Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy consumption per unit of sales by 2.2%
• Reduced CO2 emissions per unit of sales (domestic sites) to 33.4t-CO2/billion yen
• Increased recycling rate of industrial waste
• Reduced PRTR emissions and transfers to 55 tons

Social Achievements

• Launched a women's perspective product development project (L-SERIES)
• Reduced workplace accidents
• Implemented various initiatives to improve work-life balance
• Improved employee safety training and awareness

Governance Achievements

• Strengthened corporate governance by appointing external directors
• Improved internal control systems
• Enhanced compliance programs

Climate Goals & Targets

Environmental Challenges

• Increased greenhouse gas emissions due to increased production and the rebound effect after energy-saving activities following the Great East Japan Earthquake
• Maintaining a high level of safety management in the face of an aging workforce and human error
• Ensuring compliance across global operations
• Meeting the increasing demand for safety information and responding to changes in chemical regulations

Mitigation Strategies

• Implementing energy-saving measures, fuel switching, and heat recovery
• Strengthening safety training and awareness programs, appointing safety leaders in each workplace
• Strengthening internal control systems and compliance programs across global operations
• Developing a new GHS classification software for SDS conversion

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green purchasing
• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4, ISO 26000

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green Assist Products

Awards & Recognition

• Aichi Labor Bureau Director's Encouragement Award (for safety measures)

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Social Responsibility
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 2% year-on-year (domestic production sites)
• Reduced industrial waste generation by 2% year-on-year (domestic production sites)

Social Achievements

• Opened a specialized showroom for medical and long-term care facilities in Nagoya
• Launched a women's empowerment project in 2013

Governance Achievements

• Appointed an outside director in June 2014 to enhance management transparency
• Established a CSR Promotion Project in April 2015

Climate Goals & Targets

Environmental Challenges

• Meeting the increasing demand for information on chemical substances
• Achieving targets for reducing transportation energy and industrial waste
• Increasing the sales ratio of environmentally friendly products

Mitigation Strategies

• Upgrading the green procurement regulations and enhancing communication with suppliers
• Implementing various energy-saving measures in production processes
• Revising the definition of “Green Assist” products to include products addressing social issues

Supply Chain Management

Responsible Procurement

• Green purchasing regulations

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 26000, Environmental Ministry of Japan guidelines

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Sustainable Products & Innovation

• Green Assist products
• Biomass-based decorative panels

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Human Rights and Labor Practices
• Fair Business Practices
• Environmental
• Customer Issues
• Community Engagement
• Diversity and Inclusion

Environmental Achievements

• Reduced greenhouse gas emissions by approximately 10% (from 21.2 t-CO2/billion yen to 19.7 t-CO2/billion yen in domestic production sites)
• Reduced transportation energy consumption by 1% (from 46.30 kL/million ton-km to 45.07 kL/million ton-km)
• Developed various environmentally friendly products (Green Assist products, accounting for 58.4% of sales)

Social Achievements

• Launched a Women's Empowerment Project in 2013, resulting in the company receiving the Excellent Award in the Nagoya City Women's Empowerment Enterprise Certification and Award System in 2016.
• Obtained the Kurumin certification in 2016 for its support of childcare and work-life balance.
• Implemented various initiatives to improve employee safety and well-being, including KYT (risk prediction training) and mental health support programs.

Governance Achievements

• Established a Governance Committee in 2016 to enhance corporate governance.
• Implemented a robust compliance program, including annual workplace training on the AICA Group Code of Conduct and the publication of internal educational materials on legal matters.

Climate Goals & Targets

Environmental Challenges

• Increased number of workplace accidents due to insufficient risk prediction.
• Industrial waste landfill disposal rate and green procurement proposal adoption rate did not meet targets.
• Concerns regarding the accuracy and consistency of Scope 3 emissions data.
• Maintaining customer satisfaction levels despite business restructuring.

Mitigation Strategies

• Strengthened risk prediction training and safety activities.
• Promoting recycling and conversion to valuable materials to reduce landfill disposal rate.
• Improving data collection methods for Scope 3 emissions.
• Establishing five customer service centers to improve responsiveness and efficiency.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• AICA CSR Procurement Policy, including green procurement initiatives.
• Regular meetings and training sessions with suppliers to promote understanding of AICA's CSR expectations.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: GRI G4, ISO 26000

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green Assist products (e.g., Melakurin high-functionality melamine resin, high refractive index UV coating agent, UV-curable epoxy resin)

Awards & Recognition

• Excellent Award in the Nagoya City Women's Empowerment Enterprise Certification and Award System (2016)
• Kurumin certification (2016)
• Good Design Award (2015)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 4.25% (33.8t-CO₂/billion yen)
• Reduced energy consumption per unit of output by 1%
• Reduced industrial waste generation per unit of output by 2%

Social Achievements

• Improved employee satisfaction score to 3.58 (out of 5)
• Increased female employee ratio
• Reduced employee turnover rate to 3.8%

Governance Achievements

• Established AICA Group Code of Conduct
• Implemented a strengthened internal control system
• Strengthened corporate governance through the establishment of various committees

Climate Goals & Targets

Environmental Challenges

• Increased industrial waste disposal rate due to changes in recycling practices
• Increased greenhouse gas emissions due to M&A and new facilities
• Website hacking incident

Mitigation Strategies

• Developing alternative sourcing strategies for waste recycling
• Implementing energy efficiency measures in production facilities
• Strengthening information security measures

Supply Chain Management

Supplier Audits: 5 supplier site visits in 2018

Responsible Procurement

• AICA Group CSR Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Natural disasters

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: UN Global Compact, GRI G4, ISO 26000, Environmental Agency of Japan guidelines

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Sustainable Products & Innovation

• AS products (AICA Solution products)

Awards & Recognition

• Nagoya City Women's Empowerment Award

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 4% year-over-year (based on sales revenue).
• Reduced energy consumption year-over-year.
• Implemented various energy-saving measures across multiple production sites.

Social Achievements

• Launched employee well-being programs, including stress checks and health consultations.
• Improved employee satisfaction.
• Increased average paid leave days and rate.
• Reduced workplace accidents to zero.

Governance Achievements

• Established an ethics committee to handle internal reports and compliance issues.
• Implemented a robust internal control system.
• Improved corporate governance through various initiatives.

Climate Goals & Targets

Environmental Challenges

• Rising raw material prices impacting profitability, particularly in the chemical products business.
• Decreased construction market in some areas.
• Increased industrial waste due to changes in plastic recycling regulations in China.

Mitigation Strategies

• Increased sales in domestic and overseas markets.
• Expanded production capacity and created synergies with newly acquired companies.
• Developed alternative sourcing strategies.
• Implemented measures to reduce industrial waste and improve recycling rates.

Supply Chain Management

Supplier Audits: 15 on-site audits (2018)

Responsible Procurement

• AICA Group CSR Procurement Guidelines (2017)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, natural disasters

Transition Risks

• Strengthening environmental regulations

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI Standards, ISO 26000, Environmental Agency of Japan's Environmental Reporting Guidelines (2018)

Certifications: ISO 9001, ISO 14001, OHSAS 18001

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)

AICA's initiatives contribute to these goals through various ESG activities, including greenhouse gas emission reduction, resource efficiency, sustainable product development, and responsible supply chain management.

Sustainable Products & Innovation

• AS products (Aica Solution products) addressing various social issues.
• High-value-added melamine-faced boards with enhanced functionality and design.

Awards & Recognition

• Excellent Award in Nagoya City's Women's Empowerment Program (2016)

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor Standards
• Health and Safety
• Environment
• Fair Business Conduct
• Ethics
• Quality Control
• Information Security
• Corporate Social Responsibility

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Compliance with AICA Group Supplier Sustainability Guidelines

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Diversity & Inclusion
• Sustainability
• Climate Change
• Human Capital

Environmental Achievements

• GHG emissions reduction target of 14% by FY2026 and 30% by FY2030 from FY2022 levels.

Social Achievements

• Increased ratio of women in qualification grades for management positions from 8.96% in FY2023 to 12.3% at the beginning of FY2024.
• Appointed two foreign nationals as executive officers as of April 1, 2024.
• Hired 22 mid-career professionals in FY2023.
• Cumulative human capital investment of 4.0 billion yen over four years from FY2023.

Governance Achievements

• Transitioned from a Company with Board of Auditors to a Company with Audit and Supervisory Committee in June 2020.
• Established a Governance Committee chaired by an outside director.

Climate Goals & Targets

Environmental Challenges

• Climate change related disasters (typhoons, floods, heatwaves) impacting business continuity.
• Rising average temperatures and changes in rainfall affecting water resources and operating costs.
• Increased stakeholder demand for low-carbon products requiring capital investment.
• Tightening climate change regulations potentially restricting operations and increasing costs.

Mitigation Strategies

• BCP Committee analyzes and monitors climate change risks and implements preventive measures.
• Climate Change Response Committee works to reduce greenhouse gas emissions.
• President participates in Product Development Meeting to address climate change risks.
• Scenario analysis conducted to assess risks and opportunities at 2030 and 2050 under different global warming scenarios.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Floods
• Heatwaves
• Rising temperatures
• Changes in rainfall

Transition Risks

• Increased demand for low-carbon products
• Tightening climate change regulations

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001