Climate Change Data

Daiki Aluminium Co., Ltd.

Climate Impact & Sustainability Data (2021-04 to 2022-03, 2023)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:107,735 tons CO2e/year
Renewable Energy Share:8%
Total Energy Consumption:35,413 MWh/year
Waste Generated:8,323 tons/year (including 5,498 tons for recycling and 2,825 tons for landfill)

ESG Focus Areas

  • Climate Change
  • Circular Economy
  • Resource Recycling
  • Safety
  • Workforce Diversity
  • Governance
  • Community Engagement
  • Human Rights

Environmental Achievements

  • Reduced new ingot usage by 7,529 tons, resulting in a 75,290t-CO2 reduction.
  • Achieved approximately 64% CO2 emission reduction with the introduction of EV forklifts.
  • Installation of solar panels generating approximately 8% of annual electricity usage, resulting in a calculated annual reduction of 165 tons of CO2.
  • Improved energy efficiency in Kameyama plant's holding furnace by approximately 45% through various measures including regenerator burner installation, furnace sealing, and use of high-performance insulation materials.

Social Achievements

  • Implemented a new training system in 2022 to foster future-creating personnel and organizations.
  • Continued QC circle activities since 1982, promoting quality management and improvement.
  • Donation of clothing and daily necessities to childcare facilities and nursing homes in the Philippines.

Governance Achievements

  • Established a robust corporate governance structure with 3 independent outside directors on the board of directors.
  • Developed a business continuity plan (BCP) manual.
  • Regular meetings of the Compliance Committee and Sustainability Committee to monitor and improve ESG performance.

Climate Goals & Targets

Medium-term Goals:
  • Reduce CO2 emissions by 25% by 2030 (compared to 2019).

Environmental Challenges

  • Increase in CO2 emissions in 2021 due to a 16% increase in production (mainly from new production in India).
  • High number of workplace accidents in 2021 (23 in domestic and 16 in overseas locations).
  • Need for further improvement in diversity and inclusion, particularly in the promotion of women and foreign nationals to core positions.
Mitigation Strategies
  • Continuous efforts to reduce CO2 emissions per unit of production through equipment improvements and operational enhancements.
  • Strengthening safety measures, including regular safety checks, company-wide safety patrols, and remote patrols.
  • Promoting automation of production processes to improve safety and efficiency.
  • Efforts to improve diversity and inclusion through personnel development and improvements to the internal environment.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Global and Green
  • Strengthening of the management base
  • Taking on the challenge of creating an advanced recycling-oriented society
  • Conservation of the global environment
  • Contribution to local communities and society and their development
  • Development and effective use of human resources

Environmental Achievements

  • Installation of solar panels at Seishin Seisakusho and Hirakawa Plant (fiscal year 2022), Yuuki Plant and Indian plant (fiscal year 2023), plan to install solar panels at a Thai plant.
  • Reduction of CO2 emissions from production and distribution processes (target: 25% reduction compared to fiscal year 2019)

Social Achievements

  • 100% return-to-work rate after childcare leave (clerical, sales, and research positions)
  • Redesigned training system and launched a position-based training program (fiscal year 2022)

Governance Achievements

  • Establishment of a Sustainability Committee chaired by the president, with subcommittees to analyze company-wide sustainability issues

Climate Goals & Targets

Medium-term Goals:
  • Reduce CO2 emissions by 25% compared to fiscal year 2019.
  • Increase the proportion of female officers to 30% (Japanese government target).

Environmental Challenges

  • Slowdown in automobile production due to large consumer inventories and stagnant exports.
  • Changes in scrap recycling growth in horizontal recycling (e.g., CAN-to-CAN, sash-to-sash recycling).
  • Securing scrap for secondary aluminum smelters and territorial division.
  • Explosion accident at Kameyama Plant (December 2022) and fatal accident at Daiki Material (January 2023).
Mitigation Strategies
  • Simultaneous inspections for unsafe equipment at all group bases (Japan and overseas).
  • Installation of safety fences, sensor-based equipment shutdown systems, and covers on drive parts.
  • Safety training for employees and subcontractors.
  • Revised restoration work instructions and permits.
  • Improved dust cleaning methods (using suction instead of blowers).
  • Modified equipment to reduce dust generation.

Supply Chain Management

Climate-Related Risks & Opportunities