Questionnaire survey on corporate
biodiversity efforts in Japan
Summary of the FY2022 survey results

December 25, 2023
Keidanren Committee on Nature Conservation (KCNC)

Overview of the survey
1. Objectives
The survey aimed to reveal the status of, and challenges and opportunitiesin, biodiversity efforts by individual companies in Japan, and collectively as
the Japanese business sector, referring to key global frameworks such as theKunming-Montreal Biodiversity Framework (GBF) of the Convention on
Biological Diversity (CBD) and the Taskforce on Nature-related Financial
Disclosures (TNFD).

2. Target
Keidanren member companies (1,529 companies, including KCNC
members)

3. Survey Period

February - April 2023

4. Number of valid responses: 326 companies, including 111 KCNC
members* Note for interpreting data presented in the following slides: The sum of proportions presented in some graphs
exceed 100% due to rounding decimals. "N" in this disclosure refers to the number of valid responses.

1

Executive summary (1)(1) Compared to the 2019 survey, more companies are mainstreaming biodiversity".
① Awareness of biodiversity is high, with 60% of companies reporting that more than 80% of management knew the meaning of
the term "biodiversity," and 25% of companies reporting that more than 80% employees knew the meaning. As compared with
this, awareness of the term "nature positive" was low. [P6]② Regarding the organizational structure to promote biodiversity actions, assignment of a section/group in charge wasreported by the highest number of companies (66%). A small number of companies have biodiversity-related reports or
decisions involving their board of directors and management meetings (28% and 30%, respectively), and these numbers
have increased as compared with the results of the previous survey in 2019 (11% and 22%, respectively). [P7]③ With regard to statements and reports on biodiversity in corporate management and sustainability documents, suchstatements and reports in sustainability and environmental policies were reported by the largest number of companies(71%). Biodiversity-related statements in corporate management policies, strategies and/or plans were reported by asmall number of companies (37%). Nevertheless, overall, the number of companies that have biodiversity-related statements
and/or reports in these or other types of corporate documents has increased as compared with the the 2019 survey results. [P8]④ The most common medium for biodiversity information disclosure was via a website (69%). Only a few companies (6%) usedlegally mandated reports such as the annual securities reports and business reports. Overall the proportion of companies
disclosing biodiversity information increased as compared to 2019. [P9]⑤ Many companies used or referred to CDP or GRI for biodiversity information disclosure (63% and 49%, respectively), and
29% referred to TNFD. [P10](2) Many companies have already been implementing activities that contribute to GBF.
① Efforts related to Target 8. Climate change and biodiversity, 7. Fertilizers, pesticides, plastics and other pollutions, 15.
corporate biodiversity information disclosure, 3. Protected areas and OECM, and 4. Endangered species and genetic
diversity were frequently mentioned. However, the most frequent mention of Target 8 needs careful interpretation, as thismay include climate actions that do not necessarily intend to contribute to biodiversity. [P12]② Overall the proportion of companies with biodiversity actions that contribute to any of the 23 GBF targets was the highest in thepulp and printing sector, followed by construction, food/beverage/tobacco/feed, and real estate and rental and leasing.
In addition, the most frequently mentioned targets differed by industry sector. [P13]③ Twenty nine (29) per cent of companies have set quantitative indicators and targets related to each of the GBF targets,
which has slightly increased since 2019 (27%). [P16]④ Contribution to a variety of goals of the SDGs through biodiversity-related efforts was also mentioned. Beyond thebiodiversity-focused goals, i.e., 15 "Life on land" and 14 "Life under water," contribution to Goals 13 "Climate action," 12"Responsible consumption and production," and 11 "Sustainable cities and communities“ were mentioned. [P18]2Executive summary (2)(3) Biodiversity information disclosure along the TNFD guidance is still in the initial stage of LEAP
approach in many companies, but has advanced in some companies [P22].
① The proportion of companies that have already assessed their dependence/impact on and risks/opportunities frombiodiversity in their value chains was 10%, while 48% of companies indicated that they were planning or
considering to do. [P20]② Although many companies have value chains that extend beyond Japanese national jurisdiction, only a few companies
indicated that they assess their dependence/impact on biodiversity in their overseas value chains. [P21]③ The biodiversity-related risks and opportunities identified by the companies were categorized and tabulated according to
the TNFD definition, with physical risks and transition risks being the most frequently cited risks (57 in both cases), andproducts/services and markets (50 and 36, respectively) being the most frequently cited opportunities. [P23, 24](4) As biodiversity became a key agenda in corporate management, many companies are facing technicalchallenges in biodiversity actions.
① The most frequently cited reason for companies to promote biodiversity actions was to align with international and national
norms and to take social responsibility (221 responses), but many companies also cited corporate philosophy ornecessity for business operations (149 responses), and requests from investors and customers (98 and 60
responses, respectively). [P27]② Major barriers in biodiversity actions have shifted as compared with the 2019 survey results. Fewer mentions
were made regarding barriers such as not contributing to profit making or unclear relevance to business
operations (51% to 17% and 34% to 25%, respectively), while technical challenges were mentioned more often.
Frequently mentioned technical issues were setting and measuring indicators and targets (220 responses), difficulty insetting and evaluating scenarios (184 responses), complex supply chains (172 responses), and limited knowledge, humanresources and budget (153 responses). [P27]③ The majority of companies were either not making as much progress in biodiversity actions as climate actions, orwere working on the two issues separately (151 and 67, respectively). However, a few companies were intending tocreate synergies between biodiversity and climate actions, or were linking TNFD- and TCFD- (Task Force on Climaterelated Financial Disclosure) guided disclosures (50 and 34, respectively). [P28]3Responding companies by sector
Sector⚫ Ceramic, stone andclay products⚫ Fabricated metal
products⚫ Non-ferrous metals
and products⚫ Business oriented
machinery⚫ General-purpose
machinery⚫ Information andcommunicationelectronics equipment⚫ Production machinery⚫ Petroleum and coalproducts⚫ Rubber products⚫ Plastic products⚫ Printing and alliedindustries⚫ Textile products⚫ Beverages, tobaccoand feed⚫ Furniture and fixtures

Most companies that responded werelarge companies with capital of 300
million yen or more, while in thenonmanufacturing and other sectors,
many medium-sized companies withcapital of between 50 and 100 million
yen responded to the survey

N=326⚫ Scientific research,
professional andtechnical services⚫ Compound services⚫ Accommodation, foodand beverage services⚫ Agriculture and forestry⚫ Industries unable to4classify

(1) Mainstreaming of biodiversity

Awareness of biodiversity
Q. What percentage of your company's management (board and executive officers) and generalemployees know the meaning of "biodiversity" and "nature positive"? If your company has notconducted a survey, please answer with a rough estimate. (N = 323)

Proportion in the valid responses (N=323)

Naturepositive

Biodiversity

0%

25%

Management

General employee 5 16
81~100%75%

195

General employee
Management

50%

81
56

28
61~80%

63
38

50

61
41~60%

21~40%

42

21

12 11 2

29

30

4

60
40

45

97

8

1~20%

100%

0%（None）

4

39
54

89

106
Unknown✓Awareness of "biodiversity" is particularly high among the management level.
✓Awareness of “nature positive” is low, as compared with "biodiversity" .
6Organizational structure to promote biodiversity actions (1)Q. What is your company’s organizational structure to promote biodiversity actions? (N=322)
Percentage in the valid responses (N=322)

Higher-level decision making, reporting and involvement

0%

25%

50%

Reports to/desions by board of directors meetings

90

Reports to/desions by management meetings

96

75%

Reports to/desions by an internal expert committee

173

Assigned an executive officer in charge

166

Assigned a section/group in charge

212

Assigned staff in charge

11%

FY 2022

22%
30%

30
126

FY 2019
28%

Management meetings

Biodiversity-related training for employees

N/A

Board of directors meetings

Percentage in the valid responses
0%
25%
50%
75%

197

A third-party committee of outside experts

Other

Comparison with
the FY 2019
Survey Results

66%

Internal expert
committee,etc.

54%

18
62

A third-party committee ofoutside experts

6%
9%✓Many companies have established a section/group to promote biodiversity actions.
✓The number of companies that have biodiversity-related reports and decisions
involving their board of directors and management meetings is limited but
increasing.
7

Organizational structure to promote biodiversity actions (2)Q. Does your company's management policy, strategy, plan or other corporate documents include
biodiversity-related statements and/or contents? (N=321)
Percentage of valid responses (N=321)
0%

25%

50%

Management policy, strategy, plan, etc.

75%

120

Sustainability/environmental policies

228

Corporate/environmental management (with quantitative targets)

64

Corporate/environmental management (with qualitative targets)

114

Biodiversity declaration, action framework, guidelines or other…

112

Others9

N/A

Comparison with 2019 survey results

100%

66

Percentage of valid responses
0%

25%

50%

75%

100%
2019年度

75%78%

経営理念・方針、サステナビリティ・環境方針等への盛り込みManagement policy, strategy, plan, etc.

Corporate
declaration, action framework,
生物多様性に関する単独の宣言・行動指針・ガイドライン等
guidelines or other documents on biodiversity

2022年度26%
35%✓ The majority of companies include biodiversity-related statements/contents in theirsustainability/environmental policies or other sustainability documents.
✓ While only a few companies include biodiversity-related statements or contents in their
management policies, strategies and plans, overall the number of companies that mention
biodiversity in any corporate document increased.

8Biodiversity information disclosure (1)Q. In which media does your company disclose biodiversity information? (N=319)
Proportion in the valid responses (N=319)
0%Legally mandated reports (Annual Securities Report, business report,…

25%

50%

211

Website219
12

No biodiversity information disclosure
Proportion of companies with biodiversity
information disclosure as compared with the2019 survey results

100%

20

Voluntary reports (e.g., integrated/ sustainability/CSR repoerts, etc.)

Other

75%

75

0%

Proportion in the valid responses
25%
50%
75%
100%
74%
76%

Fiscal Year 2019

Fiscal Year 2022

✓ Many companies disclose biodiversity on their websites and in voluntary reports such as
integrated reports and sustainability reports, and only a limited number of companies include
biodiversity information in their securities reports and other statutory reports.
✓ As compared with the FY2019 survey results, the number of companies disclosing biodiversity
information has increased.
9Biodiversity information disclosure (2)Q. Which disclosure frameworks or guidance does your company follow or refer to when disclosing
biodiversity information? (N=245)

Percentage of valid responses (N=245)
0%

25%

50%

CDP
119

Taskforce on Nature-related Financial Disclosures (TNFD)

71

Science-based Targets Initiative (SBTI)

46

SASB Standards

Others
N/A

100%

154

the Global Reporting Initiative (GRI)

CDSB application guidance for biodiversity-related…

75%

35

4
18
61

✓ Many companies used or referred to CDP or GRI for biodiversity information disclosure, andsome companies referred to TNFD which was under development during the survey period.

10(2) Contribution to GBF

Contribution to the Kunming-Montreal Biodiversity Framework
Q. The 23 targets of the Kunming-Montreal Biodiversity Framework (GBF), are listed below. Does your company
have any activities (including under planning) that correspond to each of the GBF targets? (N=319)✓ Many companies are implementing
activities that contribute to GBF. Out of the
23 GBF targets, many companies havebiodiversity actions corresponding to target
8) Climate change and biodiversity*, 7)
Fertilizer, pesticide, plastics and otherpollutions, 15) Biodiversity information
disclosure, 3) Protected areas and OECM,
and 4) Endangered species and genetic
diversity.
✓ By sector, the proportion of companies withbiodiversity actions that contribute to either
targets of GBF was largest in the pulp andprinting, followed by construction,
food/beverage/tobacco/feed, and realestate/goods rental. **✓ Targets focused by companies differ bysector. ***Regarding Target 8, a follow-up question on thesynergy between climate and biodiversity actions (p.28)
revealed that only a few companies (50 companies,
20%) were making such synergistic efforts, implying thatmany companies associated this target with their ongoing
efforts on climate change that were not intentionallylinked to biodiversity.
**Please refer to the next slide for the detailed result byindustry sectors.

Percentage in the valid responses (N=319)
0%

25%

50%

1. Spatial Planning83

2. Ecosystem restoration

92

3. Protected Areas/OECM

93

5. Wild species harvest and trade28

6. Invasive alien species

52

7. Fertilizers, pesticides, plastics and other…

109

8. Climate Change and Biodiversity

163
10

10. Sustainable agriculture, forestry and…

76

11. Maintenance and restoration of…

96

12. Urban green space/waterfront
13. Genetic resources and benefit sharing

76
9

14. Mainstreaming biodiversity

32

15. Biodiversity information disclosure by…

103

16. Sustainable consumption and food…

74

17. Biosafety
18. Reduce harmful incentives

142

19. Resource mobilization
20. Capacity building, techonologies and…

68
24

21. Data, information and knowledge

36

22. Indigenous people, women and youth
23. Gender
N/A

100%

105

4. Endangered species and genetic diversity

9. Securing the benefits of wild species use

75%

49
14
57

12

[Reference] Percentage of companies with initiatives corresponding to each GBF target (by industry sectors)

Chemical and allied
products

Iron and steel, Non-ferrous
metals and products,
Fabricated metal products

metal productsElectronic parts, devices
and electronic circuits

Electrical machinery,equipment and supplies

Machinery andequipment, etc.

Transportationequipment

Other (Manufacturing)

Construction

Electricity, gas, heat
supply and water

Information andcommunications

Transport and postal
activities

Wholesale and retail
trade

Finance and insurance

Real estate and goods
rental and leasing

23

38

27

12

25

21

14

40

17

46

83

38

8

20

9

60

3

2. Ecosystem restoration

23

38

27

41

0

14

21

32

33

50

33

31

31

24

21

40

13

3. Protected Areas/OECM

54

63

20

41

0

43

21

40

47

43

42

38

15

24

24

60

6

4. Endangered species and genetic diversity

31

63

30

24

38

57

21

56

27

36

50

25

23

16

6

30

10

5. Wild species harvest and trade

8

38

3

0

0

21

0

0

13

14

0

13

15

24

0

10

3

6. Invasive alien species

8

38

20

6

0

21

21

32

3

21

42

13

23

8

6

20

13

7. Fertilizers, pesticides, plastics and otherpollutions

62

50

57

24

25

50

43

28

37

36

17

31

23

32

12

30

26

8. Climate Change and Biodiversity

31

63

67

29

50

50

64

76

37

43

67

56

31

60

45

50

37

9. Securing the benefits of wild species use

0

13

3

0

13

0

0

4

0

4

0

13

0

4

0

10

3

62

38

27

0

0

7

7

16

17

36

17

38

15

48

15

30

19

15

50

23

24

13

29

29

44

30

50

42

31

38

24

12

50

19

12. Urban green space/waterfront

15

50

17

0

13

29

14

36

23

46

33

25

8

20

15

80

6

13. Genetic resources and benefit sharing

0

0

17

0

0

0

0

0

7

4

0

6

0

0

0

0

0

14. Mainstreaming biodiversity

8

25

17

6

0

21

7

4

7

21

17

0

0

12

6

0

10

15. Biodiversity information disclosure

46

63

50

18

0

29

64

28

30

36

42

38

8

28

36

10

10

16. Sustainable consumption and food loss
reduction

77

38

17

12

0

21

29

20

13

11

17

31

38

36

12

50

16

17. Biosafety

15

0

13

6

0

0

0

4

10

4

0

6

0

0

3

0

0

GBF Target
1. Spatial Planning

10. Sustainable agriculture, forestry andfisheries
11. Maintenance and restoration of ecosystem
functions

Other(Nonmanufacturing)

Pulp and Printing

Nonmanufacturing

Beverages, tobacco and
feed

Manufacturing

18. Reduce harmful incentives

8

0

3

0

0

0

0

0

0

0

0

0

0

0

0

0

0

19. Resource mobilization

31

25

30

18

0

14

29

4

13

32

17

25

8

20

30

30

16

20. Capacity building, technologies and science

8

13

3

6

0

14

14

8

3

29

0

6

0

4

0

0

10

21. Data, information and knowledge

31

0

13

12

0

21

7

8

10

14

0

19

23

16

6

0

3

22. Indigenous peoples, women and youth

15

38

10

6

13

29

14

12

17

25

8

19

0

20

9

20

13

23. Gender

15

13

3

6

0

7

0

0

0

11

8

6

0

0

3

0

6

Average of all targets by industry sector

25

33

22

13

8

22

18

21

17

27

23

22

13

19

12

25

11

The numbers in the table indicate the percentage (%) of the number of firms that selected each target out of the total number of valid responses (number of firms) byindustry sector. Dark green/blue in the color scale of the table indicates a large percentage of firms that selected the corresponding target, while light green/blue to no color
13
indicates a small or no percentage.

Biodiversity efforts in upstream and downstream value chains
Q. In relation to Target 15 (biodiversity information disclosure by businesses), has your company implemented
any of the following actions? Companies in finance and insurance sector are requested to answer the actions on
investment, loan or insurance underwriting partners. (N=101)
Percentage in the valid responses (N=101)

Downstream

Upstream

0%25%

Procurement policy includes biodiversity aspects

50%

75%

66

Request suppliers for biodiversity considerations

17

52

Biodiversity-friendly products and services

25

62

Consumer/customer information on biodiversity
considerations in products and services

100%

19

50

25

14

4

20

4

16

4

22

4

Comparison with the 2019 survey results of the
proportion of companies with biodiversity efforts on
their upstream and downstream value chains

Investments andloans

Percentage in the valid responses
Consider biodiversity dependence, impact and related risks ofyour portfolio companies in investment or financing decisions

15

12

44

Consider biodiversity dependence, impacts and related risksof the companies underwriting insurance policies in the
2 8content and screening of insurance policies.
Implementing

Plannning/Under consideration

59
TBD

30

32

0%

10%

20%

30%
24%
27%

40%

50%

FiscalYear…
FY 2019
FiscalYear…
FY 2022

No response✓ The majority of the companies that have actions on GBF Target 15 or are planning to implement actions,have procurement policies that consider biodiversity (upstream) or have biodiversity-friendly products
and services (downstream).
✓ As compared with the FY2019 survey results, there has been an increase in those companies withbiodiversity actions on their upstream and downstream value chains.
14

Biodiversity-friendly products and services
Q. What is the proportion of biodiversity-friendly products and services out of the entire goods
and services sales? (N=62)

Proportion of biodiversity-friendly
products and services

Proportion in the valid responses (N=62)0%25%

81~100%61~80%

75%

100%

7
3

41~60%

5

21~40%

6

1~20%
わからない
N/A

50%

27
14

✓ Nearly half of the companies (27 companies, 44%) had only a small portionof biodiversity-friendly products and services (1-20%) out of total sales,
while only a few companies (7 companies, 11%) had almost all of theirproducts (80-100%) with biodiversity considerations.

15Quantitative targets and indicators linked to the GBF targets
Q. The GBF targets related to biodiversity actions inyour company were listed below. If any of these are
implemented and monitored with quantitative targets
and indicators, please specify the indicators and theirunits, target values and current progress to theextent possible. (N=326)

Comparison with the 2019 survey results of the proportion ofcompanies that have set quantitative targets/indicators

0%

10%

20%

Percentage in the valid responses

30%

40%

27%
29%

50%
FY2019FY2022

GBF Target
1. Spatial Planning

Examples of Goals and Indicators

2. Ecosystem restoration

Area of restored coral reefs, forests, sales of native species, wildlife corridors, seagrass beds and threatened fish habitats; threatened
plant populations; native species sales

3. Protected Areas/OECM

Identification of important species and ecosystems in and near the corporate property lands, OECM registered area, watershed forest
conservation, secondary forest (Satoyama) conservation, green space certification

4. Endangered species and genetic diversity

Protection of important species and ecosystems in and near the corporate property lands, threatened species
surveys/conservation/habitat restoration, wildlife transportation

5. Wild species harvest and trade

Wildlife transportation, proportion of sustainable sourcing, FSC certified/legal paper

6. Invasive alien species

Invasion preventing plan of invasive alien species, area/population of non-native exterminators

7. Fertilizers, pesticides, plastics and other pollutions

Plastic recycling, VOC emissions, de-plasticized products/packaging, bio-pesticide, pesticide and insecticide free products, Rainforest
Alliance certification

8. Climate change and biodiversity

GHG emission reduction, Renewable Energy conversion, green space in factory properties, tree planting, secondary forest (Satoyama)conservation, biodiversity-friendly forest management

10. Sustainable agriculture, forestry and fisheries

Fertilizer and pesticide reduction, RSPO certified palm oil ratio, sustainable food sourcing ratio, ESG on-site audits of natural rubber
plantations, certified forest area, FSC certified material cost ratio, sustainable cacao bean sourcing ratio

11. Maintenance and restoration of ecosystem
functions

Aquatic life impact risk management of wastewater, restoration of threatened fish populations, habitat management and restoration,
mangrove afforestation, tree planting, coral reef conservation, water withdrawal in water stressed areas

12. Urban green space/waterfront

Greening private house gardens, rooftop greening, number of native tree species sold, green space certification, indicator species

14. Mainstreaming Biodiversity

Number of biodiversity-related actions

15. Biodiversity information disclosure

SBTN pilot, adopt the TNFD recommendations, economic value of mangrove ecosystem services, insurance underwriting andinvestment criteria on biodiversity

16. Sustainable consumption and food loss reduction

Wood raw material procurement guidelines, food loss reduction, waste recycling, review of manufacturing process use and emissions

17. Biosafety

Compliance of the Cartagena Protocol

19. Resource mobilization

Amount of ESG investments and loans, support to foundations for biodiversity

20. Capacity building, technologies and science

Awareness-raising and training of employees and other stakeholders

21. Data, information and knowledge

Number of followers of Instagram, reports on biodiversity-related initiatives, MSC raw material rate

22. Indigenous people, women and youth

Number of "green lectures," participatory forest conservation activities, and the number of participation of local residents andelementary school students in activities

23. Gender

Percentage of women in key management positions

Area of created green spaces, wild bird habitats, pollinator gardens, biotopes, green space certification; indicator species

16

Examples of corporate actions related to each GBF target
Q. Please list up to five major biodiversity-related actions which your company is focused on or proud of, in order from themost important.
GBF Target

Activity name and description

Planning and building green space to enhance biodiversity as well as its monitoring [Taisei Corporation / Construction]
Contribution to biodiversity through greening projects [Sumitomo Forestry Co., Ltd./ Construction]
Biodiversity considerations in the layout of radio transmission stations, data centers and cable installation [KDDI Corporation / Information and communications]Contributing to biodiversity and coastal rehabilitation using steel slag products in collaboration with the Yokohama city government [JFE Holdings, Inc. / Iron and steel, Nonferrous metals and products, Fabricated metal products]
2. Ecosystem restoration
Artificial silica sand production from glass cullet [AGC Inc. /Ceramic, stone and clay products]
Creation of a Hometown Forests [Nippon Steel Corporation / Iron and steel, Non-ferrous metals and products, Fabricated metal products]
3. Protected areas/OECM
Factory green space development and management that contributes to OECM [Fujitsu/Information and communications]
4. Endangered species and genetic Protection and monitoring of high conservation value areas [Daio Paper Corporation / Pulp, paper and paper products]
diversity
Endangered plant conservation in the Aburahi Botanical Garden [Shionogi & Co., Ltd. / Others (Manufacturing)]
Survey on marine seafood stock [Nissui Corporation / Beverages, tobacco and feed]
5. Wild species harvest and trade
Prevention of illegal wildlife trade [Japan Airlines Co., Ltd./Transportation, Postal Service]
Protection of native species against invasive species around Kurobe Dam [Kansai Electric Power Co., Inc. / Electricity, gas, heat supply and water]
6. Invasive alien species
Removal of an invasive alien plant species, lanceleaf tickseed [Rinnai Corporation / Iron and steel, Non-ferrous metals and products, Fabricated metal products]
Regenerative agriculture pilots [Suntory Holdings Limited / Beverages, tobacco and feed]
7. Fertilizer, pesticide, plastics andSuzuki Clean Ocean Project [Suzuki Motor Corporation / Transportation equipment]
other pollutions
Reduction of marine plastic litter [SECOM Co., Ltd / Others (Nonmanufacturing)]
Participation in the Blue Carbon Offset project [Tokuyama Corporation /Chemical and allied products]
8. Climate change and biodiversity
SANKI YOU Eco Contribution Point program [SANKI Engineering Co., Ltd / Construction]
10. Sustainable agriculture,
Trading the Rainforest Alliance certified coffee [Kanematsu Corporation / Wholesale and retail trade]
forestry and fisheries
Acquisition of the MSC/ASC Chain of Custody (CoC) certification [Okaya & Co., Ltd/ Wholesale and retail trade]
Rice paddy ownership program [NOK Corporation / Transportation equipment]
11. Maintenance and restoration
Implementation of water stewardship plans [Bridgestone Corporation / Others (Manufacturing)]of ecosystem functions
Monitoring of green space functions [Mori Building Co., Ltd / Real estate and goods rental and leasing]
Acquisition of the "Association for Business Innovation in harmony with Nature and Community“ certification for the office buildings [Mizuho Financial Group, Inc. / Finance
12. Urban green space
and insurance]/waterfront
Building pollinator gardens and employee education [IBM Japan, Ltd. / Information and communications]
14. Mainstreaming biodiversity Sustainable timber procurement [Sumitomo Forestry Co., Ltd. / Construction]
Survey on the spatial proximity of sourcing areas to important biodiversity areas and implementation of environmental conservation actions [TOYO INK SC Holdings
15. Biodiversity information
Corporation /Chemical and allied products]
disclosure
Strengthen environmental and social risk management including on biodiversity [Daiwa Securities Group Inc. / Finance and insurance]
16. Sustainable consumption and Acquisition of FSC® forest certification [Rengo Co., Ltd. / Pulp, paper and paper products]
food loss reduction
RSPO membership [AGC Inc. /Ceramic, stone and clay products]
17. Biosafety
Careful management of genetically modified organisms [Kyowa Kirin Co., Ltd. / Others (Manufacturing)]
Support to the first Blue Bond issuance in Japan[Mizuho Financial Group, Inc. / Finance and insurance]
19. Resource mobilization
Thematic investment on biodiversity conservation [Meiji Yasuda Life Insurance Company / Finance and insurance]
20. Capacity building,“Nature-inspired manufacturing“ research grant [Sekisui Chemical Co., Ltd. / Chemical and allied products]
technologies and science
Large marine algae seed production by free gametophyte technology for seaweed bed restoration. [Kajima Corporation / Construction]
21. Data, information andOpen sea environmental DNA sampling by cargo vessels [Nippon Yusen Kabushiki Kaisha / Transport and postal activities]
knowledge
Ecological footprint monitoring [Daiichi Sankyo Company, Limited / Chemical and allied products]
22. Indigenous people, womenPrimary school lectures on biological surveys [Aisin Corporation / Transportation equipment]
and youth
1. Spatial Planning17

[Reference] Contribution to the SDGs through biodiversity conservation

6. Clean water andsanitation

7. Affordable andclean energy

14. Life below water

15. Life on land

16. Peace, justice andstrong institutions

1

0

6

2

4

2

0

8

4

8

8

32

0

5

3

5

1

3

1

2

5

0

16

10

25

23

49

3

10

3. Protected areas/OECM

2

0

2

3

0

8

2

2

2

1

5

6

14

14

43

0

7

4. Endangered species and genetic diversity

0

0

1

2

1

1

1

0

0

0

3

3

2

10

25

0

4

5. Wild species harvest and trade

0

0

0

0

0

1

0

1

0

0

1

2

1

6

3

0

2

6. Invasive alien species

0

0

0

0

0

0

0

0

0

0

0

1

0

2

8

0

1

7. Fertilizer, pesticide, plastics and other pollutions

1

0

5

1

0

4

1

0

6

1

4

27

5

21

11

1

5

8. Climate change and biodiversity

1

1

2

4

0

3

12

3

6

0

8

12

25

7

26

0

8

9. Securing the benefits of wild species use

0

0

0

0

0

0

0

0

0

0

0

0

0

0

1

0

0

10. Sustainable agriculture, forestry and fisheries

2

5

1

1

1

1

2

3

3

3

4

15

7

6

24

1

3

11. Maintenance and restoration of ecosystem functions

0

0

0

5

0

17

4

0

2

0

4

8

15

12

35

0

9

12. Urban green spaces/waterfronts

0

0

1

4

0

2

1

1

0

0

18

4

13

6

28

0

2

13. Genetic resources and benefit sharing

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

14. Mainstreaming biodiversity

0

0

0

0

0

2

1

2

1

0

0

4

2

4

6

0

0

15. Biodiversity information disclosure by businesses
16. Sustainable consumption and food loss reduction
17. Biosafety

2
1
0

1
5
1

0
1
0

1
1
0

0
1
0

6
0
0

2
0
0

4
1
0

3
0
0

2
0
0

3
0
0

8
8
1

8
1
1

13
1
2

22
3
1

0
0
0

3
1
0

18. Reduce harmful incentives

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

19. Resource mobilization

0

0

0

4

1

4

2

1

1

0

3

4

7

15

19

0

4

20. Capacity building, technologies and science

0

1

1

1

0

2

1

0

0

0

1

1

3

5

7

0

1

21. Data, information and knowledge

0

0

0

4

0

3

1

0

1

0

2

1

4

9

11

0

3

22. Indigenous peoples, women and youth

0

1

0

1

0

0

0

0

0

0

1

4

3

2

4

0

1

23. Gender

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Total of all targets on SDG targets

11

16

20

38

5

63

33

24

32

7

81

123

144

166

358

5

69

17. Partnerships forthe goals

5. Gender equality

30

13. Climate action

4. Quality education

1

1

12. Responsible
consumption andproduction

3. Good health andwell-being

1

2. Ecosystem restoration

11. Sustainable cities
and communities

2. Zero hunger

1. Spatial Planning

SDGs

8. Decent work andeconomic growth
9. Industry,
innovation andinfrastructure
10. Reduced
inequalities

GBF Target

1. No poverty

Q. Please indicate the number of the most relevant GBF target and the number of all relevant SDG targets for the priority
initiatives you have answered and the initiatives you would like to promote.

The numbers in the table show the number of times that a GBF target and the respective SDGs target co-occurred over the individual biodiversity actions by companies. Deep red and blue in the tableshow a higher number of co-occurrences between the GBF and SDG targets.

18

(3) Response to the TNFD recommendations

Assessment of biodiversity dependences, impacts andrelated risks and opportunities
Q. Does your company assess the biodiversity dependences/impacts of value chains and relatedrisks and opportunities? Financial institutions are requested to answer on these elements
concerning your investees, loan recipients and insureds. (N=307)
Asessing,

32, 10%

Not yet,127, 42%
Plannning/underconsideration, 148,

48%

✓The proportion of companies that have already assessed biodiversity
dependence, impacts and related risks and opportunities is still small(10%), but the proportion exceeds half in cases where companies thatare planning or considering such assessments are included.
20

Extent of value chains and scope of assessment
Q. Please specify the extent of your company‘s business value chains and the scope of the assessment of
their biodiversity impacts and dependences. If your company is a financial institution, please answer onthese elements of your investees, loan recipients and insureds. (N=180)
Percentage in the valid responses (N=180)(extent of value chain)
0%25%(scope of evaluation)
50%

75%

100%

0%

25%
61

50%

75%

原料調達 7
Raw material production/extraction

136

37

10

Transportation
輸送 13

125

42

15

Design/processing/manufacturing
設計・加工・製造 19

115

46

20

Sales 17
販売

119

44

17

29

134

Use/consumption
使用・消費 17

123

40

19

32

129

Collection/recycling/disposal
回収・リサイクル・廃棄
23

115

42

25

31

124

Land use ofbusiness premises
事業所の土地利用

29

112

39

25

42

113

Office 22
オフィス

115

43

17

Domestic only

Including overseas

Not applicable/No response

Domestic only

33

100%

109
132

42

118

34

129

Including overseas

Not applicable/No response✓ The majority of the 180 companies have business value chains extending to othercountries, but only a limited number of companies evaluate value chains beyond thenational boundary.

21

Initiatives on LEAP approach

Response to TNFD

Q. The list below shows each step of the LEAP* approach that TNFD proposed for assessing
business dependences and impact on biodiversity and related risks and opportunities. Please
select the steps that your company has already taken. (N=180)
Percentage in the valid responses (N=180)
25%
50%
75%

0%
L1.Identification of business footprint

66

E1.Identification of relevant environmental assets and…

E3.Dependency analysis

34

107
146

56
33

P1.Strategy and resource allocation

44

124
147
136

P2.Performance management

30

150

P3.Reporting and presentation

29

151

Yes

✓

129
73

A1.Risk and opportunity identification
A2. Existing risk mitigation and risk and opportunity…

114

51

E2.Identification of dependencies and impacts

100%

No/No response

Fewer companies have taken the latter half of the LEAP steps, and less than a quarter haveprogressed to the final Prepare stage.
*LEAP stands for Locate, Evaluate, Assess and Prepare. It is an approach that allows for systematic and step-by-step
assessment of nature-related risks and opportunities based on scientific evidence. Note that the list was taken from the TNFD
22
beta version 0.4.

Biodiversity-related business risks

Response to TNFD

Q. Please describe up to three of your company's business risks related to biodiversity.
Total number of cases listed*
0

20

40

57

Transition
risk
移行リスク

57
13

Biodiversity
Impacts
生物多様性影響

31

Manufacturing

Finance and Information and Wholesale andinsurance communications
retail trade

Construction

60

Physical
物理的リスク
Risk

Systemic risk
システム的リスク

Risk type*Physical Risk

39

0

3

4

4

Transition risk

24

7

9

5

3

Systemic risk

3

7

0

1

1

Biodiversity Impacts

16

1

1

0

6

*Up to three descriptive responses from each company were classified into 4categories: physical risk, transition risk, systemic risk, and biodiversity impact, based on
the risk classification by TNFD.

Type of risk

Industry sector

ExamplePhysical risk

Manufacturing

Ecosystem degradation results in the loss of access to biomaterials, which hampers production andresearch.

Manufacturing

Constraints on business activities and cost increases occur when R&D expenditures cannot achievesufficient business growth in the context of rapidly changing needs of society and customers due toinstitution and regulation changes.

Finance

Increased global efforts to natural capital conservation will lead to higher environmental protection
costs resulting in higher prices for many goods and services, including food, clothing, building
materials and tourism. This can cause global inflation and negatively affect the finance markets.

Construction

Possible degradation of wildlife habitats will occur due to discharge of water containing pollutantsfrom construction sites.

Transition risk

Systemic risk

Biodiversity
Impacts✓ The number of companies aware of biodiversity-related risks, by type of risk, was highest forphysical and transition risks.
23

Biodiversity-related business opportunities

Response to TNFD

Q. Please describe up to three business opportunities for your company related to biodiversity.
Total number of cases listed*
0

20

40

マーケット
Market36

資本フローと金融
Capitalflow and financing

8

Products
and Services
製品とサービス

50

Reputational
capital
企業イメージResource
efficiency
資源効率性

60

21
6

Sustainable
use of natural resources
自然資源の持続可能な利用

17

Manufacturing

Finance andinsurance

Market

21

1

0

5

3

Capital flow and financing

0

8

0

0

0

Products and Services

24

4

6

3

5

Reputational capital

12

0

1

1

0

4

0

0

2

0

11

0

0

2

0

14

0

0

1

4

Opportunity type*

Resource efficiency*Up to three descriptive
responses from each
Sustainable use of naturalcompany were categorized
and tabulated based on the resources
opportunity categories by Ecosystem protection andrestoration
TNFD.

Information
Wholesale andcommunications
retail trade

Construction

Ecosystem protection
and restoration
生態系保護・再生

24

Opportunity Type

Industrial Sector

ExampleMarketManufacturing

New market formation and increased sales through the development of environment-friendly products

Capital flow and financing Finance
Products and Services

Information andcommunications

Reputational capital

Manufacturing

Resource efficiency

Manufacturing

Sustainable use ofnatural resources

Electricity, gas,
heat and watersupplyEcosystem protection andConstruction
restoration

Suppliers of nature conservation-oriented goods and services may increase their R&D and capital
investments, which may increase investment and financing opportunities.
New business opportunity by the use of technologies such as AI-supported nature predictions.
Potential change in awareness and trust among customers and local people, contribution to local
communities, increased business opportunities and branding.
Early adoption of biodiversity-friendly materials and supplies and development of independent supply chainscontribute to cost reduction.
Developing a resilient system that can cope with resource depletion through sustainable and reduced
resources use.
Increased demand of nature-friendly infrastructure development, as well as of urban greening and facility
projects to create green cities.

✓ Companies aware of biodiversity-related business opportunities, mostly products and services, followedby markets, and ecosystem protection and restoration.
24

Scenario analysis
Q. If your company has carried out scenario analysis, please select a timeframe for your scenario
analysis from the drop-down list and provide a summary in the comments box, including thename of the scenario you referred to. (N=33)~2years, 1, 3%

2~5years,
1, 3%Time frame

5~8years(~2030)No response,

Industrial
SectorElectricity,gas, heat
supply, andwater

Example(Company A)

Maintain existing facility for the short- and mid-term(2023-2026); and for the long-term (2027-2030), adopt
LEAP approach with new renewable energy
development.

Transportationequipment

Aqueduct (WRI's water security scenario) 2040
scenario.

11, 33%5~8years(~2030),
12, 37%

Long term(~ 2050)(Company B)Longterm(~2050),
Super-long term

6, 18%

Super-longterm(2050~)

Manufacturing/ Other(Company C)

Slope greening of mines under operation and ruins, aswell as long-term simulations of conservation effects
including vegetation, ecosystems and water resources(2050~), 2, 6%✓ Among the companies that have carried out scenario analysis, the largest number ofcompanies adopted a timeframe of “up to 2030”, followed by “up to 2050”.
25

(4) Drivers and barriers for biodiversity actions

Drivers and barriers for biodiversity actions
Q. What motivated/drove your company to take biodiversity actions? (N=268)
Q. What are the barriers in taking actions on biodiversity (including response to TNFD)? (N=300)0%International /national norms and国際・国内の規範や社会的関心
social responsibility
他社がやっている
Follow
actions by other companies

221
39

Barriers

Drivers

0%

向

25%

need

50%

Social
社会動社会動向

Emphasison management philosophy
経営理念上または経営層が重視/management's focus

149

事業上必要、事業利益
Profitmaking12998

投資家の要請Requests
from investors

91

新たなビジネスチャンス
Newbusiness opportunities
顧客からの要請
Requests from costumers

60

該当なし
N/A

25%

他社がやっていない
Other companies
are not doing

12

経営層が必要と考えていない
Indifferenceby the management7

事業利益に貢献しない
Not
contributing to profit

経営面

75%

business
経営面

100%

50%

75%

51

投資家の要望・ニーズがない
No request from investors

24

顧客の要望・ニーズがない
No request from customers

37

指標、目標の設定や計測
Setting indicators and targets
and their measurement

220

あてはまるものはない
N/A

技術面

184

サプライチェーンが複雑
Complex supply chains

172

知識、人員、時間や予算の不足
Limited knowledge,
resources and budget

153

Identification
生物多様性関連リスク・機会の特定
of biodiversity risks/opportunities

144

事業との関連性がわからない
Unclearrelevance to business
Don’t
know
how
to
conserve, restore or
生物多様性保全、再生や持続可能な利用の方法
sustainably use biodiversity
Otherその他
barriers

その他

39

その他
Other
reasons

Others
その他

技術面
Technical

シナリオの設定・評価
Scenario development
and analysis

19✓ The largest number of companies selected international and national norms and social
responsibility as the drivers to take biodiversity actions, followed by the emphasis on
management philosophy/management's focus.
✓ Many companies pointed out technical barriers in taking biodiversity actions, such as setting
indicators and targets, and their measurements.
✓ Barriers for taking biodiversity actions have been shifting compared with the FY2019 survey
results: a larger number of companies recognize technical barriers, while a smaller number ofcompanies raised business management-related barriers, such as not contributing to profit.

課題はない
No barrier

100%

74
57
21
5

Comparison with the 2019
survey results

Proportion in the valid responses
0%

25%

50%

64%
73%

Setting indicators and targets
and their measurement
Not contributing to profit
Unclear relevance to ourbusiness

75%

51%
17%
34%
25%

FY2019FY202227

Linking biodiversity and climate actions
Q. Does your company link climate and biodiversity actions in its business and information
disclosure? (N=252)

Percentage in the valid responses (N=252)
0%25%

Lagging behind in biodiversity actions

100%

67

Create synergies between climate and biodiversity actions

Assess and avoid trade-offs between climate and…

75%
151

Separate actions on climate and biodiversity

Link the TCFD and TNFD disclosures

50%

50
34
26

✓ Many companies are lagging behind in biodiversity actions as compared withclimate actions, or they are taking biodiversity and climate actions separately.
✓ Some companies are creating synergies between biodiversity and climate actions,or making efforts to link climate and biodiversity information disclosure, i.e., TCFD
and TNFD.

28