside shooting in a hot environment will likely cause certain restrictions on the production of programs and lead to an increased risk of malfunctions in broadcasting equipment. In order to continue to broadcast content and perform our responsibilities as a news media, we will need to reduce the risk of employees being affected by disasters while promoting efforts to have more resilient broadcasting equipment.

Risk Management

We position climate change and related measures as risks that will have a material impact on management, and the Group as a whole will address these issues.

A working team composed of persons in charge of business divisions at each Group company will find anticipated risks and these risks will be identified and assessed at the Committee meetings to be held twice a year.

These risks will be appropriately handled through a process including the planning and implementation of countermeasures by giving an order of priority to each risk comprehensively taking into account factors such as the materiality of the impact on management and the possibility and time frame of occurrence.

In addition, matters that are identified as material risks in the assessment of the Committee will be reported to the Board of Directors.

Metrics and Targets

Metrics and Targets: Amount of CO₂ Emissions

The amount of CO₂ emissions at the three business bases (Shiodome, Bancho, and Ikuta) of Nippon TV (actual figures for FY 2021)

Scope 1 (Direct emissions from businesses): 986 t- CO₂ (t- CO₂: a unit used to mean 1 ton of carbon dioxide)
Scope 2 (Indirect emissions through the purchase of electricity, heat, and steam): 23404 t- CO₂

Changes in Amounts of CO₂ Emissions at Nippon TV

In FY 2021, the amount of Scope 1 decreased because the operations of the CGS (gas cogeneration system/off-grid power system) temporarily stopped due to updating. In that year, the amount of Scope 2 increased because we supplemented the decreased portion in the amount generated by the off-grid power system by purchasing electricity. The CGS resumed operations in October 2022.

Metrics and Targets: Initiatives Aimed at Reducing GHG Emissions

In our Sustainability Policy (formulated in November 2021), we made a statement to the effect that we aim to achieve a renewable energy percentage of 100% in all electricity consumed at Nippon TV by FY 2030.
In the Bancho studio, we successfully installed 100% LED lighting equipment at the time of the completion of its construction in 2019. We also plan to complete the installation of 100% LED lighting equipment at Shiodome headquarters in 2031. Together with the installation of LED lighting equipment, we will reduce electricity consumption by promoting replacement of facilities with high-efficiency equipment.
On the occasion of the 70th anniversary of our foundation, we launched the Japanese Archipelago Blue Carbon Project in March 2023. We promote activities to grow eelgrass, which has a function of absorbing CO₂ dissolved into seawater.
The Group as a whole aims to become a carbon neutral organization in the future.
Going forward, we will calculate the amount of CO₂ emissions for each fiscal year and disclose the information in our website.