Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Human Rights
• Employee Well-being
• Supply Chain Sustainability
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 55% for Scope 1+2 and 10% for Scope 3 (compared with FY2019 levels) by FY2025 (target)
• Contribution of 95t (total) of carbon fixation through 50,000 trees planted by ESPEC MIC Corp. (target)
• Biodiversity conservation activities through the “ESPEC’s 50 -Year Forest” in Sanda City, Hyogo Prefecture
• Received Science Based Targets (SBT) certification from the international SBT Initiative

Social Achievements

• Opened ESPEC Smile Farm, employing individuals with disabilities
• Received the “Kurumin” certification for supporting child-rearing
• Received the highest ranking of the certification mark “Eruboshi” based on the Act on Promotion of Women’s Participation and Advancement in the Workplace
• Implemented a female leadership development program
• Established a donation system featuring employee participation (ESPEC Smile Club)

Governance Achievements

• Increased the ratio of independent outside directors to 40% by FY2022
• Increased the female ratio of directors to 20% by FY2022
• Active information disclosure related to sustainability

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Conduct supplier evaluations, including factors such as the environment and compliance

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Science Based Targets (SBT)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

ESPEC contributes to various SDGs through its environmental creation technology, including solutions for global warming, extreme weather, biodiversity loss, and food security.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Bronze Prize in the Gomez IR Website Ranking 2023
• Commendation Award of the 2023 Internet IR Award of Daiwa IR
• GRADE AAA company website in the All-Japanese Listed Companies’ Website Ranking 2023
• 3.5 stars in the Nikkei’s 5th SDGs Management Survey
• 3 stars in Nikkei’s 7th Smart Work Management Survey
• Ranked 157th in the Nikkan Kogyo Shimbun’s 19th Corporate Power Ranking
• Excellent company in the Gomez ESG Website Ranking 2023
• Asia-Pacific Climate Leader (2023 and 2024)
• Supplier Engagement Leader (2023 and 2024)
• B score in CDP Climate Change 2023
• Ranked 375th in Toyo Keizai Inc.’s 2024 CSR Corporate Ranking

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Diversity & Inclusion
• Supply Chain Sustainability
• Employee Well-being

Environmental Achievements

• Reduced gross CO2 emissions by 10% versus FY2018 (FY2021 target)
• Achieved 70% renewable energy usage rate across the ESPEC Group, expecting a 48% consolidated and 75% Japan reduction in annual CO2 emissions versus FY2019.
• 100% green electricity for laboratory testing services in April 2021, reducing annual CO2 emissions by approximately 4,187 t.
• Kobe R&D Center received the FY2021 Chairperson’s Award of the Japan Greenery Research and Development Center.

Social Achievements

• Opened ESPEC Smile Farm, a plantation staffed by workers with disabilities.
• Received the “Kurumin” certification and the highest ranking of the certification mark “Eruboshi” for supporting child-rearing.
• Established a matching gift system for employee donations related to SDGs.
• Implemented a Global Trainee Program for international human resource development.

Governance Achievements

• Voluntarily responded to the CDP Climate Change Questionnaire (received a “B” score).

Climate Goals & Targets

Environmental Challenges

• Reducing gross CO2 emissions
• Increasing renewable energy usage

Mitigation Strategies

• Revised Mid-Term Plan on the Environment (FY2020)
• Committed to Science Based Targets (SBT) initiative
• Conversion to electricity derived from renewable energy at various sites

Supply Chain Management

Responsible Procurement

• Conduct supplier evaluations, including factors such as the environment and compliance

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CDP Climate Change Questionnaire

Certifications: ISO/IEC 17025

Sustainable Products & Innovation

• Energy efficient products
• Low GWP products

Awards & Recognition

• Excellence Award in the Environmental Communication Awards
• Ministry of Economy, Trade and Industry (METI) Global Niche Top Companies Selection 100

Environmental Metrics

ESG Focus Areas

• Environmental Preservation
• Biodiversity
• Human Resources
• Governance
• Supply Chain

Environmental Achievements

• 100% green electricity for laboratory testing services (Japan)
• Reduced GWP values by 88% in AR Series Environmental Stress Chamber
• Reforestation (tree planting) and waterfront biotope restoration projects
• Developed rooftop green space using native plant species at Kobe R&D Center
• Acquired ABINC Certification for biodiversity preservation activities

Social Achievements

• Opened ESPEC Smile Farm, employing workers with disabilities
• Kurumin certification for supporting child-rearing
• Eruboshi certification for promoting women's participation and advancement
• Employee donation matching system for SDG-related activities
• Global Trainee Program for international human resource development

Governance Achievements

• ISO/IEC 17025 certification for test facilities
• First in Japan to acquire ISO/IEC 17025 test facility certification simultaneously in the three fields of automobiles, trains and airplanes.
• First in Japan The Toyota Test Center addressing all test items set forth by the LV124 German Automotive Manufacturer Testing Standards.
• Supplier evaluations including environmental and compliance factors
• Active information disclosure related to sustainability

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier evaluations including environmental and compliance factors

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO/IEC 17025, ABINC Certification, Kurumin, Eruboshi

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• AR Series Environmental Stress Chamber (low GWP refrigerant)
• Freezers for COVID-19 vaccines
• Plant factory technologies

Awards & Recognition

• Kansai Director-General's Award for Greenery Factory
• CDP Supplier Engagement Leader
• Bronze Prize in Gomez IR Website Ranking
• 4 stars in Nikkei’s 4th SDGs Management Survey
• 3.5 stars in Nikkei’s 6th Smart Work Management Survey
• Excellent company in Gomez ESG Website Ranking