Climate Change Data

MORITO CO., LTD.

Climate Impact & Sustainability Data (2023, 2023-02 to 2023-11, 2024, July 2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Launched Rideeco® environmental initiative focusing on recycling discarded fishing nets and fabric scraps.

Social Achievements

  • Not disclosed

Governance Achievements

  • Adopted a revised basic dividend policy in FY2023 with a dividend payout ratio of 50% or more and a DOE target of 4.0%.

Climate Goals & Targets

Long-term Goals:
  • Net sales of 80,000 million JPY and operating profit of 5,000 million JPY by 2030.
Medium-term Goals:
  • Net sales of 60,000 million JPY and operating profit of 3,000 million JPY by 2026 (revised target).
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Not disclosed
Mitigation Strategies
  • Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Materials made from recycled fishing nets

Awards & Recognition

  • Not disclosed

Reporting Period: 2023-02 to 2023-11

Environmental Metrics

ESG Focus Areas

  • Environmental Initiatives
  • Sustainability

Environmental Achievements

  • Development and sales of products using fabrics and materials made from discarded fishing nets (Rideeco®)
  • Upcycling of discarded baseball caps from Orix Buffaloes

Social Achievements

  • Industry-academia collaboration projects using ASUKAMI® (recycled paper from fabric scraps)
  • Employee event to watch a baseball game in commemoration of the 115th anniversary

Governance Achievements

  • Revised basic dividend policy in FY2023 focusing on stable and continuous dividend payments
  • Improved capital efficiency and asset efficiency

Climate Goals & Targets

Medium-term Goals:
  • Consolidated net sales: 50 billion JPY by FY2026
  • Consolidated operating profit: 2.5 billion JPY by FY2026

Environmental Challenges

  • Sluggish demand in Europe, the U.S., and China, mostly affecting the apparel business
  • Inventory buildup due to decreased consumption in Europe and the U.S.
  • Decline in sales in China due to withdrawal from unprofitable businesses
Mitigation Strategies
  • Streamlining of unprofitable businesses in China
  • Enhanced efficiency of logistics operations
  • Increased awareness of profit margins among corporate managers and sales personnel

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

  • Rideeco® products from recycled fishing nets
  • ASUKAMI® recycled paper products

Reporting Period: 2024

Environmental Metrics

ESG Focus Areas

  • Environmental Sustainability
  • Social Responsibility
  • Governance

Environmental Achievements

  • Launched Rideeco® environmental initiative focusing on recycling and sustainable materials.
  • Developed and sold products using discarded fishing nets and fabric scraps (ASUKAMI®).

Social Achievements

  • Implemented compliance seminars and training programs for employees.
  • Provided mental health stress checks and psychological safety workshops.
  • Set a numerical target for female manager ratio to promote diversity.

Governance Achievements

  • Developed the Morito Group Human Resource Management Policy for consistent practices across group companies.
  • Improved profit structure resulting in increased EPS and PBR.
  • Implemented a revised shareholder return policy.

Climate Goals & Targets

Medium-term Goals:
  • FY2030: Net sales of 80,000 million JPY, operating profit of 5,000 million JPY, ROE of 8.0%.
Short-term Goals:
  • FY2026: Net sales of 60,000 million JPY, operating profit of 3,000 million JPY, ROE of 6.5% or more.

Environmental Challenges

  • ROE lower than the cost of equity.
  • Specific growth strategies for each business.
  • Investment for future growth.
Mitigation Strategies
  • Investing for growth of existing businesses, improving operating profit ratio, investing in new businesses (including M&As), expanding manufacturing functions, and investing in human capital.
  • Improving net income ratio, promoting sustainable management, buying back shares whenever necessary, improving CCC, and creating a leaner balance sheet.
  • Maintaining financial health, adequate financial leverage, reducing WACC, and ensuring stable and sustainable shareholder returns.

Supply Chain Management

Responsible Procurement
  • Developing a local procurement network in each country with country risks in mind.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

  • Products using discarded fishing nets and fabric scraps (ASUKAMI®)

Reporting Period: July 2023

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Development and sales of products using fabrics and materials made from discarded fishing nets (Rideeco initiative)

Social Achievements

  • Diversity and work style reform
  • Personnel strategies, including hiring mid-career workers

Governance Achievements

  • Revised capital policy
  • Revised basic dividend policy

Climate Goals & Targets

Long-term Goals:
  • Become a global niche top company that keeps making a big difference in the world with small parts
Medium-term Goals:
  • Improve medium-to long-term capital efficiency (ROE)
  • Add stability to the performance-based capital return to shareholders
  • Improve asset efficiency
  • Optimize capital structure

Environmental Challenges

  • Stagnant demand in Europe, the U.S., and China due to a slowdown in consumption
  • Inventories continued to pile up as consumption dropped off, especially for products sold in the European and U.S. markets
Mitigation Strategies
  • Withdrawal from unprofitable businesses in Asia
  • Streamline costs
  • Enhance profitability
  • Streamline unprofitable businesses

Supply Chain Management

Responsible Procurement
  • Localize management, manufacturing, and procurement, and establish new locations

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

  • Products using fabrics and materials made from discarded fishing nets (Rideeco initiative)