Climate Change Data

NIHON KOHDEN CORPORATION

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

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:7,894 tCO2e/year
Scope 1 Emissions:4,250 tCO2e/year
Scope 2 Emissions:3,644 tCO2e/year
Renewable Energy Share:46% (domestic operations)
Total Energy Consumption:214,220 GJ/year
Water Consumption:62,545 m3/year (intake), 52,518 m3/year (discharge)
Waste Generated:824.2 tons/year
Carbon Intensity:4.69 tCO2e/¥100 million (FY2023)

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Governance
  • Human Rights
  • Circular Economy

Environmental Achievements

  • Reduced CO2 emissions per unit of sales by 45.8% compared to FY2020
  • Achieved a 95.5% recycling rate
  • Launched Green Product Label certification system

Social Achievements

  • Introduced a role-based personnel system for general employees
  • Increased the ratio of male employees taking childcare leave to 51.4%
  • Held Sustainability Discussions with over 4,000 participants

Governance Achievements

  • Increased the ratio of outside directors to 50%
  • Increased the ratio of female directors to 16%
  • Established a Risk Management Committee

Climate Goals & Targets

Long-term Goals:
  • Achieve zero greenhouse gas emissions throughout the entire product life cycle by 2050
Medium-term Goals:
  • Achieve 15% operating income margin by FY2026
  • Achieve 12% ROE by FY2026
  • Achieve 12% or more female managers by April 2026
  • Achieve carbon neutrality by 2050
Short-term Goals:
  • Reduce energy use per unit by 12.3% and CO2 emissions per unit by 12.5% (FY2024)

Environmental Challenges

  • Lower sales growth of overseas business in North America and China
  • Delayed new product development due to component shortages and regulatory changes
  • Increased SG&A ratio due to human resource strengthening, wage increases, and inflation
  • Extended cash conversion cycle due to increased inventories
Mitigation Strategies
  • Implementing the reform of the profit structure (improving product mix, productivity, and supply chains)
  • Introducing Nihon Kohden's own ROIC formula
  • Focusing on growth of North America Business
  • Advancing global supply chain management
  • Reducing cash conversion cycle

Supply Chain Management

Supplier Audits: 117 out of 137 key suppliers responded to the Supplier Questionnaire (85.4% response rate)

Responsible Procurement
  • Nihon Kohden Procurement Policy
  • Nihon Kohden Sustainable Procurement Standards
  • Sustainability Questionnaire

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters
  • Water shortages
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, ISO 13485, ISO 9001, MDSAP, PrivacyMark

Third-party Assurance: Japan Quality Assurance Organization (JQA)

UN Sustainable Development Goals

  • 3. Good Health and Well-being
  • 6. Clean Water and Sanitation
  • 7. Affordable and Clean Energy
  • 9. Industry, Innovation and Infrastructure
  • 12. Responsible Consumption and Production
  • 13. Climate Action

Nihon Kohden's initiatives contribute to these SDGs through product development, environmental management, and social responsibility programs.

Sustainable Products & Innovation

  • Environmentally friendly products with Green Product Label certification