Risks and Opportunities
In the TEPCO Group, business risks and opportunities are assessed/analyzed by committees headed by the President on the executive side. The results of these discussions/assessments by each committee are leveraged when making decisions about key business issues, etc., and discussed/reported to the Board of Directors.
Committee Configuration
Risk Management Committee
| Chair | President |
|---|---|
| Vice chair | Vice President (CFO), Vice President (Personnel) |
| Members | Vice President (Business Planning), CIO, Disaster Prevention and Safety Managing Executive Officer, Accounting Managing Executive Officer, ESG Managing Executive Officer, CDO, Fukushima Revitalization Headquarters Representative, Niigata Headquarters Representative, Nuclear Power and Plant Siting Division General Manager, core company presidents |
Future Management Committee
| Chair | President |
|---|---|
| Members | Chairman, Vice President (CFO), Nuclear Power and Plant Siting Division General Manager, Business Planning Executive Officer/Director, Auditors, core company presidents |
| Secretariat | Vice President (Business Planning) |
ESG Committee
| Chair | President |
|---|---|
| Vice chair | Vice President (CFO), ESG Managing Executive Officer |
| Members | Vice President (Business Planning), Vice President(Personnel), CIO, Disaster Prevention and Safety Managing Executive Officer, Accounting Managing Executive Officer, Business Planning Executive Officer, core company presidents |
Risk Management Committee
The Risk Management Committee was established for the purpose of centralizing management of the TEPCO Group’s risks, and formulating measures to address each risk scenario analysis. In consideration of the status of countermeasure implementation and changes to our business environment, the Committee revises risks scenarios, etc., as suitable and when needed. In the TEPCO Group, each entity identifies risks and a total of 3,000 risks have been identified. Of these, approximately 50 risks have been identified as having the potential to greatly impact the Group, and the Committee is in the process of assessing and analyzing these risks. The results of these assessments and analyses not only help to avoid risks, but also mitigate damage through initial responses when the risks manifest, and serve as important handling policies when the Group goes into crisis management mode. Furthermore, six subcommittees have been established within this Committee to concentrate on specific issues under the supervision of a managing executive officer who has been appointed chair and is responsible for the subcommittee.
During FY2020, measures to address tight supply and demand were implemented as measures to address supply stability issues.
Six Subcommittees
Example of FY2020 Achievements
| Key Risks | Response |
|---|---|
| Large-Scale Blackouts (for addressing tight supply and demand) |
Measures to address tight supply and demand caused by low LNG reserves in January 2021 were implemented. Although there was the potential for the need to implement rolling blackouts if supply capability countermeasures were not implemented, appropriate measures were implemented based upon supply and demand emergency countermeasures thereby preventing hindrances to the power supply, such as rolling blackouts and large-scale power outages. |
Future Management Committee
As the environment surrounding the energy industry experiences long-term changes, the Future Management Committee points the direction of the Group’s businesses and issues that need to be addressed by the entire Group in order to identify not only risks, but also opportunities that will enable our business to grow into the future.
During FY2020 the Committee met a total of five times to discuss future energy ventures that shall improve revenue and also the state of the foundation of the Group’s business that supports these ventures.
Example of FY2020 Achievements
| Objectives | To develop a business portfolio that maintains competitive superiority through the expansion of new businesses and the selections/strengthening of existing businesses, in order to create an earnings foundation capable of producing ¥450 billion in consolidated profits in the long-term. |
|---|---|
| Achievements | Renewable energies, mobility electrification, data/communications, and overseas [projects] were identified as key new business areas, and a debate over how to further secure profits ensued. |
| Going forward | The Carbon Neutral Challenge Task Force established within the Future Management Committee shall discuss the transition to a business model that provides new value based on carbon neutrality and measures for reincarnation into a “company that creates value for the customer.” |
Example of Discussion Topics (overseas projects)
| Topic | The current status of overseas projects and Group policies for promoting overseas projects |
|---|---|
| Discussion Summary |
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ESG Committee
The ESG Committee was established in January 2019 for the purpose of identifying and discussing issues related to ESG and sustainability that management should address, and promoting management decisions about these issues.
In FY2019, ESG business strategies were compiled and reported to the Board of Directors. This strategy is comprised of Defensive ESG that aims to improve ESG management assessments through better coordination with ESG rating agencies, evolution of the integrated report and engagement with financial stakeholders, and Offensive ESG that aims to solve social issues while simultaneously promoting the development of a business model that will lead to improved earnings. During FY2020, discussions focused primarily on initiatives aims to achieve mid/long-term CO2 reduction targets.
Examples of FY2020 Achievements to Date
| Topic | Discussion Summary |
|---|---|
| Defensive ESG (business assessment improvements) |
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| Offensive ESG (ESG business model) |
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| CO2 Reduction Targets |
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