DMG MORI CO., LTD.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:1,555,678 tCO2e/year (2022)

Scope 1 Emissions:33,147 tCO2e/year (2022)

Scope 2 Emissions:13,884 tCO2e/year (2022)

Scope 3 Emissions:1,508,647 tCO2e/year (2022)

Renewable Energy Share:30% (target for Iga Campus by end of 2024)

Total Energy Consumption:124,669 MWh/year (2022, DMG MORI AG)

Water Consumption:123,000 m3/year (2022, Japan)

Waste Generated:72 tons/year (2022, Iga)

Carbon Intensity:Not disclosed

ESG Focus Areas

Climate Change
Environmental Protection
Human Resources Development
Social Responsibility
Governance
Employee Wellness

Environmental Achievements

Achieved carbon neutrality in 2021 in its supply chain from raw material production to product shipment (Scope 1, 2, and 3 upstream) through self-help efforts and offsetting of carbon footprint by investing in internationally-accredited climate protection projects.
Introduced the largest on-site, self-consumption solar power system in Japan at Iga Campus, reducing CO2 emissions by about 5,300 tons annually.
DMG MORI CASTECH is working to reduce CO2 emissions from the casting process to virtually zero by 2025 by replacing coke ovens with electric furnaces.

Social Achievements

Ambitiously implemented measures to promote employee wellness, including mandatory 12-hour work intervals, full medical checkups, and a total ban on smoking on company premises.
Established a temporary health laboratory capable of PCR testing and offered vaccination opportunities at the workplace.
Upgraded company cafeterias into in-house restaurants with a focus on nutrition.
Certified as a “Company Promoting Sports” by Japan Sports Agency.
Supports doctoral students in engineering and established DMG MORI Academy to develop skilled engineers.
Engaged in local communities through support of cultural activities and local communities.

Governance Achievements

Diversified board structure with 42% external directors and 25% female directors as of March 28, 2023.
Established a Sustainability Promotion Department to assess risks and opportunities for business due to climate change.
Set carbon footprint reduction targets accredited by the Science Based Targets (SBT) initiative.

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

Reduce total amount of CO2 emissions in Scope 1 and Scope 2 by 46.2% and in Scope 3 by 13.5% from the base year level of 2019 by 2030.
Reduce carbon footprint by 30% by 2030 (compared to 2018)

Short-term Goals:

Not disclosed

Environmental Challenges

Worldwide supply and material shortages
High raw material, energy, and transport costs
Rising interest and inflation rates
Ongoing corona pandemic
War in Ukraine
Climate change
Digitalization

Mitigation Strategies

Diversification of customer industries and regions
Review of the scope of in-house production
Various cost-cutting measures
Increased use of renewable energy
On-site power generation
In-house production of key components
Long-term procurement planning

Supply Chain Management

Supplier Audits: 211 (Japan) and 631 (mainly German companies)

Responsible Procurement

Social responsibility in procurement throughout entire supply chain
Using INTEGRITY NEXT GmbH platform to monitor suppliers and conduct due diligence on human rights and environment

Climate-Related Risks & Opportunities

Physical Risks

Intensified extreme weather
Rising temperatures
Increased prices of raw materials and energy
Changes in customer behavior
Impairment loss of existing assets due to damages caused to real property and other assets due to flooding, etc.
Increased operating costs (e.g., cost of air-conditioning for factories)

Transition Risks

Increased carbon pricing mechanism (e.g., carbon taxes)
Higher compliance costs
Increased production costs due to changing input prices (e.g., energy, water) and output requirements (e.g., waste treatment)
Reduced sales revenue caused by falling demand for products and services (due to shift in consumer preferences)
Reduced access to capital or increased equity cost
Reduced production capacity due to supply chain interruptions
Stricter reporting obligations related to carbon footprint
Increased concern or negative feedback from stakeholders

Opportunities

Development and/or expansion of low-CO2 emissions product lines
Emergence of new markets
Access to new markets/Markets Expansion in conventional markets

Reporting Standards

Frameworks Used: TCFD

Certifications: SBT accredited

Third-party Assurance: PricewaterhouseCoopers GmbH

UN Sustainable Development Goals

Not disclosed

Not disclosed

Sustainable Products & Innovation

lGREENMACHINES

Awards & Recognition

Platinum medal in the Sustainability Rating from EcoVadis (2022)

Reporting Period: 2023