Climate Change Data

F.C.C. CO., LTD.

Climate Impact & Sustainability Data (2022-04 to 2023-03, 2023-04 to 2024-03)

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced CO2 emissions
  • Improved recycling and waste reduction measures

Social Achievements

  • Launched employee well-being programs
  • Improved diversity and inclusion initiatives

Governance Achievements

  • Established anti-corruption training
  • Improved corporate governance structure

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • Achieve 30% renewable energy by 2030
Short-term Goals:
  • Reduce water consumption by 10% by 2025
  • Achieve a certain percentage of renewable energy by 2030

Environmental Challenges

  • Supply chain disruptions due to climate events
  • Increased difficulty in securing raw materials
Mitigation Strategies
  • Developed alternative sourcing strategies
  • Improved supply chain resilience

Supply Chain Management

Responsible Procurement
  • Code of conduct
  • Supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Flooding
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:149,054 t-CO2
Scope 1 Emissions:36,574 t-CO2
Scope 2 Emissions:112,479 t-CO2

ESG Focus Areas

  • Climate change
  • Human capital

Environmental Achievements

  • Reduced greenhouse gas emissions by 2,730t-CO2 through energy conservation and 3,667t-CO2 through renewable energy in fiscal year 2023.

Social Achievements

  • Launched an employee engagement survey in fiscal 2023 to improve employee engagement.
  • Started full-scale initiatives utilizing the Certified Health & Productivity Management Outstanding Organizations Recognition Program framework, achieving certification for two consecutive years (from fiscal 2022).

Governance Achievements

  • Implemented a restricted share-based remuneration plan for Directors (excluding those who are Audit and Supervisory Committee Members) to promote shared value with shareholders.

Climate Goals & Targets

Long-term Goals:
  • Realize carbon neutrality in 2050.
Medium-term Goals:
  • Aim for a 50% reduction of CO2 emissions in business activities by 2030 (compared to fiscal 2013).
Short-term Goals:
  • Target to achieve equal proportion of female and male employees promoted to one position higher on the career ladder by fiscal 2026.

Environmental Challenges

  • Dependence on certain industries (automobile and motorcycle) and customers (Honda Motor Group accounting for approximately 38% of revenue).
  • Risks associated with overseas business operations (political and economic trends, currency fluctuations, regulatory changes, international tax risks, natural disasters).
  • Fierce international competition in the automobile and motorcycle industries.
  • Potential for product defects and large-scale recalls.
  • Impacts of natural disasters and earthquakes (concentration of manufacturing facilities in western Shizuoka).
Mitigation Strategies
  • Actively seeking new customers and expanding sales beyond the Honda Motor Group.
  • Collecting and addressing local information through overseas subsidiaries and utilizing internal synergies.
  • Improving product competitiveness in quality, cost, and delivery.
  • Strengthening quality assurance structure.
  • Implementing measures to minimize production disruptions from natural disasters, including risk response manuals and business continuity plans (BCP).

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Increasingly severe typhoons, floods, and droughts
  • Rising sea levels and temperatures
Transition Risks
  • Government policy and legal regulations (carbon taxes, fuel taxes, emissions trading)
  • Changes to environmentally friendly raw materials by suppliers
  • Loss of sales opportunities due to delays in developing climate-friendly technologies
  • Increased life cycle CO2 reduction requirements from automobile manufacturers
  • Rising renewable energy prices
  • Impact on sales due to evaluation of approach to addressing climate change issues
Opportunities
  • Expansion in demand for products that help mitigate and adapt to climate change (electrification, air purification, renewable energy, low-carbon products)
  • Development of reformer-based integrated SOFC, carbon nanotubes, air purification technologies, water treatment membranes, and bonding technologies.

Reporting Standards

Frameworks Used: TCFD

Third-party Assurance: SGS Japan Inc.

Sustainable Products & Innovation

  • Power units for small EVs
  • Motor key components (motor cores, motor assemblies, PCUs)
  • Motor core submodules
  • Aluminum die cast products
  • Reformer-based integrated SOFC
  • Carbon nanotubes
  • Air purification technologies
  • Water treatment membranes
  • Bonding technologies