Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions (target: 9% reduction over 2013 levels, result: 25% increase over 2013 levels due to expanded scope and improved data collection)
• Achieved zero emissions at all manufacturing sites in Japan
• Reduced water usage by 15% at all chair plants
• Developed 2 new environmentally friendly products
• Implemented a project to promote the conversion of products to wood

Social Achievements

• Launched SPLi, a community for women's empowerment, with 12% of female employees participating
• Increased optional training by 150% and doubled training expenditure, resulting in employee satisfaction rising to 63% from 56%
• Improved paternity leave ratio to 45.7%
• Introduced a partnership system to extend benefits to same-sex partners and de facto relationships
• Received the highest ranking of “Best Workplace” in the D&I Award 2022

Governance Achievements

• Increased the ratio of women in management positions to 10.7%
• Received Resilience Certification for business continuity
• Completed the training plan for promoting increased compliance throughout the entire company

Climate Goals & Targets

Environmental Challenges

• Increased CO2 emissions in 2022 due to expanded scope and improved data collection
• Rising raw material prices
• Labor shortages
• Supply chain disruptions
• Competition in the office furniture market

Mitigation Strategies

• Implementing the Mid-Term Environmental Plan to reduce CO2 emissions
• Cost reductions through supply chain reforms and the new AP Center
• Developing high value-added products and services
• Strengthening supply chain relationships
• Promoting DX to strengthen systems and improve sales efficiency

Supply Chain Management

Supplier Audits: 75 suppliers responded to the Sustainable Procurement Questionnaire in 2022.

Responsible Procurement

• Itoki Group Sustainable Procurement Guidebook
• Green Procurement Initiatives
• Sustainable Procurement Questionnaire

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and scale of torrential rain and other abnormal weather
• Increased mean air temperature

Transition Risks

• Introduction of carbon taxes
• Enhanced or stricter regulations
• Research and development delays
• Shrinkage of existing markets
• Increased procurement costs

Opportunities

• Opportunities related to diverse workstyle proposals and consulting
• Sales of products and solutions leading to decarbonization and circular economies
• Sales of carbon offsetting products

Reporting Standards

Frameworks Used: International Integrated Reporting Framework of the Value Reporting Foundation (VRF), Guidance for Collaborative Value Creation (Ministry of Economy, Trade and Industry), TCFD, GRI Standards, ISO 26000:2010

Certifications: ISO 14001, FSC® Chain of Custody Certification, PEFC Chain of Custody

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd. (for FY2022 Scope 1 and 2 data)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Itoki's initiatives contribute to these SDGs through decarbonization efforts, sustainable procurement, product development, and community engagement.

Sustainable Products & Innovation

• Torte U chairs (recycled plastic-bottle fiber)
• Meet Lounge Sustainable tables (kenaf board)
• Olika eco and Wan eco chairs (upcycled rice husk material)

Awards & Recognition

• Best Workplace in the D&I Award 2022
• Bronze rating in the Pride Index 2022
• Three “Eruboshi” stars
• Resilience Certification
• White 500 (seven years in a row)