LINTEC Corporation
Climate Impact & Sustainability Data (2012-04 to 2013-03, 2015-04 to 2016-03, 2016-04 to 2017-03, 2017-04 to 2018-03, 2020-04 to 2021-03, 2021, 2022, 2022-04 to 2023-03, 2022-04-01 to 2023-03-31, 2023, 2023-04 to 2024-03)
Reporting Period: 2012-04 to 2013-03
Environmental Metrics
ESG Focus Areas
- Corporate Governance
- Social Responsibility
- Environmental Responsibility
Environmental Achievements
- Reduced energy use by 3.9% (crude oil equivalent) in Japan compared to fiscal 2011.
- Installed 1,000 kW photovoltaic system at Doi Plant and 500 kW at Agatsuma Plant, reducing CO2 emissions by about 500 tons per year.
- 68% of printing-related adhesive products sold were solvent-free.
- 53% of release paper produced was solvent-free.
Social Achievements
- Held CSR briefings at 12 group companies in Asia and 5 in North America and Europe.
- Implemented mental health seminars and awareness raising.
- Vaccinated 2,480 employees against influenza.
- Surveyed employee annual paid leave and promoted its usage.
- Implemented mutual safety audits as part of the occupational safety and health management system.
- Provided ethics training through e-learning.
Governance Achievements
- Established Lintec Group Social Media Policies and Social Media Usage Rules.
- Created a Head Office Earthquake Response Manual.
- Conducted internal audits in each department based on detailed regulations on information security.
- Introduced one-year terms for directors and an executive officer system.
Climate Goals & Targets
- Not disclosed
- Achieve integrated global ISO 14001 certification for all companies.
- Reduce water usage per unit of paper production by 1.7% compared to fiscal 2012.
- Reduce CO2 emissions by 1.6 percent and energy usage by 0.2 percent over fiscal 2012, on a per-unit of production basis.
Environmental Challenges
- Did not achieve CO2 emission reduction target of 180,000 tons/year (due to a change in CO2 emission coefficient).
- Employment rate for persons with disabilities below the legally mandated rate.
- Increased number of days of absence from work due to rotator cuff injuries.
Mitigation Strategies
- Implementing measures to reduce CO2 emissions by 1.6% and energy usage by 0.2% in fiscal 2013.
- Working to increase company-wide employment of persons with disabilities.
- Revising safety barriers and operation standards, implementing ongoing risk assessment, and clarifying safety rules to prevent reoccurrence of accidents.
Supply Chain Management
Supplier Audits: 170 total audits (22 quality, 5 environmental in 2012)
Responsible Procurement
- Lintec Basic Policy for Raw Materials Procurement
- Lintec Green Procurement Policy
- Requirements for thorough CSR activities from suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Development of energy-efficient products (e.g., LED UV irradiation system).
Reporting Standards
Frameworks Used: GRI, ISO 26000
Certifications: ISO 14001
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Solvent-free products
- WINCOS window film
- KINATH labels
- Casting paper for carbon fiber composite materials
- RAD-2100m/12 LED UV irradiation system
Awards & Recognition
- Awards for continuous accident-free hours at several plants.
- Award for excellence in hazardous materials safety management at Lintec Korea.
Reporting Period: 2015-04 to 2016-03
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Reduced CO2 emissions from transportation through modal shift (rail and sea transport instead of trucks), achieving approximately 70% reduction on some routes.
- Developed 24 environmentally friendly products (exceeding the target of 12).
Social Achievements
- Held five CSR workshops for 36 young and middle-level employees to develop new business models addressing social issues.
- Implemented community clean-up activities with 2,838 employees.
- Hosted plant tours for 709 visitors.
Governance Achievements
- Conducted a compliance survey with officers and managers (82.6% response rate).
- Conducted a company-wide survey to check labor conditions and human rights at all group companies.
Climate Goals & Targets
- Medium-term environmental targets for CO2 emissions and electricity consumption (fiscal 2014-2016).
- Reduce CO2 emissions by 1.6% and energy use by 0.2% (per-unit of production) in fiscal 2016.
Environmental Challenges
- Increased number of occupational accidents resulting in lost work days in 2015 compared to 2014.
- Need to further reduce VOC emissions (904 tons/year target not achieved).
Mitigation Strategies
- Increased awareness through education for managers and supervisors to prevent future accidents.
- Continued efforts to reduce VOCs through product design changes (switching to solvent-free materials) and exhaust gas treatment equipment.
Supply Chain Management
Supplier Audits: 50 self-audits conducted by suppliers a year
Responsible Procurement
- Lintec Procurement Policy
- Lintec Green Procurement Policy
- Lintec Lumber Pulp Procurement Policy
Climate-Related Risks & Opportunities
Opportunities
- Development of energy-efficient products (e.g., window films).
Reporting Standards
Frameworks Used: GRI G4, ISO 26000
Certifications: ISO 9001, ISO 14001, ISO 22301
Third-party Assurance: SGS Japan Inc.
Sustainable Products & Innovation
- KP5000 label material using recycled PET.
- Light diffuser film for brighter reflective LCDs.
Awards & Recognition
- Label Industry Global Award for KP5000.
- Technology Promotion Award for light diffuser film.
Reporting Period: 2016-04 to 2017-03
Environmental Metrics
ESG Focus Areas
- Governance
- Environment
- Social
Environmental Achievements
- Reduced total energy use (crude oil equivalent) by 1.0% from the previous year due to energy-saving measures. CO2 emissions were 195,000 tons, achieving the target of 198,000 tons or less.
- Achieved zero emissions (final landfill disposal rate of 1.0% or less) for 10 consecutive years.
- Developed new environment-friendly products, including window films for energy saving, returnable labels for reuse, and KP5000 using recycled PET films for recycling.
- Increased percentage of solvent-free release paper to 56% (production basis).
Social Achievements
- Established the Diversity Committee to create workplace environments where diverse human resources can work together.
- Conducted a company-wide survey to identify top priority issues among employees.
- Implemented programs supporting employees engaged in family care and those suffering from injury or illness.
- Improved the percentage of paid leave taken to 61.6%.
Governance Achievements
- Maintained a high response rate (87.7%) in the compliance survey with officers and managers.
- No serious findings in audits by the Internal Audit Office.
- Implemented a global whistleblowing system covering group companies outside Japan.
Climate Goals & Targets
- Achieve 1% reduction from the previous year (per unit of production) for CO2 emissions, electric power consumption, waste discharge, and production water usage (2017-2019).
- Reduce CO2 emissions by 1.0% and energy use by 1.0% compared to fiscal 2016 (per-unit of production basis).
Environmental Challenges
- Appreciation of the yen and failure to grow sales outside Japan as planned (in fiscal 2016).
- Concerns about unknown consequences of the impact of US policy on the global economy, presidential elections in major European countries, and increasing geopolitical risks surrounding Japan.
Mitigation Strategies
- Completed the final fiscal year of its three-year medium-term business plan, Creating New Value by Deepening Innovation LINTEC INNOVATION PLAN 2016 (LIP-2016).
- Started a new medium-term business plan, LIP-2019, for new growth in April 2017, focusing on deepening innovation aimed at driving new growth.
Supply Chain Management
Supplier Audits: 88 companies responded to supplier survey
Responsible Procurement
- Lintec Procurement Policy, Lintec Green Procurement Policy, Lintec Lumber Pulp Procurement Policy
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI, ISO 26000
Certifications: ISO 14001, ISO 9001, ISO 22301
Third-party Assurance: SGS Japan Inc.
Sustainable Products & Innovation
- Window films, returnable labels, KP5000
Reporting Period: 2017-04 to 2018-03
Environmental Metrics
ESG Focus Areas
- Governance
- Environmental
- Social
Environmental Achievements
- CO2 emissions reduced to 186,000 tons in fiscal 2017 from 194,000 tons in fiscal 2016.
- Energy use per unit of production improved by 2.0% to 0.3173 kl per ton.
- Final landfill disposal rate of about 1.67% in fiscal 2017.
- Percentage of solvent-free release paper (production basis) was 55.1%.
- Percentage of solvent-free printing-related adhesive products (sales basis) was 73.7%.
Social Achievements
- Held CSR study sessions at 58 locations in and outside Japan, with about 4,100 employees participating.
- Established the SDGs Committee.
- Revised work regulations to allow more realistic use of programs and help individual employees work securely in their own environments and achieve work-family care balance.
- Distributed the Family Care Support Handbook to all employees.
- Provided employee education to maintain and improve quality and prevent quality incidents. Total participants in quality education program 4,593 employees.
Governance Achievements
- Appoints Audit and Supervisory Committee members as directors with voting rights to strengthen the supervisory function of the Board of Directors.
- Four out of 15 directors (including four Audit and Supervisory Committee members) are outside directors.
- Established the Corporate Risk Management Committee.
- Updated the BCMS to reinforce its defense.
- Enhanced the functions of Lintec USA Holding, Inc. as regional headquarters to strengthen the governance of group companies in the United States.
Climate Goals & Targets
- Reduce waste generated by 0.1% year-on-year.
- Reduce water usage by 1.0% per unit of production from the previous year.
- Reduce CO2 emissions by 1.0% and energy use by 1.0% compared to fiscal 2017, on a per-unit of production basis.
Environmental Challenges
- Sales fell below the initial numerical target of the medium-term business plan.
- Most operating profit was disproportionately generated from electronics-related business, meaning that the business portfolio remained unbalanced.
- Some group companies outside Japan are confronting an urgent need to improve their business.
- Promoting women in management and supervisory positions in Japan is lagging behind those at group companies outside Japan.
- Final landfill disposal rate fell short of the target.
Mitigation Strategies
- Developed a new action policy: deepening reforms, ensuring the “Customer First” principle, and achieving a sustainable future based on the CSR spirit.
- Established the SDGs Committee to achieve the growth and development of the Group while contributing to addressing environmental and social issues through its core business.
- Revised work regulations, including easing requirements for taking accumulated time off and family care leave.
- Increased the number of times employees are permitted to take a half-day off, and providing benefits during family care time off.
- Took measures to reduce long working hours, such as raising managers’ awareness and creating a work hour management list.
Supply Chain Management
Supplier Audits: 114/117 suppliers responded to a questionnaire.
Responsible Procurement
- Lintec Procurement Policy
- Lintec Green Procurement Policy
- Lintec Lumber Pulp Procurement Policy
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI, ISO 26000
Certifications: ISO 9001, ISO 14001, ISO 22301
Third-party Assurance: SGS Japan Inc.
Sustainable Products & Innovation
- Solvent-free release agents
- Solvent-free adhesive for printing-related products
Reporting Period: 2020-04 to 2021-03
Environmental Metrics
ESG Focus Areas
- Climate change
- Recycling
- Biodiversity
- Human rights
- Work-style reform
- Corporate governance
- SDGs
Environmental Achievements
- CO2 emissions reduced by 15,000 tons year on year, to 148,000 tons. This was attributable to the installation of new facilities at production bases to reduce environmental impacts, and lower production volumes, etc.
- Solvent-less percentage was 77% for adhesives used in adhesive products for labels and 56% for release agents used in release paper.
- Achieved zero emissions with a final landfill disposal rate of less than 1.0%.
Social Achievements
- Percentage of paid leave taken increased from approximately 51% in FY2015 to approximately 62% in FY2021.
- Introduced an interval system that stipulates a certain minimum number of hours that must be taken off between periods of work.
- Introduced teleworking and flex-time systems as coronavirus countermeasures.
- Increased the percentage of women among managers and supervisors.
Governance Achievements
- Increased the number of independent outside directors on the Board of Directors to one in three.
- Implemented the evaluation of the effectiveness of the Board of Directors.
- Established the Sustainability Committee.
Climate Goals & Targets
- Achieve net zero emissions by 2050.
- Reduce CO2 emissions by more than 50% by 2030 compared with the fiscal 2013 level.
- Achieve net zero emissions by 2050.
- Achieve an operating income margin of at least 12% and ROE of a minimum of 10% by FY2030.
- Net sales of ¥255.0 billion, operating income of ¥21.0 billion, profit attributable to owners of parent of ¥14.0 billion, an operating income margin of 8% or higher, and ROE of 7% or higher by FY2024.
Environmental Challenges
- Weak demand due to the COVID-19 pandemic.
- High prices for pulp and petrochemical raw materials.
- Tougher price competition in the market.
- Supply chain disruptions caused by natural disasters.
- Risks of changes in economic conditions and market environments.
- Risks of changes in selling prices.
- Risks of changes in raw material prices.
- Risks related to overseas operations.
- Risks of changes in foreign exchange rates.
- Risks related to new product development.
- Risks related to intellectual property rights.
- Risks related to significant lawsuits.
- Risks related to legal and regulatory systems.
- Risks related to natural disasters and major accidents.
Mitigation Strategies
- Accelerating capital investment to reduce environmental load, including reducing CO2 emissions.
- Advancing reductions in the use of organic solvents.
- Strengthening the product supply structure to meet robust demand in semiconductor- and electronic component-related markets.
- Strengthening cost competitiveness with innovation in production processes.
- Reforming the structure of low-growth and unprofitable businesses.
- Maintaining a solid financial base and improving capital efficiency.
- Implementing DX projects to further strengthen R&D capabilities.
- Strengthening collaboration among companies to solve plastic issues.
- Establishing localization so that overseas Group companies can expand earnings autonomously.
- Creating balance sheets for each business operation.
- Advancing DX projects to increase operational efficiency.
- Strengthening global financial management.
- Implementing measures to protect intellectual property rights.
- Establishing a Groupwide risk management system.
Supply Chain Management
Responsible Procurement
- Requesting suppliers to consistently implement CSR activities from multiple perspectives, including respect for human rights, occupational health and safety, information security, and corporate ethics.
- Evaluating major suppliers in such areas as management, labor, service, quality, and the environment.
Climate-Related Risks & Opportunities
Physical Risks
- Natural disasters
Transition Risks
- Changes in laws and regulations
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: Value Reporting Foundation (VRF) “International Integrated Reporting Framework”, Ministry of Economy, Trade and Industry “Guidance for Collaborative Value Creation”, GRI Standards, UN Global Compact, ISO 26000
Certifications: ISO 14001, ISO 45001, ISO 9001:2015, ISO 22301:2012
Third-party Assurance: SGS Japan
Sustainable Products & Innovation
- Solvent-less products
- Recycled PET materials
- Biodegradable and biomass materials
- Plastic-alternative adhesive paper for labels
- Printing paper with excellent water-resistance properties
- Thick water- and oil-resistant paper
- High-frequency dielectric heating adhesive film
- Electrical release adhesive sheets
- Pellicles for EUV lithography systems
- Materials for next-generation device manufacturing processes
- Ultra-thin thermoelectric modules
- High-performance window films
- Ultra-thin and lightweight Peltier modules
- Transparent film heaters
- Biodegradable products
- Biomass products
- Recyclable products
Awards & Recognition
- Gomez IR Site Ranking 2020 Gold Prize
- Gomez ESG Site Ranking 2020 Internet IR 優良賞
- 2020 Internet IR Awards Commendation Award
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Reduced CO2 emissions to 148,000 tons in FY2021 from 163,000 tons in FY2020.
- Achieved zero emissions with a final landfill disposal rate of less than 1.0%.
- Solvent-less percentage of 77% for adhesives and 56% for release agents.
- Reduced total energy consumption to 14,000 kiloliters of crude oil equivalent.
Social Achievements
- Increased percentage of paid leave taken from approximately 51% in FY2015 to approximately 62% in FY2021.
- Implemented work-style reforms, including teleworking and flex-time systems.
- Advanced awareness of female employees through training and increased female manager ratio to approximately 14%.
- Introduced a Job Return System for rehiring former employees.
- Reduced major quality incidents by 63% compared to FY2011.
Governance Achievements
- Established the Sustainability Committee with the president as its leader and outside directors participating.
- Increased the number of independent outside directors to four (one-third of the board).
- Conducted an evaluation of the effectiveness of the Board of Directors.
Climate Goals & Targets
- Achieve net zero emissions by 2050.
- Reduce CO2 emissions by more than 50% by 2030 compared with the fiscal 2013 level.
Environmental Challenges
- Risks of changes in economic conditions and market environments.
- Risks of changes in selling prices due to intense competition.
- Risks of changes in raw material prices.
- Risks related to overseas operations.
- Risks associated with new product development.
- Risks related to intellectual property rights.
- Potential for significant lawsuits.
- Impact of legal and regulatory systems.
- Impact of natural disasters and major accidents.
Mitigation Strategies
- Working to discover new demand, increase market share, and create new markets.
- Achieving differentiation from competition and refining customer services.
- Reducing costs.
- Careful monitoring of market trends for raw material purchases.
- Using forward exchange contracts to reduce foreign exchange risk.
- Increased R&D investment.
- Taking necessary measures to protect intellectual property rights.
- Ensuring rigorous compliance with legal and regulatory systems.
- Having BCP and BCMS in place to respond to natural disasters and major accidents.
Supply Chain Management
Responsible Procurement
- Requesting suppliers to consistently implement CSR activities.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: SDGs, GRI Standards, UN Global Compact, ISO 26000
Certifications: ISO 14001, ISO 45001, ISO 9001:2015, ISO 22301:2012
Third-party Assurance: SGS Japan (for some environmental data)
Sustainable Products & Innovation
- Plastic-free products
- Adhesive paper for labels
- Water-resistant printing paper for paper bags
- Thick water- and oil-resistant paper for food containers
- Labelstock using recycled PET resin
Awards & Recognition
- Morningstar Japan K.K. Gomez IR Site Ranking 2020 Gold Prize
- Gomez ESG Site Ranking 2020 Excellent Company
- Daiwa Investor Relations Co., Ltd. 2020 Internet IR Awards Commendation Award
- Nikko Investor Relations Co., Ltd. Fiscal 2020 All Japanese Listed Companies’ Website Ranking AAA Website
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Planted trees in various locations (Vietnam, Malaysia, Taiwan)
- Implemented a method using PET bottles for watering planted trees in Taiwan
- Collected 500 pounds of flexible plastic waste in Stow headquarters (MACTAC Americas) to be converted into a recycled plastic bench.
Social Achievements
- Held a “making kimchi with love” volunteer activity in Vietnam, distributing kimchi and rice to elderly people and single-parent families.
- Organized mangrove planting in Malaysia.
- Donated furniture and toys made from waste materials to a local elementary school in Thailand.
- Supported a support group (Hearts@Work) in Singapore that employs persons with special needs.
- Conducted annual fundraising event (Rock-Paper-Scissors) in the US, with donations matched by the company.
- Organized Earth Day Community Cleanup in the US (Madico).
Governance Achievements
- Conducted harassment education for all employees, including workplace bullying and sexual harassment education and disability awareness improvement education in Korea.
- Held compliance training sessions every other month in Japan (LINTEC SIGN SYSTEM, INC.).
- Constructed firefighting installations in Vietnam to comply with revised fire law.
Climate Goals & Targets
Environmental Challenges
- COVID-19 pandemic restrictions impacting events and activities.
- Potential for accidents such as fires and solvent leaks.
Mitigation Strategies
- Creative planning for CSR activities despite pandemic restrictions.
- Periodic training on emergency response, including fire drills and chemical leak response.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2022-04 to 2023-03
Environmental Metrics
ESG Focus Areas
- Environment
- Society
- Governance
Environmental Achievements
- Reduced CO2 emissions by 46,000 tons year on year, to 113,000 tons. This was due to efforts to reduce environmental impact by installing new equipment at production bases.
- Reduced toluene handling and emission volumes due to efforts to promote solvent-less production.
- Increased solvent-less release paper percentage from 54% to 64%.
Social Achievements
- Acquisition of Label Supply (Ontario, Canada) business, which engages in the slitting and sale of adhesive products for labels.
- Conducted an employee survey for the first time at LINTEC and its Group companies in Japan to enhance employee satisfaction and create a pleasant and invigorating workplace.
- Introduced postpartum paternity leave, providing five days of paid leave.
Governance Achievements
- Increased the number of independent outside directors on the Board.
- Established the Business Deliberation Council to ensure sufficient deliberation on significant topics such as M&A deals.
- Revised basic policy on dividends to not reduce dividends for the next four fiscal years.
Climate Goals & Targets
- Net-zero emissions by 2050
- Achieve 12% operating profit margin and 10% ROE by fiscal year ending March 31, 2030
- Solvent-less percentage of 100% for release paper by 2030
- Reduce Groupwide emissions by 50% or more from 2013 levels by 2030
Environmental Challenges
- Sharply higher prices for raw materials, especially pulp.
- Substantial sales volume decrease due to a downturn in the market for electronic- and optical-related products.
- Downturn in orders for other products led to a lower rate of utilization at production facilities, causing operating losses to grow.
Mitigation Strategies
- Thorough cost reduction efforts and product price revisions.
- Optimizing business portfolio and setting criteria for withdrawing from businesses.
- Improving asset utilization for each business operation.
Supply Chain Management
Supplier Audits: Evaluated major suppliers in areas such as management, labor, service, business continuity plans (BCPs), and overseas response through a questionnaire.
Responsible Procurement
- Requesting suppliers to consistently implement CSR activities from multiple perspectives, including respect for human rights, occupational health and safety, information security, and corporate ethics.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: International Integrated Reporting Framework, Guidance for Collaborative Value Creation
Certifications: ISO 45001, ISO 9001, ISO 22301
Third-party Assurance: SGS Japan, Inc.
Sustainable Products & Innovation
- Solvent-less release paper
- Emulsion-based and hot-melt adhesives
- Thick water- and oil-resistant paper
- Label materials that are the same mono-material as PET containers
- Window film
Awards & Recognition
- 2022 Internet IR Awards (Excellence Award)
- 2022 Gomez IR Site Ranking (Gold Prize)
Reporting Period: 2022-04-01 to 2023-03-31
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Not disclosed
Social Achievements
- Not disclosed
Governance Achievements
- Not disclosed
Climate Goals & Targets
- Not disclosed
- Not disclosed
- Not disclosed
Environmental Challenges
- Not disclosed
Mitigation Strategies
- Not disclosed
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Not disclosed
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: GRI
Certifications: Null
Third-party Assurance: SGS Japan Inc.
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Reduced CO2 emissions by 39.7% compared with fiscal 2013 levels by 2022. Aiming for a 50%+ reduction by 2030 and net-zero emissions by 2050.
- Increased percentage of solvent-less release paper from 64% to 100% by 2030.
- Developing plastic-free and biomass-based products.
Social Achievements
- Acquisition of Label Supply (Ontario, Canada) business in May 2023.
- First-time employee survey conducted in 2023 to enhance employee satisfaction.
- Introduced succession plans to foster the long-term development of management executives.
Governance Achievements
- Strengthened corporate governance and increased effectiveness of the Board of Directors.
- Launched a Companywide DX promotion project (LDX 2030) in October 2022.
- Revised basic policy on dividends to ensure no reduction for the next four fiscal years.
Climate Goals & Targets
- Net zero emissions by 2050
- Achieve 30% renewable energy by 2030
- Reduce CO2 emissions by 50% or more compared with fiscal 2013 levels by 2030.
- Reduce water consumption by 10% by 2025
Environmental Challenges
- Sharp increases in raw material and fuel prices.
- Rapid decline in demand for electronic- and optical-related products.
- Sluggish markets for semiconductors and electronic components.
Mitigation Strategies
- Thorough cost reduction efforts and product price revisions.
- Capital expenditures, production site reforms, and initiatives to improve profitability.
- Optimizing business portfolio and setting criteria for withdrawing from businesses.
Supply Chain Management
Responsible Procurement
- Collaboration with suppliers to provide high-quality materials.
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- Solvent-less release paper
- Biomass-based products
- Recycled materials
- Peltier modules
- Film heaters
- Koamamo mixed paper
Reporting Period: 2023-04 to 2024-03
Environmental Metrics
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Reduced CO2 emissions by 51.4% compared with the fiscal year ended March 31, 2014 (exceeding the initial target of more than 50% reduction by 2030 ahead of schedule)
- Launched a new label material to promote the recycling of plastic containers
- Expanded automotive window film lineup with a new high-transparency, high heat-shielding product
Social Achievements
- Increased percentage of annual paid leave taken by employees to 76.5% in FY2024 (up 3.8 percentage points from the previous year)
- Increased percentage of men taking childcare leave
- Sponsoring the Tokyo Tech Alumni Association’s Kuramae Science Program Fushigi Fushigi (Kurarika), a science class for elementary school students
Governance Achievements
- Maintained independent outside director ratio at one-third on the Board of Directors
- Established the Sustainability Committee with participation of all outside directors
- Implemented an annual survey of all directors on their evaluation of the effectiveness of the Board of Directors
Climate Goals & Targets
- Achieve carbon neutrality by 2050
- Reduce CO2 emissions by 75% or more by FY2030 compared with FY2014
- Achieve carbon neutrality by 2050
- Increase the number of sites where cogeneration systems are installed from four to six
- Increase the use of solvent-free release agents and adhesive agents to 75% by 2030; complete shift to solvent-free release paper by 2030 (all release paper produced at Kumagaya and Mishima plants, except specialty products)
- Reduce CO2 emissions by 67% or more by FY2027 compared with FY2014
Environmental Challenges
- Significant decline in sales volume of electronic and optical products in the first half of FY2024
- High prices of major raw materials and rising logistics costs
- Economic slowdowns in China and Taiwan
- Decline in sales volume at MACTAC AMERICAS, LLC due to prolonged inventory adjustments
Mitigation Strategies
- Price revisions
- Cost reduction measures
- Productivity improvements
- Proactive M&A activities
- Consolidation of production facilities
- Moving toward solventless products
- Controlling volatile organic compound emissions
Supply Chain Management
Responsible Procurement
- Requesting compliance with CSR from business partners and related parties, including suppliers; evaluating major suppliers in such areas as management, labor, service, BCPs, and overseas response
Climate-Related Risks & Opportunities
Physical Risks
- Torrential rain and flood damage
- Drought
Transition Risks
- Changes in the raw materials procurement environment; increased costs due to carbon pricing
Opportunities
- Increase in demand for various eco-friendly products; increase in demand for energy-saving products
Reporting Standards
Frameworks Used: International Integrated Reporting Framework, Guidance for Collaborative Value Creation
Certifications: ISO 45001, ISO 22301 (LINTEC Corporation and TOKYO LINTEC KAKO, INC.), ISO 9001
Sustainable Products & Innovation
- Fluorine-free oil-resistant paper
- Bump support film
- Solventless release paper
- Label materials that promote the recycling of plastic containers
- Automotive window film with high heat shielding properties
- CNT pellicles for EUV lithography equipment
Awards & Recognition
- Daiwa Investor Relations Co. Ltd. 2023 Internet IR Awards Excellence Award
- Nikko Investor Relations Co., Ltd. Fiscal 2023 All Japanese Listed Companies’ Website Ranking AAA Website (Overall Division)
- BroadBand Security, Inc. Gomez IR Site Ranking 2023 Gold Prize (20th)
- Gomez ESG Site Ranking 2023 Excellent Company (43rd)