KOSAIDO Holdings Co., Ltd.
Climate Impact & Sustainability Data (2021-04 to 2022-03, 2024-03 to 2024-09)
Reporting Period: 2021-04 to 2022-03
Environmental Metrics
Total Carbon Emissions:69,405 t-CO2e (2020)
Scope 1 Emissions:8,693 t-CO2e (2020)
Scope 2 Emissions:8,358 t-CO2e (2020)
Scope 3 Emissions:52,354 t-CO2e (2020)
ESG Focus Areas
- Supporting Broadly (value creation for sustainable economic activities)
- Living Together (the development of fair and diverse local communities)
- Protecting the Future (passing down the beautiful Earth to future generations through the reduction in environmental burden)
- Connecting with Smiles (sound corporate management with transparency and dialogue)
Environmental Achievements
- Established the Sustainability Promotion Committee and Sustainability Promotion Office to manage climate-related risks and opportunities and implement a PDCA cycle for sustainability actions.
- Analyzed key climate-related risks and opportunities for each business and carried out an impact assessment of the economic and social value of future business scenarios.
Social Achievements
- Formulated an action plan based on the Act on the Promotion of Female Participation and Career Advancement in the Workplace (Women’s Advancement Promotion Law) and established quantitative targets to increase the proportion of management positions occupied by women and raise women’s average number of years of service.
- Formulated health promotion plans for employees’ mental and physical health, including improving workplace environments and enhancing employee performance, safety and health.
Governance Achievements
- Completed financial restructuring through measures such as the liquidation of unprofitable businesses; the maximization of shareholder returns (dividends); a focus on the Ending-related Business, a growth field; the strengthening of corporate governance and business management through the renewal of personnel and the reestablishment of internal company regulations; and the maximization of cash flow through thorough tax management.
- Established the Risk Management Committee to manage various potential risks and promote countermeasures.
Climate Goals & Targets
Long-term Goals:
- Achieve carbon neutrality by 2050.
Medium-term Goals:
- Reduce CO2 emissions by 34% by 2030 (Scope 1 and 2).
- Formulate Scope 3 reduction targets by 2030 based on the status of suppliers and purchases.
Short-term Goals:
- Raise the proportion of management positions occupied by women to 10% by March 2024.
- Raise women’s average number of years of service to 70% of their male counterparts by March 2024.
Environmental Challenges
- Decreasing profitability in the printing business due to a shift towards smaller lots and more varied products.
- Weak and unstable demand for personnel due to the impact of COVID-19.
- Falling unit prices in the funeral services segment due to a trend towards simpler funerals.
- Increasing costs of building and facility maintenance, depreciation, and personnel expenses in the funeral services segment.
Mitigation Strategies
- Reduced fixed costs in the printing business through factory restructuring and personnel rationalization.
- Strengthened coordination with the IT business and digital marketing, and enhanced BPO services.
- Secured net sales through measures such as extended operating hours, in addition to cremation price revisions.
- Embarked on branding aimed at raising presence and improving image across the funerals and ceremonies industry.
Climate-Related Risks & Opportunities
Physical Risks
- Impact of rising average temperatures felt throughout supply chains
- Risk of facility shutdowns due to severe disasters
Transition Risks
- Stronger policies such as the introduction of carbon taxes to suppress GHG emissions
- Introduction of equipment using low-carbon technologies
- Exclusion from supply chains
- Opinions on decarbonization from shareholders and customers
Opportunities
- GHG emissions reductions and carbon neutrality will be strongly promoted throughout supply chains
Reporting Standards
Frameworks Used: TCFD, ISO 26000, Ministry of the Environment “Environmental Reporting Guidelines 2018”, International Integrated Reporting Council (IIRC) “International Integrated Reporting Framework”, Ministry of Economy, Trade and Industry “Guidance for Integrated Corporate Disclosure and Company-Investor Dialogue for Collaborative Value Creation”
Reporting Period: 2024-03 to 2024-09
Environmental Metrics
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Developed and patented Japan's first environmentally friendly cremation furnace system that generates electricity from residual heat, significantly suppressing exhaust gas emissions and reducing CO2, dioxins, and other toxic substances.
- Launched Participatory Employee Eco Program to raise environmental awareness and encourage decarbonization among employees.
Social Achievements
- Continued operation of six crematoriums in Tokyo, handling approximately 70,000 cremations annually, fulfilling a significant social responsibility.
- Held Community Appreciation Gatherings at six funeral homes to thank neighboring communities for their understanding and support.
Governance Achievements
- Enhanced corporate governance by building a management organization enabling proper supervision and monitoring.
- Established a voluntary nomination and compensation committee with independent outside directors and auditors.
Climate Goals & Targets
Short-term Goals:
- Achieve medium-term target of 2030 for GHG emissions reduction (Scope 1 and 2).
Environmental Challenges
- Increasing greenhouse gas emissions and extreme weather conditions caused by global warming.
- High number of deaths in Tokyo and nationwide, exceeding the capacity of public facilities.
- Crematorium shortage leading to long wait times for funerals.
Mitigation Strategies
- Endorsed TCFD recommendations and established a materiality on the environment.
- Developed new, environmentally friendly cremation furnace system to handle increasing number of services and reduce emissions.
- Expanded service hours and cremations handled at Tokyo Hakuzen.
- Added additional furnaces and funeral halls to increase capacity.
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Abnormal weather and major disasters caused by temperature fluctuations, typhoons, etc.
Reporting Standards
Frameworks Used: TCFD
Sustainable Products & Innovation
- Environmentally friendly cremation furnace system