I-PEX Inc.
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:49,061 t-CO2e/year
Scope 1 Emissions:735 tCO2e/year
Scope 2 Emissions:48,326 tCO2e/year
ESG Focus Areas
- Contribution to a comfortable and safe digital society supported by innovation
- Tackle climate change and contribute to a recycling-based society
- Transform the business structure and expand our field of business
- Strengthen human resource management
- Build an optimal manufacturing system and promote capital cost and cash flow management
- Strengthen corporate governance
Environmental Achievements
- Installed solar power facilities at Malaysia and Singapore plants
- Developed recyclable materials through collaboration with a materials company
- Reduced CO2 emissions (Scope 1 and Scope 2)
Social Achievements
- Started succession plan training and detailed career course plan
- Increased training time per domestic employee twofold (compared to FY2021)
- Reformed post-retirement reemployment system
Governance Achievements
- Awareness-raising activities conducted on corporate philosophy
- Evaluated the effectiveness of the Board of Directors and addressed issues
- Launched group governance task force
Climate Goals & Targets
Long-term Goals:
- Continuing initiatives aimed at carbon neutrality by 2050
Short-term Goals:
- Establish working group for new value creation (company-wide)
- Create innovation plan utilizing proprietary technologies by continuing to engage in open innovation
- Install solar facilities at the Philippines Plant (scheduled for the end of 2023)
- Switch to green energy
- Prepare for the introduction of the career course system and compensation system (expected to be implemented in 2025)
Environmental Challenges
- Supply chain disruptions from the lockdown in Shanghai and other developments
- Slowdown in demand for computers and other products
- Production cutbacks by automakers facing semiconductor shortages
- Low capacity utilization at plants amid the drop in sales
- Higher depreciation and labor costs
Mitigation Strategies
- Shifting from in-house to contract production by partnering with strategic suppliers
- Utilizing global sites to diversify the production of key items
- Optimizing production allocation
- Promoting digital transformation (DX) by working to digitize business processes
- Introducing digital tools to increase business efficiency
Supply Chain Management
Responsible Procurement
- Multiple sourcing for purchased components
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: TCFD
Certifications: ISO 14001
Awards & Recognition
- Best Renovation category at the 31st BELCA Awards
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:48,674 t-CO2e/year
ESG Focus Areas
- Contribute to a comfortable and safe digital society supported by innovation
- Tackle climate change and contribute to a recycling-based society
- Transform the business structure and expand our field of business
- Strengthen human resource management
- Build an optimal manufacturing system and promote capital cost and cash flow management
- Strengthen corporate governance
Environmental Achievements
- Reduced Scope 1+2 CO2 emissions by 26.5% compared to FY2021
- Increased use of renewable energy in production
- Initiatives to reduce packaging and cushioning material waste
- Development of energy-efficient semiconductor molding equipment
- Development of LIGHTPASS® Series active optical modules to reduce transmission loss and save energy
- Development of battery management systems suitable for reusing used lithium-ion batteries
Social Achievements
- Implemented career courses and succession plan training
- Revised wage curve to be dynamically aligned with career courses
- Offered career design and leadership training to help female supervisors develop their careers
- Encouraged male employees to take childcare leave (37.5% leave-taking rate in Japan)
- Promoted diversity, equity, and inclusion through education on unconscious bias
Governance Achievements
- Established a Sustainability Committee
- Strengthened the board’s oversight function
- Established the Internal Control and Compliance Committee
- Established a help line for whistleblowers
- Established a Group Governance Task Force
- Revised subsidiary management regulations
Climate Goals & Targets
Long-term Goals:
- Achieve carbon neutrality by 2050
Medium-term Goals:
- Reduce Scope 1 and Scope 2 CO2 emissions by 40% by 2030 (compared to FY2021 levels)
- Achieve net sales of ¥100 billion, operating income of ¥10 billion, and ROE of 8% or higher by 2030
- Raise the percentage of women in managerial positions to 10% in Japan by 2030
Short-term Goals:
- Reduce electricity consumption by 10% year-on-year at production sites
Environmental Challenges
- Ongoing declines in demand for mainstay products (connectors, automotive components, HDD-related parts)
- Business structure with inadequate risk diversification
- Need to return to a growth trajectory
- Climate change risks (transition risks, physical risks)
- Maintaining comfortable, engaging workplace environments and increasing job fulfillment
Mitigation Strategies
- Setting clear performance indicators and targets based on ROIC
- Updating I-PEX Vision 2030 and reconfiguring the business portfolio
- Creation of new businesses (environmental and energy solutions)
- Forming a capital alliance with L-B. Engineering Japan
- Implementing an asset-light strategy
- Improving cash conversion cycle
- Negotiating new payment terms with suppliers
- Implementing vendor-managed inventory
- Paring down inventory and shortening lead times
- Strengthening risk management and creating business opportunities through working groups tied to points of materiality
- Introducing a framework that allows employees to choose from among various work styles
Supply Chain Management
Responsible Procurement
- Negotiating new payment terms with suppliers
- Implementing vendor-managed inventory
- Multiple sourcing for purchased components
Climate-Related Risks & Opportunities
Physical Risks
- Rising sea levels
- Coastal flooding
Transition Risks
- Stricter plastic regulations
- Stricter regulations on greenhouse gas emissions
- Changes in evaluation criteria of investors, customers
Opportunities
- Expanding business opportunities by addressing environmental technology needs
- Responding to investor and customer demands
Reporting Standards
Frameworks Used: TCFD
Certifications: ISO 14001
Sustainable Products & Innovation
- LIGHTPASS® Series active optical modules
- Battery management systems for reusing used lithium-ion batteries
- Recyclable molding materials