Climate Change Data

BML, Inc.

Climate Impact & Sustainability Data (2021-04 to 2022-03, 2022-04 to 2023-03, 2024)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:16,391 t-CO2 (FY2022)
Scope 1 Emissions:3,915 tCO2e (FY2021)
Scope 2 Emissions:12,476 tCO2e (FY2021)
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:approximately 2,169 kwh (BML General Laboratory, FY2021)
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environment
  • Society
  • Corporate Governance

Environmental Achievements

  • Reduced CO2 emissions by approximately 1,200 tons per year through air-conditioning system renovation.
  • Planned CO2 emission reduction of approximately 470 tons per year with solar panels and high-efficiency heat source air-conditioning in the new wing.

Social Achievements

  • Increased percentage of women in management positions.
  • Increased percentage of female candidates for next management positions.
  • Increased percentage of men taking childcare leave.
  • Recognized by the Ministry of Economy, Trade and Industry as a Certified Health & Productivity Management Outstanding Organization.

Governance Achievements

  • Established a Sustainability Committee chaired by the Representative Director and Vice President.
  • Increased the ratio of Outside Directors to more than one-third of the total number of directors.
  • Renamed the Advisory Committee to the Nomination and Compensation Committee.
  • Disclosed the Directors’ Skill Matrix.
  • Announced the Message on Diversity & Inclusion by the President.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Increase the percentage of women in management positions to about 13%
  • Increase the percentage of female candidates for next management positions to about 32%
  • Increase the percentage of men taking childcare leave to about 10%
  • Net sales: up to ¥145,000 million (FY2023)
  • Operating income ratio: 8.5% or higher (FY2023)
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Reducing healthcare costs.
  • Depopulation of regional healthcare.
  • Climate change risks (extreme weather events, supply chain disruptions).
  • Maintaining profitability in a mature market with price competition.
Mitigation Strategies
  • Actively introducing automation in clinical testing.
  • Providing clinical testing in regional areas through a network of laboratories.
  • Implementing BCP measures (new wing construction with base isolation system, emergency power generation, water supply).
  • Strengthening non-insurance fields (medical informatics, medical check-ups, clinical trials, food testing).
  • Careful cost management and price negotiations with suppliers.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Careful price negotiations with suppliers.

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Extreme weather events
Transition Risks
  • Carbon prices
  • National carbon emission targets and policies
  • Electricity expenses
  • Renewable energy procurement costs
  • Plastic tax
  • Cost of switching to EVs
Opportunities
  • Increased sales opportunities due to implementation of low-carbon inspection processes
  • Decreased costs due to lower electricity retail unit prices
  • Expand sales opportunities through the introduction of biomass-derived containers
  • Improvement of market competitiveness by strengthening BCP

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), Guidance for Collaborative Value Creation of the Ministry of Economy, Trade and Industry, TCFD recommendations

Certifications: ISO14001 (BML General Laboratory), ISO15189 (BML General Laboratory)

Third-party Assurance: Third-party verification opinion obtained for GHG emissions (Scope 1 and 2) of BML General Laboratory.

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Qualis Cloud (cloud-based electronic patient chart)
  • B-Liner (clinical testing system)
  • DRS (digital reporting system)

Awards & Recognition

  • Certified Health & Productivity Management Outstanding Organization (2022)

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:16,337 t-CO2 (FY2023)
Scope 1 Emissions:5,165 t-CO2 (FY2022)
Scope 2 Emissions:11,172 t-CO2 (FY2022)
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:approximately 22.50 million kwh (FY2022)
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate change
  • Realization of a rewarding workplace
  • Respect for human rights
  • Strengthening of governance
  • Development of high-quality, high-value-added business
  • Contribution to medical care

Environmental Achievements

  • Reduced CO2 emissions by 478 t-CO2/year through installation of solar power generation equipment and improved air-conditioning efficiency at BML General Laboratory.
  • Started replacing 3000 vehicles with EVs and PHVs.

Social Achievements

  • Increased female manager ratio to 11.2%
  • Achieved 86.9% childcare leave utilization rate.
  • Donated ¥100 million to Kawagoe City.
  • Selected as a “2023 Certified Health & Productivity Management Outstanding Organization (White 500)”

Governance Achievements

  • Established the Sustainability Committee.
  • Acquired DX Certification.
  • Concluded a capital and business alliance agreement with FALCO HOLDINGS Co., Ltd.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050
Medium-term Goals:
  • Reduce Scope 1 + 2 emissions by 25% by FY2030
  • Increase the ratio of renewable energy-derived electricity introduced at our main BML General Laboratory to 70% by 2030
  • Increase the ratio of renewable energy-derived electricity introduced at core laboratories to 4.4% by 2030
  • Achieve carbon neutrality by 2050
  • Increase the percentage of women in management positions to about 13% by FY2026
  • Increase the percentage of female candidates for next management positions to about 32% by FY2026
  • Increase the percentage of men taking childcare leave to about 10% by FY2029
  • Introduce B-Label at 50% of facilities that use electronic patient chart systems by FY2026
  • Achieve a B-Label attached rate of 30% by FY2026
  • Have 200 employees obtain the IT Passport qualification per year by FY2029
Short-term Goals:
  • Reduce water consumption by recycling wastewater
  • Improve response rate of electronic patient chart support and service quality (Response rate: 90% or above; Response within 90 seconds by FY2023)
  • Reduce the use of USB memory by 30% and shift to highly-encrypted USB memory by FY2024

Environmental Challenges

  • Increased costs of transporting specimens and operating testing equipment due to higher energy prices and increased import costs.
  • Inability to directly pass on cost increases to sales prices due to fixed insurance points.
  • Decline in demand for COVID-19 related tests.
  • Need to reduce healthcare costs.
  • Issues with popularization of online medical care (security concerns and reimbursement for medical service fees).
  • Need to develop growth drivers in non-insurance fields.
  • Rising infrastructure prices and population decline.
Mitigation Strategies
  • Promoting standardization and automation of testing processes.
  • Digital transformation (DX) using a digital reporting system (DRS).
  • Focusing on non-COVID-19-related tests.
  • Actively working to introduce high-performance tests.
  • Promoting seamless collaboration with online medical care systems.
  • Focusing on four business fields: medical informatics, medical check-ups, clinical trials, and food hygiene.
  • Reinforcing standardization efforts and use of DX.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Communicating with suppliers, including reagent manufacturers, to consider specific measures for human rights due diligence.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Flooding
  • Water shortages
  • Lightning
Transition Risks
  • Increased electricity retail unit prices
  • Plastic tax
  • Renewable energy procurement costs
  • Carbon tax
  • Changes in reputation from investors and client companies
Opportunities
  • Decreased test costs and other expenses due to lower electricity retail unit prices
  • Expand sales opportunities through the introduction of biomass-derived containers, low-carbon glass containers, etc.
  • Enhanced environmental reputation from customers due to the introduction of low-carbon logistics networks and energy saving and renewable energy facilities
  • Sustainable finance enabled by the implementation of environmental management, resulting in low-interest-rate financing
  • Expansion of sales opportunities due to increased demand for new tests and food testing, associated with increases in patients with infectious diseases and food poisoning

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, TCFD

Certifications: ISO15189, ISO14001, CAP Accreditation, PrivacyMark, ISO27017, DX Certified Business Operator

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Qualis Cloud (cloud-based electronic patient chart system)
  • B-Liner (clinical testing system)
  • New automated dispensing system and new biochemical and immunological testing system at BML General Laboratory

Awards & Recognition

  • Good Conduct Award from Kawagoe City

Reporting Period: 2024

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Corporate Governance
  • Sustainability
  • Human Resources Diversity
  • Climate Change
  • Human Rights
  • Employee Well-being
  • Environmental Preservation

Environmental Achievements

  • Actively working toward goals such as reducing greenhouse gas emissions.

Social Achievements

  • Achieved 14.2% ratio of women among managerial positions by April 1, 2024 (targeting 18% by March 31, 2029).
  • Promoting a change in mindset with regard to the promotion of female human resources and proactively improving the workplace environment.
  • Provides rank-based training to employees to acquire necessary knowledge and skills.
  • Working to create a corporate environment that allows all employees to be conscious of work-life balance.

Governance Achievements

  • Introduced an executive officer structure to increase the speed of business execution.
  • Elected multiple outside directors and outside Audit and Supervisory Board members to strengthen supervisory and audit functions.
  • Established the Nomination and Compensation Committee to strengthen the independence, objectivity, and accountability of the Board of Directors’ functions.
  • Introduced performance-linked remuneration and a stock compensation system.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve 18% ratio of women among managerial positions by March 31, 2029.
Short-term Goals:
  • Not disclosed

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