Climate Change Data

Environmental Metrics

ESG Focus Areas

• Social contribution
• Efficient management
• Human resource development
• Expansion of business bases
• Strengthening business capabilities

Environmental Achievements

• Not disclosed

Social Achievements

• Increased rental of home oxygen therapy devices to 8,572 units (4.9% increase), resulting in a 6.8% increase in sales in the home medical care related business.
• Expansion of the paid nursing home "Life Stage Asagaya" by 12 rooms, increasing the total number of rooms to 42.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Intensified sales competition within the medical gas industry.
• Government's medical expense suppression policy.
• Changes in needs due to the efficiency improvement of medical institutions.
• The Great East Japan Earthquake's impact on overall production.
• Uncertainty in future trends due to the medical institution's elimination and the government's medical expense suppression policy.

Mitigation Strategies

• Further efforts to improve management efficiency.
• Expansion of the transaction base and efficient collaboration with group companies.
• Emergency transportation of medical gases to disaster-stricken areas.
• Strengthening sales capabilities.
• Human resource development, establishment and review of sales bases, expansion of the transaction base in the home care-related department, and focus on securing residents in paid nursing homes.
• Diversification of revenue sources through stronger collaboration among group companies.

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

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Launched a new product, 'Palettes', a home oxygen therapy device with wireless communication, contributing to improved patient care and potentially increasing company revenue.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increased competition within the medical gas industry.
• Uncertainty in the domestic economy due to concerns about the European economy and a slowdown in the US economic recovery.
• Stagnant drug prices and changing needs due to increased efficiency in medical institutions.
• Decreased occupancy rate in the 'Life Stage Asagaya' senior care home.

Mitigation Strategies

• Strengthening business operations through efficient collaboration with group companies.
• Focusing on the home healthcare sector, including the launch of new products.
• Focusing on human resource development, establishing and reviewing sales offices, expanding the trading base of the home care-related department, securing residents for the senior care home, expanding the product lineup, and implementing measures for diversification of revenue sources across the group.
• Continued efforts to improve occupancy rates at the senior care home through advertising and collaborations with referral agencies.

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

• Palettes (home oxygen therapy device)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Launched new products like 'Palettes' (wireless communication oxygen supply device for home oxygen therapy) and 'Profund' (foot-pedal wheelchair), increasing sales in home healthcare and welfare-related businesses.
• Opened a new daycare facility ('Ashitsuyu Bunkyo') to expand business scope.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increased competition in the medical gas industry.
• Decreasing hospital stays due to improved medical technology, leading to reduced medical oxygen consumption.
• Elimination of medical institutions and lack of expected drug price increases.
• Shrinking market size for nursing school-related businesses due to declining student numbers.

Mitigation Strategies

• Efficient collaboration with group companies to expand the current business base.
• Diversification of business into home healthcare, welfare, and other fields.
• Flexible management adapted to the business environment.
• Strengthening sales capabilities.
• Intensifying management resources on profitable areas and tasks.
• Improving employee product knowledge and responsiveness to various needs.
• Expanding the transaction base for home healthcare and welfare-related businesses.
• Focusing on securing residents for the paid nursing home.
• Diversifying new businesses and products to achieve diversification of revenue sources for the entire group.

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

• Palettes (wireless communication oxygen supply device), Profund (foot-pedal wheelchair)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Opened three new visiting nursing and rehabilitation stations (王子, 阿佐ヶ谷, 巣鴨) in Tokyo.
• Improved occupancy rate at Lifestages Asagaya senior care home.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decreasing consumption of medical oxygen gas due to advancements in medical technology, fewer medical institutions, and the increasing number of hospitals adopting the DPC (Diagnosis Procedure Combination) system.
• Increased competition in medical gas equipment construction.
• High construction costs leading to project cancellations and postponements.

Mitigation Strategies

• Maintaining a 24-hour emergency response system for medical gas supply.
• Focusing on acquiring new customers and exploring new business models in medical gas-related business.
• Strengthening sales activities and promoting self-developed products (e.g., WESTELLA oxygen concentrator) in home medical care.
• Switching from manufacturer construction to in-house construction for fire prevention equipment to improve delivery time management.
• Expanding product lineup and strengthening sales to community support centers, home care support providers, and medical/welfare rental businesses in the elderly care and welfare business.

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

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Opened new visiting nursing and rehabilitation stations in Sugamo, Asagaya, and Oji, improving local awareness and customer needs understanding.
• Enhanced added-value services and human resource development at Life Stage Asagaya, a paid senior home.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decreasing consumption of medical oxygen gas due to advancements in medical technology and the decrease in the number of medical institutions.
• Rising construction material costs and labor shortages in medical gas equipment construction.
• Increased competition in medical gas equipment construction.

Mitigation Strategies

• Maintaining a 24-hour emergency response system for medical gas supply.
• Focusing on securing new customers and developing new business models in medical gas-related business.
• Prioritizing profitability, reducing construction costs, and providing meticulous construction to meet customer needs in medical gas equipment construction.
• Strengthening cost controls for improved profitability and securing and developing human resources.

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

• Employee safety
• Stable supply of products and services
• Social responsibility in healthcare
• Work-style reform

Environmental Achievements

• Not disclosed

Social Achievements

• Continued operations during the pandemic, prioritizing employee safety and stable product supply; Enhanced PR activities and staff augmentation in home healthcare; Strengthened high value-added services and human resource development at a senior care facility; Implemented infection prevention measures at senior care facilities to ensure safety and security for residents and their families.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on economic activity, including reduced exports and consumption; Fluctuations in COVID-19 infection numbers; Uncertainty in economic recovery due to the Ukraine situation; Reduced equipment investment by medical institutions; Material shortages leading to extended construction periods; COVID-19 related delays in inspections.

Mitigation Strategies

• Prioritized stable supply and safety in business operations; Continued detailed business activities while taking infection prevention measures; Focused on maintaining a stable supply system of products and services; Implemented infection prevention measures at senior care facilities; Strengthened PR activities and staff augmentation in home healthcare; Strengthened high value-added services and human resource development at a senior care facility.

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

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Launched initiatives to improve employee wellbeing and enhance infection prevention measures during the COVID-19 pandemic.
• Strengthened human resource development and high value-added service provision at the “Life Stage Asagaya” senior care facility.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on medical gas-related business.
• Not disclosed

Mitigation Strategies

• Continued business operations prioritizing stable product supply and safety of customers and employees.
• Expanded sales of infection control products.
• Implemented detailed business activities to address patient and medical institution needs in the home medical care business.
• Strengthened local community PR activities and improved occupancy rates at senior care facilities.

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: 太陽有限責任監査法人

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• IT-based measurement and recording devices in home medical care.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Employee safety
• Stable supply of products and services
• Social responsibility in healthcare
• Work-style reform
• COVID-19 response
• Stakeholder engagement

Environmental Achievements

• Not disclosed

Social Achievements

• Continued operations during COVID-19 pandemic, ensuring employee and client safety
• Enhanced human resource allocation for stable delivery of medical oxygen and carbon dioxide
• Expansion of new clients
• Strengthened PR activities for home-visit nursing business, resulting in improved performance
• Improved occupancy rate at the “Life Stage Asagaya” senior care home through enhanced services and staff training
• Increased operating rate at “Ashitsuyu” day care facilities through localized services and diversified customer services

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Global rise in raw material, energy, and transportation costs
• COVID-19 pandemic impact on business operations

Mitigation Strategies

• Cost reduction efforts through self-help rationalization
• Continued operations prioritizing employee and client safety during the pandemic
• Expansion of new clients and enhanced human resource allocation to ensure stable delivery of medical gases

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