Climate Change Data

Carlit Holdings Co., Ltd.

Climate Impact & Sustainability Data (2021-04 to 2022-03)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:186,408 tCO2e (2021)
Scope 1 Emissions:18,040 tCO2e (2021)
Scope 2 Emissions:13,848 tCO2e (2021)
Scope 3 Emissions:154,520 tCO2e (2021)
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:13,638,830 m3 (2021)
Waste Generated:13,187 tons (2021)
Carbon Intensity:Not disclosed

ESG Focus Areas

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

Environmental Achievements

  • Achieved approximately 1,860万kWh of power generation at Hiroto Power Plant, reducing CO2 emissions by over 8,300 tons and contributing approximately 300 million yen in reduced electricity costs.
  • 100% renewable energy usage at the Gunma factory of Nippon Carlit Co., Ltd.

Social Achievements

  • Implemented employee engagement survey in FY2022.
  • Launched diversity and inclusion initiatives, including aiming for a 30% or higher female hiring rate for new graduates and promoting female management.
  • Implemented various support systems for creating a comfortable work environment, including work style reforms and telework.

Governance Achievements

  • Established a Sustainability Committee chaired by the President and including all directors, executive officers, and an external auditor.
  • Established a Group Risk Management Committee chaired by the President.
  • Implemented a corporate governance system with a Governance Committee composed of a majority of outside directors.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050.
Medium-term Goals:
  • Achieve 8% ROE by 2024, increasing to over 10% by 2030.
  • Achieve 30 billion yen in operating profit by 2024, increasing to 50 billion yen by 2030.
  • Achieve 100% renewable energy usage at all factories by 2030.
Short-term Goals:
  • Reduce Scope 1 and 2 emissions by 46% from 2013 levels by 2030.
  • Achieve a 70% coverage rate for sustainable procurement surveys by 2022.
  • Increase employee engagement scores annually.
  • Increase the female management ratio by 3% by 2024.

Environmental Challenges

  • Rapid technological innovation and fluctuating market demand in electronic materials, functional materials, and silicon wafers.
  • Fluctuations in raw material prices and the inability to fully pass on price increases to customers.
  • Fluctuations in energy prices (crude oil, LNG) due to geopolitical factors.
  • Strengthening environmental regulations and chemical substance regulations.
  • Potential for lawsuits or disputes related to business activities or intellectual property rights.
  • Risks related to natural disasters, pandemics, and supply chain disruptions.
  • Fluctuations in exchange rates affecting procurement and export-related transactions.
  • Risks associated with handling hazardous materials in the chemical business.
  • Potential for quality issues affecting the company's reputation and incurring costs.
  • Cybersecurity threats and risks related to information security.
Mitigation Strategies
  • Expanding product lineups and introducing new products to maintain profit levels.
  • Strengthening relationships with brand companies to secure stable orders in the bottling business.
  • Multiple sourcing of raw materials and hedging strategies to mitigate price fluctuations.
  • Close monitoring of environmental regulations and compliance measures.
  • Thorough review of contracts and prompt response to any disputes.
  • Risk assessment and mitigation strategies for natural disasters, pandemics, and supply chain disruptions.
  • Currency hedging and diversification of procurement sources to mitigate exchange rate risks.
  • Strict safety measures and regular inspections to prevent accidents in the chemical business.
  • Strengthening quality management systems and information sharing among quality control personnel.
  • Building a robust cybersecurity system, implementing security technologies, and conducting regular security training.

Supply Chain Management

Supplier Audits: 70% coverage by procurement amount in FY2022 (target)

Responsible Procurement
  • Carlit Group Sustainable Procurement Guidelines and Basic Policy

Climate-Related Risks & Opportunities

Physical Risks
  • Changes in precipitation and weather patterns
  • Temperature rise and water shortages
  • Increased frequency and intensity of extreme weather events
Transition Risks
  • Introduction of carbon pricing
  • Strengthening of CO2 emission regulations
  • Changes in market demand due to increased environmental awareness
Opportunities
  • Increased demand for climate-friendly products and services
  • Development of energy-efficient products
  • Expansion of renewable energy use

Reporting Standards

Frameworks Used: International Integrated Reporting Council (IIRC) International Framework, Ministry of Economy, Trade and Industry (METI) Guidance on Integrated Disclosure and Dialogue for Value Co-creation, TCFD

Certifications: ISO 9001 (multiple subsidiaries)

Third-party Assurance: Not disclosed

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)

The company's initiatives contribute to these goals through renewable energy use, employee well-being programs, sustainable procurement, and climate change mitigation efforts.

Sustainable Products & Innovation

  • Super High Flyer Plus Pick (emergency safety flare with glass breaker)

Awards & Recognition

  • Not disclosed