Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety and Quality
• Human Rights and Labor
• Environment
• Compliance
• Information Disclosure
• Risk Management
• Social Contribution

Environmental Achievements

• Reduced CO2 emissions by 8.7% compared to FY2013
• Completed substitution of two substances in May 2019 to reduce environmentally hazardous substances
• Completed all necessary measures in December 2019 to comply with regulations on four phthalate substances

Social Achievements

• Received the highest grade (level 3) of the “Eruboshi” certification under the Act on Promotion of Female Participation and Career Advancement in the Workplace
• Business Continuity Plan (BCP) Subcommittee certified by the Ministry of Economy, Trade and Industry as a Collaborative Business Continuity Capacity Enhancement Plan
• Successfully implemented teleworking and staggered work hours in response to COVID-19

Governance Achievements

• Established a Nomination and Remuneration Advisory Committee with a majority of independent outside directors
• Established an internal reporting channel (helpline) for compliance issues
• Conducted annual compliance training for all employees with 100% completion rate

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting business activities and environmental management system objectives
• Strengthening of environmental regulations
• Risk of internal infection of COVID-19

Mitigation Strategies

• Implemented teleworking, staggered work hours, and preventive measures to mitigate COVID-19 risks
• Monitors environmental laws and regulations using a specialized database service
• Established voluntary control standard values for pollution-related regulations

Supply Chain Management

Responsible Procurement

• Green procurement
• Compliance with conflict mineral regulations
• Supplier CSR Guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, Ministry of the Environment (Japan): Environmental Reporting Guidelines (2018 Edition), Japan Auto Parts Industries Association: CSR Guidebook (2010)

Certifications: ISO 45001 (in progress)

Awards & Recognition

• Eruboshi certification (Level 3)

Environmental Metrics

ESG Focus Areas

• Carbon Neutrality
• Safety and Quality
• Compliance
• Health and Education
• Diversity and Inclusion
• Social Contribution
• Sustainable Procurement
• Risk Management

Environmental Achievements

• Reduced total emissions per marginal profit by 17.9% compared to FY2016.
• Replaced one product containing n-hexane with a substance not regulated by the PRTR Law and the Ordinance on Prevention of Organic Solvent Poisoning.
• Achieved a 99% recycling rate for waste.

Social Achievements

• Established the Diversity Promotion Department to facilitate diversity and inclusion initiatives.
• Implemented a two-year employee engagement improvement program.
• Received the highest grade (level 3) of the “Eruboshi” certification for promoting women's advancement.
• Awarded the “Excellent Health and Productivity Management Corporation” for the third consecutive year.

Governance Achievements

• Reorganized the Risk Management Committee into the Sustainability Committee to promote sustainability beyond risk management.
• Established a whistleblowing system.
• Published the Mikuni Supplier CSR Guidelines.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact
• Geopolitical risks and energy price fluctuations
• Global environmental risks
• Competition and demand fluctuations
• Financial market fluctuations
• Product quality risks
• Large-scale disaster risks
• Risks associated with global business operations

Mitigation Strategies

• Established the Sustainability Committee to assess and control comprehensive risks and opportunities.
• Developed mid- and long-term business strategies considering climate change risks.
• Implemented disaster countermeasures.
• Developed responses to business risks related to fuel efficiency, exhaust gas regulations, and vehicle electrification.
• Implemented company-wide crisis response drills.

Supply Chain Management

Supplier Audits: 14 checks in 2020 on the impact of natural disasters and infectious diseases

Responsible Procurement

• Green procurement activities
• Compliance with conflict mineral regulations
• Mikuni Supplier CSR Guidelines
• Green Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• More devastating meteorological disasters

Transition Risks

• Reinforcement of regulations for fuel efficiency and exhaust gas
• Electrification of automobiles and motorcycles

Opportunities

• Increase in sales of environment regulation compliant vehicles
• Improvement of environmental technology
• Increase in order volume

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, Ministry of the Environment (Japan): Environmental Reporting Guidelines (2018 Edition), Japan Auto Parts Industries Association: CSR Guidebook (2010)

Certifications: ISO 9001, ISO 14001, ISO 45001, IATF 16949, JIS Q 9100

Sustainable Products & Innovation

• Products for EVs
• Energy-efficient products

Awards & Recognition

• Eruboshi certification
• Women's Advancement Certified Company of Iwate Prefecture
• Odawara L Yale Gold Stage company
• Kurumin certification
• Excellent Health and Productivity Management Corporation