Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Systematic shift of rental assets to models that clear anti-pollution statutes for exhaust gases, noise and other emissions. Nearly all rental construction equipment consists of the latest environmentally-friendly models.
• Aggressive introduction of fuel-efficient, low-emission vehicles for its own fleet.

Social Achievements

• Strengthened safety training, resulting in an increase to 23 branches achieving a zero accident rate for at least 20 years.
• Implemented personnel training and development programs.

Governance Achievements

• Established an Internal Control and Auditing Office, a Legal Office, a Compliance Committee, and an Internal Control Committee.
• Appointed highly independent Outside Corporate Auditors to strengthen the supervisory function.

Climate Goals & Targets

Environmental Challenges

• Soaring cost of materials
• Chronic manpower shortages
• Widening disparity between regions in volume of construction works
• Successive natural disasters

Mitigation Strategies

• Strengthening business structure to improve response capabilities
• Building a rental equipment supply organization that takes maximum advantage of Kanamoto’s branch network
• Measures to strengthen cooperation among the group’s firms and centralized pre-placement of management resources

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework

Sustainable Products & Innovation

• Super-low noise construction equipment
• Models that comply with Tier 4 emissions regulations
• Hybrid trucks
• Construction equipment remote-control robot
• Contact prevention system

Awards & Recognition

• Commendation Award for Listed Companies from the Tokyo Stock Exchange
• IR Excellent Firm Award from the Japan Association for Individual Investors

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Nearly all rental construction equipment are the latest environmentally-friendly models that clear anti-pollution regulations.
• Actively introduced automobiles certified as fuel-efficient, low-emission vehicles for its own fleet.
• Installing rooftop solar power generation equipment at newly established branches.

Social Achievements

• Loaning “Providence”, a former beer-hall restaurant, free of charge to the management office at the “Port Literature Museum”.
• Acquired the naming rights to Sapporo Civic Hall, rechristened it “Kanamoto Hall”.
• Strengthened safety training, creating a system for preventing worker accidents.

Governance Achievements

• Strengthened compliance and promoted corporate governance.
• Introduced a Corporate Officer system to accelerate management decision-making.
• Shortened the directors’ term of office to one year.

Climate Goals & Targets

Environmental Challenges

• Clouds gathering over some corporate earnings.
• Global economic uncertainty arising from the effects of trade friction between the United States and China.
• Soaring cost of materials, chronic manpower shortages, and the widening disparity between regions in volume of construction works.

Mitigation Strategies

• Strengthening business structure to improve response capabilities.
• Launching Kanamoto’s new Medium-term Corporate Management Plan “Creative 60”.
• Securing the optimum quantities and models of rental equipment to meet construction site needs.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework

Sustainable Products & Innovation

• Super-low noise construction equipment and models that comply with Tier 4 emissions regulations
• construction equipment remote-control robot
• contact prevention system

Awards & Recognition

• Commendation Award for Listed Companies from the Tokyo Stock Exchange
• IR Excellent Firm Award from the Japan Association for Individual Investors

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Actively introduced fuel-efficient and low-emission vehicles, including hybrid cars since 1988.
• Installed solar power generation equipment on branch office rooftops to utilize renewable energy and reduce CO2 emissions.
• Annually purchases approximately 3,000 pieces of construction equipment complying with exhaust control regulations.

Social Achievements

• Provided Providence, a former beer hall, free of charge to Muroran City in Hokkaido as a venue for its Port Literature Museum.
• Acquired naming rights for the Sapporo Civic Hall, contributing to local education and cultural revitalization.
• Strengthened safety education and accident prevention measures, resulting in 23 branches being accident-free for over 20 years.

Governance Achievements

• Implemented an outside director system to ensure transparency in management decision-making.
• Established a Board of Corporate Auditors to oversee business execution and enhance corporate governance.
• Introduced a corporate officer system to clarify responsibilities for business execution.

Climate Goals & Targets

Environmental Challenges

• The COVID-19 pandemic significantly impacted economic activity and the construction industry, leading to project delays and reduced private construction investment.
• The need to adapt to changes in the business environment, including soaring material and labor costs and increased competition.

Mitigation Strategies

• Implemented measures against infections and reduced fixed costs.
• Focused on training personnel for the future and strengthening the foundation of the alliance group in Japan and abroad.
• Implemented an asset strategy that pays close attention to the market environment.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC)

Sustainable Products & Innovation

• Hybrid, ICT, and electric-drive construction equipment
• Remote-control construction robots
• Tunnel RemOS-WL wheel-type loaders
• Contact prevention systems with AI object recognition

Awards & Recognition

• Commendation Award for Listed Companies from the Tokyo Stock Exchange (for more than five consecutive years of annual dividend increases)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Shareholder Returns
• Global Industry Leadership

Environmental Achievements

• 50% reduction in emissions from fuel/purchased electricity by 2030 compared to 2013

Climate Goals & Targets

Environmental Challenges

• ROE (return on equity) less than 8%
• PBR (price-to-book ratio) below 1x

Mitigation Strategies

• Improving utilization rate of rental assets
• Consolidating, closing, or merging unprofitable business offices
• Adjusting rental unit prices
• Proactive investor relations

Supply Chain Management

Climate-Related Risks & Opportunities