Okada Aiyon Corporation
Climate Impact & Sustainability Data (2021-06-30 to 2023-03-31, FY2022 to FY2024)
Reporting Period: 2021-06-30 to 2023-03-31
Environmental Metrics
ESG Focus Areas
- Sustainability
Environmental Achievements
- Plans to post TCFD disclosures and supply chain CO2e emissions calculations on the website by the end of June 2023.
Social Achievements
- Increased number of meetings with investors and analysts by about 60% in two years.
- Increased dividends for 13 consecutive years.
Governance Achievements
- Established the Sustainability Committee (held four times a year and when required), chaired by the President.
- Launched a webpage on sustainability on its website.
- Determined and posted materiality (key issues) on the Company's website.
- Expressed support for TCFD recommendations.
Climate Goals & Targets
Short-term Goals:
- Meet the market capitalization of tradable shares criterion by March 31, 2024.
Environmental Challenges
- Does not meet the criterion for "market capitalization of tradable shares".
Mitigation Strategies
- Implementing various initiatives to increase corporate value and meet the market capitalization criterion by March 31, 2024.
- Implementing measures based on the "Rolling plan FY2023-FY2025" to further increase the market capitalization of tradable shares.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: TCFD
Reporting Period: FY2022 to FY2024
Environmental Metrics
ESG Focus Areas
- Carbon neutrality
- Recycling systems
- Conservation of mountain and forest resources
- Work style reform and diversity
Environmental Achievements
- 46.6% reduction in CO2 emissions (Scopes I and II: Domestic Group) compared to FY2018 by FY2020
Social Achievements
- Renovation of sales offices and maintenance plants to improve working conditions
- Strengthening the cooperative structure with Okada and Nanseikikai to improve sales and maintenance services
Governance Achievements
- Strengthening the corporate governance system to realize work style reform and diversity
Climate Goals & Targets
Long-term Goals:
- Net 0 CO2 emissions by 2050
Medium-term Goals:
- 70% reduction in CO2 emissions (Scopes I and II: Domestic Group) by 2030 (compared to 2018)
- Increasing productivity of attachment demolition operations by 10% by 2030
- Increasing productivity of forestry equipment by 10% by 2030
- Contributing to the maintenance of hydropower capacity at 250 million kwh/year by 2030
Environmental Challenges
- Increased raw material prices and longer procurement times
- Securing products and cost management
- Inventory management
- Reflecting cost increases in product prices
- Production output increase in response to demand
- Price revisions
Mitigation Strategies
- Strengthening ties with cooperating suppliers for stable procurement
- Strengthening production capacity at AIYON TECH Asaka Plant
- Improving productivity and reviewing cost management at Okada and Nanseikikai
- Shift to mass production at the hydraulic breaker plant in Vietnam
- Spread of sales price revisions to respond to cost increases
Supply Chain Management
Responsible Procurement
- Strengthening ties with cooperating suppliers for stable procurement