Climate Change Data

FUKUSHIMA GALILEI CO. LTD.

Climate Impact & Sustainability Data (2021-04 to 2022-03, 2022-04 to 2023-03)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:13,470 tons of CO2e (FY2021)

ESG Focus Areas

  • Climate change
  • Food safety and security
  • Human resources
  • Global operations
  • Digital transformation

Environmental Achievements

  • Launched NOBRAC, a brand focused on carbon-free solutions, and started marketing a CFC-free CO2 refrigerant unit.
  • Switched Okayama and Shiga factories to CO2-free electricity and installed solar power generation equipment.
  • Reduced GWP of refrigerants by approximately 65% by replacing R-404A with R-448A.
  • Reduced CO2 emissions by 18.6% compared to 2020 at Shiga factory and 25% at Okayama factory.

Social Achievements

  • Established the Galilei 1% Club for social contribution initiatives, donating 47 refrigerators and freezers to 22 organizations.
  • Opened GALILEI Academy for employee training and development.
  • Implemented measures to promote paternity leave, requiring male employees to take at least five consecutive days.
  • Implemented initiatives to promote women's empowerment, including recruitment targets and job transfer schemes.

Governance Achievements

  • Changed management structure to appoint two executives, enhancing business oversight and execution.
  • Established various committees (Risk Management, Nomination Advisory, Remuneration Advisory, Compliance) to strengthen corporate governance.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero greenhouse gas emissions by 2050.
Medium-term Goals:
  • Achieve 50% reduction in CO2 emissions by 2030 (from FY2013).
Short-term Goals:
  • Reduce refrigerant leaks to zero by 2035.
  • Convert to green refrigerants for new products and equipment by 2025.
  • Reduce CO2 emissions by 50% by 2030 (compared to 2013).

Environmental Challenges

  • Global warming and refrigerant GWP.
  • Aging technical workforce and difficulty finding successors.
  • Rising material costs.
  • COVID-19 pandemic impact on business.
  • Lack of investment in projects at the start of FY2021.
Mitigation Strategies
  • Developed NOBRAC brand and CFC-free CO2 refrigerant unit.
  • Opened GALILEI Academy for human resource development.
  • Developed Blast Chiller 100V to meet new market needs.
  • Implemented digital transformation (DX) initiatives for improved efficiency and preventative maintenance.
  • Improved delivery and installation efficiency to reduce costs.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001

UN Sustainable Development Goals

  • Goal 2
  • Goal 7
  • Goal 9
  • Goal 12
  • Goal 13
  • Goal 14
  • Goal 15

The report highlights how various initiatives contribute to these goals, particularly in relation to food loss reduction, energy conservation, sustainable production, climate action, and responsible consumption.

Sustainable Products & Innovation

  • NOBRAC products
  • CFC-free refrigerant units
  • Blast Chiller 100V
  • Compact-in showcase MEG Series
  • Flip-up shelves
  • Galilei Air-tec System

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:9,568 tCO2e/year (2022)

ESG Focus Areas

  • Improve consumers’ lives
  • Reduce food loss
  • Achieve a sustainable supply chain
  • Support a healthy lifestyle
  • Achieve a carbon-free society
  • Live in harmony with local communities
  • Develop human resources
  • Encourage people from diverse backgrounds to play an active part in the workplace

Environmental Achievements

  • Reduced CO2 emissions by 31% from 2013 (9,568 t-CO2e)
  • Achieved zero CO2 emissions from electric power in commercial refrigerator manufacturing and R&D activities at Okayama Factory
  • Switched to CFC-free refrigerant R1234yf (GWP: 1) in upright-type commercial refrigerators and freezers
  • Introduced plug-in reach-in showcases with CO2 refrigerant (R744, GWP: 1)

Social Achievements

  • Launched GALILEI Academy, a training facility for professional development
  • Established GALILEI 1% Club for social contribution initiatives, conducting 42 activities in FY2022
  • Donated 76 refrigerators and freezers to 49 organizations in FY2022
  • Increased female managerial staff percentage to 2.5% (non-consolidated basis)

Governance Achievements

  • Transitioned to a company with an audit and supervisory committee
  • Established the Nomination Advisory Committee and the Remuneration Advisory Committee
  • Implemented SAP S/4HANA and SAP Analytics Cloud for centralized data management

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero greenhouse gas emissions by 2050
Medium-term Goals:
  • Achieve net zero emissions (Scopes 1 and 2) by 2050
  • Reduce food loss to 150,000 tons per year by 2030
  • Increase number of startups supported to 30 (2 listed) by 2030
  • Achieve 100% procurement based on Sustainable Procurement Guidelines by 2030
  • Increase number of stores using AI for smart diagnosis to 10,000 per year by 2030
  • Increase percentage of female directors to 30% by 2030
  • Increase percentage of female managerial staff to 10% by 2030
  • Increase number of GALILEI 1% Club activities to 100 per year by 2030
  • Increase number of volunteers to 1,000 per year by 2030
  • Increase training hours per employee to 20 hours by 2030
  • Increase mean deviation of employee engagement to 65 by 2030
  • Achieve male employee paternity leave uptake rate of 100% by 2030
Short-term Goals:
  • Reduce water consumption by 10% by 2025
  • Reduce CO2 emissions by 50% from 2013 by 2030
  • Achieve GWP 500 or below (plug-in type) and GWP 1,500 or below (remote type) on a weighted average basis by 2025
  • Increase number of MILAB users to 10,000 per year by 2025
  • Achieve 80% procurement based on Sustainable Procurement Guidelines by 2025
  • Reduce average overtime hours worked to 20 hours by 2025
  • Increase paid annual leave take-up rate to 70% by 2025

Environmental Challenges

  • Supply chain disruptions due to rising raw material costs and component shortages
  • Decreased demand for medical cool boxes and freezers after high demand during the COVID-19 pandemic
  • Labor shortages and the need for integrated and streamlined logistics operations
  • Climate change impacts, including extreme weather events and regulatory changes
Mitigation Strategies
  • Strategic pre-ordering of materials
  • Product redesign to utilize CFC-free refrigerants
  • Business partnership with Fujinetsu Co., Ltd. for enhanced engineering services
  • Development of a BCP (Business Continuity Plan), diversification of purchases, increased inventory levels
  • Transition to green refrigerants, development of energy-efficient products, implementation of preventative maintenance services

Supply Chain Management

Responsible Procurement
  • Sustainable Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks
  • Increased impact on business operations from more devastating natural disasters and extreme weather conditions
Transition Risks
  • More stringent refrigerant regulations and increased compliance costs
  • More stringent energy efficiency regulations and increased compliance costs
  • Increased costs due to the introduction of a decarbonization tax
Opportunities
  • Growing demand for environmentally friendly products
  • Wider application of thermal insulation panels in non-refrigerated spaces
  • Reduced costs of renewable energy

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001

UN Sustainable Development Goals

  • SDG 13 (Climate Action)

Initiatives to reduce CO2 emissions, transition to green refrigerants, and prevent refrigerant leaks

Sustainable Products & Innovation

  • GALILEI X Series (CFC-free refrigerant)
  • Plug-in reach-in showcase with CO2 refrigerant
  • MediFridge Series FMS-125GSX (CFC-free refrigerant)