Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• People

Environmental Achievements

• Reduced CO2 emissions by 3% per unit of sales and total volume less than the previous year.
• Reduced total energy usage by 5%.
• Reduced waste emissions by 16%.
• Maintained a recycling ratio of 99% or more.
• Reduced water usage by 5%.
• Reduced emissions of harmful chemical substances by 18%.

Social Achievements

• Four-fold increase in women in management positions compared to 2014.
• 19.5% of new graduate hires were women.
• Implemented training based on organizational hierarchy and enhanced training for leadership positions.
• Introduced flexible working schedules and a telecommuting system.
• Zero occupational accidents.
• Zero overworked workers.

Governance Achievements

• Revised compliance rules to strengthen the global compliance system.
• Established a corporate governance system including a Board of Directors with outside directors and an Audit & Supervisory Board.

Climate Goals & Targets

Environmental Challenges

• Difficult business environment due to U.S.-China trade friction, stricter fuel economy regulations in Europe, and economic sanctions on Iran.
• Need to rebuild financial base for sustainable growth.

Mitigation Strategies

• Concentrated management resources in the Automotive Systems Business.
• Accelerated efforts in response to changes in the automobile industry.
• Implemented comprehensive structural reforms and a New Mid-term Management Plan (“SCOPE 2023”).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sanden Group Supplier Fundamental Principles (posted on website).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Japanese Ministry of the Environment’s 2018 Environmental Reporting Guidelines

Certifications: ISO 14001, IATF 16949

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 9
• Goal 12
• Goal 13
• Goal 4
• Goal 5
• Goal 8

The report links various initiatives to relevant SDGs, showing how business activities contribute to sustainable development.

Sustainable Products & Innovation

• Heat pump system for electric vehicles
• Electric coolant heater for electric vehicles
• Super-chilled beverage vending machine
• Cold chain system for food distribution

Awards & Recognition

• Excellent Experiences Award (SMASH HIT Circle)
• Kaoru Ishikawa Award for Promoters (SMASH HIT Circle)