Climate Change Data

Environmental Metrics

ESG Focus Areas

• Compliance
• Workplace Environment
• Quality
• Environment
• Occupational Safety and Health
• Social Contribution

Environmental Achievements

• Reduced CO2 emissions (specific figures not provided, but mentions various initiatives like LED lighting, energy-efficient equipment, and transportation method changes)
• 15% reduction in energy consumption of certain showcase models
• 8% reduction in energy consumption of door-type freezer showcases through new heater control
• 100% recycling of waste from the Yuki factory (landfill zero)

Social Achievements

• Implemented a post-retirement re-employment system allowing employees to work until age 65
• Offered childcare and nursing care leave, with 5 employees utilizing the system in 2018
• Implemented a suggestion system ('My Proposal') resulting in cost reductions and efficiency improvements
• Held annual safety conferences with participation from employees and clients
• Conducted regular blood donation drives at the Yuki factory

Governance Achievements

• Established an internal control system with internal audit and board of auditors
• Implemented an internal whistleblowing system
• Developed a long-term management plan (N-ExT 2023)

Climate Goals & Targets

Environmental Challenges

• Intense price competition in the refrigeration industry
• Decreasing workforce due to demographic changes
• Customer needs and challenges impacted by social trends
• Risks related to procurement and supply chain

Mitigation Strategies

• Focus on developing energy-efficient and labor-saving products and services
• Expansion of maintenance services
• Advancement into Southeast Asian markets
• Risk management training and implementation of various risk mitigation strategies
• Strengthening supplier relationships and ensuring compliance

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Regular visits to suppliers to discuss operational status, quality control, and production activities

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards 2016

Certifications: ISO 9001, ISO 14001 (Yuki factory only), OHSAS 18001 (Yuki factory only)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient showcases

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Compliance
• Workplace Environment
• Safety and High-Quality Products
• Environmental
• Social Contribution
• Community Engagement

Environmental Achievements

• Reduced CO2 emissions through various initiatives (specific figures not provided)
• Reduced energy consumption through various initiatives (specific figures not provided)
• Increased recycling rate of waste materials (specific figures not provided)
• Transition to low-GWP refrigerants (specific figures not provided)

Social Achievements

• Resumed employee trips to foster camaraderie and improve workplace environment
• Implemented a suggestion system to improve quality and efficiency
• Implemented diversity and inclusion initiatives, including re-employment of retirees and parental leave
• Community investment through blood donation drives, environmental cleanup activities, and support for local events

Governance Achievements

• Strengthened corporate governance through changes in board composition and introduction of an executive officer system
• Established a whistleblower system
• Implemented a robust internal control system

Climate Goals & Targets

Environmental Challenges

• Price competition with competitors
• Supply chain disruptions (implied)
• Labor shortage
• COVID-19 pandemic impact (mentioned in third-party comments)

Mitigation Strategies

• Investment in new equipment and technology to improve efficiency and reduce labor costs
• Development of energy-efficient products
• Implementation of a business continuity plan (BCP) (implied)
• Development of remote work capabilities (implied)

Supply Chain Management

Responsible Procurement

• Regular visits to suppliers to discuss operational status, quality control, and production activities

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards 2016

Certifications: ISO 9001, ISO 14001 (Yūki Factory), ISO 45001 (Yūki Factory, planned for company-wide in 2020)

Sustainable Products & Innovation

• Energy-efficient showcases
• Low-GWP refrigerant showcases

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Established a nomination and compensation committee with a majority of independent outside directors and auditors.

Climate Goals & Targets

Environmental Challenges

• Decarbonization trends
• Rapid evolution of ICT technologies (including DX)
• Labor shortages due to declining population
• Changes in customer needs and values
• Raw material price increases and rising energy costs in Japan
• Continued investment restraint by retailers in China
• Operating losses in China and Vietnam

Mitigation Strategies

• Developed a 3-year mid-term management plan (N-ExT 2026) focusing on innovation, business expansion, and sustainability.
• Planned ¥10 billion in investment over 3 years (¥8 billion for growth and strategic investments, ¥2 billion for infrastructure strengthening)
• Strengthening ESG initiatives to contribute to a sustainable society
• Implementing "2030 Environmental Actions" towards achieving carbon neutrality by 2050
• Creating a vibrant work environment and fostering a corporate culture where diverse human resources can thrive
• Developing a corporate governance system that contributes to long-term corporate value enhancement and improving its effectiveness

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced refrigerant gas leakage by 85% compared to 2016 (target for 2029)
• Development of energy-efficient products (aiming for 20% reduction in power consumption by 2026)
• Transition to green refrigerants

Social Achievements

• Increased starting salaries and base pay
• Established a new qualification allowance and support system for qualification acquisition
• Created an improvement proposal award system
• Achieved ISO14001 and 45001 certifications

Governance Achievements

• Appointment of multiple outside directors (2019)
• Appointment of more than one-third outside directors (2020)
• Establishment of a nomination and compensation committee (2019)
• Introduction of a performance-linked stock compensation system (2019)
• Introduction of an executive officer system (2020)
• Introduction of board effectiveness evaluation (2023)
• Establishment of an external consultation window (2020)
• Strengthening of internal control systems
• Strengthening of risk management
• Implementation of harassment training (2020)

Climate Goals & Targets

Environmental Challenges

• Increased personnel costs due to base pay increases and bonus payments
• Decreased profitability from low-profit projects
• Economic slowdown in China impacting retail investment
• Supply chain disruptions (implied)

Mitigation Strategies

• Cost reduction measures to improve profit margins on projects
• Strengthening sales capabilities
• Focus on high-value-added products and services
• Production system improvements and automation
• M&A and alliances to expand maintenance targets and enter new areas
• Strengthening the management system of the Chinese joint venture

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Sustainable Products & Innovation

• Energy-efficient showcases and systems
• Green refrigerant showcases

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Promoting "2030 Environmental Actions" towards achieving carbon neutrality by 2050
• Reduction of refrigerant gas leakage by 85% compared to 2016 (target for 2029)

Social Achievements

• Creating a vibrant work environment and fostering a corporate culture where diverse employees can thrive
• Increased starting salaries and base pay, implemented new qualification allowances and support systems for qualification acquisition, established an improvement suggestion award system

Governance Achievements

• Strengthening corporate governance to enhance long-term corporate value
• Appointing more than one-third of the board of directors as outside directors

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic
• Underperformance of the Chinese joint venture company
• Delayed investments due to cost and investment effect reviews

Mitigation Strategies

• Strategic investments to strengthen cost competitiveness and improve efficiency
• Overhauling the management system of the Chinese joint venture company
• Replanning delayed investments and focusing on growth areas

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Energy-efficient cooling systems
• Products using non-fluorinated, low-GWP refrigerants