Toppan, a provider of various solutions, including decor materials, will introduce an internal carbon pricing system for its capital investment from FY2023 onwards.
Internal carbon pricing is an important indicator that businesses themselves set and use to drive low-carbon investment and related measures. Its adoption as an investment indicator for decarbonisation is recommended within ESG disclosure frameworks, such as the Task Force on Climate-related Financial Disclosures.
To address the growing problem of climate change and other global environmental issues, Toppan has set out its long-term approach in the Toppan Group Environmental Vision 2050 and is aiming to enable “fulfilling, sustainable living”.
With increasing needs to reduce greenhouse gas emissions, Toppan will use an internal carbon pricing system to inform decisions on low-carbon investment and related measures from a long-term perspective and advance the further use of energy-saving and renewable energy equipment.
For instance, it has set its internal carbon price at US$130/t-CO2 at the time of introduction. It will apply this internal carbon pricing to changes in CO₂ emission volume associated with capital investment and prioritise investments in measures that are effective in reducing CO₂ emissions.
“Introducing internal carbon pricing at Toppan will enable us to make better informed decisions on how we invest and what we do to decarbonise our own operations and contribute to efforts in wider society,” said Fumie Ikeda, general manager of sustainability promotion at Toppan.
“We will also continue to enhance the transparency of our disclosure and accelerate ESG initiatives by working with stakeholders as we aim to be a leader in addressing global social issues with solutions enabled by digital transformation and sustainable transformation.”
Toppan engages in a range of sustainability-related activities. For instance, its Toppan SDGs Statement, published in November 2019, sets out their commitment to intensify its related initiatives and incorporate the SDGs into management.
Subsequently in November 2020, it launched its Toppan Business Action for SDGs, which specifies the areas of focus in which it aims to contribute to the achievement of the SDGs through its business.