Aisan Kogyo Co., Ltd.

Climate Impact & Sustainability Data (2022-04 to 2023-03, 2023-04-01 to 2024-03-31)

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:88,000 t-CO2e/year (2022)

Water Consumption:386,127 m3/year (2022)

Waste Generated:747 tons/year (2022)

ESG Focus Areas

Environment
Social
Governance

Environmental Achievements

Reduced CO2 emissions by 15% (2019 fiscal year)
Reduced waste by 42% (2019 fiscal year)
Achieved 11% reduction in CO2 emissions per unit in EGR valve production through material changes
Reduced energy consumption by approximately 11% through AI-based compressor control system in Aisan (Foshan) Qiche Bujian Co., Ltd.

Social Achievements

Launched employee engagement survey and implemented improvement measures
Established a new “Skills and Technology Future Development Department” to strengthen skills training
Achieved 74% male parental leave acquisition rate (35% increase from the previous year)
Held a workshop for women in the production department to discuss career development
Consistently recognized as a “Health Management Excellent Company” for five consecutive years

Governance Achievements

Implemented a comprehensive risk management system
Established a Sustainability Committee
Conducted annual effectiveness evaluations of the Board of Directors
Introduced a transfer-restricted stock compensation system

Climate Goals & Targets

Long-term Goals:

Achieve carbon neutrality by 2050

Medium-term Goals:

Reduce Scope1 & 2 CO2 emissions by 50% (2019 baseline) by 2030
Reduce Scope3 CO2 emissions by 50% (2019 baseline) by 2030
Achieve an engagement score of 60 points by 2030
Increase the number of female managers to 10 by 2030
Increase the number of national staff executives at overseas bases to 30 by 2030

Short-term Goals:

Reduce Scope1 & 2 CO2 emissions by 25% (2019 baseline) by 2025
Reduce Scope3 CO2 emissions by 20% (2019 baseline) by 2025
Achieve an engagement score of 55 points by 2025
Increase the number of female managers to 6 by 2025
Increase the number of national staff executives at overseas bases to 17 by 2025

Environmental Challenges

Supply chain instability due to geopolitical risks and the need for contingency planning
Inflation and rapid fluctuations in exchange rates
Pandemic risks and the need for countermeasures
Accelerated carbon neutrality and the need for diversification and inclusion
The advancement of vehicle electrification and the need for cybersecurity and DX
Shrinking market share for internal combustion engine parts due to the increase in electric vehicles

Mitigation Strategies

Strengthening the competitiveness and profitability of the powertrain product business
Developing new businesses in the fields of electrified systems and clean energy technology utilization
Actively investing resources from existing businesses into the development of new businesses
Implementing thorough waste reduction and global expansion
Improving energy efficiency and introducing renewable energy
Creating clean energy through ammonia hydrogen generation
Adopting low-CO2 materials and waste reduction/recycling
Collaboration with suppliers on CO2 reduction activities
Developing and expanding low-carbon products
Prioritizing resource allocation to future products and technologies
Strengthening BCP systems and improving inventory management accuracy
Developing “lightweight/high-efficiency/low-cost” systems and components
Developing products using proprietary technologies
Developing products for small-scale mobility

Supply Chain Management

Responsible Procurement

Fair and equitable transactions
Support for carbon neutrality initiatives
Collaboration on cost reduction and quality improvement

Climate-Related Risks & Opportunities

Physical Risks

Increased frequency and severity of acute natural disasters

Transition Risks

Strengthening of greenhouse gas emission regulations
Strengthening of energy policies and increased manufacturing costs due to renewable energy use
Introduction of carbon tax
Increased procurement costs due to carbon tax price increases
Increased demand for low-carbon products
Delays in the transition to new fields

Opportunities

Increased revenue from hydrogen supply units due to the expansion of hydrogen energy use
Opportunities for entry into electrified products due to the increase in electric vehicles
Expansion of business opportunities in new fields related to carbon neutrality

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRF), Value Creation Guidance (METI)

Certifications: ISO 45001

UN Sustainable Development Goals

Goal 7 (Affordable and Clean Energy)
Goal 9 (Industry, Innovation and Infrastructure)
Goal 13 (Climate Action)

The company's initiatives contribute to these goals through its focus on clean energy technologies, sustainable manufacturing practices, and carbon emission reduction targets.

Sustainable Products & Innovation

Battery cell case covers
Products for small-scale mobility
Ammonia hydrogen generation system
Next-generation FCEV/hydrogen engine products

Awards & Recognition

Aichi Invention Award (7 consecutive years)
Good Partnership Award
Aichi Biodiversity Certified Company
Health Management Excellent Company (5 consecutive years)

Reporting Period: 2023-04-01 to 2024-03-31