Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Increased renewable energy electricity consumption from 0.6% in FY2020 to 2.2% in FY2023.
• Improved water reuse rate from 27% in FY2020 to 31% in FY2023.
• Improved waste recycle percentage from 70.6% in FY2021 to 70.7% in FY2023.

Social Achievements

• Increased percentage of female leaders from 20.2% in FY2020 to 35.9% in FY2023.
• Maintained high employee engagement survey response rates (96% and 97% in FY2022 and FY2023 respectively).
• High percentage of post-health checkup measures implemented (100% in FY2023).

Governance Achievements

• Increased percentage of outside directors from 75% in FY2021 to 71.4% in FY2023.
• Increased percentage of female directors from 25% in FY2021 to 28.6% in FY2023.
• High HOYA Code of Conduct online education and test participation rate (97% in FY2023).

Climate Goals & Targets

Environmental Challenges

• Reducing CO2 emissions
• Improving gender diversity at leadership levels
• Maintaining high safety standards

Mitigation Strategies

• Implementing renewable energy initiatives
• Promoting diversity and inclusion programs
• Strengthening occupational safety and health management

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• GHG Emissions
• Product Quality & Safety
• Employee Engagement
• Diversity & Inclusion
• Supply Chain Management

Environmental Achievements

• Reduced CO2 emissions per unit of net sales by 9.4% in fiscal 2020 compared to fiscal 2014. Achieved 100% renewable energy at HOYA Vision Care ATC Ramsey since 2014, reducing approximately 3,800 tons of CO2 emissions per year.
• Reduced water usage by 13.3% within the Group as a whole and by 22.3% in terms of water usage per unit of net sales in fiscal 2020 compared to fiscal 2014.
• Major factories in Japan achieved zero emissions in terms of industrial waste.

Social Achievements

• Launched the “Minkatsu” diversity project in 2014 to create a friendly work environment. Increased the proportion of female employees and leaders.
• Established the HOYA Help Line in 2003 as a whistleblowing and consultation system.
• Donated 28,000 face shields and medical equipment worth US$430,000 to support healthcare personnel during the COVID-19 pandemic.
• Eyecity Eco Project recycled empty contact lens cases, contributing to environmental protection, employment support for disabled persons, and donations to the Japan Eye Bank Association.

Governance Achievements

• 83.3% of HOYA’s directors are outside directors (as of June 2021).
• All independent directors have extensive experience in corporate management.
• Established the ESG Committee headed by the CEO in August 2019 to identify material issues and promote ESG activities.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted sales in the Life Care segment due to restrictions on economic activities.
• Falling short of the CO2 emissions reduction target in fiscal 2020.
• Challenges in increasing the proportion of female leaders in Japan.

Mitigation Strategies

• Implemented cost reduction measures and promoted flexible workstyles to mitigate the impact of COVID-19.
• Accelerated initiatives to reduce CO2 emissions per unit of net sales and total CO2 emissions.
• Continued to promote the “Minkatsu” diversity project, setting new targets for increasing the proportion of female leaders and employees.

Supply Chain Management

Responsible Procurement

• HOYA Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 13485

Sustainable Products & Innovation

• MiYOSMART spectacle lens for myopia control

Environmental Metrics

ESG Focus Areas

• Highly Effective and Transparent Corporate Governance
• Greenhouse gas (CO2) emissions reduction
• Product quality and safety
• Employee engagement and diversity & inclusion
• Supply chain management

Environmental Achievements

• Reduced CO2 emissions per unit of net sales; implementing measures tentatively targeted at reducing annual emissions by 1% (compared to the fiscal 2019 level) until medium- and long-term targets are set.
• Some business establishments running on 100% renewable energy.
• Increased water reuse ratio.

Social Achievements

• Launched the “Minkatsu” diversity project to create a work environment in which everyone can play an active role.
• Improved proportion of female employees and leaders.
• Revamped the HOYA Group’s framework of performance management (performance evaluation system).

Governance Achievements

• 75% of HOYA’s directors are outside directors.
• Established a new ESG Promotion Office under the Chief Sustainability (ESG) Officer (CSO).
• Introduced Restricted Stock Unit (RSU) in place of stock options.

Climate Goals & Targets

Environmental Challenges

• Global shortage of electronic components supply leading to a tight supply of endoscopes relative to demand.
• Impact of violation of laws and regulations and/or infringement of human rights, etc. in the supply chain.
• Competition to secure highly talented human resources.

Mitigation Strategies

• Implementing measures to reduce greenhouse gas emissions.
• Properly managing the supply chain based on the HOYA Supplier Code of Conduct.
• Promoting the “Minkatsu” diversity project and revamping the performance management system.

Supply Chain Management

Supplier Audits: Periodic audits of key suppliers

Responsible Procurement

• HOYA Supplier Code of Conduct

Climate-Related Risks & Opportunities

Transition Risks

• Laws, regulations and industry rules and/or demands from customers might become tougher; carbon tax and/or carbon pricing might be introduced more widely.

Opportunities

• Electricity-saving production processes lead to cost reduction.

Reporting Standards

Frameworks Used: TCFD, SASB, GRI

Certifications: ISO 14001, ISO 45001, ISO9001/13485

Sustainable Products & Innovation

• MiYOSMART spectacle lens for myopia control
• PENTAX Medical ONE Pulmo disposable bronchoscope

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Supply Chain Management
• Cybersecurity
• Human Rights

Environmental Achievements

• Increased renewable energy ratio to 14% in 2023 from 2% in 2022, aiming for 60% by 2030.
• Started calculating Scope 3 emissions in 2023.

Social Achievements

• Implemented a global personnel evaluation system in 2022.
• Launched the ESG Awards to recognize ESG contributions across the group.

Governance Achievements

• Increased the weighting of ESG targets in executive compensation to 25% from 10%.

Climate Goals & Targets

Environmental Challenges

• Cybersecurity incident in March 2024 causing temporary system disruptions.
• Scope 3 emissions calculation and reduction.
• Supply chain management and human rights due diligence.
• Developing next-generation products while maintaining market share in a competitive environment.

Mitigation Strategies

• Comprehensive review of cybersecurity and IT security infrastructure.
• Initiatives to engage with suppliers for Scope 3 emissions reduction.
• Revised supplier code of conduct.
• Capacity expansion for EUV mask blanks and HDD substrates.

Supply Chain Management

Responsible Procurement

• Revised supplier code of conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Climate Change
• Greenhouse Gas Reduction

Environmental Achievements

• Reduced CO2 emissions by 4% from the base year (FY2021) to 499K t-CO2 in FY2022. Achieved a 2.2% renewable energy power ratio in FY2022 through the introduction of renewable energy and energy-saving activities, resulting in a CO2 emission reduction of approximately 3,700t-CO2. Further reduction of approximately 5,600t-CO2 achieved through renewal of new production facilities and improved energy efficiency.

Social Achievements

• Not disclosed

Governance Achievements

• Established the ESG Promotion Office and appointed a CSO in March 2022. ESG indicators introduced in Performance Share Units (PSUs) for Executive Officers' compensation since FY2022. Key ESG KPIs are included in annual incentive assessments for business division presidents since FY2023.

Climate Goals & Targets

Environmental Challenges

• Increase in material, production, and transportation costs due to carbon tax/pricing. Strengthening emission reporting obligations. Regulation of microplastics. Decline in market share and sales due to delayed response to consumer climate awareness. Loss of customers due to delays in climate change measures/information disclosure. Decline in reputation due to insufficient response to environmental issues. Production activities and supply chain disruptions caused by extreme weather, infectious diseases, and lockdowns. Stagnation of production and sales due to extreme weather and flooding. Water resource shortage due to global warming.
• Increase in material costs due to carbon tax/pricing. Increased compliance costs due to strengthened environmental regulations. Decline in reputation and sales due to insufficient response to environmental issues. Production disruptions due to extreme weather, infectious diseases, and customer factory closures. Delays in deliveries and reduced production volume due to supplier operational stoppages. Stagnation of production and sales due to extreme weather and flooding.

Mitigation Strategies

• Increase energy efficiency, improve transportation, invest in renewable energy, innovate process and product development, establish new governance structure for carbon footprint tracing, introduce IT infrastructure for target setting and tracking, develop plastic recycling technologies, innovate processing methods to minimize waste, consider labeling CO2 emissions on products, review marketing strategy, provide transparency of environmental roadmap to customers, provide regular ESG progress updates, expand climate-change-related disclosures, formulate/update BCP for factories, promote dispersion of production sites, implement individual flood control measures, improve assessment in financial markets, increase sales by rapid success in product development, indicate carbon footprint, integrate environmental footprint reduction into product development, collaborate with material manufacturers, develop circular economy-focused product strategy, develop technology to reuse and reduce water consumption, introduce advanced water treatment technology, realize more efficient manufacturing processes through DX, introduce renewable energy/purchase carbon credits, establish/enhance organizational structure, convert to compliant facilities, secure inventory, secure multiple suppliers, establish production backup systems, promote production backup systems and flood countermeasures, formulate BCP including securing inventory, promote measures to improve energy efficiency.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Collaboration with material manufacturers to reduce GHG emissions and expenses; developing circular economy-focused product strategy together with suppliers and customers; securing multiple suppliers for critical materials.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions, infectious diseases, lockdowns, flooding, water shortages

Transition Risks

• Increase in material, production, and transportation costs due to carbon tax/pricing; strengthening emission reporting obligations; regulation of microplastics; decline in market share and sales; loss of customers; decline in reputation; increased compliance costs due to strengthened environmental regulations.

Opportunities

• Improve assessment in financial markets and reduce financing costs; increased sales due to growing demand for low-carbon products; increased sales due to demand for recyclable/reusable products; cost reduction by developing technology to reuse and reduce water consumption; realizing more efficient manufacturing processes through DX; reduction of energy and electricity costs.

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Third-party organization (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed