Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Capital
• Intellectual Property

Environmental Achievements

• Not disclosed

Social Achievements

• Implemented a new personnel evaluation system that prioritizes challenges, starting in the first half of 2023.
• Established the "Human Resource Development Deliberation Council" to foster core human resources and promote women's advancement.
• Established "Fujicopian Diversity Policy" and set target values for women's management ratio.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• High raw material prices and energy costs.
• Yen appreciation.
• Increased costs associated with new core system investment.

Mitigation Strategies

• Cost reduction activities including raw material review, in-process loss reduction, and introduction of non-destructive inspection.
• Optimization of production locations through partial transfer to subsidiary FC Vietnam Corporation.
• Investment in equipment to improve productivity, such as expanding the width of slitting processes.

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

• Climate Change
• Human Capital Investment and Diversity
• Intellectual Property Investment

Environmental Achievements

• Started using LNG preferentially at Okayama factory (reducing heavy oil usage).
• Replaced heavy oil boilers with LNG heat medium boilers at Okayama factory (2 units).
• Introduced LED lighting at Okayama and head office.
• Calculated Scope 1 and 2 CO2 emissions for FCVN.
• Calculated Scope 3 (domestic locations) for all categories from 2019-2022.

Social Achievements

• Implemented a new personnel evaluation system that evaluates challenges.
• Gave a base pay raise (average 2.75%, 4.46% including regular raises).
• Increased starting salaries by ¥8,000.
• Appointed 2 new executive officers and 4 new managers (1 woman).
• Increased self-development support from 25 employees (¥462,000) to 51 employees (¥1,157,000).

Governance Achievements

• Established a Nomination and Remuneration Advisory Committee to enhance fairness, transparency, and objectivity in the review of important management matters related to the nomination and remuneration of directors.
• Held a Patent Application Examination Committee (principally twice a month) to discuss patent applications for new technologies.
• Maintained approximately 200 domestic and international patents over the past 10 years.

Climate Goals & Targets

Environmental Challenges

• Significant performance deterioration due to the prolonged inventory adjustment by clients and sluggish sales of some major clients.
• A fire at the Okayama factory in October 2023.
• Severe headwinds throughout the year due to domestic and international economic conditions, including sluggish sales by some major clients leading to prolonged inventory adjustments.
• Increased competition in some business areas.
• Potential disruptions to material procurement and stable product supply due to unexpected changes in laws or regulations, political or economic fluctuations, or international turmoil in various regions.

Mitigation Strategies

• Focus on strengthening customer base and developing new products and businesses.
• Completed measures to address issues raised by safety consultants.
• Implemented fundamental countermeasures against fire (additional installation of electrostatic discharge devices).
• Strengthening the supply chain through diversification and globalization of procurement sources, review of raw materials, reduction of in-process losses, and improvement of productivity through capital investment.
• Implementing measures to mitigate energy cost increases, such as introducing high-efficiency equipment at the Okayama factory and energy-saving devices and lighting at all locations.
• Developing new products and providing unique services to differentiate from competitors.
• Rapid and accurate information gathering from overseas subsidiaries and local experts.
• Developing and practicing business continuity plans (BCP) to minimize damage from unforeseen accidents.
• Maintaining a business environment that allows for business continuity through measures such as stockpiling necessary infection prevention supplies, staggered commuting, and the active use of remote work tools.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14001

Sustainable Products & Innovation

• Environmentally friendly ribbons

Environmental Metrics

ESG Focus Areas

• Climate change
• Human capital investment and diversity (with a focus on women's empowerment)
• Investment in intellectual property

Environmental Achievements

• Implemented LNG priority use in Okayama factory
• Introduced LED lighting and high-efficiency heat exchangers at various locations
• Replaced some heavy oil boilers with LNG heat boilers in Okayama factory (2 units initially)
• Planning to introduce ultra-high-efficiency boilers by 2025
• Calculated Scope 1 and Scope 2 CO2 emissions for FCNV (overseas subsidiary)

Social Achievements

• Implemented a new personnel evaluation system that evaluates challenges
• Increased base salaries (average 2.75%, 4.46% including regular salary increases)
• Increased starting salaries by ¥8,000 for new graduates in April 2024
• Appointed 2 new executive officers and 4 new managers (including 1 woman)
• 12 non-regular employees promoted to regular employees in FY2023

Governance Achievements

• Management review reports on climate change initiatives are submitted to the president every six months
• Progress on carbon neutrality initiatives is reported to the board of directors every six months
• Patent application review committee (with the president and relevant directors/executive officers) meets once every two months

Climate Goals & Targets

Environmental Challenges

• Significant decrease in sales due to inventory adjustments by major clients
• High raw material and energy costs due to unstable global situation
• Equipment fire at Okayama factory in October 2023
• Long-term semiconductor shortage
• Slow recovery in the semiconductor and other materials fields
• Production adjustments in the automotive industry (especially in Europe)
• Long-term inventory adjustments by clients due to overstocking in previous years

Mitigation Strategies

• Focusing on strengthening customer base and exploring previously neglected products
• Accelerating development of new products and businesses
• Implementing countermeasures for the fire incident (additional grounding equipment)
• Improving coating methods and related equipment modifications (in-house design)
• Cost reduction activities
• Process loss reduction
• Equipment investment for increased productivity (slitter expansion)
• Building a production system for new businesses
• Strengthening quality assurance systems for target markets
• Investigating and implementing measures to reduce Scope 2 CO2 emissions at FCNV

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14001