Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• SDGs

Environmental Achievements

• Reduced water usage in factory testing through a circular water system.
• Reduced scrap in hose manufacturing and increased reuse, lowering industrial waste.
• Used low-carbon mortar in ceramic tile installation to reduce CO2 emissions.
• Implemented a wastewater purification system in hose manufacturing, monitored by external organizations.
• Recycled ceramic tile waste materials in the production of Aquas through.
• Developed environmentally friendly materials for high-performance MONTURA wear.
• Developed environmentally friendly artificial turf, Mondo Turf and Limonta Turf.

Social Achievements

• Implemented work style reforms, including telework regulations and remote conferencing systems.
• Prioritized employee health and safety with work-from-home options and infection prevention measures.
• Continued operations as an “Essential Business” in overseas locations, following local government guidelines.
• Developed a Business Continuity Plan (BCP) to ensure uninterrupted supply of products and services.
• Supported the Japan Top League (JTL) to contribute to domestic sports promotion.
• Opened a flagship MONTURA store in Osaka.
• Expanded sales channels for shoes to wholesalers and retailers.
• Entered the e-commerce market to expand sales opportunities.
• Promoted the use of Tarflex to address the “splinter problem” in aging gymnasium floors.
• Developed an integrated gap-filling product, “Sukima-mōru,” for railway safety measures.
• Improved construction quality and actively introduced low-environmental-impact materials through collaboration with construction companies.

Governance Achievements

• Established a BCP (Business Continuity Plan) team to strengthen governance in unforeseen circumstances.
• Strengthened IR activities, including a website overhaul and increased communication with stakeholders.

Climate Goals & Targets

Environmental Challenges

• Decreased sales in the sports and construction sector due to sluggish investment in large-scale commercial facilities.
• Reduced sales in the “other” business segment due to soft store sales of MONTURA, despite increased online sales.
• Challenges in the dust control business due to customer inventory adjustments, although active sales to new major customers were pursued.
• Reduced sales in North America due to the impact of the COVID-19 pandemic on beverage-related, oil and gas, and construction industries.
• Reduced sales in Europe due to lockdowns caused by the resurgence of COVID-19 infections, impacting sales of hoses to fire departments and agriculture.
• Temporary suspension of operations at the Argentina factory due to government request, although sales recovered after reopening.
• Impairment loss of 787 million yen at the Spanish hose factory (310 million yen in tangible fixed assets and 470 million yen in intangible fixed assets).

Mitigation Strategies

• Implemented cost-cutting measures and ensured appropriate inventory levels during the state of emergency.
• Continued to prioritize essential business operations in overseas locations.
• Developed alternative sourcing strategies.
• Optimized North American logistics, reducing inventory by 15% year-on-year.
• Developed and launched new products such as the Tiger Aqua hose.
• Increased sales through web videos (Kuriyama Academy) in the North American market.
• Expanded production capacity at the Indiana factory.
• Developed large-diameter layflat hoses and added a dedicated production line at the Spanish factory.
• Expanded the Argentina factory and warehouse to manufacture longer hoses and expand inventory items.
• Strengthened flagship store sales in Tokyo and Osaka.
• Built an e-commerce-friendly logistics system.
• Developed and launched customized products for the Japanese market.

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

The company's initiatives contribute to these goals through various environmental and social programs, including water conservation, waste reduction, renewable energy adoption, and sustainable product development.

Sustainable Products & Innovation

• Tiger Aqua hose
• Aquas through
• Mondo Turf and Limonta Turf
• Low-environmental-impact materials for construction

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced water usage in factory testing through a circular water system for nozzle inspections.
• Reduced industrial waste through scrap reduction and reuse in hose manufacturing.
• Implemented wastewater purification system in hose manufacturing, monitored by external organizations.
• Recycled ceramic tile waste for Aquas through, contributing to flood mitigation and heat island effect reduction.

Social Achievements

• Achieved Health & Productivity Management Excellent Company certification in 2024.
• Implemented various work style reforms including Early Biz, Commute Biz, Lunch Biz, Dress Biz, and 2x4 Refresh Leave.
• Promoted diversity and inclusion, respecting diverse values regardless of gender, age, or nationality.
• Introduced a scholarship repayment support system.
• Offered dormitory, company housing, and housing acquisition subsidy systems.
• Provided support for childbirth and childcare, including childcare short-time work, gynecological examination subsidies, and child allowances.
• Extended the re-employment age.

Governance Achievements

• Increased the proportion of foreign nationals among executives to 27.3%.
• Planned to appoint a new female director (external auditor) in 2024.
• Preparing for the formulation and disclosure of a medium-term management plan.
• Disclosing shareholder return targets.

Climate Goals & Targets

Environmental Challenges

• Decreased sales and profits in the Asian business segment due to reduced production of construction machinery, agricultural machinery, and European passenger cars, and increased procurement costs.
• Decreased sales in the commercial facility sector in the Sports and Construction Materials business.
• Increased costs associated with the establishment of a branch warehouse and relocation/expansion of the headquarters and logistics warehouse in North America.
• Negative impact of hyperinflation accounting applied to the subsidiary in Argentina.

Mitigation Strategies

• Cost reduction measures, including logistics cost reduction.
• Personnel increase (dispatch of personnel from Japan, local recruitment considered) in North America.
• Approaching existing and new customers in North America.
• Promoting localization of the supply chain necessary for the development of urea SCR.
• Debt reduction through increased operating cash flow and income from fixed asset sales.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Aquas through (recycled ceramic tile waste)
• Environmentally friendly materials for high-performance MONTURA wear
• Products contributing to exhaust gas purification and air pollution control (urea SCR system)
• Products preventing falls on station platforms (Sukima Mall)
• Multi-purpose elastic sports sheet (Taraflex)

Awards & Recognition

• Health & Productivity Management Excellent Company certification (2024)