Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Human Rights/Labor
• Quality and Safety

Environmental Achievements

• Reduced GHG emissions (Scope 1+2) by 42% compared to FY2020, aiming for 42% reduction by 2030 and carbon neutrality by 2050
• Reduced GHG emissions (Scope 3) by 25% compared to FY2020, aiming for 25% reduction by 2030

Social Achievements

• Enacted Human Rights Policy
• Increased percentage of employees working past age 60 to over 90%
• Promoting female empowerment based on the Act on the Promotion of Women's Active Engagement in Professional Life
• Selected for the 2022 Certified Health & Productivity Management Outstanding Organizations Recognition Program (Large Enterprise Category)

Governance Achievements

• Established Sustainability Committee
• Established Total Risk Management (TRM) Committee
• Acquired conflict-free certification for gold (2014), silver (2020), and platinum and palladium (2021)

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption and GHG emissions in FY2021 due to increased processing volume at Seki Factory
• Increased water consumption in FY2021 due to stricter regulations and new processes
• Increased waste volume in FY2021 due to changes in waste classification and processing
• Price fluctuations for major products and commodities
• Strengthening legal regulations
• Natural disasters, climate change, and spread of infectious diseases

Mitigation Strategies

• Improving energy utilization efficiency by installing high-efficiency motors and air conditioners
• Improving water management by circulating and reusing water
• Reducing waste volume through improved processes and recycling
• Implementing Total Risk Management (TRM) system to manage various risks
• Enacting Matsuda Sangyo Group Global Code of Conduct and Compliance Regulations
• Implementing disaster preparedness measures and teleworking options to mitigate the impact of natural disasters and infectious diseases

Supply Chain Management

Responsible Procurement

• Matsuda Sangyo Group Global Code of Conduct
• Policy for Responsible Management of Precious Metals
• Conflict-free certification for gold, silver, platinum, and palladium

Climate-Related Risks & Opportunities

Physical Risks

• Frequent occurrences of water shortage and flooding
• Rise in sea levels
• Abnormal weather conditions

Transition Risks

• Carbon pricing
• Strengthening of CO2 emissions regulations
• Strengthening of regulations on agricultural land development
• Strengthening of emissions regulations on the FLAG sector
• Strengthening of regulations on waste generation
• Transition to low-carbon technologies
• Changes in social values

Opportunities

• Increased demand for resource recycling
• Rise in precious metal prices
• Development of substitute products/development of new sales channels
• Improved competitive edge
• Increased opportunities to build new commercial distribution channels
• Increased sales opportunity if handling products with high environmental value

Reporting Standards

Frameworks Used: GRI Standards, IIRC, ISO 26000, TCFD

Certifications: ISO 14001, ISO 9001, ISO 45001 (Taiwan and Vietnam sites)

Sustainable Products & Innovation

• EcoPGC-grade potassium gold cyanide (100% recycled gold)

Awards & Recognition

• 2022 Certified Health & Productivity Management Outstanding Organizations Recognition Program

Environmental Metrics

ESG Focus Areas

• Resource circulation (utilization)
• Climate change
• Human rights
• Diversity
• Health & Productivity Management

Environmental Achievements

• Endorsed TCFD recommendations and submitted a commitment letter to the SBTi.
• Decided to build a new factory in Kitakyushu City with precious metal recycling functions, aiming for efficient and quick business expansion and high-quality services closer to customers.
• Aiming to reduce emissions from the entire Group (Scope 1 and 2) by 42% compared to fiscal 2020 by fiscal 2030, and to reduce indirect emissions other than Scope 1 and 2 (Scope 3) by 25% compared to fiscal 2020 by fiscal 2030.

Social Achievements

• Established the “Matsuda Sangyo Group Human Rights Policy”.
• Certified as a 2023 Health & Productivity Management Outstanding Organization (Large Enterprise Category) for the second consecutive year.
• Modified dried eggs from Europe and North America to use them for processed foods to deal with soaring egg prices and shortage of eggs caused by avian influenza.
• Supplied potatoes from India and China for snacks and french fries to deal with a bad harvest or shortage of North American potatoes due to unseasonable weather.

Governance Achievements

• Established the Sustainability Committee in May 2022.
• Retired 2 million own shares (6.92% of the total issued shares before retirement).

Climate Goals & Targets

Environmental Challenges

• Uncertain outlook of the global economy with the risk of economic downturn due to factors including accelerating inflation and monetary tightening.
• Downtrend in some platinum group metals markets.
• Unstable supply of food resources and an increase in procurement prices.
• Concerns over the impact of soaring resource prices and inflationary pressure on the economy amid the ongoing situation in Ukraine and the prolonged global monetary tightening.
• Decline in demand and production activity in the electronics industry.

Mitigation Strategies

• Differentiation through comprehensive resource recycling capability and the development of high-performance electronic materials to meet diversifying customer needs.
• Securing precious metal materials and expanding the sale of chemical products and other products and the industrial waste treatment outsourcing.
• Leveraging strengths in procurement capability to cope with challenges such as unstable supply of food resources and an increase in procurement prices.
• Expanding sales volume by developing products that meet customer needs and ensuring stable provision of safe and reliable products.
• Flexible coping with changes in the environment in both segments, and under the growth strategy based on basic policies to “strengthen revenue base and create new revenue sources by continuing with proactive investments,” “strengthen management foundation to support and accelerate sustainable growth,” and “enhance corporate value by promoting ESG management”.

Supply Chain Management

Responsible Procurement

• RBA Code of Conduct compliance

Climate-Related Risks & Opportunities

Physical Risks

• Unseasonable weather impacting food supply

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD

Awards & Recognition

• 2023 Health & Productivity Management Outstanding Organization (Large Enterprise Category)

Environmental Metrics

ESG Focus Areas

• Resource circulation
• Human capital
• Environmental conservation
• Customer satisfaction
• Supply chain responsibility

Environmental Achievements

• Reduced CO2 emissions by 51% year on year (adjusted for renewable energy and credits) in the Iruma and Seki factories.
• Achieved 79% recycling rate (recalculated values) for waste.
• Acquired certification for the SBT 1.5°C target.
• Received a “B” rating from CDP Climate Change Program.

Social Achievements

• Increased percentage of female employees hired to 23.7%.
• Implemented female empowerment programs.
• Developed systems for compliance with the RBA Code of Conduct.
• Launched a new subsidiary in India.
• Expanded bases in Indonesia.

Governance Achievements

• Established a Sustainability Committee and a Nomination and Remuneration Committee.
• Enacted the Matsuda Sangyo Group Supplier Guidelines based on the RBA Code of Conduct.
• Improved the ESG literacy of all employees through an internal portal site and regular newsletters.

Climate Goals & Targets

Environmental Challenges

• Insufficient procurement volume for precious metal recycling due to stagnation in the electronics industry.
• Rising energy costs and stagnation in personal consumption impacting overseas procurement.
• Rising raw material prices, transportation, and storage costs in the Food Business Segment.
• Difficulties in procuring food materials due to climate change.
• Shortage of labor and human resources.

Mitigation Strategies

• Investing in factories and expanding production infrastructure.
• Strengthening factory functions in overseas businesses.
• Passing on price increases to customers and increasing sales volume.
• Developing treatment technologies for large-scale lithium-ion batteries and PTP sheets.
• Promoting human capital management and sustainability management across the supply chain.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Matsuda Sangyo Group Supplier Guidelines based on RBA Code of Conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Water shortage
• Extreme weather
• Sea level rise

Transition Risks

• Carbon pricing
• Strengthening of CO2 emissions regulations
• Regulations on agricultural land development
• Regulations on waste generation
• Transition to low-carbon technologies

Opportunities

• Increased demand for resource recycling
• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: IFRS, Integrated Reporting Framework, METI, Guidance for Collaborative Value Creation 2.0, GRI

Certifications: ISO 14001, ISO 9001 (Quality Assurance Dept.), MSC (Chain of Custody)

Third-party Assurance: Sustainability Accounting Co., Ltd.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ECO-Series products made from 100% recycled precious metals.

Awards & Recognition

• Excellent Environmental Conservation Business Site (Saitama Prefecture)