Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor
• Environment
• Anti-corruption
• Quality
• Social Contribution
• Business Continuity

Environmental Achievements

• Achieved further integration of two new sites at one company (KOHA Co., Ltd.) into the globally integrated ISO14001-certified EMS.
• Increased ratio of eco-design product sales to total sales (general eco-design products achieved target, premier eco-design products did not).
• Reduction of substances with environmental load (target not achieved).
• Reduction of CO2 emissions (2% reduction per unit sales; total amount decreased substantially).

Social Achievements

• Donation of LED bulbs to Nerima-ku (Tokyo) and Shiki-shi (Saitama) from KOHA.
• Hosting of Monozukuri (manufacturing) school.
• Sponsorship of AS Elfen Sayama FC (Japan Women's Football League).
• Regional cleanup activities (Aizu Tamura Corporation).

Governance Achievements

• Strengthening of risk management.
• Creation of an emergency response manual for the Tamura Group.
• Development of BCP at domestic and overseas business sites.
• Global implementation of BCP in individual business segments.
• Reinforcement of data protection program.
• More timely and appropriate disclosure of corporate information.

Climate Goals & Targets

Environmental Challenges

• Sluggish performance of the Japanese economy.
• Continued slowdown of the world economy.
• Worsening relations between Japan and China.
• Stagnant sales of industrial machinery and products related to energy, home electronics, and housing.
• Maintaining profitability in a harsh business environment with high labor costs in Japan and intensified global competition.

Mitigation Strategies

• Personnel reduction mainly in Japan.
• Accelerated efforts for local design and procurement at overseas subsidiaries.
• New mid-term management plan "Biltrite Tamura" focusing on profitability improvement.
• Emphasis on profitability rather than sales revenues.
• Real-time monitoring of accumulated product costs through business administration system.
• Shifting from sales system heavily dependent on Japanese-affiliated companies to an approach focusing on overseas businesses.
• Establishing self-sufficient overseas operations through active employment of local staff.
• Optimizing cooperation between overseas bases.
• Promoting local development through R&D centers in China and South Korea.
• Shifting production of electronic components and LED devices from China to Bangladesh.
• Re-establishment of business continuity plan (BCP) globally.
• Response to U.S. regulations requiring information disclosure on the use of conflict minerals.

Supply Chain Management

Responsible Procurement

• CSR procurement
• Green procurement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1, Environmental Report Guidelines (FY2012 Edition) of the Ministry of the Environment of Japan, ISO26000

Certifications: ISO 14001

Sustainable Products & Innovation

• High-performance PV Reactors for Solar Power Generation
• 5.7-W Dichroic Halogen LED Bulb (LDR6L-M-E11/D)
• Power Shining Eye (FA0039FD31)

Awards & Recognition

• Dongguan City Environmental Friendship Company

Environmental Metrics

ESG Focus Areas

• Human rights
• Labor
• Environment
• Anti-corruption

Environmental Achievements

• Achieved 64% reduction in chemical substances designated under the PRTR Law vs. FY2005
• Achieved 4% reduction in power consumption vs. FY2005
• Increased ratio of eco-design product sales to total sales to 15%
• Developed energy-saving power modules (SPM, EPM, and BPM Series) that substantially improve power consumption characteristics at no load and efficiency at light load.
• Developed a DC12V/5.8W light source for plant growing, offering an energy-saving alternative to fluorescent lamps.

Social Achievements

• Designated as a model safe bicycle user by the Tokyo Metropolitan Police Department
• Implemented traffic safety initiatives, including installing drive recorders in company cars and conducting traffic safety classes.
• Implemented internship and job experience programs for students.
• Hosted Monozukuri (manufacturing) school for elementary school students.
• Supported UNICEF by collecting foreign coins.
• Sponsored AS Elfen Saitama women's football club.

Governance Achievements

• Revised the “Tamura Group Code of Conduct” to comply with ISO26000.
• Promoted compliance education and CSR procurement/green procurement.
• Strengthened risk management and implemented a Business Continuity Plan (BCP).
• Reinforced data protection program and timely disclosure of corporate information.

Climate Goals & Targets

Environmental Challenges

• Weak yen negatively impacted profitability of the electronic components business.
• Sluggish sales of soldering systems due to delayed recovery of capital investment.

Mitigation Strategies

• Reduced fixed costs by optimizing the global production system.
• Monitored individual product costs in real time through a group-wide cost monitoring system.
• Shifted products for consumer use to those for industrial use in the electronic components business.
• Overhauled sales system to increase approach to foreign companies and promoted local staff to higher positions in overseas bases.

Supply Chain Management

Responsible Procurement

• CSR procurement
• Green procurement
• Non-use of conflict minerals

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1, Environmental Report Guidelines (FY2012 Edition) of the Ministry of the Environment of Japan, ISO26000

Certifications: ISO 14001 (multiple sites)

Sustainable Products & Innovation

• Eco-design products
• Energy-saving power modules
• DC12V/5.8W light source for plant growing
• PAF-300 Series solder resist for flexible PCBs
• Board Light Series LED lighting

Awards & Recognition

• Good Design Award (Board Light 910)

Environmental Metrics

ESG Focus Areas

• Compliance/Corporate Ethics
• Risk Management
• Information Management
• Human Rights/Labor
• Environment/Quality
• Social Contribution

Environmental Achievements

• Premier eco-design products accounted for 21% of all products (exceeding the target of 17%).
• 56% reduction in substances with environmental load vs. FY2005.
• Sakado Factory certified as a “Nearly ZEB”, achieving energy savings of over 75%.

Social Achievements

• Wakayanagi Tamura Corporation certified as a “Youth Yell Company”.
• Ratio of local employees in managerial posts of overseas subsidiaries reached approximately 80%.
• Participation in Irumagawa River Clean-Up.
• Donation of disaster stockpile food.

Governance Achievements

• Defined policies in response to the “Corporate Governance Code” in 2015 and completed all necessary response measures.
• Separated compliance promotion function and audit function.
• Diversified contacts for the whistle-blowing system and established independent contact points.

Climate Goals & Targets

Environmental Challenges

• Reduction of power consumption failed to meet the target value (8% reduction vs. 11% target).
• Labor-management issues such as long working hours.

Mitigation Strategies

• Developing a company-wide policy to enforce large-scale “green investment”.
• Correcting long working hours by linking the occupancy management system for security with the attendance management system.
• Applying the distinguished personnel system of the head office to overseas operation bases and promoting local employees to managerial posts.

Supply Chain Management

Responsible Procurement

• Survey of suppliers on their use of conflict minerals
• Promotion of conclusion of contracts in accordance with “Procurement Guidelines”

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO26000, Environmental Report Guidelines (FY2012 Edition) of the Ministry of the Environment of Japan

Certifications: ISO 14001 (preparation for compliance)

Sustainable Products & Innovation

• Premier Eco-design Products
• PFC reactor for in-vehicle battery chargers
• Solder paste for jet dispensing
• Low spring back solder resist (PAF-300-N11 series)
• Dual-lane twin-chamber reflow soldering system (TNV33-7010EMT)
• kW-class electric power source with ultra-high efficiency

Awards & Recognition

• Youth Yell Company certification (Wakayanagi Tamura Corporation)

Environmental Metrics

ESG Focus Areas

• Compliance/Corporate Ethics
• Risk Management
• Information Management
• Human Rights/Labor
• Environment/Quality
• Social Contribution
• Affordable and Clean Energy (SDG 7)
• Responsible Consumption and Production (SDG 12)
• Climate Action (SDG 13)

Environmental Achievements

• Reduced power consumption by 14% compared with FY2005 (achieving the target of 11% reduction)
• Achieved 58% reduction in basic unit of chemical substances designated under the PRTR Law compared with FY2005 (target was 60%)
• 11% of total sales were from Premier eco-design products (exceeding the target)
• Sakado Factory obtained “Net Zero Energy Building (ZEB)” certification

Social Achievements

• Implemented discussion-based compliance training in small groups at overseas bases using English and Chinese materials
• Introduced multipurpose leave and paid leave in hourly units
• Held a group-wide summer festival
• Supported the Drop-in Center Project in Bangladesh
• Held Monozukuri (manufacturing) School

Governance Achievements

• Increased the number of outside board members from two to three, including the company's first female officer
• Improved the internal reporting system by renaming it the “Ethics Consultation Window” and establishing an independent window
• Improved rankings in the Nikkei Environmental Management Survey and the Toyo Keizai CSR ranking

Climate Goals & Targets

Environmental Challenges

• Disseminating CSR awareness among overseas affiliated companies
• Achieving the target of 60% reduction in substances with environmental load
• Maintaining consistent product quality across all overseas bases

Mitigation Strategies

• Translated CSR training materials into English and Chinese
• Emphasized compliance education in local languages
• Worked to raise the quality awareness of local employees
• Continued efforts to improve management and processes related to environmentally hazardous substances

Supply Chain Management

Responsible Procurement

• CSR procurement
• Procurement Guidelines (including disuse of conflict minerals and elimination of antisocial forces)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 26000, UN Global Compact

Certifications: ISO 9001:2015, ISO 14001:2015

UN Sustainable Development Goals

• SDG 7
• SDG 12
• SDG 13

The company focuses on contributing to these goals through its business activities.

Sustainable Products & Innovation

• Premier Eco-design Products
• Halogen-free solder paste (TLF-204-HF35)
• S30/S42 series closed-loop-type current sensors
• Power LED

Environmental Metrics

ESG Focus Areas

• Decarbonized society
• Energy and resource conservation
• Diversity and inclusion
• Workstyle reform
• Disaster preparedness
• Aging society response
• Community coexistence
• SDGs

Environmental Achievements

• Reduction in CO2 emissions: 13% reduction compared with FY2005
• Reduction in power consumption: 18% reduction
• Achieved Nearly ZEB certification for Sakado Factory

Social Achievements

• Introduction of diversity training for managers
• Introduction of career design training for general employees
• Promotion of taking paid leave (up 5% YoY)
• Revision of overtime/days off regulation
• Implementation of stress check and periodic stress counseling
• Workplace inspection for safety and sanitation, and implementation of traffic safety training sessions
• Extension of the periods of childcare leave and shorter working hours for childcare
• Introduction of the reemployment system for former employees
• Promotion of employment of disabled/elderly persons

Governance Achievements

• Establishment of SDGs Basic Policy in Tamura Group
• Review of Tamura Group Code of Conduct
• Dissemination of SDGs
• Promotion of compliance education
• Strengthening of risk management
• Reinforcement of the information protection system
• Timely and appropriate corporate information disclosure

Climate Goals & Targets

Environmental Challenges

• Impact of US-China trade conflict and China’s economic slowdown
• Deteriorated business climate with sales of smartphones leveling off
• Repair cost related to a quality problem
• Lack of own production plants in ASEAN and European regions for electro-chemistry business

Mitigation Strategies

• Concentration of operating capital on growing fields
• Efforts to create new strategic products
• Acquisition of plants through M&A in Thailand and Germany
• Investment to expand/reinforce plant facilities in two domestic plants and in China

Supply Chain Management

Responsible Procurement

• CSR procurement
• Green procurement
• Update of green procurement standards
• Strengthening of management of chemical substances in products
• Survey of suppliers on their use of conflict minerals

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Expansion in renewable energy market

Reporting Standards

Frameworks Used: ISO 26000, SDGs

Certifications: ISO 14001:2015

Sustainable Products & Innovation

• Eco-design products
• High-efficiency power technology products
• Energy-saving LED lighting
• Crack-resistant solder resist

Awards & Recognition

• Nearly ZEB certification for Sakado Factory
• Sainokuni Factory designation by Saitama Prefecture

Environmental Metrics

ESG Focus Areas

• Environment
• Human Rights/Labor
• Quality
• Social Contribution
• Compliance/Corporate Ethics
• Risk Management
• Information Management

Environmental Achievements

• Consolidated 22 business sites of 15 companies by FY2019 under a globally united environmental management system.
• Introduced sustainable seafood at Tokyo Factory and Sakado Factory canteens.
• Sakado Factory achieved “Nearly ZEB (Net Zero Energy Building)” certification.

Social Achievements

• Recognized as a “2020 Certified Health and Productivity Management Outstanding Organization” by the Ministry of Economy, Trade and Industry.
• Implemented work-from-home system company-wide.
• Introduced work-interval system.
• Improved ICT infrastructure to enhance work flexibility.
• Launched RPA (Robotic Process Automation) for automating routine tasks.
• Held management-level seminars to develop strategy planning, business management, and leadership abilities.
• Started a cram school for next-generation executive manager candidates.
• Held Monozukuri (manufacturing) School to convey the joy of manufacturing to the next generation.

Governance Achievements

• Group training on security trade control, the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors, Unfair Competition Prevention Act, information leakage prevention, etc.
• Global implementation of BCP in individual business segments.
• Periodic/occasional review of BCP at domestic business sites.
• Improvement of stockpile at each business site in Japan.
• Implementation of emergency drills.

Climate Goals & Targets

Environmental Challenges

• U.S.-China trade friction.
• COVID-19 pandemic.
• Stagnation of automotive product business due to postponed production plans of automobile manufacturers.
• Need to develop an exceedingly “attractive product” that can shine even on the computer monitor and can motivate customers to contact us in the rapidly evolving business environment.

Mitigation Strategies

• Reassignment of business unit heads to accelerate cross-sectoral utilization of human resources and improve business efficiency.
• Focus on three growth pillars: “automotive,” “power electronics,” and “IoT/next-generation communication.”
• Review of overall business from the perspective of BCP (Business Continuity Plan) and re-examination of the BCP manual.
• Active use of ICT.
• Work style reform, operational reform, and CO2 emissions reduction as a result of acceleration of telework.
• Review of marketing, increasing product appeal, and creating “cross-divisional collaboration products” by utilizing cross-divisional cooperation under the One Tamura strategy.

Supply Chain Management

Responsible Procurement

• CSR Procurement and Green Procurement
• Implementation of supplier survey of uses of conflict minerals
• Promotion of conclusion of contracts, etc. in accordance with “Procurement Guidelines”

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO26000, Environmental Report Guidelines of the Ministry of the Environment of Japan

Certifications: ISO 14001

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 14

The report mentions contributions to these goals through various initiatives, including support for a drop-in center project in Bangladesh (Goal 1), sustainable seafood in canteens (Goal 14), and efforts to reduce greenhouse gas emissions (implied Goal 13).

Sustainable Products & Innovation

• Eco-design products
• TLF-TNA23 solder paste series
• APB-200 black solder resist series
• L40S/L51S series open-loop high-current sensors
• Portable DECT-based wireless intercom system

Awards & Recognition

• 2020 Certified Health and Productivity Management Outstanding Organization

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 7% compared to 2013.
• Increased renewable energy use; aiming for double the 2019 amount by 2030.
• Sakado office achieved Nearly ZEB (Net Zero Energy Building) certification.

Social Achievements

• Implemented various initiatives to promote employee well-being, including childcare support, caregiving leave, and flexible work arrangements.
• Improved employee satisfaction scores and survey results.
• Launched employee training programs on work-life balance and stress management.
• Increased paid leave approval rate by 1.1% compared to the previous year.
• Implemented a system to guarantee sufficient rest between work shifts.
• Introduced RPA (Robotic Process Automation) to improve efficiency.
• Community investment through various donation activities and support for a Drop In Center in Bangladesh.

Governance Achievements

• Implemented training programs on compliance with laws and regulations.
• Strengthened crisis management system.
• Improved information security system.
• Strengthened product chemical substance management.
• Implemented a system for timely disclosure of corporate information.

Climate Goals & Targets

Environmental Challenges

• US-China trade friction and the COVID-19 pandemic negatively impacted business performance.
• Supply chain disruptions due to the COVID-19 pandemic.
• Maintaining positive results from initiatives accelerated by the COVID-19 pandemic (e.g., remote work).

Mitigation Strategies

• Implemented a “One Tamura” strategy to unite the group's efforts and expand marketing.
• Restructured management to leverage expertise across different business areas.
• Implemented business continuity plans (BCP) and crisis management measures in response to the COVID-19 pandemic.
• Leveraged ICT to facilitate remote work and maintain business operations during the pandemic.
• Developed alternative sourcing strategies.

Supply Chain Management

Responsible Procurement

• Promoting CSR procurement and green procurement.
• Compliance with conflict minerals regulations.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and renewable energy solutions.

Reporting Standards

Frameworks Used: GRI, ISO 26000

Certifications: ISO 14001

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 7: Affordable and Clean Energy
• Goal 9: Industry, Innovation and Infrastructure
• Goal 13: Climate Action

Various initiatives contribute to these goals through product development, resource efficiency, community investment, and environmental protection.

Sustainable Products & Innovation

• Environmentally friendly solder paste
• High-efficiency LED lighting
• Energy-efficient power supplies

Environmental Metrics

ESG Focus Areas

• Environmental protection & contribution to realizing a decarbonized society
• Product quality improvement
• Proper supply chain management
• Compliance
• Fulfilling workplace
• Co-existence with local community
• Sustainable business growth
• Proactive information disclosure

Environmental Achievements

• Reduced greenhouse gas emissions (Scope 1, 2) by 39% compared to FY2013 levels.
• Achieved 100% renewable energy usage rate at five main business sites in Japan.
• Installed new solar power generation equipment at bases in the Czech Republic and Malaysia.

Social Achievements

• Improved global employee engagement survey score by 7 points (exceeding the target of 3 points).
• Increased ratio of men taking childcare leave significantly (from less than 10% to over 30%).
• Received Health & Productivity Management Outstanding Organization 2024 certification.

Governance Achievements

• Transitioned to a company with an Audit & Supervisory Committee.
• Introduced a CXO structure.
• Established a Sustainability Committee as a subcommittee of the Executive Officer Committee.

Climate Goals & Targets

Environmental Challenges

• Slowdown in the Chinese market.
• Stagnant business conditions in China and Europe.
• Sluggish demand for home appliances and industrial equipment.
• Delays in meeting targets for 'Product quality improvement' and 'Fulfilling workplace'.
• Challenges in achieving a 100% SAQ implementation rate with major suppliers.

Mitigation Strategies

• Implemented market price-linking in electronic components and electronic chemicals to combat rising prices.
• Recorded exchange rate gains.
• Increased sales of LED products and automotive boosting reactors.
• Promoting measures focused on eight materialities.
• Working to achieve a 100% response rate for SAQ and promoting sustainability throughout the supply chain.

Supply Chain Management

Supplier Audits: SAQ survey on key suppliers: 76% response rate as of March 31, 2024

Responsible Procurement

• Tamura Group Procurement Guidelines (revised in 2023 as "Guidelines for Responsible Corporate Conduct in the Supply Chain")

Climate-Related Risks & Opportunities

Physical Risks

• Intensifying natural disasters
• Damage to business sites due to climate change
• Supply chain disruptions

Transition Risks

• Increased costs associated with carbon taxes and regulations
• Higher raw material prices
• Increased costs from capital expenditure for low-carbon initiatives

Opportunities

• Increased demand for renewable energy products
• Increased electricity demand associated with a shift from fossil fuel use
• Development in emerging countries

Reporting Standards

Frameworks Used: IFRS Foundation, "International Integrated Reporting Framework", Ministry of Economy, Trade and Industry, "Guidance for Collaborative Value Creation 2.0", TCFD

Certifications: Health & Productivity Management Outstanding Organization 2024

Sustainable Products & Innovation

• HDF switching transformers
• TLF407-LT01 solder