Climate Change Data

Environmental Metrics

ESG Focus Areas

• Quality
• Environment

Environmental Achievements

• Developed an environmental manual based on ISO 14001 guidelines and made a ‘Declaration of Compliance’ in each section, including those which create fewer burdens to the environment.
• Actively engaged in environmental protection related activities across all aspects of the manufacturing process.

Social Achievements

• Issued stock options as incentives for working in solidarity to improve future business performance by increasing employee sense of participation in management.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Intensifying global competition and other changes in the business climate
• Risks associated with intellectual property rights, risks arising from intensifying price competition in the market and inventory adjustments, risks of fluctuations in exchange rates, country risks, and risks arising from natural disasters and similar events.
• Earnings structure remains weighted toward the plastic optics business
• Need to stabilize and diversify earnings by increasing the earnings potential of the engineering plastics business and further growing the semiconductor peripherals business, as well as promoting the development of new businesses.

Mitigation Strategies

• Proactive investment in innovation
• Enhanced marketing functions
• Promoting the development of strategic products
• Enhancing state-of-the-art evaluation technologies
• Creating diverse business opportunities
• Review and determine suitable countermeasures to business risks
• Striving to protect intellectual property rights
• Enhance global business foundations in the engineering plastics business and the semiconductor peripherals business while moving forward with companywide initiatives in the research and development of new products and promoting the creation of diverse business opportunities through mergers and acquisitions (M&A) and investments in new technologies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• In cooperation with suppliers we will strive to reduce the environmental impact of our supply chain.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ISO 9001, ISO 14001

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• Diversity and Inclusion
• Governance

Environmental Achievements

• Acquired ISO14001 certification and implemented environmental initiatives including energy saving, eco-friendly product design, and waste reduction.

Social Achievements

• Increased the percentage of women in new graduate recruitment to 31.6% in 2020 and 27.3% in 2021; increased the percentage of women in total recruitment to 24.4% in 2020 and 36.4% in 2021; maintained a 50% foreign national ratio in overseas management positions in 2021; maintained a 40.6% mid-career employee ratio in management positions.
• Established a Sustainability Committee in December 2021.

Governance Achievements

• Established a Nomination and Remuneration Advisory Committee in June 2021; transitioned from a board of directors to a committee of directors in 2015; implemented a performance-based compensation system for executive officers; introduced a restricted stock compensation plan for directors (excluding audit committee members and outside directors) in June 2021.

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: TCFD (planned disclosure in June of the following year)

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Increased the number of outside directors (from 3 to 4), with independent outside directors making up the majority.
• Established a Nomination and Remuneration Advisory Committee (majority of outside directors, chaired by an outside director).
• Introduced restricted stock awards as long-term incentives.
• Further expanded ESG information disclosure.

Climate Goals & Targets

Environmental Challenges

• Global competition intensification
• Geopolitical risks and fragmentation
• Market barriers collapse
• Next-generation communication (5G/6G)
• Mobility revolution
• China Manufacturing 2025
• COVID-19 impact (limited)
• Shortage of semiconductors and resin materials
• Uncertainty regarding the impact of semiconductor shortages on production

Mitigation Strategies

• Portfolio shift from consumer to infrastructure applications for sustainable growth
• Strengthening governance to execute strategies
• Continued research and development to sow seeds for future growth
• Productivity improvement for profitability improvement in existing areas
• Providing solutions for improved quietness and efficiency required by EV
• Promoting new solution development
• Continued strengthening of production system
• Expanding business in growth segments
• Responding to market changes with the development of solutions
• Expanding new products in high-end areas and expanding business areas other than data centers
• Focusing on selection and concentration from business area expansion through M&A, moving to the “harvesting” stage for sustainable growth
• Providing solutions integrating the resources of each base (North America, Europe, Japan) to the global customer network
• Creating a new device business integrating the management resources of the Enplas Group

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

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Governance

Governance Achievements

• Increased the number of outside directors (from 3 to 4, with a majority of independent outside directors).
• Established a Nomination and Remuneration Advisory Committee (majority of outside directors, chaired by an outside director).
• Introduced restricted stock awards as long-term incentives.
• Updated takeover defense measures.
• Further expanded ESG disclosure.

Climate Goals & Targets

Environmental Challenges

• Rising raw material costs
• Increased sales and administrative expenses
• Decreased operating income due to exchange rate fluctuations and investment losses
• Semiconductor shortage
• Impact of COVID-19 pandemic in Southeast Asia on customer production
• Slow recovery of office demand in OA-related business

Mitigation Strategies

• Improving productivity to improve profitability in existing areas
• Providing solutions for improved quietness and efficiency required by EV
• Expanding business in growth segments
• Promoting the development of new solutions
• Continuing to strengthen production systems
• Expanding new products in high-end areas of optical communication and expanding business areas beyond data centers
• Developing solutions that respond to market changes in LED diffusion lenses
• Focusing on sustainable growth through M&A and resource allocation in Life Science business
• Providing integrated solutions by combining the resources of each base (North America, Europe, Japan) with a global customer network

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Set environmental targets and built a company-wide environmental management system for continuous improvement.
• Promoted reduction of environmental burden and energy saving through business rationalization and improvement (reduction of electricity usage and CO2).

Social Achievements

• Not disclosed

Governance Achievements

• Established "Enplas Corporate Governance Policy" to pursue continuous improvement in corporate governance.

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: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• rising business costs
• geopolitical risks
• natural disasters
• exchange rate fluctuations

Mitigation Strategies

• transforming business portfolio from consumer products into essential business fields (infrastructure application)
• accelerating transition to a solution provider business model

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

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Launched cross-departmental projects and implemented work-from-home and flextime systems to support working parents.
• Actively promotes diversity in hiring and promotion, aiming for a female hiring ratio of over 40%.

Governance Achievements

• Established a Sustainability Committee in December 2021 to address climate change and other material issues.
• Established a Nomination and Remuneration Advisory Committee in June 2021 to enhance the independence, transparency, and objectivity of the nomination and remuneration processes.

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: TCFD

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate Change (TCFD)
• Human Capital
• Diversity & Inclusion
• Governance

Environmental Achievements

• Reduced GHG emissions intensity from 0.6 metric tons/million yen in FY2021 to 0.5 metric tons/million yen in FY2023
• Reduced resin material wastage rate from 4.7% in FY2021 to 3.6% in FY2023
• Increased plastic recycling rate from 65% in FY2021 to 72% in FY2023

Social Achievements

• Increased investment in improving organizational capabilities (training/events) from 34,000 yen/employee in FY2021 to 176,000 yen/employee in FY2023
• Increased female ratio in new hires from 24.4% in FY2019 to 31.4% in FY2023
• Maintained 100% rate of participation in childcare leave for employees

Governance Achievements

• Maintained a Board of Directors with a consistent number of outside directors (independent) over the reporting period (3-4)

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: TCFD

Certifications: ISO 9001, ISO 13485, IATF 16949

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed