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.