Climate Change Data

DKS Co. Ltd.

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

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:43,000 tons/year
Scope 1 Emissions:15.3 tCO2e/year
Scope 2 Emissions:12.0 tCO2e/year
Scope 3 Emissions:200.7 tCO2e/year
Total Energy Consumption:22,900 kL/year
Waste Generated:15,251 tons/year

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Governance
  • Regional Revitalization
  • Supply Chain Sustainability

Environmental Achievements

  • Reduced GHG emissions by 5,600 tons (43,000 tons total)
  • Reduced waste generation by 1,413 tons (15,251 tons total)
  • Reduced energy consumption per unit by 5.2%
  • 17.1% reduction in GHG emissions compared to FY2013

Social Achievements

  • Increased female manager ratio to 11.7%
  • Increased ratio of female employees to 20.9%
  • Selected as a Health & Productivity Stock for the fourth consecutive year
  • Increased number of employees using child-care leave system to 20
  • Increased annual paid leave rate to 73.8%

Governance Achievements

  • Established an Advisory Board
  • Increased independent outside directors to 4 out of 8 (one female)
  • Implemented a goal management system for employees at or below section manager level

Climate Goals & Targets

Long-term Goals:
  • Carbon neutrality by 2050
Medium-term Goals:
  • Achieve ¥100 billion net sales and ¥10 billion operating income by FY2030
  • Reduce greenhouse gas emissions by 30% compared to FY2013 by FY2030
  • Achieve zero emissions (0.1% or less) final waste disposal rate by FY2030
  • Achieve total asset turnover ratio of 1.0 times by FY2027-2029
Short-term Goals:
  • Achieve ¥70 billion net sales and ¥4.5 billion operating income by FY2025
  • Achieve ¥1.5 billion sales in Life Sciences business by FY2025

Environmental Challenges

  • Raw material price fluctuations (primarily naphtha)
  • Reliance on external procurement for raw materials
  • Environmental and human rights risks
  • Large number of customers
  • Product composition of a large variety of small-lot products
  • Intensified competition
  • Strengthened laws and regulations
  • Stricter quality controls
  • Aging facilities/equipment
  • IT security
  • Impact of infectious diseases
  • Changes in the human resources market
Mitigation Strategies
  • Survey raw material and market prices; implement prompt price revisions; introduce pricing formula linked to raw material prices
  • Diversify raw material procurement sources; strengthen BCP measures; strengthen supply chain management
  • Assess impact of climate change; roll-out initiatives based on green transformation (GX) strategy; promote initiatives based on UN Global Compact
  • Select and focus on themes; deepen market strategies
  • Revise product composition; thorough profit management for each product; boost productivity by discontinuing products
  • Promote differentiation strategy; open innovation
  • Gather information on legal revisions; strengthen internal oversight/checking systems
  • Utilize PL prevention/management guidelines; acquire GMP certification; build and operate a quality control system
  • Consider structural reforms through digital transformation (DX); promote production system enhancements
  • Implement security literacy education for employees; create process for responding to serious incidents
  • Strengthen measures based on BCP; decentralize manufacturing and distribution bases
  • Strengthen coordination with educational institutions; implement a human resources training program; promote work-style reform

Supply Chain Management

Responsible Procurement
  • Switch to renewable resources and natural materials
  • Effective use of sudachi peels
  • Work to improve added value throughout the supply chain

Climate-Related Risks & Opportunities

Physical Risks
  • More frequent natural disasters
  • Rising temperatures, rising sea levels
Transition Risks
  • Increasing environmental awareness
  • Introduction of carbon pricing
  • Development of energy saving technology
  • Rise in raw material prices
  • Rise in fuel prices
Opportunities
  • Increase in demand for products with low environmental impact
  • Expansion of life science business centered on natural materials
  • Reductions based on GHG emissions plan
  • Planned introduction of energy-saving equipment
  • Expanding the use of renewable energy

Reporting Standards

Frameworks Used: International Integrated Reporting Framework by the IFRS Foundation, Guidance for Collaborative Value Creation by the Ministry of Economy, Trade and Industry, Environmental Reporting Guideline 2012 by the Ministry of the Environment, Environmental Accounting Guideline 2005 by the Ministry of the Environment, Environmental Accounting Guideline for Chemical Industries (November 2003) by the Japan Chemical Industry Association (JCIA), TCFD

Certifications: JIS Q 45100 (OSHMS)

UN Sustainable Development Goals

  • 3
  • 7
  • 9
  • 12
  • 17

Initiatives align with these SDGs through various programs and business activities

Sustainable Products & Innovation

  • Environmentally friendly products
  • Bio-based raw materials
  • Waterborne polyurethane
  • Cellulose nanofiber
  • I. Japonica-Bombyx Fungus products
  • Sudachin

Awards & Recognition

  • Outstanding Innovative Technology Award at the 26th Shikoku Industrial Technology Awards (Ikeda Yakusou)