Climate Change Data

EAGLE INDUSTRY CO., LTD.

Climate Impact & Sustainability Data (2018-04 to 2019-03, 2021-04 to 2022-03, 2022, 2023)

Reporting Period: 2018-04 to 2019-03

Environmental Metrics

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced HCFC-225 emissions by 70.8% from FY2003
  • Achieved 98.4% recycling rate
  • Introduced Environmental Information System at domestic sites

Social Achievements

  • Launched a personnel education program for employee happiness and growth
  • Implemented diversity management initiatives to encourage women's participation
  • Achieved zero complaints and significantly contributed to reduced scrap cost and waste amount through multifunctional collaborative work

Governance Achievements

  • Established regulations to prevent bribery and corruption
  • Conducted compliance training for employees in Japan and overseas
  • Established a Risk Management and Compliance Committee

Climate Goals & Targets

Long-term Goals:
  • Long-term environmental goals targeting the year 2050
Medium-term Goals:
  • Reduce CO2 emissions per unit of production amount by at least 1% from previous year
  • Maintain 98% recycling rate
  • Formulate a water usage reduction plan
Short-term Goals:
  • Complete replacement of HCFC-225 by FY2020
  • Bring groundwater quality at Saitama Plant to within standard values by FY2021

Environmental Challenges

  • Soil pollution at Saitama Plant due to past trichloroethylene use
  • Reduction of fluorocarbons usage
  • EU ELV and RoHS Directive compliance
Mitigation Strategies
  • Utilizing microbes for soil remediation at Saitama Plant
  • Replacing HCFC-225 with safe alternatives
  • Providing customers with information and working on alternatives for substances restricted by EU directives

Supply Chain Management

Responsible Procurement
  • Cooperation through green procurement guidelines

Climate-Related Risks & Opportunities

Opportunities
  • Development of environmentally friendly products for next-generation mobility and energy market

Reporting Standards

Frameworks Used: GRI standards

Certifications: ISO14001:2015

UN Sustainable Development Goals

  • Goal 3
  • Goal 7
  • Goal 9
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 15
  • Goal 17

The EKK Group supports the SDGs and explores SDG-related initiatives based on its current CSR activities.

Sustainable Products & Innovation

  • Surface textured mechanical seals for electric vehicles
  • Magnetic fluid seals for semiconductor manufacturing equipment
  • Pollution-free stern tube air seals

Awards & Recognition

  • Quality Control Award from Nachi-Fujikoshi Group in China

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:76.5 thousand t-CO2e/year
Scope 1 Emissions:2.8 thousand t-CO2e/year
Scope 2 Emissions:73.7 thousand t-CO2e/year
Scope 3 Emissions:227.5 thousand t-CO2e/year
Water Consumption:488 thousand m3/year
Waste Generated:3.8 thousand tons/year
Carbon Intensity:0.44 t-CO2/million yen (domestic), 0.73 t-CO2/million yen (overseas)

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced CO2 emissions per unit of production by 2.1% compared to the previous year.
  • Achieved a 93.7% recycling rate for industrial waste.
  • Introduced solar power generation at some locations.

Social Achievements

  • Implemented various initiatives to improve work-life balance, including flexible work styles and expanded childcare/eldercare leave.
  • Maintained a disability employment rate exceeding the legal requirement.
  • Conducted regular employee interviews to address mismatches between individual aspirations and job assignments.

Governance Achievements

  • Established a Nomination and Remuneration Committee composed of the Chairman and outside directors.
  • Implemented a system of internal reporting for compliance issues.
  • Integrated risk management and compliance committees under the Sustainability Committee.

Climate Goals & Targets

Long-term Goals:
  • Contribute to the achievement of SDGs and the Paris Agreement.
Medium-term Goals:
  • Achieve 11 out of 12 sites with ISO 45001 certification by 2023, and all 12 by 2024.
  • Expand the number of female general and managerial staff.
Short-term Goals:
  • Reduce CO2 emissions per unit of production by 1% or more.
  • Investigate and implement recycling for landfill industrial waste.
  • Maintain a recycling rate of 98% or more.

Environmental Challenges

  • Global semiconductor shortages and the COVID-19 pandemic caused supply chain disruptions.
  • Rising raw material prices and ongoing supply chain instability.
  • Uncertainty in the global economic outlook due to geopolitical factors.
Mitigation Strategies
  • Developed alternative sourcing strategies and secured backup suppliers.
  • Maintained sufficient inventory levels for certain raw materials and components.
  • Continued development and expansion of environmentally friendly products targeting next-generation mobility and energy markets.

Supply Chain Management

Responsible Procurement
  • Procurement Policy (Procurement Basic Policy and CSR Procurement Guidelines)

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters (earthquakes, typhoons, heavy rain)
Transition Risks
  • Strengthening environmental regulations and carbon pricing
  • Reduction in demand for existing products due to the shift to electric vehicles
Opportunities
  • Expansion of sales of environmentally friendly products for next-generation mobility and energy markets

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001 (all domestic manufacturing sites), ISO 45001 (one site)

Sustainable Products & Innovation

  • Environmentally friendly products for next-generation mobility and energy markets

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:460 thousand tons of CO2 (FY2022)
Scope 1 Emissions:73.9 thousand tons of CO2 (FY2022)
Scope 2 Emissions:137 thousand tons of CO2 (FY2022)
Scope 3 Emissions:215.8 thousand tons of CO2 (FY2022)
Water Consumption:229,000 m3 (FY2022)
Waste Generated:57 thousand tons (FY2022, Japan); 40 thousand tons (FY2022, Overseas)

ESG Focus Areas

  • Environmental management
  • Human resource policies based on respect for human dignity
  • Social contribution activities
  • Occupational health and safety
  • Supply chain management
  • Corporate governance
  • Risk management
  • Information security

Environmental Achievements

  • CO2 emissions in FY2022 were 20% lower globally than in FY2018.
  • Recycling ratios improved for the last three years, reaching 96.4% in FY2022.
  • Eagle Industry (Wuxi) Co., Ltd. received an environmental protection model enterprise award for two years of no environmental violations or complaints.

Social Achievements

  • Implemented initiatives to reduce working hours and encourage employees to take paid leave.
  • Introduced a teleworking system to improve operational efficiency and help employees balance work and family life.
  • Actively hires disabled individuals, exceeding the statutory target of 2.3%.

Governance Achievements

  • Established the Sustainability Committee under the Board of Directors to deliberate on climate change and other important sustainability issues.
  • Integrated the existing Risk Management/Compliance Committee into the Sustainability Committee.
  • Established the Nominating and Compensation Committee to advise the Board of Directors on director and Audit & Supervisory Board member nominations and compensation.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050.
Medium-term Goals:
  • By 2030, reduce CO2 emissions by 50% vs. FY2018 in Japan and 30% vs. FY2018 overseas.
  • Achieve carbon neutrality by 2050.
  • Have at least 40 women in career-track positions and at least 15 female managers by FY2026.
Short-term Goals:
  • Reduce total actual work hours per year to 2,000 hours or less
  • Achieve at least 98% recycling rate

Environmental Challenges

  • Supply chain disruptions caused by the shortage of semiconductors and other industrial materials.
  • Soaring energy resource prices due to the protracted conflict between Russia and Ukraine.
  • Inflationary pressures with accompanying monetary-tightening policies.
Mitigation Strategies
  • Maintaining sufficient inventory and/or lining up alternate partners to prevent production halts.
  • Arranging to source some raw materials and parts from alternate suppliers in Japan or other overseas regions.
  • Developing an integrated management system for supply chain information.

Supply Chain Management

Responsible Procurement
  • Compliance with laws and regulations
  • Mutual benefit
  • Respect for human rights
  • Green procurement

Climate-Related Risks & Opportunities

Physical Risks
  • Intensifying natural disasters
Transition Risks
  • Higher carbon prices
  • Stricter GHG emission regulations
  • Decreased use of fossil fuels
Opportunities
  • Sales expansion for environmentally friendly products targeting the next-generation mobility and energy markets

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, ISO 9001, IATF 16949, JIS Q 9100

Sustainable Products & Innovation

  • High-speed mechanical seals for EV drive motor shaft coolant
  • Small-diameter lip seal for electric water pumps
  • Hydrogen pressure control and check valves for FCVs
  • Hydraulic hybrid systems that reduce construction machinery’s fuel consumption
  • Longer-life mechanical seals for machinery used under high-pressure/high-speed conditions

Awards & Recognition

  • Environmental protection model enterprise award (Eagle Industry (Wuxi) Co., Ltd.)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:68.6 thousand tons of CO2 (FY2023)
Scope 1 Emissions:2.7 thousand tons of CO2 (FY2023)
Scope 2 Emissions:65.9 thousand tons of CO2 (FY2023)
Scope 3 Emissions:226.6 thousand tons of CO2 (FY2023)
Total Energy Consumption:135 GWh (FY2023)
Water Consumption:439,000 m3 (FY2023)
Waste Generated:2,130 tons (FY2023)
Carbon Intensity:0.42 t-CO2/ million yen (Japan, FY2023); 0.57 t-CO2/ million yen (Overseas, FY2023)

ESG Focus Areas

  • Environmental management
  • Quality assurance
  • Human resource policies based on respect for human dignity
  • Social contribution activities
  • Occupational health and safety
  • Supply chain management
  • Corporate Governance
  • Risk Management
  • Information security
  • Human Rights
  • Labor Practice
  • Supply Chain
  • Social Contribution
  • Occupational Health and Safety
  • Quality Initiatives
  • Compliance

Environmental Achievements

  • Reduced CO2 emissions by 36.4% in Japan and 10.1% overseas compared with FY2018
  • Reduced water withdrawal by 0.9% compared with the previous three-year average
  • Achieved a 96.2% recycling rate for industrial waste, a 4% reduction compared with the previous year

Social Achievements

  • Exceeded the statutory target for employment of disabled workers (2.65% vs 2.3%)
  • Improved employee engagement through surveys and career development interviews
  • Implemented various initiatives to reduce working hours and encourage employees to take paid leave
  • Resumed various community events after the COVID-19 pandemic

Governance Achievements

  • Transitioned to a company with an Audit & Supervisory Committee
  • Established the Nominating and Compensation Committee to enhance objectivity and transparency in director nomination and compensation
  • Implemented a performance-based stock compensation plan for directors and operating officers

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050
Medium-term Goals:
  • Reduce CO2 emissions by 50% vs. FY2018 by 2030
  • Achieve carbon neutrality by 2050
  • At least 40 women in career-track positions and 15 female managers by FY2026
Short-term Goals:
  • Reduce energy consumption per unit by at least 1% from the five-year average
  • Recycling rate of 96% or higher
  • Curb the increase in industrial waste emissions
  • Curb the increase in water use

Environmental Challenges

  • Increased geopolitical risks and soaring resource prices
  • Decline in sales of products for internal combustion engines
  • Sluggish sales in the Semiconductor Industry segment due to the silicon cycle
  • Increased fixed costs in the Automotive and Construction Machinery Industries segment
  • Supply chain disruptions due to natural disasters
Mitigation Strategies
  • New product development and strengthened productivity
  • Cost reduction in all functions
  • Development and sales expansion of new products for EVs
  • Investments in growth areas (Semiconductor Industry segment, R&D, aerospace)
  • Maintaining sufficient inventory and lining up alternate partners to mitigate supply disruptions

Supply Chain Management

Supplier Audits: 761 companies assessed using CSR Procurement SAQ (FY2023)

Responsible Procurement
  • CSR procurement
  • EKK Green Procurement Guidelines
  • Compliance with laws and regulations
  • Respect for human rights

Climate-Related Risks & Opportunities

Physical Risks
  • Intensifying natural disasters
Transition Risks
  • Higher carbon prices
  • Stricter GHG emission regulations
  • Decreased demand for products for internal combustion engines
Opportunities
  • Sales expansion for environmentally friendly products

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, ISO 45001, ISO 9001, IATF 16949, JIS Q 9100, ISO 17025

Sustainable Products & Innovation

  • Environmentally friendly products for next-generation mobility and energy markets
  • Hybrid seals
  • Water-lubricated seal equipment

Awards & Recognition

  • Environmental protection model enterprise award (EIW, Wuxi)