Climate Change Data

NAC CO., LTD.

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

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:79.56 ktCO2e/year (Scope 3)
Scope 1 Emissions:7.01 ktCO2e/year
Scope 3 Emissions:79.56 ktCO2e/year

ESG Focus Areas

  • Build a recycling society
  • Build a decarbonized society
  • Build prosperous and comfortable lifestyles
  • Build happiness for working people
  • Co-create value with local communities
  • Ensure corporate governance and corporate ethics

Environmental Achievements

  • Reduced CO2 emissions by 25% vs. FY2021 (FY2030 target)
  • First business in the water delivery industry to obtain the Eco Mark (CreCla)
  • Annual CO2 emissions reduction of approximately 25 tons through solar panels at own plant

Social Achievements

  • Launched female employee training program in FY2023
  • Introduced teleworking and flextime systems
  • Increased number of shareholders by 7,525 year on year

Governance Achievements

  • Increased proportion of outside Directors to 37%
  • Established Nomination and Remuneration Advisory Committee in April 2021
  • Implemented training and drills for employees on compliance

Climate Goals & Targets

Long-term Goals:
  • Carbon neutrality at the NAC Group by 2050
Medium-term Goals:
  • Reduce GHG emissions to 0 ktCO2e/year by 2050
  • Net sales of ¥75,000 million and operating income of ¥5,000 million for the fiscal year ending March 31, 2025 (revised)
Short-term Goals:
  • Achieve 30% women among regular employees by FY2026
  • Achieve 10% women among managers by FY2026

Environmental Challenges

  • Decrease in workforce due to declining birth rates and aging population
  • Increase in natural disasters due to global warming
  • Resource depletion
  • Addressing the digitalization of society
  • Intensifying competition in the Group’s markets
  • Deteriorating business environment for the housing construction industry
  • Soaring construction parts and materials prices
  • Increasingly serious labor shortages
  • Rise in average temperatures
  • Rising sea levels
  • Shortage of high-quality water resources
  • Increase in costs associated with movements in exchange rates and rising prices
Mitigation Strategies
  • Active investments to generate new capital and build sustainable value
  • Human resources recruitment, training, and utilization
  • Fulfilling training programs
  • Active employment creation for women, the elderly, and others
  • Contribution to sound and prosperous regional revitalization
  • Reduction of environmental impact through decarbonization and the transition to renewable energy
  • Promotion of the 3Rs (reduce, reuse, and recycle)
  • Switch to low-emissions vehicles
  • Installation of water servers using green refrigerants
  • Introduction and utilization of new systems to improve productivity
  • Establishment of a digital talent training program
  • Creation of work-friendly labor environments
  • Promotion of diversity
  • Promotion of local construction firms
  • Establishment of sustainable supply chains
  • Address water stress
  • Revitalization of plant tours and awareness activities for water-related knowledge
  • Diverse Board of Directors
  • Formation of advisory committees
  • Formulation of policies and plans to enhance the skills of Directors and Audit & Supervisory Board Members
  • Implementation of training and drills for employees and thorough compliance with rules
  • IT security countermeasures using defense in depth
  • Implementation of training and e-learning relating to information security
  • Implementation of education and training; establishment and reinforcement of systems
  • Cultivation of an open corporate culture with high ethical standards
  • Strengthening sales promotion activities focusing on sales events at shopping malls and other locations
  • Offering new products relating to aspects such as securing human resources and DX
  • Expanding sales routes and achieving the further growth of our business bases
  • Strengthening system infrastructure
  • Promoting its introduction at affiliated stores
  • Improving productivity and promoting DX
  • Implementing various companywide health promotion initiatives
  • Expanding our recruitment of (mid-career) female sales personnel
  • Actively use mid-career recruitment to revitalize our organization
  • Improving and strengthening labor management
  • Promotion of childcare leave for male employees and support for balancing work and childcare or nursing care
  • Conducting engagement surveys and launching activities to obtain honest feedback from employees
  • Revising operational processes and other aspects of our businesses based on the issues highlighted in the free comments section
  • Providing solutions for management continuity, including succession issues, such as proposals to transfer businesses to other companies through M&A
  • Solving this dilemma through methods such as the use of subsidies and the development of more inexpensive high-performance housing
  • Strengthening our flagship products and developing new products
  • Acquiring new customers through a return to the brand’s origin in supplement sales and the implementation of product renewals
  • Expanding our mail-order business and the direct selling of imported wines
  • Engaging in ODM proposals and improving productivity
  • Maximizing Group synergies
  • Strengthening our sales activities, aiming to increase revenue and profit
  • Expanding land purchases beyond Tokyo’s 23 wards to include the suburbs of Tokyo
  • Pursuing sales activities to strengthen orders for barrier-free solutions and increasingly popular bungalows, as well as stores and dwellings combined with stores
  • Expanding product sales in the ACE HOME brand to increase the number of orders we receive
  • Enhancing our product lineup, including high-performance homes and energy-saving homes, to acquire new customers
  • Strengthening online advertising and sales events for both CreCla and feel free products
  • Promoting the introduction of CrePF, developed to encourage DX, at affiliated stores to improve productivity and promote DX
  • Implementing measures to further increase the weight of profit derived from our sales revenue
  • Enhancing our revenue efficiency through appropriate cost control
  • Rationalizing and strengthening our administration systems through digitalization
  • Improving treatment and remuneration
  • Creating workplace environments where employees can work with a sense of fulfillment
  • Introduction of a mentor program
  • Support for employees who wish to start businesses independently

Supply Chain Management

Responsible Procurement
  • Establishment of sustainable supply chains
  • Promoting collaboration, coexistence and co-prosperity with our supply chain trading partners

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding from typhoons, torrential rain, etc.
  • Rise in average temperatures
  • Rising sea levels
  • Shortage of high-quality water resources
Transition Risks
  • GHG emissions regulation
  • Soaring price of fossil fuels
  • Transition to renewable energy
  • Increase in carbon tax
  • Rise in average temperatures
  • Policies and regulation
  • Procurement
  • Delivery
Opportunities
  • Resource efficiency
  • Energy sources
  • Products and services
  • Markets

Reporting Standards

Frameworks Used: IFRS Foundation Integrated Reporting Framework, Global Reporting Initiative (GRI) Standards, Task Force on Climate-Related Financial Disclosures (TCFD) recommendations, Ministry of Economy, Trade and Industry (METI) Guidance for Collaborative Value Creation

Certifications: Eco Mark (CreCla)

Sustainable Products & Innovation

  • feel free putio (tabletop water purifier)
  • CreCla Shuwa (highly carbonated water)