Takasago Thermal Engineering Co., Ltd.
Climate Impact & Sustainability Data (2022-04 to 2023-03)
Reporting Period: 2022-04 to 2023-03
Environmental Metrics
Total Carbon Emissions:4,758,483 t-CO2e/year
Scope 1 Emissions:2,801 t-CO2e/year
Scope 2 Emissions:2,494 t-CO2e/year
Scope 3 Emissions:4,753,188 t-CO2e/year
Water Consumption:42,283 m3/year
Waste Generated:16,667 tons/year
ESG Focus Areas
- Environment
- Society
- Governance
Environmental Achievements
- 33.7% reduction in CO2 emissions (Scopes 1 and 2) from FY2019
- 4.2% reduction in CO2 emissions (Scope 3) from FY2019
- Achieved 87% recycling rate at construction sites
- 100% recovery of CFCs
Social Achievements
- Increased investment in human capital by 10 billion yen
- Increased number of employees by 200 or more
- Improved employee engagement through various initiatives
- Promoted diversity and inclusion through various workshops and initiatives
Governance Achievements
- Became a company with an Audit & Supervisory Committee
- Increased the ratio of outside directors
- Established the ESG Promotion Committee
- Implemented a succession plan for the President and Representative Director
Climate Goals & Targets
Long-term Goals:
- Consolidated ordinary income of 40 billion yen by 2040
- Net zero emissions by 2050
Medium-term Goals:
- Achieve social implementation of green energy supply equipment (equivalent to 5,000 kW) by 2026
- Reduce CO2 emissions of customers by 15,000 t-CO2 per year by 2026
Short-term Goals:
- Consolidated ordinary income of 20 billion yen by 2026
- Consolidated ROE of approximately 10% by 2026
- Scopes 1 and 2 CO2 emissions reduction of 16.8% by 2026
- Scope 3 CO2 emissions reduction of 10% by 2026
Environmental Challenges
- Skyrocketing costs for materials, equipment, and labor
- Shortage of construction technicians
- Application of overtime caps
- Climate change related risks (transition and physical risks)
- Human rights risks in the supply chain
Mitigation Strategies
- Established T-Base® to improve productivity and reduce labor
- Implemented work-style reforms
- Developed and implemented various measures to address climate-related risks
- Formulated Basic Policy on Human Rights and launched human rights due diligence initiatives
Supply Chain Management
Responsible Procurement
- Collaboration with suppliers to use low-carbon materials and equipment
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Flooding
Transition Risks
- Carbon tax
- Higher energy costs
- Changes in customer investment plans
Opportunities
- Increased demand for energy-efficient products and services
- Development of new markets for decarbonization technologies
Reporting Standards
Frameworks Used: GRI, TCFD
Certifications: ISO 9001:2015, SBT certification (WB 2.0°C level)
Third-party Assurance: Sustainability Accounting Co., Ltd.
UN Sustainable Development Goals
- Goal 7 (Affordable and clean energy)
- Goal 9 (Industry, innovation, and infrastructure)
- Goal 13 (Climate action)
Initiatives contribute to these goals through energy efficiency improvements, technological innovation, and climate change mitigation
Sustainable Products & Innovation
- SWIT® air conditioning system
- Closed VOC recovery system
- Mega Stock® thermal storage system
- Fresh Cool® air conditioner
Awards & Recognition
- ASHRAE Technology Awards 2024 | Asia Region First Place Winner
- 61st SHASE Award for Distinguished Technologies
- Environmental Facility Planning and Execution Award
- 11th Carbon Neutral Award 'Carbon Neutral Award | Grand Prize'
- 21st Environmental and Equipment Design Award
- Award for Excellence for the 48th Environment Prize
- 2018 NEDO Strategic Innovation Program for Energy Conservation Technologies
- 2020 NEDO Energy Conservation Technology Development Awards
- Award for Excellence in the industrial use category of the Cogeneration Grand Prize 2021
- 11th Carbon Neutral Award Grand Prize in 2023
- 2023 Certified Health & Productivity Management Outstanding Organizations Recognition Program (White 500)