EXEDY Corporation

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

Total Carbon Emissions:203,625 t-CO2 (FY2022)

Scope 1 Emissions:33,500 t-CO2 (FY2022)

Scope 2 Emissions:170,200 t-CO2 (FY2022)

Scope 3 Emissions:1,491,800 t-CO2 (FY2022)

Renewable Energy Share:0.39% (FY2022)

Water Consumption:2,400,000 m3 (FY2022)

Waste Generated:15,825 tons (FY2022)

Carbon Intensity:71.3 t-CO2/100 Mil. JPY (FY2022)

Achieved a 19.6% reduction in CO2 emissions compared to FY2019 by promoting energy-saving activities and introducing renewable energy.
Obtained independent third-party assurance for GHG emissions in February 2024.
Established a new production line for HEV damper products in June 2023.

Increased training hours (people/year) to 31.8 hours in FY2022, almost six times more than in FY2019.
Achieved FY2030 targets for total working hours and paid leave utilization rate ahead of schedule.
Appointed five independent outside directors (ratio of 41.7%) and two female directors (ratio of 16.7%) in June 2023, achieving FY2030 targets ahead of schedule.

Achieved KPIs for the ratio of independent outside directors and female and non-Japanese directors ahead of schedule in June 2023.

Long-term Goals:

Achieve carbon neutrality by FY2050
Increase ratio of R&D expenses for new product development to 70% by FY2030, 90% by FY2050
Increase percentage of sales of products contributing to decarbonization to 83% by FY2030

Medium-term Goals:

Reduce Net GHG emissions by 26.5% in FY2024, 29.75% in FY2025
Increase ratio of R&D expenses for new product development to 57% in FY2024, 61% in FY2025
Increase employee satisfaction rate to 50% in FY2024, 52% in FY2025
Increase human resource development (training hours/person/year) to 24.3 hours in FY2024, 28.3 hours in FY2025
Increase percentage of female employees in management positions to 4.2% in FY2024, 4.9% in FY2025
Reduce total working hours to less than 1,977 hours in FY2024, less than 1,966 hours in FY2025
Increase paid leave utilization rate to 85.8% in FY2024, 87.8% in FY2025
Achieve carbon neutrality by 2050

Short-term Goals:

Reduce water consumption by 10% by 2025 (implied)
Increase percentage of sales of products contributing to decarbonization to 6% in FY2024, 6% in FY2025

Global economic turmoil, including US-China tensions and conflicts in Ukraine and the Middle East.
Softening demand for BEVs in Western markets.
Shift to electric vehicles posing a risk to the business.
Low PBR (below 1 for the last ten years) due to low return on capital and uncertainty about the future of the business.
Excessive production capacity leading to higher fixed costs and lower total asset turnover.
Lack of a clear plan for developing new mainstay products to replace those for internal combustion engine vehicles.

Discussions with customers to restructure production capacity in the AT segment to reduce fixed costs.
Sales expansion of HEV damper products.
Continuing to win orders in the Indian passenger car market and the repair market for MT products.
Developing the electrified products business as a core business, considering collaboration and M&A for essential technologies.
Promoting open innovation activities, utilizing the Silicon Valley office and collaborating with venture capital.
Strengthening human capital through employee training and recruitment of human resources with knowledge about new businesses.
Proactive IR activities to gain investor understanding and dispel uncertainty about the future.

Supplier Audits: 8 audits in FY2022

Frameworks Used: TCFD

Certifications: ISO 14001