TS TECH Co., Ltd.
Climate Impact & Sustainability Data (2022-04 to 2023-03)
Reporting Period: 2022-04 to 2023-03
Environmental Metrics
Total Carbon Emissions:14,844 t-CO2e reduction compared to FY2020 (Scope 1 & 2)
Scope 1 Emissions:7,083 t-CO2e
Scope 2 Emissions:49,937 t-CO2e
Scope 3 Emissions:2,583,409 t-CO2e
Water Consumption:422,134 m3 (reduction of 12% compared to FY2020)
Waste Generated:16,203 tons (reduction of 16% compared to FY2020)
Carbon Intensity:8.4 t-CO2e/thousand vehicles (FY2023)
ESG Focus Areas
- Climate Change
- Human Rights
- Supply Chain Sustainability
- Workforce Diversity
- Corporate Governance
Environmental Achievements
- CO₂ emissions reduction rate (Scope 1 and 2): -16% compared to FY2020
- Waste reduction rate: -16% compared to FY2020
- Water intake reduction rate: -13% compared to FY2020
- Installation of solar power systems at Hamamatsu Plant, Suzuka Plant, Saitama Plant, and TS TECH INDIANA, LLC
Social Achievements
- Increased percentage of management positions held by diverse human resources to 32.5%
- Supplier Sustainability Guidelines compliance rate of 97% (for 126 domestic suppliers)
- Launched employee engagement survey; aiming for AAA rating by 2030
- Various initiatives to support childcare and promote women's participation in the workforce
Governance Achievements
- Transitioned to “a company with an Audit and Supervisory Committee” structure
- Established the Nomination and Compensation Committee
- Appointed first and second women to the Board of Directors
- Corporate Governance Code compliance rate of 100%
Climate Goals & Targets
Long-term Goals:
- Achieve carbon neutrality by 2050
Medium-term Goals:
- CO₂ emissions reduction rate (Scopes 1&2): -50% compared to FY2020
- Waste reduction rate: -50% compared to FY2020
- Water intake reduction rate: -50% compared to FY2020
- Achieve AAA engagement rating
Short-term Goals:
- CO₂ emissions reduction rate (Scopes 1&2): -25% compared to FY2020
- Waste reduction rate: -25% compared to FY2020
- Water intake reduction rate: -15% compared to FY2020
Environmental Challenges
- Profitability and capital efficiency issues due to the COVID-19 pandemic and supply chain disruptions
- Intensifying competition in technological development and changes in product development styles
- Supply risks for components and raw materials due to climate change, infectious diseases, conflicts, etc.
- Rising costs for labor, energy, and raw materials
Mitigation Strategies
- Streamlining and increased efficiency through allocation reviews and restructuring of business operations
- Proactive growth investments based on nine priority strategies
- Supply chain restructuring, including risk visualization and efforts to promote local procurement
- Enhancing efforts to develop environmental technologies
- Building high efficiency production structures
Supply Chain Management
Supplier Audits: 121 suppliers surveyed in FY2023
Responsible Procurement
- TS TECH Supplier Sustainability Guidelines
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events (typhoons, torrential rains, hurricanes, flooding)
Transition Risks
- Stricter regulations (renewable energy adoption, carbon taxes)
- Higher R&D costs for low-carbon products
- Higher raw material costs due to carbon taxes and eco-friendly materials
- Potential drop in sales due to lack of low-carbon and EV products
Opportunities
- Decreased operating costs due to more efficient production processes
- Increased demand for low-carbon products (EV seats, eco-friendly materials)
- Increased revenues from new products compatible with next-generation vehicles
Reporting Standards
Frameworks Used: GRI Sustainability Reporting Standards, TCFD Recommendations
Certifications: ISO 14001, ISO 50001, ISO 45001
Third-party Assurance: SGS Japan Inc.
Sustainable Products & Innovation
- Sustainable seat using plant-based raw materials
- Heated seat with rapid warm-up blower
- XR Cabin
Awards & Recognition
- Silver award at the Karakuri Kaizen Exhibition