Disclosure in Line with TCFD Recommendations

Background to the Initiative

  • The Task Force on Climate-related Financial Disclosures (TCFD) recommendations, announced in June 2017, encourage companies to disclose climate-related financial information to help investors make appropriate investment decisions.

  • RENOVA expressed its support for the TCFD recommendations in December 2021, and requested to be listed on the Prime Market of Tokyo Stock Exchange, Inc. (TSE) in line with the TSE’s transition to new market segments on April 4, 2022.

  • The Prime Market is a new market segment based on the concept of a market “for companies which have appropriate levels of market capitalization (liquidity) to be investment instruments for many institutional investors, keep a higher quality of corporate governance, and commit to sustainable growth and improvement of medium- to long-term corporate value, putting constructive dialogue with investors at the center.

  • RENOVA will also strengthen its corporate governance and adopt the TCFD recommendations as a benchmark for the verification of its response to climate change in its management.

Governance Relating to Climate Change

The RENOVA Group understands that the response to climate change is one of its priority management issues.
As with managerial matters, the Board of Directors is responsible for supervising and making decisions regarding projects involving climate change issues.
In the Risk Management Committee, the directors and executives led by the President and CEO shall formulate an action plan for responding to climate change risks and opportunities and discuss the details of the activities.

Forecast Changes in Energy Composition in the Net Zero Emissions (1.5 °C) Scenario

According to the Net Zero Emissions by 2050 Scenario (NZE), announced by the International Energy Agency (IEA) in October 2021 to provide a pathway toward limiting the global median temperature rise since the industrial revolution to 1.5 °C, about 88% of global electricity usage will come from renewable sources by 2050.
Using the scenarios created by external agencies as a reference, RENOVA will update its approach to respond to the latest developments as needed and further deepen its analyses.

Remarks: See the IEA’s World Energy Outlook 2021 (October 2021)

Recognition of Risks and Opportunities

Category Details
Transition risks Policies and legal restrictions
  • Revision of laws and regulations related to promoting the adoption of renewable energy

  • Decrease in demand for renewable energy sources due to the remarkable advance of power generation technologies that RENOVA is not involved in

  • Increase in construction costs due to an increase in materials prices

  • Increase in power generation costs due to an increase in biomass fuel prices

  • Decrease in opportunities for future income due to increased output curtailment

  • Reduced social acceptance due to the mass adoption of renewable energy

  • Reduced social acceptance due to accidents at renewable energy facilities due to natural or other disasters

Physical risks Acute
  • Increase in the risk that power may not be generated as expected due to large-scale wind-related disasters or other sudden weather events, and increases in repairs or other renewable energy facility costs

  • Reduced power generation due to extreme weather

  • Increase in biomass fuel prices due to extreme, prolonged, or other unusual weather

Transition opportunities Resource efficiency
  • Increase in opportunities for future income due to a decrease in biomass fuel prices

  • Increase in business opportunities using renewable energy sources

Energy sources
  • Increase in opportunities for the development of diverse renewable energy sources due to diversification

  • Increase in power generation due to an increase in sunlight caused by climate change, improved wind conditions or other factors

Products and services
  • Growth in demand for renewable energy due to a decrease in demand for fossil energy

  • Lower levelized cost of energy (LCOE) due to technological advance or other factors

  • Increase in demand for renewable energy due to an increase in electricity demand resulting from the expansion of electrification

  • Improved financing environment

  • Increase in opportunities for future income due to the introduction of environmental value, including carbon pricing and non-fossil fuel certificates

  • Increase in business opportunities due to the expansion of the renewable energy market resulting from decarbonization promoted by companies and growth in demand for renewable energy

  • Increase in business opportunities due to progress in infrastructure construction including power transmission and distribution infrastructure

  • Increase in business opportunities due to growing awareness of the improvement of energy self-sufficiency


Along with the global enforcement of the policy to expand the adoption of renewable energy, RENOVA set its vision, become Asia’s renewable energy leader, seeking to expand renewable energy in Asia, including Japan, and to realize greater decarbonization.

Risk Management

The main climate change-related risks drawn from scenario analyses are reported and discussed in the Risk Management Committee, and responses and policy are determined.
The status of all responses is tracked and managed using a plan–do–check–act (PDCA) cycle.
In addition, the Board of Directors make decisions in light of climate change-related risks and sustainability, including investment decisions concerning the development of renewable power plants.

Metrics and Targets

With a mission of creating green and sustainable energy systems for a better world,” RENOVA is fully dedicated to contributing to reducing CO2 emissions through the development of renewable power plants and the expansion of the scale of their operations toward decarbonization.

Item Target Target Year
Contributing to society by reducing CO2 emissions A cumulative total of 10 million tons 2030
Item Contributing to society by reducing CO2 emissions
Target A cumulative total of 10 million tons
Target Year 2030