Climate Change Data

Mitsuboshi Belting Ltd.

Climate Impact & Sustainability Data (2024)

Reporting Period: 2024

Environmental Metrics

Total Carbon Emissions:26,337 tCO2e (FY2023)
Scope 1 Emissions:16,294 tCO2e (FY2023)
Scope 2 Emissions:10,044 tCO2e (FY2023)
Scope 3 Emissions:122,152 tCO2e (FY2023)
Renewable Energy Share:9.1% (FY2023)
Water Consumption:695,000 m3 (FY2023, eight sites in Japan)
Waste Generated:7,209 tons (FY2023)

ESG Focus Areas

  • Climate Change
  • Biodiversity Conservation
  • Water Resources Conservation
  • Respect for Human Rights
  • Value Chain Management
  • Partnerships with Local Communities
  • Decarbonization
  • Development of Eco-Friendly Products
  • Resource Recycling
  • DE&I

Environmental Achievements

  • CO2 emissions reduction of 35% compared to FY2013 (exceeding the 22% target)
  • Renewable energy introduction ratio increased to 9.1% in FY2023 from 0.1% in FY2021
  • Development and sale of belts using up to 70% non-fossil or recycled materials
  • Water withdrawal reduction rate at sites in Japan: 20.8% compared to FY2021
  • Water withdrawal reduction rate at overseas sites: 12.6% compared to FY2021
  • Industrial waste landfill ratio: 0.1%

Social Achievements

  • Improved third-party ESG evaluations (CDP: B rank, FTSE: 3.3)
  • Introduction of an employee stock ownership plan
  • Low turnover rate of new graduates (5.9% within 3 years, below the national average)
  • Various initiatives to improve work-life balance (Star system, childcare support, flexible work styles)
  • Increased employment of people with disabilities (2.1% in FY2024)
  • Initiatives to support local communities (school supplies, food, on-the-job training)

Governance Achievements

  • Increased ratio of outside directors to at least 1/3
  • Changed the term of office of directors from two years to one year
  • Introduction of a performance-linked compensation system
  • Improved management transparency and information disclosure
  • Zero violations of laws and regulations related to compliance and environmental issues

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050 (eight sites in Japan)
Medium-term Goals:
  • Reduce CO2 emissions by 46% compared to FY2013 (Scope 1&2 at 8 sites in Japan) by 2030
  • Achieve 70% sustainable raw material ratio by 2030
  • Increase the ratio of female managers to 10% or more by FY2030 (non-consolidated)
Short-term Goals:
  • Reduce water consumption by 50% by 2030 (Japan sites)
  • Maintain water withdrawal intensity at overseas sites (base year: FY2021)
  • Increase the ratio of female managers to 5% or more by FY2026, 10% or more by FY2030 (non-consolidated)

Environmental Challenges

  • Declining working population in Japan
  • Intensifying competition with other manufacturers
  • Compliance with various laws and regulations (EUDR)
  • Maintaining profitability while investing in sustainability initiatives
  • Low ratio of female managers
  • Maintaining stable supply of raw materials
  • Water stress in some production regions
  • Potential decline in demand for ICE car belts due to electrification
Mitigation Strategies
  • Promoting digital transformation (DX) to improve productivity and automation
  • Business portfolio optimization
  • Investing in new growth areas (environmentally friendly products)
  • M&A and open innovation
  • Strengthening human resources strategy (DE&I, reskilling, creating a rewarding workplace)
  • Developing products using sustainable raw materials
  • Installing cooling water circulation systems and mist cooling systems
  • Developing and strengthening overseas sales network
  • Formulating and operating business continuity plans (BCP)
  • Implementing human rights due diligence throughout the supply chain
  • Expanding the installation of cooling water circulation systems

Supply Chain Management

Supplier Audits: 19 environmental audits (FY2023), 20 quality audits (FY2023)

Responsible Procurement
  • Mitsuboshi Belting Group Procurement Policy
  • Mitsuboshi Belting Group Procurement Guidelines
  • Human rights due diligence
  • Compliance with EUDR

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (cyclones, floods)
  • Changes in rainfall patterns
  • Rise in average temperature
  • Sea level rise
Transition Risks
  • Strengthening of climate change policies (carbon pricing)
  • Increased costs due to CO2 emission reduction activities
  • Decline in competitiveness of products made in developing countries due to CBAM
  • Shrinking market for ICE car belts
  • Changes in customer behavior
  • Increased stakeholder anxiety
Opportunities
  • Reduced energy costs due to energy-saving and renewable energy technologies
  • Improved corporate value due to proactive CO2 reduction
  • Acquisition of new demand for power transmission belts in EVs
  • Increased sales of water-shielding sheets due to heightened awareness of environmental impact reduction
  • Increased sales of power transmission belts for wind power generators

Reporting Standards

Frameworks Used: SDGs, ISO 26000, GRI, TCFD

Certifications: ISO 14001, IATF16949, ISO 9001

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 9 (Industry, Innovation and Infrastructure)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 17 (Partnerships for the Goals)

Various initiatives contribute to these goals through CO2 emission reduction, development of eco-friendly products, responsible procurement, community engagement, and human rights due diligence.

Sustainable Products & Innovation

  • Belts using up to 70% non-fossil or recycled materials
  • Plant-derived high-performance nylon material “PA410”
  • “e-POWER” energy-saving belts
  • “Smastar” alternator pulleys
  • “StarFit” low modulus belts