Climate Change Data

AICA Kogyo Co., Ltd.

Climate Impact & Sustainability Data (2020-04 to 2021-03)

Reporting Period: 2020-04 to 2021-03

Environmental Metrics

ESG Focus Areas

  • Economic Value
  • Social Issue Resolution through Products
  • Human Resources and Organizational Development
  • DX Implementation
  • Responding to Climate Change
  • Strengthening Governance
  • Quality Assurance and Occupational Safety

Environmental Achievements

  • Reduced GHG emissions revenue intensity by 0.2% year-on-year in AICA Group production sites in Japan (FY2020)
  • Reduced industrial waste emission revenue intensity by 26% year-on-year in AICA Group production sites in Japan (FY2020)
  • Increased recycling of industrial waste
  • No environmental accidents with impact outside AICA Group sites in Japan (FY2020)

Social Achievements

  • Launched new recruit training program to cultivate independent personnel
  • Expanded work-life balance assistance scheme
  • Improved employee satisfaction (slightly higher than average for common companies)
  • Donated antiviral building material to Aichi Prefectural Minato Special Support School
  • Donated transmission prevention goods to neighboring residents and nearby facilities in Asia

Governance Achievements

  • Transitioned from a Company with a Board of Auditors to a Company with Audit and Supervisory Committee (June 2020)
  • Established a Governance Committee
  • Introduced a restricted stock (RS) compensation system for directors (excluding directors who are members of the Audit and Supervisory Committee and external directors) and an Employee Stock Ownership Plan (ESOP)
  • Strengthened governance of overseas Group companies through the Overseas Group Governance committee

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero GHG emissions by 2050
Medium-term Goals:
  • Conduct simulations aimed at net-zero GHG emissions by 2050 and develop measures
  • Establish calculation methods for Scope 3 emissions and develop emissions reduction measures
Short-term Goals:
  • Reduce GHG emissions revenue intensity by 10% by FY2023 (compared to FY2020)
  • Reduce industrial waste emission revenue intensity by 10% from FY2020
  • Reduce water use per revenue intensity in high-risk areas by 6% from FY2020
  • Increase sales of AS products to more than 21 billion yen (FY2023)

Environmental Challenges

  • Impact of COVID-19 pandemic on business performance
  • Fluctuations in major raw materials prices
  • Dependence on construction and renovation demand
  • Changes in market and customer needs
  • Climate change (physical and transition risks)
  • Shortage of skilled workers
  • Aging infrastructure
  • Soaring logistics costs
Mitigation Strategies
  • Implemented various profit improvement measures, including cost reduction
  • Built stable supply frameworks by purchasing from multiple suppliers
  • Developed new and resilient markets in Construction Materials Business
  • Invested in Specialty & Performance Materials Business targeting non-construction sectors
  • Developed and expanded sales of AS products that resolve social issues
  • Strengthened BCP measures
  • Implemented DX initiatives
  • Introduced energy-efficient methods
  • Developed low-carbon products
  • Improved production efficiency

Supply Chain Management

Supplier Audits: Approximately 70% of total value of AICA Kogyo’s materials procurement covered, with a particular focus on main suppliers.

Responsible Procurement
  • AICA Group CSR Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Natural disasters
Transition Risks
  • Increase in carbon tax
  • Stricter regulations on raw materials
  • Increase in energy costs
  • Changes in consumption behavior
Opportunities
  • Increase in demand for products that help reduce greenhouse gas emissions
  • Increase in demand for products that use raw materials derived from non-fossil sources
  • Increase in demand for recyclable products
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, ISO 26000, UNGC, TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001

Sustainable Products & Innovation

  • AS products
  • Low-carbon products
  • Recyclable products
  • Antiviral products