Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Developed world's largest plate heat exchanger
• Developed world's first brazing plate heat exchanger
• Developed ultra-critical fluid processing machine for environmentally friendly dyeing

Social Achievements

• High employee satisfaction (implied by the company's focus on employee well-being and long-term employment)
• Collaboration with customers on new food and system development
• Commitment to safety and quality (ISO 9001 certified)

Governance Achievements

• Clear articulation of corporate social responsibility and transparency in company philosophy
• Established a 4-year plan for equipment investment to improve efficiency and profitability
• Focus on profitability and long-term growth

Climate Goals & Targets

Environmental Challenges

• Declining operating profit in the years leading up to 2006
• Competition in the market

Mitigation Strategies

• Implemented a 6-year plan to restore operating profit to previous levels
• Focus on new product development and market expansion
• Investment in new equipment and technology to improve efficiency

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• World's largest plate heat exchanger
• World's first brazing plate heat exchanger
• Ultra-critical fluid processing machine for dyeing

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Stakeholder Engagement
• Environmental Conservation
• CSR

Environmental Achievements

• Established an environmental policy, declaration, and action guidelines; created a Risk Management Committee.

Social Achievements

• Implemented a Women's Empowerment Action Plan to promote the advancement of female employees and work-life balance; revised childcare and nursing care leave systems.

Governance Achievements

• Established a compliance system, internal control system, and corporate governance framework; implemented a whistleblower hotline; strengthened the supervisory function and accountability of the board of directors through regular information exchange meetings for outside directors and auditors.

Climate Goals & Targets

Environmental Challenges

• Need to improve the environment for institutional investors to easily exercise voting rights; need to develop a concrete succession plan; need to further enhance the effectiveness of the board of directors; need to further ensure the independence of outside directors and auditors.

Mitigation Strategies

• Considering participation in an electronic voting rights platform and translation of meeting notices into English once the percentage of foreign shareholders reaches approximately 30%; working on developing a succession plan during the next medium-term plan period; regularly evaluating the effectiveness of the board of directors and taking measures to address identified challenges; establishing an “Outside Director Independence Standard” to ensure the independence of outside directors and auditors.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate Sustainability

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Carbon Neutral
• Safety and Security
• Food Loss Reduction
• Convenience and Comfort
• Governance
• Sustainable Society Contribution
• Employee Vitality
• Diversity and Inclusion
• Community Engagement
• BCP
• Compliance

Environmental Achievements

• CO2 emission reduction initiatives (details not quantified in report)
• MOTTAINAI activities (Reduce, Reuse, Recycle)

Social Achievements

• Strengthened corporate governance (audit committee, nomination and compensation committee)
• Establishment of new factory (Ikoma Plant) for enhanced production capacity and productivity
• Focus on employee vitality and work-life balance
• Community engagement initiatives (details not specified)

Governance Achievements

• Transition to an audit committee company
• Establishment of a nomination and compensation committee
• TCFD initiatives

Climate Goals & Targets

Environmental Challenges

• Raw material price increases
• Impact of COVID-19 on food equipment industry
• Global food price increases
• Large investments required for new factory and restructuring

Mitigation Strategies

• New factory construction (Ikoma Plant)
• Restructuring of Komagome Plant
• Cost reduction measures
• New product and service development
• Strengthening of sales network
• Human resource development
• HNPS (Hisaka New Production System)

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of carbon neutral related products

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Carbon neutral related products
• Food sterilization equipment
• Pharmaceutical plants
• Dyeing finishing equipment

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Resource saving
• Employee health and well-being

Environmental Achievements

• Developed and implemented "e-HiCycle" gaskets for plate heat exchangers, using 60% reclaimed rubber, contributing to resource saving, lower carbon output, and reduced industrial waste. The product received Eco Mark certification.
• Used low CO2 steel ("NSCarbolex Neutral") in plate heat exchangers for Expo 2025.

Social Achievements

• Certified under the “2024 Certified Health & Productivity Management Outstanding Organizations Recognition Program” by the Ministry of Economy, Trade and Industry.
• Established HISAKA ARABIA HEAT EXCHANGER TRADING - L.L.C - O.P.C in Abu Dhabi to enhance plate heat exchanger maintenance business in the Middle East.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increased raw material prices
• Sluggish orders for pharmaceutical equipment and dyeing and finishing devices in the Process Engineering Segment
• Sluggish orders for overseas projects in the Valve Segment

Mitigation Strategies

• Improved sales mix and increased sales in the Heat Exchanger Segment to offset increased raw material prices.
• Focus on large disinfecting devices for food manufacturing and automation equipment in the Process Engineering Segment.
• Strong performance in orders related to secondary batteries, semiconductors, and hydrogen-related equipment in the Valve Segment.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Use of low CO2 steel ("NSCarbolex Neutral") from Nippon Steel Corporation

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Eco Mark certification (for e-HiCycle gaskets)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• e-HiCycle gaskets

Awards & Recognition

• 2024 Certified Health & Productivity Management Outstanding Organizations

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Introduced solar power generation facilities at Komagome and Ikoma plants.
• Implemented energy-saving measures, including reducing standby power and updating equipment.
• Promoted waste reduction and recovery of valuable materials.
• Developed a new energy-saving option for high-temperature and high-pressure sterilization/sterilization equipment, reducing steam usage by up to 50%.
• Expanded sales of liquid flow dyeing machines (circular) capable of significantly reducing water usage through a squeezing mechanism.
• Expanded sales of gaskets for plate-type heat exchangers using recycled rubber (waste tires).
• Reduced CO2 emissions with the development of a new high-pressure valve (downsizing of the drive unit).

Social Achievements

• Not disclosed

Governance Achievements

• Established a Sustainability Committee in April 2022, chaired by the Representative Director and President.

Climate Goals & Targets

Environmental Challenges

• Increased GHG emissions due to population growth and economic growth in emerging countries.
• Potential for stricter environmental regulations.
• Climate change-related risks such as carbon pricing, energy supply changes, and low-carbon product demand changes.
• Physical risks such as chronic environmental changes due to global warming and acute intensification of natural disasters.

Mitigation Strategies

• Introduction of low-energy consumption equipment, switching to green energy such as electricity and hydrogen, and CO2 emission reduction.
• Expansion of on-site power generation facilities and reduction of electricity usage.
• Acceleration of environmental load response (e.g., CDP score improvement).
• Continued information disclosure, determination of procurement policy (G procurement scope/level), and strengthening of information gathering from suppliers.
• Securing raw material inventory, reducing in-house energy costs, improving productivity to reduce costs, reviewing logistics, and reducing transportation distance.
• Improvement of air conditioning efficiency, introduction of summer time.
• Reduction of water usage, consideration of recycling.
• Planned inventory, expansion of local partner companies.
• Planned inventory, expansion of local partner companies, factory decentralization.
• Development of products for temperature differences and high temperatures, development of products that are not problematic even if submerged.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Intensification of natural disasters
• Chronic environmental changes due to global warming

Transition Risks

• Strengthening of GHG emission regulations
• Changes in demand for low-carbon products
• Changes in energy supply
• Changes in stakeholder reputation

Opportunities

• Increased demand for environmentally friendly products (CO2 recovery, heat recovery, hydrogen-related)
• Increased maintenance demand due to customer demand for longer machine life
• Increased demand for related valves due to the establishment of unmanned transportation methods using drones and autonomous driving in the transportation industry

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-saving option for sterilization equipment
• Water-saving dyeing machines
• Gaskets using recycled rubber
• New high-pressure valve

Awards & Recognition

• Not disclosed