Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 17% compared to the 1990 level in Japan.
• Achieved zero waste emission at all Maxell manufacturing sites in Japan.
• Reduced total discharge of wastes and valuable resources by 29% over fiscal 2000 in Japan.
• 81% of sales from green products.

Social Achievements

• Employment ratio of people with special needs above the legally mandated ratio.
• Various initiatives to support working parents.
• Various community engagement activities (cleanups, environmental education, etc.).
• Sponsorship of Maxell Cup Table Tennis Tournament in China.

Governance Achievements

• Transition to a “company-with-committees” under the Japanese Commercial Code.
• Establishment of a CSR Activity Policy.
• Implementation of rigorous compliance management and risk management systems.
• Acquisition of ISO 14001 certifications for all manufacturing sites in Japan and overseas.

Climate Goals & Targets

Environmental Challenges

• Increase in CO2 emissions resulting from stepped-up DVD production.
• Room for improvement in sustainable business model.
• Managing chemical substances contained in products.

Mitigation Strategies

• Implementation of energy conservation activities (introduction of energy-conserving equipment, participation in “Team Minus 6%” movement).
• Development of a unified management system for chemical substances.
• Promotion of green procurement and green design.

Supply Chain Management

Supplier Audits: 94% of major suppliers with EMS certification.

Responsible Procurement

• Green Procurement Guidelines
• A Gree' Net system for managing chemical substances.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Sustainable Products & Innovation

• Digital pen (DP-201)
• 8 cm DVD-R for DVD Video Camera
• Negative Ion Dryer (HD-N1220)

Awards & Recognition

• Toyama City Outstanding Employer of People with Special Needs Awards
• Polytec Vision Manufacturing Award

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Achieved objectives of the Hitachi Maxell Group 2007 Environmental Action Plan
• Developed technologies for the practical application of small fuel cells
• Reduced CO2 emissions by 33% compared with the fiscal 1990 level in Japan
• Reduced CO2 emission per real production by 56% from fiscal 1990 in Japan
• Achieved zero emission status at all production sites in Japan

Social Achievements

• Continued regional educational support and a battery exchange campaign for portable security alarms for elementary school children in Japan
• Supported various cultural events overseas
• Awarded “Kurumin” Next-Generation Human Resource Cultivation Support Accreditation
• Improved workplace environments through measures such as the establishment of communication rooms

Governance Achievements

• Transitioned to a “company-with-committees” in June 2003 to improve the implementation of its supervision system
• Improved the audit function through external directors
• Introduced a Maxell Compliance Helpline System and implemented education and training programs to raise the compliance awareness of all employees

Climate Goals & Targets

Environmental Challenges

• High raw material costs and falling product prices
• Part of the broadcasting videotape sales operations were found to be in violation of European Union competition laws

Mitigation Strategies

• Pursuing a long-term vision to “breakthrough to new horizons,” which embraces emerging opportunities, spanning new products and technologies and different corporate forms
• Conducting compliance training in each of the regions in which it operates and holding workshops covering International Trends in Antimonopoly Laws for overseas sales managers and divisional managers

Supply Chain Management

Supplier Audits: On-site checks were conducted at a total of 24 sites

Responsible Procurement

• Green Procurement Guidelines
• “A Gree’ Net” database system of chemical substances

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, Sustainability Reporting Guidelines

Certifications: ISO 14001

Sustainable Products & Innovation

• Proton-exchange membrane fuel cell
• Eco-Products

Awards & Recognition

• Prize at the Nikkei Annual Report Awards
• Minister of Public Management, Home Affairs, Posts and Telecommunications Prize/ACC Grand Prize, in addition to a Journalist Prize (for Always and Forever, Niitome Elementary School commercial)

Environmental Metrics

ESG Focus Areas

• Environmental Conservation
• Quality Control
• Customer Satisfaction
• Health and Safety
• Workplace Environment
• Corporate Ethics and Human Rights
• Contributions to Society

Environmental Achievements

• Reduced energy-derived CO2 emissions by 41% from fiscal 1990 (Japan)
• Reduced CO2 emissions per unit of real production by 18% from fiscal 2006 (Japan)
• Reduced waste generation by 49% from fiscal 2000 (Japan)
• Reduced quantity of final waste disposal by 60% from fiscal 2005 (Overseas)
• Hitachi Maxell Kyoto Works received Minister of Environment Award for distinguished corporate service
• Wuxi Hitachi Maxell Co., Ltd., commended by Wuxi City as “green corporation” for seventh consecutive year
• Achieved a 59% reduction in CO2 emissions per unit of real production by fiscal 2008 (Japan, relative to 1990)

Social Achievements

• Launched Maxell Group Health and Safety Committee
• Improved systems to support balance of work with child care and nursing care
• Achieved 100% participation in periodic health checks and improved mental health care system
• Reduced total number of complaints by 30% year-on-year
• Promoted employment of persons with special needs (special needs employment quota rate of 2.03%)
• Developed system for re-employment of employees beyond mandatory retirement age

Governance Achievements

• Improved audit function by external directors to achieve highly transparent management
• Instituted antimonopoly law training sessions for general managers and divisional managers
• Implemented measures to reinforce information security, including prevention of information leaks through e-mail

Climate Goals & Targets

Environmental Challenges

• Global financial crisis leading to business slowdown, reduced capital expenditures, and sluggish consumer spending
• Violation of European Antimonopoly Law resulting in fines

Mitigation Strategies

• Pursued greater efficiency in management and implemented defensive and offensive measures to achieve Change for Growth medium-term business plan
• Required employees to familiarize themselves with the Code of Ethics and instituted antimonopoly law training
• Implemented measures to reinforce information security

Supply Chain Management

Supplier Audits: 217 people from 114 companies attended annual policy briefings

Responsible Procurement

• Guidelines for Procurement Activities
• Green purchasing policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines 2006, Ministry of the Environment, Environmental Reporting Guidelines (2007 edition)

Certifications: ISO 14001

Third-party Assurance: JACO

Sustainable Products & Innovation

• Mercury-free silver oxide batteries
• High-power lithium ion batteries
• Electrolyte leak-proof alkaline dry batteries
• EcoSelect series of labels and cards
• LTO Ultrium4 computer tape
• Micro SD memory cards
• iV cassette hard discs

Awards & Recognition

• Minister of Environment Award (Kyoto Works)
• Bronze prize in the commercial division of the 48th Advertising Beneficial to Consumers Contest

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Received the Minister of Economy, Trade and Industry Award at the 19th Global Environment Awards for environmental activities in small batteries and fuel cells.
• Reduced greenhouse gas emissions during production by 54% relative to 1990.
• Registered three Super Eco-Product items and 32 Eco-Product items, expanding the sales ratio of these products by 59%.

Social Achievements

• Continued to organize the Kids Battery Crafts Contest.
• Started the Ecocap Program to recycle resources and contribute to society.
• Kyoto Works acquired OSHMS certification in October 2009.

Governance Achievements

• Shifted from a company-with-committees to a company with a board of company auditors in June 2010.
• Consolidated the Risk Compliance Management Headquarters and the Environmental Promotion Headquarters to form the CSR Promotion Division in April 2008.
• Implemented risk evaluations incorporating a compliance perspective in every division.

Climate Goals & Targets

Environmental Challenges

• Global business slowdown in fiscal 2009.
• Concerns about resource depletion of rare metals like cobalt.
• Need to reduce VOC emissions from adhesive tapes.

Mitigation Strategies

• Developed lithium-ion batteries that significantly reduce the amount of cobalt used.
• Commercialized adhesive tape with approximately 99% reduced VOC emissions.
• Strengthened managerial practices and promoted Group-wide CSR activities.

Supply Chain Management

Responsible Procurement

• Hitachi Group’s Guidelines for Procurement Activities
• Green procurement of products and services from environmentally conscious suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines 2006, Ministry of the Environment, Environmental Reporting Guidelines (2007 edition)

Certifications: ISO 14001

Sustainable Products & Innovation

• High-power, high-capacity lithium-ion batteries with reduced rare metal use
• Mercury and lead-free silver oxide batteries
• Adhesive tape with reduced VOCs

Awards & Recognition

• 19th Global Environment Awards, Minister of Economy, Trade and Industry Award
• Minister of Economy, Trade and Industry Award of the “3rd Monodzukuri Nippon Grand Award” for Manufacturing (Maxell Finetech, Ltd.)
• Visual Grand Prix awards
• BCN Award
• GfK Certified Award
• 2nd Busan International Advertising Festival, Product & Service category, Bronze
• 1st Spikes Asia Advertising Festival award
• 49th Advertisement Beneficial to Consumers Contest awards
• Safety and Health awards (Maxell Seiki, Ltd. and Kyoto Works)
• Shinsetsukai Good Conduct Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 52% reduction in CO2 emissions per unit production (Japan, compared with FY1990)
• 62% reduction in CO2 emissions per unit production (Japan, compared with FY1990)
• 53% reduction in waste generation (Japan, compared with FY2000)
• 27% reduction in water usage (Japan & overseas, compared with FY2005)
• 45% reduction in VOC emissions volume (Japan, compared with FY2000)
• 59% reduction in VOC emissions volume (Overseas, compared with FY2005)

Social Achievements

• Donated 7 million yen to the earthquake region
• Delivered relief supplies to the earthquake region
• Implemented a leak guarantee for Voltage alkaline dry batteries
• Reduced accidents resulting from defects in new products by approximately 27% over the previous year
• Conducted outreach instruction in school classrooms with handmade battery workshops
• Held softball workshops at various schools

Governance Achievements

• Established a system to collect risk compliance information
• Consolidated Risk Compliance Management Headquarters and Environmental Promotion Headquarters to form the CSR Promotion Division
• Implemented risk evaluation, which includes the compliance perspective, in every division

Climate Goals & Targets

Environmental Challenges

• Impact of the Great East Japan Earthquake
• Room for improvement in “Responsible cooperation with business partners” (based on self-assessment)

Mitigation Strategies

• Established Tohoku-Pacific Ocean Earthquake Damage Response Headquarters
• Put Osaka Works on 24-hour production basis to meet increased demand for dry batteries
• Donated 165,000 dry batteries to the earthquake region
• Continued efforts to improve responsible cooperation with business partners

Supply Chain Management

Responsible Procurement

• Hitachi Group’s Guidelines for Procurement Activities

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Sustainable Products & Innovation

• Super Eco-Products: LTO Ultrium5 Computer Tape, Butyl Tape

Awards & Recognition

• Minister of Economy, Trade and Industry Award at 19th Global Environment Awards

Environmental Metrics

ESG Focus Areas

• Environmental conservation
• Corporate ethics and human rights
• Contributions to society through business
• Information disclosure and communication with stakeholders
• Responsible cooperation with business partners
• Working environment
• Customers
• Employees
• Local communities and societies
• Corporate citizenship activities

Environmental Achievements

• 30% reduction in CO2 emissions (Japan, compared with FY1990)
• 16% reduction in CO2 emissions per unit production (Japan, compared with FY2005)
• 40% reduction in waste generation (Japan, compared with FY2000)
• 54% reduction in waste discharge per unit of production (Japan, compared with FY2005)
• 7% increase in energy reduction rate in transportation (Japan)
• 2.61 tons reduction in CO2 emissions through cooperative material distribution

Social Achievements

• Donation of 200,000 dry batteries to earthquake-affected areas
• Handmade Battery Workshops conducted at 17 locations, reaching 1,150 people
• Sponsorship of the 6th Kids Battery Crafts Contest
• Cleanup activities involving 1,400+ Group members
• Plant study tours, hands-on training, and internships for 657 people
• 85% response rate and 5.0% Gratitude Calls from Customers at the Customer Service Center (though both figures decreased from the previous year)

Governance Achievements

• Formulation of pilot BCPs for new influenza strains and large-scale earthquakes
• Development and use of a CSR self-assessment tool
• Distribution of revised Green Procurement Guidelines to suppliers
• E-learning on procurement operations and legal compliance for all employees
• Basic Procurement Operations and Legal Compliance Seminars for managerial staff

Climate Goals & Targets

Environmental Challenges

• Floods in Thailand in 2011 caused damage and postponed operations at Maxell Finetech (Thailand) Co., Ltd.
• Decreased response rate and rate of Gratitude Calls from Customers at the Customer Service Center compared to the previous year.

Mitigation Strategies

• Recovery work underway at Maxell Finetech (Thailand) Co., Ltd., expected to start operations in July 2012
• Improving risk management and safety measures to reduce disaster risk, including transporting production equipment to safe areas during emergencies

Supply Chain Management

Responsible Procurement

• Hitachi Group’s Guidelines for Procurement Activities
• Green Procurement Guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines 2006, Ministry of the Environment, Environmental Reporting Guidelines (2007 edition), Ministry of the Environment Guide to Entries in Environmental Reports (2nd Edition, November 2007)

Certifications: ISO 14001

Sustainable Products & Innovation

• Eco-Products Select
• “iV” Cassette Hard Disk
• “SR” Button-Type Silver Oxide Batteries
• UV Release Adhesive Tape that Does Not Emit Dioxins

Awards & Recognition

• Nikkei Business Daily Award for Excellence (Air Voltage)
• Good Design Award (RM-F417 and RM-F413 shavers)
• Patent Office Director General’s Award (Face Crie)
• Chairman’s Award (Osaka Works greening)
• Minister of Health, Labor and Welfare Award (Kyushu Maxell Division)
• Commendation as a Green Enterprise (Wuxi Hitachi Maxell Co., Ltd.)
• Hyogo Prefecture Environment-Friendly Business Award (Ono Works)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 52% in Japan compared with FY1990
• Reduced CO2 emissions per unit production by 14% in Japan compared with FY2005
• Reduced waste discharge per unit of production by 13% in Japan compared with FY2005
• Achieved 84% enrollment in ecological mind education (e-learning)
• Reduced energy consumption by approximately 260 MWh annually at the Wuxi plant in China by redirecting welder exhaust

Social Achievements

• 80% response rate and 4.8% Gratitude Calls from Customers
• Implemented software update for malfunctioning surround speakers
• Various community involvement activities across global locations (tree planting, educational grants, relief funds, cleanup activities)
• 2.10% employment ratio of people with special needs
• 31 rehired former employees and 35 foreign employees

Governance Achievements

• Acquired privacy mark certification in April 2013
• Implemented export control training and education for all employees
• Conducted moral harassment prevention workshops
• Improved CSR self-assessment score for responsible cooperation with business partners from 2.5 in fiscal 2011 to 2.9 in fiscal 2012

Climate Goals & Targets

Environmental Challenges

• Harsh business climate impacting cost reduction efforts in environmental accounting

Mitigation Strategies

• Active measures to save electricity at all Japan sites, including holiday rotation systems and demand management
• Electricity-saving measures in other countries, particularly at the Wuxi plant in China
• Planned introduction of solar power generation facilities at Fukuchiyama and Ono Works

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Hitachi Group’s Guidelines for Procurement Activities
• Green Procurement Guidelines
• CSR Policy
• Hitachi Group Supply-Chain CSR Deployment Guidebook

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines 2006, ISO 26000: 2010

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-Products Select

Awards & Recognition

• Gold Prize in 2012 Summer Digital Camera Grand Prix (AirStash)
• Awards in 2012 Summer Visual Grand Prix (4 products)
• Prize in 21st Hyogo Prefecture Environmentally Friendly Business Operator’s Awards (Ono Works)
• Green Enterprise commendation (Wuxi plant, 11 consecutive years)
• BCN Award 2013 (DVD category)
• GfK Japan Certified DVD and Blu-ray Disc category (2012 Certificate of Achievement of No. 1)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 40% reduction in CO2 emissions (Japan, compared with FY1990)
• 53% reduction in CO2 emissions globally
• 88% ratio of sales from eco-products
• 29.4% or more improvement in energy consumption (Japan/Overseas compared with FY2005)
• 44.0% improvement in waste valuables outbreak (Japan/Overseas compared with FY2005)
• 31.7% improvement in VOC atmosphere discharge (Japan/Overseas compared with FY2006)
• Started solar power generation at Ono Works and Fukuchiyama Works, anticipating 2,800 MWh annual generation

Social Achievements

• Enhanced customer satisfaction through incorporating customer feedback into products and services
• Fair transactions with suppliers in accordance with Hitachi Group’s Guidelines for Procurement Activities
• No malfunctions in newly released products in fiscal 2013
• Shared CSR awareness with suppliers through various engagement activities
• Promotion of CSR procurement in accordance with the CSR Policy and Hitachi Group Supply-Chain CSR Deployment Guidebook
• Various community investment activities globally (e.g., environmental protection classes, science seminars, donations)
• Strengthened mental health activities through EAP and line care training
• Promotion of diversity management, including projects to promote women’s activities
• 2.02% employment ratio of people with special needs in fiscal 2013
• Rehired 51 former employees

Governance Achievements

• Established the Compliance Management Committee and appointed a CCO to strengthen compliance
• Held a compliance lecture for 388 employees
• Established an Export Control Committee system to prevent diversion of products to weapons use
• Implemented information security activities, including acquiring privacy mark certification
• Established the Hitachi Maxell Group Human Rights Policy in September 2013
• All employees participated in Business and Human Rights e-learning course
• Introduced a system of corporate officers starting July 1, 2014

Climate Goals & Targets

Environmental Challenges

• Increased R&D costs leading to a 1% rise in environmental accounting costs

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Hitachi Group’s Guidelines for Procurement Activities
• Green Procurement Guidelines Ver. 7.0
• CSR procurement in accordance with CSR Policy and Hitachi Group Supply-Chain CSR Deployment Guidebook

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, Ministry of the Environment, Environmental Reporting Guidelines (2012 edition), Ministry of the Environment Guide to Entries in Environmental Reports (2nd Edition, November 2007)

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-Products
• Eco-Products Select

Awards & Recognition

• BCN AWARD 2014 DVD Media Category
• 2014 Visual Grand Prix awards (Canal-type headphones and TV surround speakers)
• 2013 Summer Visual Grand Prix awards (iV hard disk recorder, canal-type headphones, Bluetooth speaker and Blu-ray discs)
• Commendation as a Green Enterprise by the Wuxi City Environmental Protection Agency for the 12th consecutive year (Wuxi Hitachi Maxell Co., Ltd., the Wuxi Plant in China)

Environmental Metrics

ESG Focus Areas

• Creating Innovation through Unique, Original Technologies
• Solving Social Issues through Growth Businesses
• Creating Human Resources and Organizations that Generate Value
• Maximization of Customer Value
• Creation of Economic Value through Environmental Activities
• Strengthening Business Portfolio Management
• Strengthening Group Governance

Environmental Achievements

• Domestic CO2 emissions declined by 26% in FY2022 compared to the previous fiscal year, and by 0.4% overseas, leading to a 17% reduction in CO2 emissions across Maxell Group as a whole. Total waste emissions fell by 8.9% across Maxell Group.
• Domestic manufacturing bases achieved zero emissions for the 22nd consecutive year.

Social Achievements

• Successfully introduced a new talent management system.
• Achieved targets for the ratio of female hires among new graduate recruits (60% for administrative positions and 29% for engineering positions).
• Recognized as a “2023 Certified Health & Productivity Management Outstanding Organization”

Governance Achievements

• Introduced a new talent management system.
• Established the “Maxell Group Anti-Bribery Guidelines” and conducted training for 3,561 employees.
• Strengthened internal control systems through the Internal Control Committee.

Climate Goals & Targets

Environmental Challenges

• Declining sales of rechargeable batteries and BtoC products.
• Soaring raw materials costs.
• Global surge in raw materials costs and a one-time cost stemming from the reform of our domestic BtoC business.
• Downsizing of the projector business.
• Demand for semiconductors trending downward.
• Component supply shortages, especially for semiconductors.
• Impact of rapid yen depreciation on products’ import prices, coupled with structural reform costs that emerged at the domestic BtoC business.

Mitigation Strategies

• Reformed domestic BtoC business by transferring product planning, development, and sales functions to DENKYOSHA CO., LTD.
• Reflected soaring raw materials cost increases in product pricing.
• Focusing on expanding BtoB business.
• Bringing forward the launch of all-solid-state battery mass production.
• Strengthening investments for future growth.
• Implementing ABC-XYZ (profit and loss control by business) and profit and loss improvement by model project (PIP J).
• Improving working capital through actions like inventory optimization.

Climate-Related Risks & Opportunities

Physical Risks

• Exacerbation of extreme weather events such as storms
• Rise of average temperatures
• Changes to precipitation/weather patterns
• Rising sea levels

Transition Risks

• Increased tax burdens due to the introduction of carbon taxes
• Significant impacts on businesses from changes in consumer behavior
• Need to switch to high-efficiency manufacturing equipment due to strengthened energy-saving policies

Opportunities

• Cost reductions through installation of energy-saving equipment and improvements to energy-saving processes
• Lessening environmental impact with low-carbon alternative materials
• Increased sales of batteries used as disaster/emergency power sources
• Increased sales of tapes for construction due to growing demand for airtight houses as temperatures rise
• Increased market share and sales with environmentally resistant in-car camera lens units
• Increased sales of systems such as disaster surveillance sensors, surveillance cameras, disaster monitoring systems, and others
• Increased sales of sterilization/deodorization products due to mold growth
• Increased demand for waterproofing tape and increased waterproofing technology-related sales

Reporting Standards

Frameworks Used: Value Reporting Foundation (VRF) "The International (IR) Framework", GRI "GRI Sustainability Reporting Standard", TCFD, UNGC

Certifications: ISO 14001:2015, PrivacyMark

Sustainable Products & Innovation

• All-solid-state batteries
• Environmentally conscious products
• Energy-efficient products

Awards & Recognition

• Sompo Sustainability Index constituent (7 consecutive years)
• Three-star rating in the “Fourth Nikkei SDGs Management Survey”
• Rank A assessment in the “Second JRECO CFC Control Measure Rating”
• “Advanced” certification in the “D&I Award 2022”
• 2023 Certified Health & Productivity Management Organization