We have joined the Taskforce on Nature-related Financial Disclosures (TNFD) Forum and registered as a TNFD Adopter in March 2025.
The TNFD Forum supports the discussions of the TNFD, an international organization established in June 2021 to develop a framework for corporate risk management and disclosure related to nature. The Forum is a stakeholder organization made up of companies, financial institutions, research institutions, and other organizations that have joined to support the development of the framework. In addition to our participation in the TNFD Forum, we have also registered with TNFD Adopter, a group of companies and organizations that have expressed their intention to disclose information in line with TNFD recommendations by FY2025.
In our management policy, we state that "As responsible members of society, we work together with society to contribute to solving various issues," and we are working to resolve social issues through our efforts to conserve biodiversity and the environment. We will actively disclose information about the impact of our group's activities on the natural environment and biodiversity, and we will contribute to the realization of a sustainable society by balancing corporate growth with the protection of biodiversity.
Please refer to the PDF titled "IINO Lines TNFD Report" for further details.
1. Application of Materiality
2. Scope of Disclosure
3. Locations with Nature-Related Issues
4. Integration with Other Sustainability-Related Disclosures
5. Time Horizons Considered
6. Engagement with Indigenous Peoples, Local Communities, and Affected Stakeholders in Identifying and Assessing Nature-Related Issues
In conducting our business activities, our Group respects the human rights of all relevant stakeholders in accordance with international standards, as outlined in the IINO Group Human Rights Policy and our human rights management processes described in the "Governance" section.
The IINO Group regards efforts to address environmental issues as a key management challenge. We are examining initiatives and managing their progress across the entire Group. As an organization to discuss environmental issues, we have established the Safety and Environment Committee, which is chaired by the President and Representative Director and whose members include all executive directors and presidents of major group companies. Under the Risk Management Committee, which oversees company-wide risk-management activities, the Safety and Environment Committee is positioned as the committee responsible for formulating and promoting policies related to safety and the environment common to our company and all group companies. Meetings are convened regularly once a month. Moreover, the Safety and Environment Committee evaluates the environmental aspects of the Group's services and activities (including the aspects of biodiversity), with the Risk-Management Committee, Executive Committee, and Board of Directors monitoring and overseeing sustainability-related issues deemed important. The Representative Director also serves as the person responsible for nature-related issues within the Group.
As a global enterprise, the IINO Group recognizes that respecting the human rights of all people is our corporate social responsibility, signing the United Nations Global Compact to express our endorsement in September 2022. Moreover, as our highest-level policy on human rights based on our corporate philosophy, the IINO Group Human Rights Policy was formulated at a resolution passed by the Board of Directors on October 27, 2022. The Group will respect the human rights of all stakeholders involved in its business activities and fulfill its responsibility to respect human rights by addressing any direct or indirect adverse impacts on human rights that any of its business activities may cause.
In this disclosure, we present the results of the LEAP analyses conducted for our Group's two core businesses: shipping and real estate.
To identify material nature-related issues, we assessed our dependencies and impacts on nature across both our direct operations and our upstream and downstream value chains. Each dependency and impact was evaluated for its level of materiality on a five-point scale ranging from "Very High" to "Very Low." After identifying the relevant sectors within our direct operations and value chain, we used ENCORE, a dependency- and impact-assessment tool to determine the level of importance. For direct operations, the assessment results were adjusted to better reflect the actual conditions within our Group.
Based on the results of the assessment of dependencies and impacts, nature-related risks and opportunities in the shipping business were inventoried and organized. In addition to the dependency and impact heat map, external factors such as international policy trends were also taken into account in the inventory of risks and opportunities. Furthermore, items related to risks and opportunities were added based on the outcomes of analyses conducted in the current fiscal year.
【Risks and Opportunities in the Shipping Business】
To understand the characteristics of areas requiring attention* and individual marine areas in the shipping business, analysis and evaluation of navigation areas were carried out based on position data from vessels directly operated by the company during 2023 to 2024. For details on the analytical methods and indicators used, please refer to "IINO Lines TNFD Report, page 10."
* Areas Requiring attention: Regions (marine areas) considered to be ecologically sensitive and susceptible to environmental impacts.
In offshore areas, we have identified six regions as caution areas: the waters off Japan (Pacific offshore zone), the southwestern coast of India, the Strait of Malacca, the offshore area of the Gulf of Oman, the vicinity of the Strait of Gibraltar and the western Mediterranean, and the southern South China Sea.
We conducted our analysis and evaluation using the same process applied to the shipping business (p.21). Based on the results of this year's assessment, we reviewed and partially updated the evaluation disclosed last fiscal year.
Based on our assessment of dependencies and impacts, we conducted a comprehensive review of nature related risks and opportunities relevant to the real estate business. In addition to the heat map illustrating dependencies and impacts, this review also incorporates external factors such as international policy developments. Furthermore, reflecting the results of the analysis conducted during the current fiscal year, we have added new items to our list of risks and opportunities.
【Risks and Opportunities in the Real Estate Business】
As with the shipping business, a "locate" analysis was conducted in the real estate business for the purpose of identifying areas requiring attention. In the real estate business, analysis and evaluation were conducted for eight domestic properties owned by the company, using the TNFD recommended perspectives for areas requiring attention. For details on the analytical methods and indicators used, please refer to "IINO Lines TNFD Report, page 15."
【Results of the Analysis of Areas Requiring Attention】
Our Group identifies and evaluates nature-related issues in accordance with the LEAP approach developed by the TNFD. For this disclosure, we focused on the shipping and real estate businesses.
In identifying and assessing nature-related issues, we first conducted a qualitative review of dependencies and impacts on nature across both our direct operations and upstream/downstream value chains. For direct operations, we analyzed the natural interfaces and sensitive areas associated with the marine regions and ports our vessels navigate, as well as the locations of our real estate assets. Nature-related risks and opportunities were then identified by integrating the dependencies, impacts, natural interfaces, and sensitive areas identified to date, together with global developments such as regulatory trends in various countries.
The nature-related issues identified are overseen primarily by the Safety and Environment Committee, chaired by the President and Representative Director and composed of all Executive Officers and the presidents of major Group companies.
In addition, the Sustainability Promotion Department and its cross-functional Environmental Promotion Working Team jointly develop plans and initiatives addressing environmental issues, including nature-related matters, and report regularly to the Safety and Environment Committee.
Nature-related risks identified as material to our business management are reported by the Risk Management Committee-responsible for Group-wide risk policies and oversight-to the Board of Directors. These risks are subsequently incorporated into the Company's enterprise risk management processes.
In this disclosure, we present the results for the indicators currently measured that correspond to the TNFD Global Core Metrics and the Shipping Sector Core Metrics. Going forward, based on the findings from the LEAP analysis conducted from last fiscal year through this fiscal year, we plan to consider establishing formal metrics and targets.
In addition, our GHG emissions and wastewater volumes are subject to third-party verification by ClassNK (Nippon Kaiji Kyokai), ensuring the reliability and transparency of the data disclosed.
【Metrics and Performance】
