Climate Change Data

Makino Milling Machine Co., Ltd.

Climate Impact & Sustainability Data (2022-04 to 2023-03)

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:49,135 t-CO2e (Scope 1 & 2, consolidated, FY2022)
Scope 1 Emissions:43,336 t-CO2e (FY2022)
Scope 2 Emissions:5,799 t-CO2e (FY2022)

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Governance
  • Sustainability
  • Human Capital

Environmental Achievements

  • Completed calculation of Scope 1 and 2 GHG emissions (consolidated), working on Scope 3.
  • Installed solar power generation equipment at domestic and overseas plants, generating 7,313 MWh in FY2022.
  • Set a target to reduce CO2 emissions (consolidated, Scope 1 & 2) by 42% from FY2022 levels by 2030.

Social Achievements

  • Established the Sustainability Promotion Office to advocate for carbon neutrality and respond to stakeholder inquiries.
  • Launched Makino Machine Care Package, a customized machinery inspection service.
  • Introduced a mentoring system to pass on skills to future generations.

Governance Achievements

  • Adopted a company structure with an audit and supervisory board, including external directors and audit and supervisory board members.
  • Established a whistleblowing system with internal and external contact points.
  • Introduced a restricted stock compensation plan to incentivize sustainable corporate value growth.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050.
  • Increase the ratio of female managers to 15% long-term.
Medium-term Goals:
  • Achieve an operating margin ratio of 12% and consolidated sales of ¥270 billion by FY2027.
  • Reduce CO2 emissions (consolidated, Scope 1 & 2) by 42% from FY2022 levels by 2030.
  • Increase the ratio of female managers to 15% long-term.
Short-term Goals:
  • Increase the ratio of female managers to 5% by 2026.

Environmental Challenges

  • Increased productivity
  • Shorter lead times
  • Improved asset turnover ratio
  • Rising raw material, energy, and transportation costs
  • Global economic slowdown impacting capital investment
  • Labor shortages
  • Meeting growing demand for larger machine tools
Mitigation Strategies
  • Design changes and process revisions to address order backlogs.
  • Cross-divisional Cost Improvement Office established to improve cost structure.
  • New in-house project to upgrade existing automation systems.
  • Collaboration with overseas subsidiaries to promote global product development.
  • Expansion of production capacity through new plant construction (Yamanashi Prefecture, scheduled for completion in 2026).
  • Expansion of plants in Wuhan and Kunshan, China.
  • Process dispersion and unit subdivision to improve production efficiency.
  • Implementation of Product Lifecycle Management (PLM) by December 2024.
  • Development of energy-efficient products and technologies (e.g., OPTIMIZER).

Supply Chain Management

Responsible Procurement
  • Code of conduct for suppliers covering human rights, health and safety, labor environment, environment, and fair trade.
  • Guidelines for Green Procurement.

Climate-Related Risks & Opportunities

Physical Risks
  • Increased severity and frequency of cyclones, floods, and other extreme weather events
Transition Risks
  • Ongoing GHG emissions pricing, stricter energy conservation policies, mandates and regulations on existing products and services, and rising raw material costs in response to GHG emission reductions
Opportunities
  • R&D and expansion of low-carbon products and services

Reporting Standards

Frameworks Used: IIRC Framework, Corporate Governance Code of Japan, GRI Standards, Environmental Reporting Guidelines 2018 (Japan Ministry of the Environment), ISO 26000

UN Sustainable Development Goals

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

Makino's initiatives contribute to these goals through energy conservation, renewable energy use, development of sustainable products, and promotion of sustainable manufacturing practices.

Sustainable Products & Innovation

  • Products leveraging Makino technologies that allow high productivity using low power consumption.
  • eSTABILIZER technology to maintain high-precision machining while reducing energy consumption.