Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Diversity & Inclusion
• Environmental Sustainability

Environmental Achievements

• Developed "completely chrome-free paint" in 2004, compliant with RoHS, WEEE, and ELV directives.

Social Achievements

• Operates HSK Farm since August 2018, providing a fulfilling work environment for people with disabilities and supplying harvested vegetables to employees.
• Conducts factory tours (except in 2021 due to COVID-19) and summer festivals (except in 2021 due to COVID-19) for employees and the community.

Governance Achievements

• Established a Nomination and Remuneration Committee composed of all outside directors and the representative director.
• Aims to increase the proportion of women in new hires to 30% or more and appoint one female executive officer and two to three female managers by 2025.
• Plans to implement a performance-based compensation system for directors in the future.

Climate Goals & Targets

Environmental Challenges

• Lagging in the appointment of female executives.
• Low percentage of foreign investors, hindering English-language disclosures.

Mitigation Strategies

• Planning to increase the number of female executives and managers.
• Will consider English-language disclosures if the percentage of foreign investors exceeds 20%.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Completely chrome-free paint

Environmental Metrics

ESG Focus Areas

• Sustainable Society
• Governance
• Human Capital Development
• Workplace Wellbeing
• SDGs

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Governance reform to improve management effectiveness and transparency

Climate Goals & Targets

Environmental Challenges

• Raw material shortages and price increases
• Increased procurement costs for components and materials
• Logistics issues, particularly container shortages overseas
• Delays in component and material deliveries
• Equipment delivery delays
• Rising crude oil prices
• Impact of the Russia-Ukraine situation
• Impact of the COVID-19 pandemic

Mitigation Strategies

• Production plan revisions considering procurement difficulties
• Strengthening the supply chain
• Responding to increases in manufacturing costs
• Monitoring market trends and maintaining a production system adapted to demand
• Information gathering on market trends

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

• Mixed melting technology for plastic recycling

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Carbon Neutral
• Resource Circulation

Environmental Achievements

• Reduced industrial waste by approximately 1556 tons from 2020 to 2021 (though increased in 2021 due to production expansion).
• Reduced energy consumption significantly at Yamato factory after relocation in 2020.
• Installed solar panels at Okayama factory to promote renewable energy use.
• Developed and implemented a chromium-free surface treatment agent, ZECCOAT.
• Implemented a mixed melting technology for recycling difficult-to-process plastics.

Social Achievements

• Launched HSK Farm for employee well-being and community engagement.
• Implemented job return system for re-employment of former employees.
• Established a post-retirement re-employment system.
• Contributed 7.1 million yen to academic research and community activities.

Governance Achievements

• Transitioned to an Audit & Supervisory Committee Company in 2019.
• Established a Compliance Committee.
• Established an optional Nomination and Remuneration Committee.
• Appointed a female outside director in May 2023.

Climate Goals & Targets

Environmental Challenges

• Significant price increases and market downturn in FY2023.
• Decreased demand in transportation-related sectors.
• Increased manufacturing costs.
• Difficulty in accurate demand forecasting due to uncertain external environment.

Mitigation Strategies

• Business restructuring, including cost reduction and investment in future growth.
• Focus on core competencies and technological advancement.
• Development of new technologies and materials for carbon neutrality and resource circulation.
• Strengthening sales strategies for press business and cultivating mixed melting technology business.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Fair and equitable transactions; consideration of social responsibility in supplier selection.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services; contribution to carbon neutrality and resource circulation.

Reporting Standards

Frameworks Used: IIRC International Framework, UN SDGs

Certifications: ISO9001, JISQ9100, NADCAP

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ZECCOAT (chromium-free surface treatment agent); recycled plastic materials using mixed melting technology.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Compliance
• Human Rights
• Safety and Health
• Environmental Protection
• Fair and Equitable Transactions
• Product Safety, Quality, and Stable Supply
• Information Management
• Dialogue and Collaboration with Local Communities

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Compliance with laws and regulations
• Respect for human rights
• Fair and equitable transactions

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• SDGs
• Environmental
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Established a Sustainability Committee
• Implemented a system for ensuring the proper execution of directors' duties (internal control system)
• Strengthened compliance system and promoted corporate ethics
• Established an internal reporting system

Climate Goals & Targets

Environmental Challenges

• Decreased demand for molds and gasoline car parts
• Manufacturing challenges associated with increased production of gas turbine parts
• High energy and material costs due to prolonged Russia-Ukraine conflict
• Slowdown in housing and automotive industries

Mitigation Strategies

• Implemented cost reduction measures
• Focused on profitable orders and cost management
• Implemented price adjustments
• Established a new engineering department to improve manufacturing efficiency through digital tools and process standardization
• Restructured the organization to adapt to market changes and promote growth
• Optimized investment allocation and promoted resource efficiency
• Expanded overseas business, particularly in the gas turbine sector in Europe and America

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

• Governance
• Diversity & Inclusion
• Human Capital

Environmental Achievements

• Developed "completely chrome-free paint" in 2004, compliant with RoHS, WEEE, and ELV directives.

Social Achievements

• Launched HSK Farm in August 2018 to provide a fulfilling work environment for people with disabilities.
• Implemented a new human resource system in March 2024 to better match diverse work styles.

Governance Achievements

• Appointed one female outside director in May 2023.
• Established a Nomination and Remuneration Committee composed of three outside directors.

Climate Goals & Targets

Environmental Challenges

• Lagging in the appointment of female managers.
• Low percentage of foreign investors (less than 5%) limiting English language disclosures.

Mitigation Strategies

• Targeting one female executive and 2.5% female management by 2025.
• Will consider English translation of meeting notices if foreign investor ratio exceeds 20%.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Completely chrome-free paint

Environmental Metrics

ESG Focus Areas

• Sustainability

Climate Goals & Targets

Environmental Challenges

• Market demand changes
• Delayed response to rising external procurement costs
• Impact of the housing industry's construction delays and the Noto Peninsula earthquake

Mitigation Strategies

• Establishment of a new management system to improve profit structure and financial condition
• Transition from a divisional system to a headquarters system
• Strengthening purchasing management, suppressing fixed costs, and reducing low-profit projects
• Initiation of a personnel organization reform project
• Implementation of a new personnel system to promote employee development and training of young employees
• Capital and business tie-up agreement with Mitsubishi Heavy Industries, Ltd.
• Production capacity increase (productivity improvement through production line expansion and reconstruction)
• Strengthening cooperation with major overseas customers
• Expansion of maintenance services

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Mixed melting machine