Climate Change Data

Daido Steel Co., Ltd.

Climate Impact & Sustainability Data (2023-04 to 2024-03)

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:820,000 tCO2e/year
Scope 3 Emissions:1,441,000 tCO2e/year
Renewable Energy Share:33.3%/year (2023)
Total Energy Consumption:1.48 billion kWh/year
Water Consumption:23,340,000 m3/year
Waste Generated:71,000 tons/year

ESG Focus Areas

  • Preservation of the global environment (business activities/product supply)
  • Responsibilities and contributions to society
  • Strengthening governance

Environmental Achievements

  • 15% reduction in energy consumption rate compared to the existing 150t arc furnace at our Chita Plant (STARQ®)
  • Achieved a 90% or more rate of recycling among raw materials
  • Maintained a water circulation rate at 95% or more

Social Achievements

  • Percentage of people who work with mental and physical vitality increased from 37% in fiscal 2021 to 41% in fiscal 2023
  • Certified as a 2024 Health & Productivity Stock Selection brand
  • Launched sales of products that meet the needs of the medical field

Governance Achievements

  • Introduced a performance-linked, stock-based remuneration scheme for officers
  • Established the Anti-Bribery Policy
  • Revised the Corporate Code of Ethics to group company standards

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality in 2050
Medium-term Goals:
  • Reduce CO2 emissions by 50% in 2030 (compared to FY2013)
  • Increase ratio of CO2-free electric power to 60% or more in 2030
  • Net sales ratio of products for the growth market 15% or more in FY2026, 25% or more in FY2030
  • 20% increase in labor productivity in FY2026, 30% in FY2030
Short-term Goals:
  • Reduce CO2 emissions by 35% in 2026 (compared to FY2013)
  • Increase ratio of CO2-free electric power to 30% or more in 2026

Environmental Challenges

  • Gradual decrease in demand for specialty steel products for automobiles
  • Increased competition in the market for domestic specialty steel
  • Rising demand globally for electric arc furnace materials, and rising demand for high-grade scrap
Mitigation Strategies
  • Expanding businesses in growth markets (semiconductors, aerospace, CASE, clean energy, medical)
  • Investing in streamlining and energy conservation
  • Expanding scrap recovery programs in cooperation with customers, and establishing technologies to enable the use of low-grade scrap

Supply Chain Management

Supplier Audits: CSR questionnaires

Responsible Procurement
  • Fair and equitable transactions
  • Compliance
  • Respect for the environment, society, and human rights

Climate-Related Risks & Opportunities

Physical Risks
  • Increasingly intense climactic damage
  • Risk of operations being suspended due to natural disasters
Transition Risks
  • Reduced demand for engine/exhaust system parts due to progressive shift to electric vehicles
  • Increase in electricity costs due to use of renewable energy
  • Introduction of carbon pricing
  • Rising demand for scrap raw materials
Opportunities
  • Increased demand for high-performance materials caused by the progressive shift to electric vehicles
  • Rising demand for electric arc furnace materials
  • Diffusion of technology to address issues related to the environment and new energy
  • Rising demand for hydrogen-related technology and products

Reporting Standards

Frameworks Used: GRI “Sustainability Reporting Standards”, IFRS Foundation “International Integrated Reporting Framework”, Ministry of the Environment “Environmental Reporting Guidelines 2018”, Ministry of Economy, Trade and Industry “Guidance for Collaborative Value Creation”

Certifications: TPG (Transportation and Power Generation) Certification

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)
  • Goal 15 (Life on land)

Daido Steel's initiatives contribute to these goals through energy efficiency improvements, development of sustainable products, circular economy practices, and biodiversity conservation.

Sustainable Products & Innovation

  • STARQ® electric arc furnaces
  • CLEANSTAR® ultra-clean stainless steel
  • Hydrogen embrittlement resistant stainless steel
  • Materials for nuclear power/nuclear fusion reactors
  • Next-generation sewage sludge carbonization system

Awards & Recognition

  • 44th Honda Prize (2023)
  • FTSE Blossom Japan Sector Relative Index constituent
  • Health & Productivity Stock Selection brand (2024)