Biodiversity (TNFD)

Biodiversity initiatives

Disclosure based on TNFD recommendations

Our group has commenced efforts to understand and address our relationship with nature (dependencies and impacts) based on the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD). The 2020 World Economic Forum report indicated that up to half of global economic value could be lost due to nature loss, highlighting the growing international dialogue on nature conservation. Additionally, in December 2022, the Kunming-Montreal Global Biodiversity Framework was adopted at the 15th Conference of the Parties to the Convention on Biological Diversity (COP15), establishing international policies and targets for nature conservation. Our group is committed to conducting analyses and developing responses related to nature to achieve sustainable growth that considers not only climate change but also biodiversity.

Dependency and Impact of Our Business on Nature*

To identify our dependencies and impacts on nature and to understand the natural environment surrounding our operations, our group conducted analyses corresponding to the Locate and Evaluate phases of the LEAP approach *1 proposed by TNFD. The focus of this analysis was on our employment support business for individuals with disabilities (i.e., Spool Plus Inc.), which is presumed to have a particularly strong connection with natural capital.

Overview of the LEAP Approach
（e.g.）Dependence and Impact in our Agricultural business
（e.g.）Dependence and Impact in our Agricultural business

* Corporate activities rely on the benefits provided by ecosystem services, yet they also modify the state of nature. The TNFD framework characterizes this interplay as "dependency" and "impact".

Relationship to nature（dependencies・impacts）

Relationship to nature（dependencies・impacts）

Using ENCORE*2, we analyzed our target business regarding its dependency on ecosystem services and its impact on nature. The results identified potential impacts from changes in land use associated with the establishment of farms, GHG emissions from equipment installation, and water usage during fertilizer production. Additionally, we recognized a high dependency on ecosystem services in various aspects, such as water used for crop cultivation and cleaning, climate regulation in agricultural activities, healthy soil, and pollination and pest control by insects.

Analysis of the Natural Surroundings of Our Farms

Referring to the definition of sensitive locations provided by the TNFD, we conducted an investigation of the natural environment surrounding our farms using the tools outlined below. As a result, it was confirmed that four out of the 47 farms owned by Spool Plus are located within designated protected areas or Key Biodiversity Areas. These locations will be treated as sensitive locations (areas of concern), and we will implement stricter management of waste and wastewater. While we did not identify any sites experiencing high water stress, there are indications of potential tree loss and land contamination. As a result, we are committed to ensuring that our business activities do not contribute to these issues in the future.

Overview of sensitive locations and tools used
TNFD Assessment categories Indicators referenced Tools used
Importance of biodiversity
  • Key Biodiversity Areas
  • Designation
  • IUCN management category
 IBAT(Integrated Biodiversity Assessment Tool)*3
Ecosystem integrity
  • Ecosystem Condition
  • Land, Freshwater and Sea Use Change
  • Tree Cover Loss
  • Invasive Species
  • Pollution
 Biodiversity Risk Filter*4
Water stress
  • Baseline Water Stress
 Aqueduct Water Risk Atlas*5
Importance for ecosystem service provision
  • Resource Scarcity
 Biodiversity Risk Filter

Future Actions

In light of the dependencies and impacts identified in this analysis, Spool Plus is already engaged in initiatives aimed at resource conservation and mitigating our impact on nature. For resource conservation, we are implementing water recycling and the reuse of pumice. We also adhere to legal regulations for the management of waste and wastewater treatment.
To further reduce our future impacts on the natural environment, we will continue monitoring the four sites identified as having high biodiversity significance in our surrounding environment assessments. Additionally, when expanding our business and establishing new farms, we plan to incorporate a process to evaluate the surrounding natural environment, ensuring that our activities are more considerate of biodiversity. Moving forward, we will conduct analyses corresponding to the Assess and Prepare phases of the LEAP approach, further advancing our efforts towards achieving nature-positive outcomes.

*1：An approach for companies to discover their connections with nature (Locate), diagnose dependencies and impacts (Evaluate), assess risks and opportunities (Assess), and prepare for response and reporting (Prepare).
*2：A tool developed by UNEP-WCMC (United Nations Environment Programme World Conservation Monitoring Centre) that allows for the identification of dependencies and impacts on nature across different business processes.
*3：A tool developed by UNEP-WCMC that provides comprehensive information on global protected areas.
*4：A tool developed by WWF (World Wildlife Fund) that enables screening and prioritization of biodiversity-related risks.
*5：A tool developed by WRI (World Resources Institute) that assesses water risks by region globally.