Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Reduced CO2 emissions (Scope 1 and 2) from 18,961 tons in FY2019 to 18,208 tons in FY2020.
• Achieved a 1% reduction in unit energy consumption for five consecutive years.
• Developed a combo valve that reduces hydrocarbon release by 65%.
• Proactive use of IT tools for SOC management, resulting in zero legal violations for 19,064 items investigated.

Social Achievements

• Implemented a stress check system for employee mental health.
• Established support systems for employee well-being, including an outside counseling service.
• Donated 100,000 face shields to local governments.
• Maintained a workplace accident rate of 2 or less in FY2020.

Governance Achievements

• Shifted from a company with a Board of Corporate Auditors to a company with an Audit and Supervisory Committee.
• Increased the number of external directors to a majority on the Board of Directors.
• Established internal and external reporting channels to ensure compliance.

Climate Goals & Targets

Environmental Challenges

• Falling short of the 80% target for paid leave usage (67.1% in FY2020).
• Need to further increase the diversity of senior management.
• Supply chain disruptions due to the coronavirus pandemic.

Mitigation Strategies

• Reinforcing efforts to encourage employees to take paid leave.
• Strengthening measures to increase organizational diversity.
• Introducing a supply chain risk management system.

Supply Chain Management

Supplier Audits: 13 on-site audits in FY2020; 58 voluntary audits by suppliers.

Responsible Procurement

• Environmental protection standards; Guidelines for Fair Trade in Procurement; Nifco Chemical Substances List (NCSL).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products; development of products for EVs and ADAS.

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lightweight products for fuel efficiency improvement; combo valve; products for EV batteries and ADAS.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Governance
• Environment
• Society

Environmental Achievements

• Actual reduction of CO2 emissions through procurement of FIT non-fossil certificates 19,790.5 tons
• Reduced CO2 emissions by 135 tons through FIT Non-Fossil Certificates
• Achieved excellent energy-saving business (S class) for the sixth consecutive year

Social Achievements

• Increased profits in bedding business by 34.2%
• 71% of employees answered that Nifco was a great company to work for (2020 survey)
• Implemented harassment prevention training

Governance Achievements

• Transitioned from a company with a board of corporate auditors to a company with an audit committee system
• Established a Sustainability Committee
• Engaged KPMG AZSA LLC as its accounting auditor

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 pandemic and supply chain disruptions
• Decrease in automobile production volume in Japan
• Increase in costs due to production disruptions in North America
• Soaring raw material and logistics costs
• Uncertainty about the number of automobiles produced
• Market risks related to the shift to electric vehicles and new competitors
• Supply chain disruptions due to severe weather events

Mitigation Strategies

• Strengthened business structure that reduced fixed costs
• Strengthening domestic business structure
• Strengthening global management foundation
• Thorough management of fixed costs
• Aggressive business investment in growth areas
• Appropriate resource allocation in response to market contractions
• Planning and development of products compatible with electrification technologies
• Creating new businesses
• Securing multiple procurement channels and equivalent products
• Research and development of new materials
• Promoting the use of non-fossil resource materials

Supply Chain Management

Supplier Audits: 13 on-site audits, 67 voluntary audits

Responsible Procurement

• Nifco Chemical Substances List (NCSL)

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events (storms, snow, freezing temperatures)

Transition Risks

• Market changes due to electric vehicle adoption
• New competitors entering the automotive industry
• Customer demand for recycled materials

Opportunities

• Expanding market for renewable energy-related products
• Increased demand for specific functional components for EVs

Reporting Standards

Frameworks Used: GRI Standard, Value Creation Guidance (Ministry of Economy, Trade and Industry), Integrated Reporting Framework (VRF)

Certifications: ISO 14001

UN Sustainable Development Goals

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

Various initiatives related to renewable energy, CO2 emission reduction, waste reduction, and sustainable product development

Sustainable Products & Innovation

• ABS actuator bracket (reduced weight by 60%)
• Front spats and ducted air (improved aerodynamic performance)
• Multi-sensor (battery-less IoT devices)

Awards & Recognition

• Toyota Motor Corporation SSA Promotion Excellence Award
• Honda Motor Co. Excellent Appreciation Award
• Nissan Motor Co. Certificate of Appreciation for Excellent Quality
• P.T. Suzuki Indomobil Motor The best Vendor Performance 2019 - 2020
• P.T. ADM (Daihatsu) “Good Quality Supplier”
• General Motors Supplier Quality Excellence Award
• Sanoh UK Supplier of the year 2021