Climate Change Data

Menicon Co., Ltd.

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

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:20,981 t-CO2e/year (Scope 1+2)
Scope 1 Emissions:3,335 t-CO2e/year
Scope 2 Emissions:17,645 t-CO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:63,411 MWh/year
Water Consumption:285,774 m3/year
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Human Rights
  • Environmental Sustainability
  • Supply Chain Responsibility

Environmental Achievements

  • Reduced water consumption by 50% at the Kakamigahara Plant compared to conventional systems.
  • Reused approximately 40% of plastic waste at the Singapore factory as raw material in secondary packaging.
  • Utilized plastic waste from Seki and Kakamigahara plants as raw materials for various plastic products through a recycling company.

Social Achievements

  • Launched ClickMiru, an online sales system for contact lenses based on doctor's instructions.
  • Achieved 96.7% employee satisfaction (survey response rate).
  • Increased number of male employees taking childcare leave due to the introduction of a childcare support period.
  • Implemented flextime system, telework rules, and shorter working hours for childcare.

Governance Achievements

  • Established a Sustainability Committee (formerly CSR Committee) to promote sustainability activities and strengthen internal control functions.
  • Implemented a whistleblowing system with a third-party organization.
  • Revised the existing CSR Policy to the Sustainability Policy and changed the name of the CSR Committee to the Sustainability Committee.
  • Announced support for the TCFD Recommendations.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve JPY 140 billion in sales, 12% operating profit ratio, and 10% ROE by FY2025.
  • Expand sales of 1DAY and orthokeratology lenses.
Short-term Goals:
  • Increase MELS Plan members to 1.5 million by FY2025.
  • Achieve 35% overseas sales ratio by FY2025.
  • Reduce average energy intensity by 1% or more each year over five fiscal years.

Environmental Challenges

  • Rising prices of raw materials and fuel.
  • Increased logistics costs due to soaring fuel costs.
  • Potential market contraction due to population decline.
  • Increased competition from foreign competitors.
  • Concerns over supply chain disruptions due to natural disasters or climate change.
Mitigation Strategies
  • Promoting 'local production for local consumption' to reduce import/export costs and CO2 emissions.
  • Developing alternative sourcing strategies and diversifying raw material suppliers.
  • Regularly reviewing the Business Continuity Plan (BCP).
  • Investing in new manufacturing bases (Malaysia, China) to meet increasing demand and ensure business continuity.
  • Implementing energy efficiency measures and introducing renewable energy.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Menicon Group Procurement and Purchasing Policy
  • Menicon Group CSR Procurement Standards

Climate-Related Risks & Opportunities

Physical Risks
  • Huge natural disasters
  • Water shortage
  • Deterioration of water quality
  • Increase in average temperature
Transition Risks
  • Rising carbon tax
  • Tightening regulations to reduce CO2 emissions
  • Tightening regulations on the use of recycled plastics
  • Changes in consumer behavior
Opportunities
  • Increase in demand for contact lenses due to increased myopia
  • Shift to environmentally friendly products
  • Popularity of products and businesses that reduce environmental impact
  • Increased demand for products improving crop productivity

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, GRI Sustainability Reporting Standards, TCFD Recommendations

Certifications: ISO/EN ISO 13485

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Aguri Kakumei (rice straw decomposing agent)
  • resQ (composting promotion system)

Awards & Recognition

  • Not disclosed

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:125.97 thousand t-CO2e (consolidated Scope 1 & 2: 22.27, non-consolidated Scope 3: 103.7)
Scope 1 Emissions:3.92 thousand t-CO2e (consolidated)
Scope 2 Emissions:18.35 thousand t-CO2e (consolidated)
Scope 3 Emissions:103.75 thousand t-CO2e (non-consolidated)
Renewable Energy Share:2% (Singapore Plant)

ESG Focus Areas

  • Climate Change
  • Human Rights
  • Sustainable Resource Consumption
  • Contributing to a Happy Society
  • Building a Corporate Infrastructure that will last 100 years

Environmental Achievements

  • Reduced plastic use in "Magic" 1DAY contact lenses by 80%
  • Packaging uses 100% recycled plastic from contact lens manufacturing
  • Installed solar panels at Singapore Plant, generating 2% of power from renewable energy
  • Implemented donation-type corporate PPA at Kakamigahara Plant using renewable energy
  • Reduced electricity consumption by an estimated 81 MWh and CO2 emissions by roughly 35 t-CO2 through composting consulting services

Social Achievements

  • Launched "Smart Creation Project" for work style reforms and employee-driven innovation
  • Improved employee satisfaction (survey response rate 95.2%)
  • Increased childcare leave acquisition rate for both male and female employees
  • Formulated "Menicon Group Human Rights Policy"
  • Held various human rights training sessions for employees

Governance Achievements

  • Revised "Procurement Purchasing Policy" and "CSR Procurement Standards" into "Sustainable Procurement Policy"
  • Established a risk management system and procedures
  • Implemented a whistleblowing system
  • No cases of suspected corruption or bribery in FY2022

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions (target year not specified)
Medium-term Goals:
  • Expand the healthcare and life care business
  • Increase production capacity for 1DAY and orthokeratology lenses
  • Establish a human rights due diligence system
Short-term Goals:
  • Increase MELS Plan subscribers to 1.34 million by FY2025
  • Expand sales of 1DAY contact lenses
  • Achieve 35% overseas sales ratio by FY2025
  • Achieve 10 billion yen in net sales in healthcare and life care business by FY2025
  • Formulate "Sustainability Procurement Guidelines"

Environmental Challenges

  • Supply chain disruptions due to the Covid-19 pandemic and the war in Ukraine
  • Insufficient supply of 1DAY contact lenses to meet demand
  • Intensifying competition to recruit and retain talented human resources
  • Stricter global regulations regarding quality and product liability
Mitigation Strategies
  • Swiftly addressed logistics and procurement issues
  • Improved and expanded production lines at Kakamigahara and Singapore plants
  • Construction of Malaysian plant to expand 1DAY production capacity
  • Construction of Chinese plant to expand orthokeratology lens production
  • Strengthening human resource development and improving the workplace environment
  • Transitioned to EU’s Medical Device Regulation (MDR) and obtained certification

Supply Chain Management

Responsible Procurement
  • Sustainable Procurement Policy
  • MenioClub meetings with major suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters
  • Droughts
  • Water shortages
  • Temperature rise
Transition Risks
  • Increases in carbon taxes
  • Tightening of CO2 emission reduction regulations
  • Tightening of regulations on plastic production
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, Guidance for Integrated Corporate Disclosure and Company-Investor Dialogue for Collaborative Value Creation 2.0, GRI Sustainability Reporting Standard, TCFD Recommendations

Certifications: ISO 13485, CE marking, MDSAP

Sustainable Products & Innovation

  • "Magic" 1DAY contact lenses with reduced plastic use
  • Biomass plastic from grape pomace and recycled plastic

Awards & Recognition

  • 2023 Health and Productivity Management Organization certification