Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Considerations
• Employee Well-being
• Diversity and Inclusion
• Corporate Governance
• Supply Chain Resilience
• Customer Safety and Satisfaction
• Community Engagement

Environmental Achievements

• Developed and promoted environmentally friendly products, aiming to reduce CO2 emissions through product usage and business activities.
• Developed oil-saving appliances.

Social Achievements

• Enhanced after-sales service and support systems.
• Focused on employee development and work-life balance.
• Promoted diversity and inclusion.
• Strengthened corporate governance.
• Implemented measures to prevent harassment.

Governance Achievements

• Strengthened corporate governance systems.
• Enhanced risk management systems.
• Strengthened information security and personal information handling.

Climate Goals & Targets

Environmental Challenges

• Rising raw material prices.
• Decreased sales of heating and air conditioning/home appliances.
• Global shortage of electronic components affecting production and sales.
• Restrictions on sales activities due to the COVID-19 pandemic.
• Seasonal fluctuations in sales and profits due to the nature of the products (heating equipment in winter, air conditioning in summer).

Mitigation Strategies

• Company-wide cost reduction efforts.
• Diversification of procurement sources to ensure stable production and supply.
• Focus on product category expansion, lineup expansion, and value enhancement to maximize existing sales channels.
• Strengthening the brand and improving product functions and performance (e.g., ReLaLa room air conditioners with IoT technology).

Supply Chain Management

Responsible Procurement

• Expanding procurement sources to mitigate risks and ensure stable production and supply.

Climate-Related Risks & Opportunities

Opportunities

• Expansion of heat pump/electrification business
• Development and supply system strengthening of heat pump/electrification equipment

Sustainable Products & Innovation

• Oil-saving appliances
• ReLaLa room air conditioners with IoT technology and focus on cleanliness

Environmental Metrics

ESG Focus Areas

• Human Capital
• Climate Change
• Community Engagement

Environmental Achievements

• Participated in the GX League to reduce CO2 emissions and set reduction targets for 2030 and 2050.
• Launched 2024 eco-cute models compliant with new energy-saving standards.

Social Achievements

• Added "Improving Human Resources Vitality" as a priority initiative in the 9th medium-term management plan to address labor shortages and improve employee engagement.
• Donated approximately 900 oil fan heaters and oil stoves to disaster-stricken areas in Ishikawa Prefecture following the Noto Peninsula earthquake.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decreased sales of housing equipment and air conditioning/home appliances due to rising raw material and energy prices, changes in consumer behavior, and continued saving tendencies for durable consumer goods.
• Weak performance in the housing-related equipment industry with a decrease in new housing starts.
• Labor shortages and the need to improve employee engagement.

Mitigation Strategies

• Implementing the three basic strategies of the medium-term management plan: expansion of heat pump/electrification business, expansion of business areas from "easy" to "fun," and overcoming high-cost structure through business rationalization.
• Adding "Improving Human Resources Vitality" as a priority initiative in the 9th medium-term management plan.

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

• Eco-cute models compliant with new energy-saving standards

Awards & Recognition

• Not disclosed