ARATA CORPORATION
Climate Impact & Sustainability Data (2021-04 to 2022-03, 2023)
Reporting Period: 2021-04 to 2022-03
Environmental Metrics
ESG Focus Areas
- Environment
- Human Resources
- Regional Communities
- Governance
Climate Goals & Targets
Medium-term Goals:
- Net sales exceeding ¥1 trillion by FY30/03
Environmental Challenges
- Environmental changes
- Pandemic
- Increased demand for health supplies
- Natural disasters
- Labor shortage
- Changing lifestyles
- Low birthrate and aging population
- Population decline
Mitigation Strategies
- Stable distribution
- Contribution of decarbonization
- Active participation and career advancement of diverse human resources
- Supply of products which meet changing demand
- Improvement in quality of life
- Proposal of high value added products
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:17,029 t-CO2 (Scope 1 & 2, FY2022)
Scope 3 Emissions:2,747,141 t-CO2 (FY2022)
ESG Focus Areas
- Climate Change
- Recycling
- Energy Saving and Resource Conservation
- Human Rights
- Diversity
- Human Resource Development
- Community-Based Social Contribution
- Business Continuity Planning (BCP)
- Corporate Governance
- Compliance
- Risk Management
Environmental Achievements
- 30.3% reduction in GHG emissions (Scope 1 and 2) compared to FY2013
- 19,000 retailers participating in the 3R campaign in 2022
- Closed-loop recycling of collapsible containers, resulting in at least 20% lower CO2 emissions than virgin materials
Social Achievements
- Increased ratio of female managers to 2.8% in FY23/03 (targeting 4.5% by FY26/03)
- Implementation of employee engagement surveys and salary increases
- Enhanced childcare and nursing care schemes
- Various training and development programs, including e-learning
Governance Achievements
- Transitioned to a company with an Audit and Supervisory Committee in June 2021
- Established a Nomination and Remuneration Committee
- Regular evaluations of the effectiveness of the Board of Directors
- Implementation of compliance training and a whistleblowing system
Climate Goals & Targets
Long-term Goals:
- Carbon neutrality by FY50/03
Medium-term Goals:
- 50% reduction of Scope 1 and 2 emissions by FY30/03
- 4.5% female manager ratio by FY26/03
Short-term Goals:
- 30% reduction of Scope 1 and 2 emissions by FY26/03
Environmental Challenges
- Low ratio of female managers
- Climate change risks (transition and physical)
- Supply chain disruptions due to disasters
- Maintaining high compliance standards
Mitigation Strategies
- Setting targets for increasing the ratio of female managers
- Conducting scenario-based analyses of climate change risks
- Developing BCP and alternative logistics networks
- Implementing compliance training and a whistleblowing system
Supply Chain Management
Responsible Procurement
- Collaboration with suppliers to reduce Scope 3 emissions
Climate-Related Risks & Opportunities
Physical Risks
- Damage caused by suspension of business operations and interruptions to logistics operations
Transition Risks
- Increase in costs due to introduction of carbon taxes and emissions trading
Opportunities
- Improvement in delivery efficiency due to implementing energy-saving measures
- Increase in sales due to the increased volume of environmentally friendly products handled
Reporting Standards
Frameworks Used: TCFD