Climate Change Data

Environmental Metrics

ESG Focus Areas

• Carbon Neutral
• Diverse Workforce
• Social Contribution

Environmental Achievements

• Reduced CO2 emissions by 32% (2013-2022)
• Introduced renewable energy at Asaba factory (solar power), reducing CO2 emissions by approximately 170 tons annually
• Introduced CO2-free electricity at headquarters and technology center, resulting in zero CO2 emissions from electricity usage
• Converted boiler fuel from heavy oil to LNG at Asaba factory, resulting in a 40% reduction in CO2 emissions
• Improved energy efficiency through motor updates and steam leak reduction
• Developed recycled PET-based synthetic leather and bio-vegan leather (LeNa) using bamboo and recycled shells

Social Achievements

• Participated in beach and lake cleanup activities
• Provided land for disaster relief efforts in Iwata City
• Donated used household goods to overseas
• Held workshops at local elementary schools using Sobagni ethical leather

Governance Achievements

• Established a Carbon Neutral Promotion Office (2021)
• Implemented TCFD-aligned non-financial information disclosure
• Regularly conducts scenario analysis for climate change risks and opportunities

Climate Goals & Targets

Environmental Challenges

• Reducing CO2 emissions to achieve carbon neutrality by 2050
• Managing risks associated with climate change (transition and physical risks)

Mitigation Strategies

• Implementing strategies focused on renewable energy, technological innovation, and daily improvements
• Fuel switching to LNG, solar power introduction, energy efficiency improvements
• Scenario analysis to assess climate change risks and opportunities

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Use of recycled materials, development of environmentally friendly products

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters affecting operations and material supply

Transition Risks

• Increased costs due to carbon taxes and energy transition

Opportunities

• Reduced costs from increased recycling, increased renewable energy, new market opportunities from CASE

Reporting Standards

Frameworks Used: TCFD (partially)

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 12 (Responsible Consumption and Production)
• Goal 11 (Sustainable Cities and Communities)
• Goal 3 (Good Health and Well-being)

Initiatives contribute to these goals through CO2 reduction, renewable energy adoption, waste reduction, community engagement, and employee well-being.

Sustainable Products & Innovation

• Recycled PET synthetic leather, bio-vegan leather (LeNa), heat-suppression automotive upholstery

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Recycling (Circular Economy)
• Diverse Human Resources
• Social Contribution Activities

Environmental Achievements

• Reduced CO2 emissions per product meter in FY2023.
• Installed solar power generation at Shinshiro Factory, reducing CO2 emissions by approximately 171 tons annually.
• Converted boiler fuel from grade A fuel oil to LNG at Asaba Factory, reducing CO2 emissions by approximately 770 tons annually.
• Implemented energy visualization across all factories, identifying and reducing energy waste.
• Improved energy conservation through utilization of waste heat and heat insulation measures, resulting in reduced power consumption.
• Renewed air compressors and pumps at Kyowa-GSK for energy savings.
• Developed synthetic leather using recycled PET bottles.
• Developed bio-vegan synthetic leather (LeNa) using biomass materials.
• Developed products with high-temperature suppression functions to reduce air conditioning energy consumption.

Social Achievements

• Donation of unwanted household items (160.5 kg) overseas.
• Participation in community cleanup activities (Lake Sanaruko and Shinshiro Clean Festa).

Governance Achievements

• Established the Office for Promoting Carbon Neutral (May 2021) to formulate and promote plans toward carbon neutrality.
• Established an Environment Control Committee to oversee environmental management and report to the Executive Committee.
• Discloses non-financial information in accordance with TCFD standards.

Climate Goals & Targets

Environmental Challenges

• Increase in absolute CO2 emissions due to increased production volume and changes in electricity conversion factors.
• Potential for supply chain disruptions due to natural disasters (climate change physical risk).

Mitigation Strategies

• Implementing various initiatives to reduce CO2 emissions (renewable energy, technological innovation, day-to-day improvements).
• Strengthening the supply network by coordinating with suppliers and affiliates.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters leading to shutdowns and supply chain disruptions

Transition Risks

• Increased costs due to carbon credits, carbon taxes, energy conversion, and low-carbon materials; decreased orders if demand for low-carbon products cannot be met; loss of investor reputation due to delays in environmental initiatives.

Opportunities

• Cost savings through energy conservation and energy conversion; increased value-added and sales through environmentally friendly products.

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through renewable energy adoption, waste reduction, and CO2 emission reduction.

Sustainable Products & Innovation

• Synthetic leather using recycled PET bottles
• Bio-vegan synthetic leather (LeNa)
• Products with high-temperature suppression functions
• Sobagni ethical synthetic leather
• Chakara synthetic leather made from Shizuoka tea