Climate Change Data

Furukawa Co., Ltd.

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

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:19,536 t-CO2e
Scope 1 Emissions:3,996 t-CO2e
Scope 2 Emissions:15,540 t-CO2e
Scope 3 Emissions:655,831 t-CO2e
Total Energy Consumption:410 thousand GJ
Water Consumption:568 thousand m3
Waste Generated:6,459 tons

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Achieved FY2022 reduction targets for CO2, water, and waste
  • Introduced solar power generation equipment, electric forklifts, and highly energy-efficient production facilities and equipment; conducted research into energy-saving measures through optimal production processes
  • Continued firefly rehabilitation activities at former Kune Mine; began rehabilitation activities at former Ashio Copper Mine (FY2021); fireflies confirmed to be active (FY2022); continued activities to regenerate other flora and fauna
  • Reduced energy consumption by 13.1% year on year.
  • Reduced CO2 emissions by 12% year on year.
  • Reduced total water consumption by 8% from the previous fiscal year.
  • Reduced wastewater by 13% from the previous fiscal year.

Social Achievements

  • Increased recruitment of female employees and took measures to improve retention rate
  • Worked to maintain employment of people with disabilities
  • Considered employment opportunities for older workers (aged 65 and over)
  • Cut overtime and reduced total annual working hours to below 2,000 hours
  • Strengthened risk assessment and education for new products
  • Conducted 2nd CSR survey of major suppliers of other offices and provided follow-up
  • Engaged in close communication through visits and web conferences with suppliers
  • Provided training for personnel in charge of purchasing at three machinery plants and Furukawa C&F Co., Ltd.

Governance Achievements

  • Established Environmental Risk Sectional Meeting
  • Established Human Rights Risk Sectional Meeting
  • Revised the Compliance Manual and updated on internal portal
  • Updated whistleblowing system information section of internal portal; created poster to inform all Group companies about the system and distributed it to them

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050
Medium-term Goals:
  • Reduce greenhouse gas emissions by 46% (vs FY2013) by 2030
Short-term Goals:
  • Strengthen efforts to achieve Fourth Medium-Term Reduction Targets
  • Promote preventive measures through analysis of environmental data
  • Promote activities to reduce greenhouse gas emissions by 46% (vs FY2013) by 2030 and achieve carbon neutrality by 2050
  • Promote activities to reduce use of hazardous chemical substances (PRTR substances), including by reducing consumption, improving basic unit compared with previous fiscal year, and switching to alternative substances
  • Promote education and other initiatives to improve environmental protection
  • Promote activities to achieve accident- and disaster-free operations (especially for inexperienced and older employees)
  • Strengthen activities to eliminate unsafe conditions and behaviors
  • Promote education and guidance to enhance hazard sensitivity according to the workstyle of each Group company
  • Strengthen activities to raise awareness about quality (Companywide)
  • Reduce number/cost of complaints (Machinery-related companies)
  • Establish and continuously improve quality assurance system [Take action in accordance with the quality roadmap] (Machinery-related companies)
  • Strengthen quality assurance system [Review existing methods and consider new ones] (Materials-related companies)
  • Introduce talent management system
  • Establish category-specific education policies
  • Activate job rotation
  • Consider training young employees in specialized positions
  • Reduce total annual working hours (2,000 hours or lower)
  • Strive to earn certification as Health and Productivity Management Organization (White 500)
  • Centralize common administrative tasks
  • Increase ratio of female managers
  • Actively hire foreign employees
  • Increase employment of people with disabilities
  • Follow up 2nd CSR survey of major suppliers of other offices (Group 2)
  • Strengthen management (QCD + sustainability) of major suppliers
  • Foster partnerships with suppliers
  • Start promoting Companywide sustainability-conscious procurement activities
  • Practice Companywide risk management using list of risks
  • Environmental Risk Sectional Meeting: Discuss environmental risks and report to the Risk Management Committee
  • Human Rights Risk Sectional Meeting: Discuss human rights risks and report to the Risk Management Committee
  • Group BCP Sectional Meeting: Develop BCP manual and report to the Risk Management Committee
  • Information Security Sectional Meeting: Develop information system and report to the Risk Management Committee
  • Revise manual on the Anti-Monopoly Act etc.
  • Share information on compliance violation cases
  • Expand compliance training
  • Revise the Privacy Policy

Environmental Challenges

  • Although severity of occupational accidents declined year on year, the number of occupational accidents (including non-lost-time injuries) has not decreased
  • Reduction target for complaints not achieved
  • Increased emissions of ethylbenzene, xylene, dioxins, and toluene, as well as arsenic and its inorganic compounds, into the atmosphere. Transfers of ethylbenzene, cadmium and its compounds, xylene, 1,2,4-trimethylbenzene, and toluene to off-site locations also increased.
Mitigation Strategies
  • Strengthen safety measures through environmental and safety audits
  • Strengthen safety management activities by providing guidance and education based on the workstyle of each Group company
  • Enhance hazard sensitivity and safety training for managers and supervisors
  • Provided education and guidance based on the workstyle of each Group company through environmental and safety audits, Environment/Safety Promotion Meetings, etc.
  • Provided education and guidance for managers and supervisors to enhance near-miss responses and safety management activities
  • Investigated ways to switch cleaning solvents to substances not covered by the PRTR; working to switch to alternative substances while also recycling solvents
  • Analyzing data on the use of chemical substances in each work process and working to reduce the amount used

Supply Chain Management

Supplier Audits: 40 major Group 2 suppliers surveyed; 2 Group 1 companies visited and confirmed no problems.

Responsible Procurement
  • CSR survey of major suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, ISO 26000

Certifications: ISO 14001, ISO 45001

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:26,037 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:6,766 tCO2e/year
Scope 2 Emissions:19,271 tCO2e/year
Scope 3 Emissions:686,426 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:565,000 GJ/year
Water Consumption:650,000 m3/year
Waste Generated:7,860 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Human Rights
  • Diversity & Inclusion
  • Occupational Safety and Health
  • Corporate Governance

Environmental Achievements

  • Reduced CO2 emissions by approximately 10,000 tons (37%) from a peak of 27,000 tons in fiscal 2014 through energy conservation measures.
  • Reduced water consumption by –12.7% vs BAU in FY2023
  • Reduced total waste generation by –17.4% vs BAU in FY2023
  • Reduced use of hazardous chemicals by –13.0% year-on-year

Social Achievements

  • Certified as a 2024 Health and Productivity Management Outstanding Organization (White 500)
  • Increased ratio of female managers (consolidated) to 3.7%
  • Increased percentage of new hires with experience in management/corporate planning to 60%
  • Established a human rights policy and conducted 6 human rights training sessions

Governance Achievements

  • Revised the Furukawa Company Group BCP and held Group BCP Sectional Meetings (2 times in FY2023)
  • Conducted 8 compliance training sessions
  • Introduced a restricted share compensation plan for Directors (excluding Outside Directors)

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050
Medium-term Goals:
  • Reduce CO2 emissions (Scope 1 & 2) by 25% by FY2030 (vs FY2023)
  • Reduce health checkup anomaly ratio (By FY2031: 30% or less for those under 40, 50% or less for those 40 and over)
Short-term Goals:
  • Reduce CO2 emissions (Scope 1 & 2) by 10% by FY2027 (vs FY2023)
  • Reduce water consumption by –2% vs BAU in FY2028
  • Reduce total waste generation by –3% vs BAU in FY2028

Environmental Challenges

  • Supply chain disruptions due to geopolitical risks (Ukraine, Middle East)
  • Fluctuations in nonferrous metal markets
  • Fluctuations in demand
  • Country risk
  • Natural disasters
  • Product quality issues
  • Difficulty in developing new products
  • Human resource shortages
  • Environmental regulations
  • Changes in official regulations
  • Retirement benefit obligations
  • Climate change
  • Information security threats
Mitigation Strategies
  • Utilizing foreign exchange contracts and other methods to mitigate foreign exchange risk
  • Utilizing forward delivery transactions and other hedging techniques to minimize the impact of fluctuating LME prices
  • Utilizing an optimal combination of borrowing arrangements, including fixed-rate instruments, to manage interest rate risk
  • Diversifying supply chain and ensuring stable procurement through long-term contracts
  • Formulating a business continuity plan (BCP) and establishing an emergency communication system
  • Taking out product liability insurance and recall insurance
  • Actively engaging in new product development
  • Actively recruiting and training talented personnel
  • Implementing strict environmental management practices
  • Faithfully complying with all applicable laws and regulations
  • Regularly reviewing retirement benefit obligation calculations
  • Setting CO2 emission reduction targets and a roadmap for achieving carbon neutrality
  • Strengthening network security and enhancing system maintenance and updates

Supply Chain Management

Supplier Audits: CSR surveys conducted for approximately 100 overseas suppliers (China and Southeast Asia) in FY2024; 141 key domestic suppliers surveyed in FY2023.

Responsible Procurement
  • Respect for human rights and the environment
  • Fairness and impartiality
  • Mutual prosperity
  • Compliance and confidentiality

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (floods, etc.) causing damage to business sites and system facilities
Transition Risks
  • Increased costs due to government policies/regulations (carbon tax, GHG emission regulations)
Opportunities
  • Increased revenues from sales of materials for EVs and renewable energy facilities, and products with high energy-saving performances

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 9 (Industry, Innovation and Infrastructure)
  • SDG 11 (Sustainable Cities and Communities)

Initiatives contribute to these goals by developing infrastructure, providing products and services that help resolve social issues, and promoting sustainable practices.

Sustainable Products & Innovation

  • SICON® enclosed hanging belt conveyor
  • High-efficiency slurry pumps (LK3)
  • Fuel-efficient hydraulic crawler drills
  • Energy-saving, low-noise eco-cranes
  • Battery-operated mini-crawler cranes
  • Electric forklifts
  • Aluminum nitride ceramics

Awards & Recognition

  • Not disclosed