Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product and service provision enhancing quality of life
• Creating a comfortable workplace
• Environmental conservation and reduction of environmental burden
• Fair and honest corporate activities

Environmental Achievements

• Reduced CO2 emissions by 1.9% in manufacturing, 5.8% in logistics, and 6.0% in head office/Iwaki office processes compared to the previous year.
• Introduced LED lighting in the Kashima factory, reducing CO2 emissions by approximately 22.8t-CO2 annually.
• Implemented energy-saving patrols, resulting in an annual reduction of approximately 6.5t-CO2.
• Commenced operation of a solar power generation system at the Yumoto factory in May 2022.

Social Achievements

• Implemented various initiatives to improve work-life balance, including the introduction of a flextime system (head office only), refresh leave system, and volunteer leave system.
• Established the “Cleanup Business Academy” (CBA) in 2021 to cultivate future leaders.
• Conducted an employee engagement survey in November 2021 to gather employee feedback and identify areas for improvement.
• Established a human capital division in April 2022 to discuss and implement human capital-related policies.

Governance Achievements

• Established a Sustainability Committee and a Risk Management Committee in April 2022, chaired by the President and CEO.
• Revised the CSR Committee to the Sustainability Committee in April 2022.
• Implemented the “Cleanup Group Internal Control System Development Basic Policy” to ensure the proper functioning of group-wide operations.
• Operates the “Cleanup Hotline” internal reporting system for prompt and accurate responses to compliance-related issues.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the prolonged pandemic and uncertain international situation, leading to material shortages and price increases.
• Increased industrial waste due to an 8.6% increase in in-house production.
• Inability to recycle waste oil and sludge, leading to increased landfill waste.
• Insufficient employee satisfaction regarding compensation and work-life balance.

Mitigation Strategies

• Implementing price increases for products.
• Developing new products and services to meet evolving customer needs.
• Investing in renewable energy sources and energy efficiency measures.
• Improving the wage and evaluation system to enhance fairness and satisfaction.
• Improving work-life balance through more efficient work systems.

Supply Chain Management

Responsible Procurement

• CSR Procurement Guidelines (implemented since 2020)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, Environmental Ministry’s Environmental Reporting Guidelines, ISO 26000

Certifications: ISO 14001

Sustainable Products & Innovation

• Products with features such as water-saving technology and reduced use of harmful chemicals.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Circulation
• Water Resource Utilization
• Chemical Substance Management
• Product and Service Creation linked to Social Issue Resolution
• Creating a Workplace where Employees can Work Comfortably
• Diversity, Equity & Inclusion (DE&I)
• Socially and Culturally Meaningful Contribution Activities
• Fair and Honest Corporate Activities

Environmental Achievements

• Reduced GHG emissions (Scope 1,2) by 21.6% compared to 2021.
• Reduced GHG emissions (Scope 3, Category 1+11) by 0.5% compared to the previous year.
• Introduced solar power generation at two factories, resulting in a reduction of 170t-CO2.
• Switched 50% of electricity purchases in the Iwaki area to renewable energy, resulting in a reduction of 4,488t-CO2.
• Converted boiler fuel from LPG to LNG at one factory.
• Introduced hybrid vehicles for company cars, aiming to replace 70% of gasoline cars by the end of 2027.

Social Achievements

• Launched the "Kitchen Cabinet Recycling Program" in April 2023.
• Improved employee engagement through workshops and surveys.
• Maintained 100% female parental leave rate.
• Increased male parental leave rate to 71.2% (single) and 70.2% (consolidated).
• Implemented various initiatives to promote work-life balance, including various types of leave.
• Supported the "Summer Children's Cooking Class" in July 2023.
• Held a "Family Factory Tour" in February 2024.

Governance Achievements

• Established the DE&I promotion project in 2024.
• Established a Sustainability Committee and a Risk Management Committee.
• Implemented the "Cleanup Group Code of Conduct" and "Cleanup Group CSR Procurement Guidelines."

Climate Goals & Targets

Environmental Challenges

• Increasing costs due to carbon tax introduction and other regulations.
• Operational disruptions due to typhoons and floods.
• Mismatch between company products and diversifying customer needs.
• Delayed development of environmentally friendly products.
• Decreased labor productivity and intensified competition for talent.
• Damage to corporate image due to delays in diversity and human rights responses.
• Increased employee health problems and related costs.
• Weakening of trust with local communities.
• Compliance violations (environmental and human rights issues) in the company and its supply chain.

Mitigation Strategies

• Switching to low-carbon energy, introducing equipment that contributes to CO2 reduction, and promoting energy-saving activities.
• Adopting low-carbon parts and materials and improving production efficiency.
• Promoting the development of environmentally friendly products, collaborating with suppliers, and promoting industry-academia collaboration.
• Expanding the BCP system and strengthening the supply chain.
• Creating a workplace where diverse talents can be utilized and innovation can be created.
• Improving employee health and promoting labor safety and health management systems.
• Implementing initiatives to support community engagement and collaboration.
• Establishing a corporate governance system and a sustainability promotion system.
• Implementing human rights due diligence and promoting CSR procurement.

Supply Chain Management

Responsible Procurement

• CSR Procurement Guidelines
• Green Procurement Surveys

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons, floods

Transition Risks

• Strengthening regulations such as carbon taxes
• Increased procurement costs of raw materials, parts, and energy

Opportunities

• Increased demand for environmentally friendly products
• Expansion of the resource circulation market

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, Environmental Ministry's Environmental Reporting Guidelines, ISO 26000

Certifications: ISO 14001, ISO 9001

Sustainable Products & Innovation

• Selevia bathroom (lightweight design)
• Wash-エール range hood (water-saving)
• Vibration Dark stainless steel worktop (recyclable material)