Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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

• Environmental Preservation
• Human Resources
• Corporate Governance
• Supply Chain Management
• Risk Management
• Compliance

Environmental Achievements

• Reduced CO2 emissions volume by 50% compared to 2018 (target for 2030)
• Renewable energy introduction ratio: 7.5% (KAYABA Group)
• CO2 reduction volume of 634 tCO2 (KAYABA Group) through LED promotion
• CO2 reduction volume of 143 tCO2 (Gifu South Plant) through steam loss reduction
• CO2 emissions reduction volume of 54 tCO2 through high-voltage transformer installation
• CO2 emissions reduction volume of 24 tCO2 through high-efficiency compressor installation
• CO2 emissions reduction volume of 1,695 tCO2 through photovoltaic power generation equipment introduction
• Waste matter reduction of 80% (Gifu North Plant) by using dehydrators
• Waste matter reduction of 80% (KMS) through plating wastewater treatment equipment use
• Achieved 100% ISO 14001 certification for domestic companies and 88% for overseas subsidiaries

Social Achievements

• Certified as FY2022 Health and Productivity Management Organization
• Initiatives for Diversity in Human Resources: increasing the number of female managers, providing robust training programs, raising awareness of women employees regarding aiming to become managers, and conducting environmental management
• Promoting the employment of people with disabilities
• Creating harassment-free workplaces through awareness-raising activities, education, and internal reporting hotlines
• Improved employee awareness of the internal reporting system and willingness to use it

Governance Achievements

• Established the Sustainability Committee to coordinate company-wide sustainability efforts
• Adopted the Executive Officer System to increase decision-making speed and optimize corporate management
• Strengthened governance through monthly reporting from regional headquarters to Regional Representative Directors and quarterly reports to the President
• Endorsed the Task Force on Climate-Related Financial Disclosures (TCFD) in February 2023
• Improved internal control system based on the Companies Act of Japan

Climate Goals & Targets

Environmental Challenges

• Global semiconductor shortage
• Steep increases in the prices of energy and materials
• Sudden fluctuations to the exchange rate
• Climate change impacts (extreme weather events)
• Tightening of regulations concerning greenhouse gas emission reductions
• Declining demand in China
• Shortage of human resources
• Rising interest rates in the United States
• Russia-Ukraine conflict
• Growing inflation
• Increased costs for responding to environmental concerns
• Cybersecurity threats (cyberterrorism and ransomware attacks)

Mitigation Strategies

• Shifting from emphasizing sales to emphasizing profits
• Revolutionary monozukuri to support the future
• Plant and office reorganizations
• Reduction and discontinuation of unprofitable business and products
• Strengthening core technologies of vibration control and power control
• Developing electrification-compatible products and systems
• Cost reduction activities
• Joint development with Toyota on environmentally friendly hydraulic fluid
• Strengthening governance system
• Improving capital efficiency
• Introducing safety and health management OSHMS and ISO 45001 protocols
• Implementing a business continuity plan
• Strengthening natural disaster reduction measures
• Conducting assembly drills
• Improving procurement activities with business partners
• Strengthening regulations for the entire KAYABA Group and taking cyber risk countermeasures with a focus on KAYABA-CSIRT

Supply Chain Management

Supplier Audits: 580 first-tier domestic suppliers audited from end of FY2021 to start of FY2022

Responsible Procurement

• 11-item supply policy
• Sharing information with business partners on issues and targets
• Comprehensive evaluation of new business partners based on management situation, system audits, and certifications (ISO9001, IATF16949, ISO14001)
• Annual business partner evaluation records for current major business partners
• Investigations to avoid funding armed groups responsible for human rights violations (Dodd-Frank Act compliance)
• Initiatives to prevent slave labor and human trafficking (UK Modern Slavery Act compliance)

Climate-Related Risks & Opportunities

Physical Risks

• Intensification of natural disasters (flooding)

Transition Risks

• Tightening of regulations concerning greenhouse gas emission reductions
• Shifting market demand towards electric vehicles

Opportunities

• Increased sales caused by growth in demand for products and services (quiet operation, ride comfort)
• Expansion in the railway damper business due to modal shift
• Offering products suitable for electrification

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, ISO 45001

Sustainable Products & Innovation

• e-Mixer III
• Biodegradable hydraulic fluid
• Electric pumps for e-Axle
• Smart Road Monitoring
• Electronically controlled suspensions
• SBW systems

Awards & Recognition

• Green Star Award
• Superior Product Quality Award
• KYB-YS QCDS Best Performance Award
• Regional Quality Award
• A Rank Award
• Award for Effort to Deliver Zero Defective Products
• KAYABA Regional Special Award and Quality Award
• Best Improvement on Working Capital and Fixed Asset Management
• Logistics Performance Award
• Service Parts Supplier Award
• Best Innovation Award
• Best Profit Ratio Award
• Chairman's Award
• Minister of Education, Culture, Sports, Science and Technology Award (Gold Award)
• Gifu Governor’s Award
• Selected as a Good Partnership Company
• CO2 Reduction Early Achievement of 2025 Target Award
• Safety Activity 2022 Level A

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Supply Chain Management
• Human Rights
• Occupational Safety and Health
• Social Contribution

Environmental Achievements

• Developed world’s first environmentally friendly hydraulic oil, SustainaLub®, which is biodegradable and recyclable.
• Reduced CO2 emissions by 50% compared to 2018 (target for 2030).
• Increased renewable energy adoption rate to 12.9% (target for 2025 is 15%).
• Reduced energy consumption by 11.5% year-on-year.
• Reduced industrial waste by 6.5% year-on-year.
• Obtained ISO 14001 certification for 100% of domestic companies and 93% of overseas subsidiaries.

Social Achievements

• Launched a rally team to enhance employee engagement and teamwork.
• Received “Eruboshi” certification for promoting women's active participation.
• Increased disabled employment rate to 2.55%, exceeding the legal requirement.
• Implemented health management initiatives focusing on reducing smoking rates, improving job satisfaction, and promoting work-life balance.
• Participated in Kanagawa Science Summer to engage with local communities.

Governance Achievements

• Strengthened internal control systems and risk management processes.
• Implemented a Total Quality Management (TQM) initiative.
• Established a multi-stakeholder policy to engage with various stakeholders.
• Improved corporate governance based on the Corporate Governance Code.
• Enhanced compliance programs and conducted regular audits.

Climate Goals & Targets

Environmental Challenges

• Declining demand in China for certain products.
• Deteriorating productivity in North America and Europe.
• Climate change related risks (flooding, regulatory changes).
• Supply chain disruptions.
• Human rights risks in the supply chain.
• Cybersecurity threats.

Mitigation Strategies

• Implementing Ship’30 project for next-generation manufacturing.
• Investing in AI and DX for improved productivity and quality.
• Developing electrification-compatible products.
• Strengthening BCP and disaster preparedness.
• Conducting supplier audits and promoting responsible procurement.
• Strengthening cybersecurity controls and implementing KYB-CSIRT.

Supply Chain Management

Supplier Audits: 708 domestic tier 1 suppliers targeted for CSR awareness.

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Responsible mineral sourcing (3TG, cobalt)
• Carbon neutrality initiatives.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Regulatory changes
• Market shifts towards electric vehicles

Opportunities

• Increased demand for electrification-compatible products
• Expansion in railway damper business due to modal shift.

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

KYB's initiatives contribute to these goals through the development of sustainable products, energy efficiency improvements, waste reduction, and climate change mitigation.

Sustainable Products & Innovation

• SustainaLub® environmentally friendly hydraulic oil
• Electric pumps
• Electrification-compatible products

Awards & Recognition

• Superior Appreciation Award (Honda Motor)
• Technology Award (Japanese Society of Tribologists)
• Eruboshi certification
• Patent Office Director’s Encouragement Award
• Invention Association Chairman’s Awards
• Minister of Health, Labor and Welfare Award for Safety Excellence
• Four awards from Toyota Daihatsu Engineering & Manufacturing