H.U. Group Holdings, Inc.

Climate Impact & Sustainability Data (2017-2022, 2023 to 2024-06)

Reporting Period: 2017-2022

Environmental Metrics

Total Carbon Emissions:39,494 t-CO2e (Scope 1 & 2, 2020); 438,560 t-CO2e (Scope 3, 2020)

Scope 3 Emissions:438,560 t-CO2e (2020)

Renewable Energy Share:20% (approx. 70 business locations)

ESG Focus Areas

Environment
Social
Governance
Human Rights
Human Resources
Procurement

Environmental Achievements

Reduced CO2 emissions by 7% (Base: FY2017)
Increased waste plastic recycling rate by 15% (Base: FY2017)
Achieved FY2020 targets for CO2 reduction and improvement of total recycling rate of waste plastic.
CDP Climate Change Report 2021 rating of A-

Social Achievements

20% female managers (FY2020)
White 500 acquisition
Certified Health & Productivity Management Outstanding Organizations Recognition Program (Large Enterprise Category) for multiple subsidiaries
Average annual training time per employee approx. 18 hours (Domestic)

Governance Achievements

Adopted company with three committees system
Six of eight directors are independent external directors
Nominating, Audit and Compensation Committees are each chaired by an outside director
Outside directors constitute the majority of each committee

Climate Goals & Targets

Long-term Goals:

Net zero CO2 emissions by 2050
Waste plastic recycling rate at major business locations 100% by 2050

Medium-term Goals:

Reduce CO2 (Scope 1,2) emissions by 25% (Base: FY2020) by 2030
Reduce CO2 (Scope 3) emissions by 12.5% (Base: FY2020) by 2030
Waste plastic recycling rate at major business locations 90% by 2030

Short-term Goals:

Establish business unit to promote diversity in FY2022
Introduce program to encourage employees to take childcare leave (July 1, 2022)

Environmental Challenges

Increased energy consumption (CO2 emissions) despite net sales growth
Changes in waste balance due to COVID-19 effects
Transition risks and physical risks related to climate change (identified through TCFD analysis)

Mitigation Strategies

Implementing energy conservation activities
Increased procurement of renewable energy
Introduction of EVs and FCVs
Formulating BCPs
Purchasing non-life insurance water damage rider
Using multiple modes of transportation
Forming business alliances for sample transportation
Considering R&D on relevant diseases and items
Studying renewable energy facilities for pilot or full-scale adoption

Supply Chain Management

Supplier Audits: Approximately once every three years for 80% of purchased amount

Responsible Procurement

Compliance with laws and social norms
UNGC Self Assessment Tool

Climate-Related Risks & Opportunities

Physical Risks

Flooding of business locations
Supply chain disruption

Transition Risks

Introduction of carbon tax
Revision of ordinances
Market pressures to do something about GHG emission reductions

Opportunities

Increasing demand for products and tests for tropical diseases

Reporting Standards

Frameworks Used: TCFD

Certifications: White 500, SBT (committed)

UN Sustainable Development Goals

SDG 3: Good Health and Well-being
SDG 9: Industry, Innovation and Infrastructure
SDG 13: Climate Action

H.U. Bioness Complex contributes to SDGs through high-quality testing at low cost, expanded testing capacity, increased access to testing, R&D into minimally invasive testing, automation of processes, and disaster resilience.

Awards & Recognition

Toyo Keizai CSR Survey (234th overall ranking, 7th in industry)
MSCI ESG Ratings upgrade to AA
Sustainalytics low risk rating

Reporting Period: 2023 to 2024-06

Environmental Metrics

Total Carbon Emissions:305,506 tCO2e/year (Scopes 1, 2, and 3)

Scope 1 Emissions:8,933 tCO2e/year

Scope 2 Emissions:32,486 tCO2e/year

Scope 3 Emissions:264,087 tCO2e/year

Total Energy Consumption:970,292 GJ/year

Water Consumption:413,000 m3/year

Waste Generated:4,676 tons/year