Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO₂ emissions by 5% (company-wide), 8% reduction in CO₂ emissions at Kyushu Head Office due to improved power company emission factors. Reduced CO₂ emissions by 172 tons through modal shift in product transportation.
• Reduced CO₂ emissions by 470 tons by switching 27% of company vehicles to hybrids.
• Achieved 85% target rate for waste reduction themes in improvement activities.
• Achieved 90% or higher annual green purchasing rate for office supplies.

Social Achievements

• Concluded a collaboration agreement with Saga Prefecture to promote regional revitalization through the Hisamitsu Springs women's volleyball team.
• Conducted various community engagement activities, including volunteer work, health seminars, and cultural events.
• Supported 50 NPOs and civic groups through the Hisamitsu Hot Heart Club.
• Provided 96 AED training machines and online first-aid training materials to the Japanese Red Cross Society.

Governance Achievements

• Implemented internal control regulations in accordance with the revised Companies Act of 2015.
• Established a compliance promotion committee and office to ensure compliance and ethical conduct.
• Maintained zero violations of environmental measurement data self-standards.

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption at the Utsunomiya factory due to expanded production lines and extended air conditioning operation.
• Increased use and final disposal of acetonitrile.
• Increased industrial waste due to increased production.

Mitigation Strategies

• Plans to consolidate production lines and introduce high-efficiency utilities at the Utsunomiya factory to reduce energy consumption.
• Participating in the Smart Energy Network project at the Kiyohara Industrial Park to improve energy efficiency.
• Implementing modal shifts to reduce CO₂ emissions from product transportation.
• Promoting the use of hybrid vehicles to reduce CO₂ emissions from company vehicles.
• Implementing various waste reduction measures, including product lightweighting.

Supply Chain Management

Supplier Audits: Over 80 supplier audits per year

Responsible Procurement

• Green procurement of environmentally friendly raw materials, construction materials, and equipment.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lightweight MOHRUS R Papp XR

Awards & Recognition

• 2016 Science and Technology Award from the Minister of Education, Culture, Sports, Science and Technology (Development Division)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 26.1% compared to 2013.
• Reduced factory waste by 10% year-on-year.
• Increased modal shift from trucks to ships in Kyushu and Utsunomiya factories, reducing CO2 emissions by 315t.

Social Achievements

• Increased the number of outside directors to four, enhancing corporate governance.
• Implemented various initiatives for employee well-being and a safe working environment.
• Established a halal response team to cater to the needs of Muslim consumers in various regions.

Governance Achievements

• Strengthened corporate governance by increasing the number of independent outside directors.
• Established internal control regulations and a compliance program to prevent bribery and corruption.
• Implemented a whistleblower system ('Hisamitsu Hotline') to ensure transparency and accountability.

Climate Goals & Targets

Environmental Challenges

• Challenges throughout the value chain, including supply chain issues related to labor conditions, child labor, and climate change; intellectual property protection; environmental impact of product development; and ensuring compliance throughout the value chain.
• Risks related to global expansion, compliance, product information dissemination, and drug price revisions.

Mitigation Strategies

• Established a group-wide ESG promotion system to address challenges comprehensively.
• Implemented EHS management system (ISO14001 and ISO45001 certified) to manage environmental, health, and safety aspects.
• Developed a disaster preparedness plan including multiple supply routes, emergency communication systems, and disaster relief kits.

Supply Chain Management

Responsible Procurement

• Promoting the use of environmentally friendly raw materials, construction materials, and equipment.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Social
• Governance
• Employee Well-being
• Community Engagement
• Workplace Safety
• Diversity & Inclusion
• Human Resources Development

Environmental Achievements

• Not disclosed

Social Achievements

• Launched various employee well-being programs, including a life plan training program for 57-year-old employees and a post-retirement re-employment system.
• Implemented a time-unit annual paid leave system.
• Supported employee participation in over 100 clubs.
• Maintained a high annual paid leave rate (69% in 2019).
• Improved female management ratio (1.35 times compared to 2017).
• Reduced traffic accidents by 70.3% in 2019 compared to the previous year.
• Donated company products to healthcare workers in various countries during the COVID-19 pandemic.
• Supported the LIGHT IT BLUE campaign in Japan by illuminating buildings in blue.

Governance Achievements

• Established a robust safety and health management system, including weekly workplace inspections and regular environmental monitoring.
• Obtained ISO 45001 certification at Kyushu headquarters and Utsunomiya factory.
• Implemented various initiatives to promote diversity and inclusion (D&I).

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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: ISO 45001 (Kyushu headquarters and Utsunomiya factory)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed