Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emission (Specific figures vary by plant and are presented as coefficients)
• Reduced total emissions toward zero emission (Specific figures vary by plant and are presented as coefficients)
• Reduced environmental load applied by products and production processes (Specific figures vary by plant and are presented as coefficients)
• Achieved target for waste reduction in 2019

Social Achievements

• Active participation in local community cleanup campaigns (though some were cancelled due to typhoon or COVID-19)
• Implemented COVID-19 prevention measures including partitions, masks, alcohol, and work-from-home options

Governance Achievements

• ISO 14001 certification obtained in all plants in 2003
• Established environmental management system with committees and qualified personnel across plants

Climate Goals & Targets

Environmental Challenges

• Unexpected discharge of sludge at Mirror plant impacting waste reduction targets
• COVID-19 pandemic impacting community engagement activities

Mitigation Strategies

• Improved production line yields to reduce defective product emissions
• Expanded dismantlement of defective products and reuse of raw materials
• Promoted change from landfill disposal to recycling
• Implemented COVID-19 prevention measures

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14001

Sustainable Products & Innovation

• Development of resin materials that reduce thickness and weight of products
• Development of products aiming at low price and improved dismantability of LED light sources
• Development of paints aiming at low solvent and reduced drying time

Environmental Metrics

ESG Focus Areas

• Growth strategies
• Innovation
• Human resource development
• Environmental policies
• Quality management
• Management practices considering capital costs and stock prices
• Social responsibility
• Carbon neutrality

Environmental Achievements

• Reduced CO2 emissions by 9% compared to the base year (FY2019). In FY2023, CO2 emissions decreased despite increased production volume.
• Reduced water consumption by approximately 70% compared to 2019 levels (largely due to the use of industrial recycled water at the Isehara Plant).
• Introduced solar power generation at Kyushu Ichikoh and installed heat pumps in boilers at the Fujioka Plant in 2023, resulting in further CO2 emission reductions.

Social Achievements

• Successfully increased the output and reduced the weight of the low-beam module for the new Alphard and Vellfire models (awarded the Technology Development Award from Toyota Motor Corporation in 2023).
• Implemented the “General Employer Action Plan in line with the Act on Promotion of Women’s Participation and Advancement in the Workplace”.

Governance Achievements

• Achieved one-third of the board composed of independent outside directors, including one female director, by March 2024.
• Established a new CSR section within the Corporate Planning Department in 2024 to strengthen CSR-related activities.
• Closely monitoring ICHIKOH’s governance under the supervision of the Conflict of Interest Monitoring Committee, chaired by an Independent Director.

Climate Goals & Targets

Environmental Challenges

• Rising raw material and energy costs impacting profit margins.
• Domestic automobile production trending downward due to factors such as the vehicle certification fraud issue and delays in the development of new models.
• Rising costs of imported raw materials due to inflation and the weakening yen.
• Competition for human resources becoming extremely tough due to a predicted decrease in the working population in Japan.

Mitigation Strategies

• Price pass-through of increased energy and import costs to prices.
• Revised medium-term management plan focusing on reducing fixed costs, investing in emerging markets, and advancing technological innovations.
• Investing in labor-saving technologies, automation, and improvements in factory production systems.
• Promoting further diversity and providing more education to employees.
• Developing strategies for new market entry.

Supply Chain Management

Responsible Procurement

• Business Partner Code of Conduct
• Green Procurement Guidelines
• Annual assessments for conflict minerals

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Strengthening of environmental regulations and changing customer requirements

Opportunities

• Expanded sales of products that contribute to low-carbon mobility

Reporting Standards

Frameworks Used: IIRC Integrated Reporting framework, TCFD recommendations

Certifications: ISO 14001, ISO 50001, IATF 16949

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 9 (Industry, innovation, and infrastructure)
• SDG 11 (Sustainable cities and communities)
• SDG 12 (Responsible consumption and production)
• SDG 13 (Climate action)

ICHIKOH's initiatives contribute to these goals through low-carbon mobility solutions, energy efficiency improvements, sustainable product development, and responsible resource management.

Sustainable Products & Innovation

• HD Lighting
• Near-Field Projection
• e-Grille
• Communication lighting

Awards & Recognition

• Technology Development Award from Toyota Motor Corporation (2023)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions (specific figures vary by plant and are presented as coefficients)
• Reduced total emissions (specific figures vary by plant and are presented as coefficients)
• Reduced usage of paint, thinner, and IPA (specific figures vary by plant and are presented as coefficients)
• Achieved target for waste reduction in 2020

Social Achievements

• Maintained a low accident rate (4.0 accidents in Ichikoh Group)
• Active participation in local community cleanup campaigns (though cancelled in FY2020 due to COVID-19)

Governance Achievements

• Established environmental countermeasure system with legally qualified personnel across plants
• ISO 14001 certification obtained at all plants including the newly established Atsugi plant

Climate Goals & Targets

Environmental Challenges

• Unplanned disposal of delivery containers in Mirror plant impacting waste reduction targets
• Lowering production efficiency in Mirror plant due to a drastic decline in production volume
• COVID-19 pandemic impacting community engagement activities

Mitigation Strategies

• Improved production line yields to reduce defective products and emissions
• Expanded dismantlement of defective products and reuse of raw materials
• Communized procedures for emission disposal across the company
• Implemented COVID-19 prevention measures (partitions, masks, alcohol, social distancing, work from home, etc.)

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Development of resin materials that reduce the thickness and weight of products
• Development of LED light source products aiming at low price and improved dismantability
• Development of paints aiming at low solvent and reduced drying time

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Safety and Health
• Resource Recycling
• Waste Reduction
• Energy Efficiency
• Chemical Substance Management
• Community Engagement

Environmental Achievements

• Reduction of CO2 emission per product
• Reduction of total emission aiming zero emission
• Reduction of environmental impact in each production process
• Energy saving by optimizing temperature settings of air conditioner
• Energy saving by turning off unnecessary lights
• Improvement of production yield at production line (reducing paint, thinner, and IPA usage)

Social Achievements

• No leave of absence due to occupational accidents
• Annual environmental cleanup activities for local community (although cancelled in FY2021 due to COVID-19)
• Active participation in Fujioka Environmental Committee

Governance Achievements

• Compliance with environmental laws and other requirements
• Periodic review and continuous improvement of environmental activities
• Establishment and implementation of rules for thorough infection prevention measures against COVID-19

Climate Goals & Targets

Environmental Challenges

• Inefficiency due to defects and decrease in production volume (affecting waste and emission targets)
• COVID-19 pandemic impacting community engagement activities

Mitigation Strategies

• Absorbing the effects of production issues in other periods
• Continuing activities to further reduce waste
• Implementing COVID-19 countermeasures (masks, partitions, disinfection, work-from-home, etc.)

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14001

Sustainable Products & Innovation

• Development of thinner and lighter products
• Development of resin materials reducing raw material use
• Development of LED light sources
• Development of paints with lower solvent and reduced drying time

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Efficiency
• Waste Reduction
• Chemical Substance Management
• Biodiversity
• Safety and Health

Environmental Achievements

• Reduced CO2 emissions by implementing calendar timers for material dryers and steam valve opening/closing in conjunction with production facility shutdowns.
• Achieved ISO 50001 certification for energy management system at all Japan manufacturing sites in April 2022.
• Conversion from heavy oil boilers to heat pumps and expanding the recycling of resin waste.

Social Achievements

• Implemented countermeasures against COVID-19, including distributing masks, installing partitions, and providing hand sanitizer.
• Active participation in local community environmental committees (Isehara and Fujioka).

Governance Achievements

• Established and implemented rules for thorough infection prevention measures.
• Control of qualified persons based on "Guideline for Execution of Operation of Qualified Person in Charge".

Climate Goals & Targets

Environmental Challenges

• Energy consumption increased due to the trial and relocation of facilities by shifting the production from Isehara Plant to Atsugi Plant.
• Chronic defects and defects in new products also occurred.
• Inefficient production at some plants.

Mitigation Strategies

• Horizontal dissemination of good examples to each site
• Improvement of production yield in production line
• Energy saving by thoroughly management of temperature of air conditioners
• Energy saving by turning off unnecessary lighting
• Promotion to switchover from fluorescent lights to LED

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14001, ISO 50001

Certifications: ISO 14001, ISO 50001

Sustainable Products & Innovation

• Development of environmentally friendly materials and processes
• Product design which reduces environmental impact
• Development of production technologies not using paint