Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Employee Well-being
• Supply Chain Responsibility

Environmental Achievements

• Converted 171 models to R32 refrigerant
• Reduced CO2 emissions from product use in Japan by 4.8% compared to FY2013
• Reduced CO2 emissions from inter-warehouse transfers by 8%
• Reduced aluminum material waste by 32% compared to FY2016
• Reduced steel material waste by 50% compared to FY2016
• Reduced water usage per unit of production by 12% domestically and 11% overseas compared to FY2013

Social Achievements

• Established the Technical Academy of Air Conditioner for employee development
• Implemented the 10% rule to improve employee autonomy
• Introduced ICT-based yoga tools and health seminars to promote employee well-being
• Increased new female hires to 18% of total new hires in FY2019
• Promoted four women to managerial positions from FY2016 to FY2019
• First internal promotion of a woman to executive officer
• Implemented various programs to support work-life balance, including flexible working arrangements and childcare support
• Extended retirement age to 65
• Supported employees with long-term care responsibilities
• Provided support for employees receiving medical treatment
• Reduced second-hand smoke exposure in the workplace
• Supported employees in quitting smoking

Governance Achievements

• Established the Compliance & Risk Management Committee
• Developed a Business Continuity Plan (BCP)
• Conducted annual BCP drills
• Implemented ethics training for engineers
• Established CSR Procurement Guidelines
• Conducted CSR audits of suppliers
• Introduced a restricted share-based remuneration plan to align executive compensation with shareholder interests

Climate Goals & Targets

Environmental Challenges

• Shortage of human resources
• Need to achieve work-life balance
• Global warming and climate change
• Increased natural disasters
• COVID-19 pandemic
• Supply chain disruptions

Mitigation Strategies

• Providing more flexible working arrangements
• Developing employees to take on challenges
• Developing energy-efficient products (ATW systems, Cómodo gear)
• Strengthening business continuity management
• Implementing COVID-19 response measures (work from home, online communication)
• Implementing CSR procurement guidelines and conducting supplier audits

Supply Chain Management

Supplier Audits: 6 external CSR field surveys in FY2019

Responsible Procurement

• CSR Procurement Guidelines
• Supplier self-assessment questionnaires
• On-site surveys

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, ISO 26000, Environmental Reporting Guidelines 2018 (Japan), Environmental Accounting Guidelines 2005 (Japan), SDGs, TCFD

Certifications: ISO 14001

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Various initiatives contribute to these goals through energy efficiency improvements, employee well-being programs, sustainable product development, supply chain responsibility, and community engagement.

Sustainable Products & Innovation

• ATW systems
• Cómodo gear
• Energy-efficient air conditioners

Awards & Recognition

• Silver Gan-Ally-Bu Award
• Recognition as an excellent company in promoting employee health and productivity
• Registration as a business that promotes the CHO Initiative
• Recognition as a Sports Yell Company
• Constituent of the S&P/JPX Carbon Efficient Index