Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Social
• Environmental

Environmental Achievements

• Reduced industrial waste discharge by 24.3% per net sales (plants) and 42.8% per net sales (offices) against targets.
• Reduced greenhouse gas emissions per net sales by 34.1% compared with FY1991.
• Achieved zero emissions in all group companies certified by the Kyocera Group Integrated Environmental Management System.
• Reduced electricity consumption by 1.4% per net sales and fuel consumption by 10.7% per net sales against targets.

Social Achievements

• Introduced a short-time work system for pregnant employees and employees raising children.
• Established a nursing care leave system.
• Actively promotes an environment that supports employing people with disabilities, exceeding the legally required ratio.
• Introduced a system for offering re-employment to employees approaching retirement age.

Governance Achievements

• Kyocera’s internal control over financial reporting was evaluated as effective in compliance with Section 404 of the Sarbanes-Oxley Act.
• Established a Risk Management Division and promoted compliance training.
• Established an Employee Consultation Hot-line Center.

Climate Goals & Targets

Environmental Challenges

• Increasingly diverse internal and external risks amid global business development.
• Need to continually examine the labor environment from the perspectives of suitability, fairness, and impartiality.
• Need to reduce greenhouse gas emissions.

Mitigation Strategies

• Promoting both risk prevention and risk countermeasures, including a crisis management manual and emergency response system.
• Launched the Regulations Review Project jointly by labor and management, introducing systems like the Short-Time Work System.
• Implementing various global warming prevention measures such as energy conservation and modal shift in transportation.

Supply Chain Management

Responsible Procurement

• Green Procurement Standard
• Guidelines for Green Procurement
• Questionnaire about Environment-Related Activities
• Guarantee of Non-use of prohibited chemical substances

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products (e.g., fuel cells, solar power generation systems)

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: Japanese Association of Assurance Organizations for Environmental Information (J-AOEI)

Sustainable Products & Innovation

• Solar photovoltaic systems
• Fuel cells
• Environmentally friendly printers
• Halogen-free materials
• Low-VOC materials
• Piezo stacks for automotive fuel injectors

Awards & Recognition

• Daiwa Investor Relations 2007 Excellent IR Website
• Award for Contribution to Peace and Development (China)
• Various awards for the Solar Grove project in San Diego
• Excellent Business for Environmental Conservation (Shiga Prefecture)

Environmental Metrics

ESG Focus Areas

• Economic
• Social
• Environmental

Environmental Achievements

• Reduced greenhouse gas emissions by 4.8% from FY2010 (per net sales).
• Reduced PFC and other emissions by 19.9% from FY2010.
• Achieved zero emissions in all Kyocera Group companies in Japan.
• Installed solar power generating systems at all 10 manufacturing plants in Japan.
• Kyocera's multicrystalline silicon solar cell modules were the first in the industry to receive TÜV Rheinland's Long-Term Sequential Test certification.
• Introduced hybrid vehicles for general company use.

Social Achievements

• Launched the Women's Activity Promotion Committee to promote the careers of women.
• Implemented a return-to-work system for employees who left due to family reasons.
• Provided a baby-sitter subsidy system.
• Maintained a work-related injury absence rate lower than the overall safety records for the manufacturing industry and the electrical machinery and equipment manufacturing industry (0.29%).
• Donated 100 million yen to support victims of the Great East Japan Earthquake.
• Participated in various community activities globally (e.g., Toys for Tots, Pink Ribbon Movement).

Governance Achievements

• Strengthened corporate governance and internal control systems.
• Established a risk management policy and compliance system.
• Implemented an Independent Auditor Certification System to raise auditing skills.

Climate Goals & Targets

Environmental Challenges

• Yen appreciation impacting net sales and income before income taxes.
• Supply chain disruptions due to the Great East Japan Earthquake.
• Increased energy consumption due to acquisition of new business units.
• Increased greenhouse gas emissions due to acquisition of new business units.
• Increased freight shipping leading to higher CO2 emissions from transportation.

Mitigation Strategies

• Efforts to improve profitability by reducing costs and enhancing productivity.
• Developing production activities at multiple bases to avoid risks from excessive concentration of production.
• Implementing energy-saving measures and preventing climate change (e.g., installing solar power generating systems, fuel conversion).
• Promoting modal shift in transportation to reduce CO2 emissions.
• Reviewing energy managerial standards and strengthening energy conservation measures.

Supply Chain Management

Supplier Audits: 1,188 suppliers surveyed in FY2011; audits conducted based on survey results.

Responsible Procurement

• Supplier Selection Policy
• Supply Chain CSR Promotion Guidebook
• Supply Chain CSR Questionnaire
• Kyocera’s green supplier system

Climate-Related Risks & Opportunities

Opportunities

• Development and expansion of solar energy business.
• Development of solid oxide fuel cells (SOFCs).

Reporting Standards

Frameworks Used: GRI “Sustainability Reporting Guidelines, Version 3.1”, Ministry of the Environment (Japan) “Environmental Report Guidelines (2007 Version)”

Certifications: ISO9001, OHSAS18001, ISO14001

Third-party Assurance: TÜV Rheinland (for solar modules), J-SUS (for environmental information)

Sustainable Products & Innovation

• Solar power generating systems
• Solid oxide fuel cells (SOFCs)
• Environmentally friendly printers (ECOSYS)
• High-efficiency heat pumps
• Hybrid vehicles
• LED lighting connectors
• Thermosetting resin adhesive sheet

Awards & Recognition

• Minister of the Environment Award for the Promotion of Measures to Cope with Global Warming (FY2011)
• 14th Environmental Communication Awards (Excellence Award)
• Japan Greenery Research and Development Center Award
• Excellence Award in Eco-Driving Contest 2010
• Kyocera Group Environmental Management Contribution Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Supply Chain Management
• Human Rights
• Digitization

Environmental Achievements

• Revised long-term environmental targets from a 2°C to a 1.5°C level
• Set a goal of carbon neutrality by FY2051
• Renewable energy adoption to rise 20-fold by FY2031 (compared to FY2014 levels)
• Developed environment-friendly inkjet printing systems using pigment inks that avoid wastewater issues.

Social Achievements

• Introduced flexible working systems (flextime, remote work)
• Expanding women management ratio to 6% by the end of March 2023
• Expanding paternity leave/childcare take rate of 30%
• Promoting education on LGBT issues, and creating LGBT allies
• Promoting employment opportunities for people with disabilities
• Launched the “Venture Startup Program,” an internal effort seeking innovation-creating ideas. One of the ideas received through this program was commercialized in the form of a meal kit tailored to people with dietary allergies.

Governance Achievements

• Established the Nomination and Remuneration Committee
• Established the Kyocera Group CSR Committee
• Reorganized the Risk Management Committee
• Reduced the total number of internal directors and reviewed the composition of our board
• Appointed new outside directors with key management expertise

Climate Goals & Targets

Environmental Challenges

• Geopolitical instability, supply chain uncertainty and inflation
• Labor shortages due to smaller working population
• Increased costs from new laws, regulations, carbon taxes
• Damage to corporate brand value resulting from incompatibilities with a decarbonized society
• Growing need to enforce human rights in supply chains
• Loss of brand value due to a lack of human rights measures
• Growing need to enforce human rights in supply chains
• Loss of brand value due to a lack of human rights measures

Mitigation Strategies

• Strengthening customer relationships in markets for high-performance semiconductors, increased production, and new technology innovations
• Expanding renewable energy adoption
• Targeting carbon neutrality by FY2051
• Promoting energy conservation activities and visualizations
• Preventing human rights violations
• Expanding human rights policy
• Implementing human rights due diligence at Kyocera Group worksites and supplier workplaces in Japan
• Implementing Supply Chain CSR Survey
• Implementation of Responsible Mineral Procurement

Supply Chain Management

Responsible Procurement

• Issuing of Kyocera Group Responsible Business Conduct Guidelines
• Implementing of Supply Chain CSR Survey
• Implementing Responsible Mineral Procurement

Climate-Related Risks & Opportunities

Transition Risks

• Increased costs from new laws, regulations, carbon taxes
• Damage to corporate brand value resulting from incompatibilities with a decarbonized society

Opportunities

• Expansion of renewable energy business

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD Recommendations

Certifications: ISO/IEC 27001 (Kyocera Corp. Hokkaido Kitami Plant / Osaka Office; KYOCERA Document Solutions Inc.), ISO/IEC 27017 (KYOCERA Document Solutions Inc.), SBT (Science Based Targets)

Third-party Assurance: LRQA Limited

Sustainable Products & Innovation

• Environmentally friendly inkjet printing systems
• Solar power generating systems
• Storage batteries
• Fuel cells

Awards & Recognition

• Top 100 Global Innovators 2022

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Human Rights
• Sustainable Supply Chains
• Circular Economy
• Stakeholder Engagement

Environmental Achievements

• Reduced GHG emissions (Scope 1, 2) by 46% by FY2031 compared to FY2020 levels (SBT certified)
• Increased renewable energy adoption 20x by FY2031 compared to FY2014 levels
• Developed water-free inkjet textile printer (FOREARTH)
• Developed LED lighting for marine life, adopted by multiple aquariums

Social Achievements

• Increased ratio of eligible male employees taking childcare leave from 3.6% in FY2020 to 21.2% in FY2023
• Established Positive Action Promotion Committee to focus on employee engagement for women
• Created SOGI-LGBTQ Guidelines and revised in-house policies to include recognition of same-sex partners
• Achieved Gold Rating (highest) from Pride Index for two consecutive years

Governance Achievements

• Appointed two Outside Directors with chief executive experience from other companies
• Elected one female Outside Director and two female Executive Officers
• Implemented performance-linked restricted stock compensation system
• Reformed Risk Management Committee and established Risk Management Division

Climate Goals & Targets

Environmental Challenges

• Declining birthrate and aging population constraining labor resources
• Rising greenhouse gas emissions from power-intensive ceramics manufacturing
• Higher costs for various raw materials and inputs
• Weaker demand for smartphone components
• Cyberattacks
• Climate change causing unprecedented weather events and local natural disasters
• Risk concentration (increased dependence on semiconductor markets)
• Inability to achieve expected results from newly developed technologies
• Human rights issues impacting Kyocera Group or its value chains
• Damaged stakeholder relationships due to poor communication

Mitigation Strategies

• Improving productivity through digitalization
• Implementing aggressive efficiency measures to reduce manufacturing times and increase furnace productivity
• Increasing renewable energy use and installing high-efficiency equipment
• Implementing new risk management initiatives
• Strengthening security with new countermeasures
• Reinforcing initiatives to address climate change risks
• Aggressive upfront investments in semiconductor-related parts
• Building a new factory in Isahaya City, Nagasaki Prefecture
• Building a human rights due diligence system throughout Kyocera Group by FY2026
• Continue stakeholder communications to build trust

Supply Chain Management

Supplier Audits: Annual surveys of 351 key suppliers in FY2023

Responsible Procurement

• Kyocera Group Responsible Business Conduct Guidelines
• Commitment to Responsible Mineral Procurement
• Declaration of Partnership Building

Climate-Related Risks & Opportunities

Physical Risks

• Damage from natural disasters
• Intensifying extreme weather patterns
• Changes in precipitation patterns and rising average temperatures

Transition Risks

• Increase in carbon pricing
• Changes in consumer opinion of energy businesses
• Changes in investor and consumer opinion

Opportunities

• Expansion of energy businesses
• Increased adoption of next-generation technologies in energy businesses
• Potential revenue from new businesses addressing sustainability needs

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, GRI Standards, SASB Standards, TCFD Recommendations

Certifications: ISO/IEC 27001, ISO/IEC 27017, SBT

Third-party Assurance: LRQA Limited

Sustainable Products & Innovation

• Water-free inkjet textile printer (FOREARTH)
• LED lighting for marine life
• High-efficiency GaN laser devices

Awards & Recognition

• Clarivate Top 100 Global Innovators 2023
• LexisNexis Innovation Momentum 2023: The Global Top 100
• Gold Rating from Pride Index

Environmental Metrics

ESG Focus Areas

• Carbon Neutrality
• Circular Economy
• Biodiversity Conservation
• Human Rights
• Stakeholder Engagement
• Supply Chain Management
• Diversity, Equity, and Inclusion (DEI)

Environmental Achievements

• GHG Emissions (Scopes 1, 2): Reduced by 24%
• GHG Emissions (Scopes 1, 2, 3): Reduced by 29%
• Renewable Energy Implementation: Achieved 11.5 times more than the base year

Social Achievements

• Increased the number of women executive officers to three, an increase of one from the previous year.
• Increased the number of women outside directors from one to two.
• Ratio of male employees taking childcare leave has exceeded 30%
• Launched matoil, a food delivery service addressing the challenges faced by children with food allergies.

Governance Achievements

• Established a human rights due diligence system
• Increased the number of women on the Board of Directors and Audit & Supervisory Board
• Improved the effectiveness of the Board of Directors through focused discussions and increased diversity.

Climate Goals & Targets

Environmental Challenges

• Stagnation in demand for major products
• Risk concentration (increased dependence on semiconductor markets)
• Information leakage and system failures
• Inability to achieve cost reduction targets through digitalization
• Inability to achieve expected results from newly developed technologies
• Inability to achieve expected results through newly established businesses
• Higher compliance costs from new laws and regulations
• Damage to corporate brand value from inability to respond to issues
• Labor shortage due to shrinking labor pool
• Potential human rights issues impacting Kyocera Group or its value chains
• Damage to corporate brand value from inadequate human rights assurance measures
• Damaged stakeholder relationships due to poor communication
• Human rights issues in supply chains
• Damage to corporate brand value from inadequate human rights assurance measures
• Disaster impact, damage to corporate image, or prolonged business interruption, due to lack of disaster countermeasures

Mitigation Strategies

• Business selection and concentration, active investment, and the promotion of human resources and capital strategies
• Investing up to 400 billion yen in semiconductor equipment during three-year period ending March 2026
• Improving employee proficiency in digitalization through onsite education, training and practice
• Developing technologies to advance existing businesses and exploring future technologies
• Targeting new projects with 100 billion yen sales potential
• Promote renewable energy and company-wide energy efficiency
• Building a human rights due diligence system
• Continue stakeholder communications to build trust
• Identify risks faced by business partners through the supply chain survey, and implement countermeasures
• Annual BCP education and training
• Create/review early recovery and alternative supply plans
• Reinforce risk management processes
• Moved production base for some products to Vietnam and Thailand to mitigate risk.

Supply Chain Management

Supplier Audits: 319 companies surveyed in FY2024

Responsible Procurement

• Kyocera Group Responsible Business Conduct Guidelines
• Declaration of Partnership Building

Climate-Related Risks & Opportunities

Physical Risks

• Intensifying extreme weather patterns
• Changes in precipitation patterns and rising average temperatures

Transition Risks

• Carbon pricing
• Carbon emission targets by nation
• Energy-saving measures
• Subsidies for renewable energy
• Recycling regulations
• Changes in consumer opinion
• Changes in investor opinion

Opportunities

• Expansion of energy businesses

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, Guidance for Collaborative Value Creation, GRI 1 Standards, SASB

Third-party Assurance: LRQA Limited

Sustainable Products & Innovation

• FOREARTH textile inkjet printer
• Onboard optics module
• Kyocera Robotic Services

Awards & Recognition

• Clarivate Top 100 Global Innovator 2024 (8th time, 3rd consecutive year)