Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Diversity & Inclusion
• Work-Life Balance
• Supply Chain Responsibility
• Risk Management
• Corporate Governance

Environmental Achievements

• Developed and expanded sales of ONE Bio, a biomass additive for plastic products, contributing to CO2 emission reduction.
• Developed and expanded sales of Biotonic series, a fuel additive for biomass power generation, contributing to decarbonization.
• Used rebuild and recycle parts in vehicle maintenance and repair, conserving resources and reducing environmental burden.
• Used LED lighting in parking lots to reduce energy consumption.
• Implemented initiatives to reduce waste in agricultural operations (e.g., reuse of spent coconut husk media).

Social Achievements

• Launched various projects to promote diverse working styles and diversity.
• Implemented a 5-day consecutive holiday system and 1-hour unit paid leave system.
• Implemented a part-time work system for employees with children up to elementary school 3rd grade.
• Conducted anti-harassment training for all employees.
• Achieved 9 consecutive years of DBJ Health Management rating.
• Continued efforts in community investment through agricultural operations (e.g., job creation, utilization of abandoned farmland).

Governance Achievements

• Established a Nomination and Remuneration Committee to enhance the fairness, transparency, and objectivity of procedures related to the nomination and remuneration of directors.
• Maintained a high level of transparency in reporting to the board of directors and external directors.
• Implemented a robust risk management system, including regular reporting and direct reporting channels for emergencies.

Climate Goals & Targets

Environmental Challenges

• Climate change and the transition to a decarbonized society.
• The impact of the COVID-19 pandemic on parking business operations.
• Increasing maintenance costs due to rising maintenance fees and a shortage of skilled workers.
• Decreasing fuel sales due to the spread of fuel-efficient vehicles.
• The need to adapt to the electrification and automation of automobiles.
• Maintaining profitability in the face of rising material costs.
• Developing new products and expanding into new markets.
• Improving the profitability and operating profit margin of the machinery and tools sales business.
• Expanding the scale of the glass processing business and agricultural business.
• Improving the quality of agricultural products and increasing sales prices.
• Reducing production costs in the agricultural business.

Mitigation Strategies

• Developing and implementing strategies for decarbonization, including the use of renewable energy and energy-efficient technologies.
• Implementing cost reduction measures and exploring new business opportunities in the parking business.
• Building a maintenance service network that supports next-generation vehicles.
• Diversifying disposal methods for used vehicles and expanding into overseas markets.
• Developing new products and services that meet the needs of the changing automotive industry.
• Implementing flexible working arrangements and improving the working environment.
• Strengthening sales capabilities and product development capabilities through mergers and acquisitions.
• Developing new products and expanding into new markets.
• Implementing cost reduction measures and improving operational efficiency.
• Developing new products and expanding into new markets.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Changes in regulations and market shifts related to decarbonization.

Opportunities

• Development of environmentally friendly products and services.

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

The company's initiatives contribute to these goals through various environmental and social programs.

Sustainable Products & Innovation

• ONE Bio (biomass additive)
• Biotonic series (fuel additive)
• Recycled resin products
• Environmentally friendly chemical products

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced CO2 emissions by 14.3% (Scope 1) and 21.7% (Scope 2) from 2017 to 2021.
• Increased use of reuse batteries in automotive lease business: 5,225 units in FY2021 to 5,401 units in FY2022.
• Development and sale of refrigerant recovery equipment that suppresses fluorocarbon emissions.

Social Achievements

• Launched Ichinen Telematics service in 2015 to promote safe driving and reduce traffic accidents.
• Expansion of environmentally friendly products in the chemical business (e.g., biomass additives).

Governance Achievements

• Established a governance structure for climate change response, centered around the Compliance and Risk Management Committee, overseen by the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Decreased sales of fossil fuels due to the shift to electric vehicles.
• Increased costs associated with carbon taxes and stricter environmental regulations.
• Strengthening plastic regulations.
• Potential for business disruption due to extreme weather events and natural disasters.
• Increased competition in the hydrogen-related technology sector.

Mitigation Strategies

• Diversification of suppliers and procurement strategies.
• Development of environmentally friendly products and services (e.g., biomass additives, portable power supplies).
• Investment in BCP measures to mitigate risks from natural disasters.
• Development of technologies to adapt to climate change (e.g., heat-resistant materials, flood control measures).
• Shifting to low-carbon business models and exploring new business opportunities in the renewable energy sector.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, floods)
• Sea level rise
• Heat waves

Transition Risks

• Shift to electric vehicles
• Carbon pricing
• Strengthening environmental regulations
• Increased competition in renewable energy sector

Opportunities

• Growth in EV maintenance services
• Expansion of environmentally friendly products
• Development of hydrogen-related technologies
• Increased demand for disaster prevention products

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Biomass additives
• Recycled pellets
• Portable power supplies
• Refrigerant recovery equipment

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Diversity & Inclusion
• Workforce Well-being
• Governance

Environmental Achievements

• Developed and expanded the use of ONE Bio, a biomass additive for general-purpose resins, contributing to CO2 emission reduction.
• Developed biomass power generation using tomato residue.
• Increased use of LED lighting in parking facilities to reduce energy consumption.
• Promoting the use of rebuild and recycle parts in vehicle maintenance to conserve resources and reduce environmental burden.
• Promoting the use of refrigerant recovery equipment to reduce greenhouse gas emissions.

Social Achievements

• Launched a Global Human Resource Development Plan to send young employees to overseas bases.
• Implemented a 5-day consecutive holiday system and 1-hour unit paid leave system.
• Consistently received high ratings in DBJ Health Management Assessment for 10 consecutive years.
• Implemented harassment prevention education for all employees in 2021.
• Community investment through agricultural activities in various regions.

Governance Achievements

• Established a Nomination and Remuneration Committee to enhance the fairness, transparency, and objectivity of procedures related to the nomination and remuneration of directors.
• Maintained open communication with shareholders through various channels.
• Implemented a robust risk management system, including regular reporting to the board.

Climate Goals & Targets

Environmental Challenges

• Electrification of automobiles and miniaturization of leased vehicles.
• Increased maintenance costs due to rising maintenance fees.
• Improving profitability of vehicle sales business.
• Decreased refueling volume due to the spread of fuel-efficient vehicles.
• Transition to clean energy in a decarbonized society.
• Responding to a decarbonized society.
• Expansion of business scale.
• Responding to rising prices and ensuring stable product supply.
• Development of new products.
• Responding to the advancement of ICT in society.
• Expansion of business scale.
• Responding to a decarbonized society.
• Responding to the electrification/automation of automobiles.
• Expansion of business scale.
• Improving profitability/operating profit margin.
• Promoting work style reform.
• Responding to a decarbonized society.
• Expansion of business scale.
• Expansion of business scale in the glass processing business.
• Expansion of business scale in the agricultural business.
• Providing high-quality agricultural products and improving sales prices in the agricultural business.
• Reducing various production costs in the agricultural business.

Mitigation Strategies

• Building a maintenance service network for next-generation vehicles.
• Actively developing relatively less competitive regional markets and small- and medium-sized enterprises.
• Building a unique maintenance network.
• Diversifying disposal routes, including overseas exports.
• Diversifying sales methods.
• Pursuing customer satisfaction and acquiring new customers.
• Building a new fuel/power business.
• Establishing a business reform project.
• Promoting BPR and introducing digital technologies.
• Strengthening customer base through customer-centric business promotion.
• Expanding the scale of non-leasing businesses.
• Expanding sales of ONE Bio and other environmentally friendly chemical products.
• Accelerating and strengthening the development of fuel additives for biomass boilers.
• Developing new products suitable for the new mobility society.
• Accelerating overseas expansion.
• Entering new niche markets.
• Selecting flexible procurement sources.
• Strengthening product development capabilities and improving quality.
• Developing sales engineers.
• Differentiating from competitors through the introduction of cashless payments and flapless systems.
• Strengthening sales capabilities and expanding the number of parking lots.
• Expanding the range of products and strengthening the development and sales of original products.
• Continuing to strengthen sales through the company's own website.
• Consolidating and integrating overlapping functions within the business.
• Reducing product procurement costs.
• Promoting IT and DX.
• Developing and selling environmentally friendly resin products.
• Building a development and mass production system that can handle multi-variety, small-lot, and short lead times.
• Developing materials for next-generation gaming machines.
• Expanding sales of high value-added recycled resins.
• Strengthening development, manufacturing, sales, and maintenance departments.
• Strengthening sales capabilities, technical capabilities, and production capabilities.
• Pursuing new technologies and product development, and market development.
• Constructing cultivation houses in Nankoku City, Kochi Prefecture.
• Maintaining stable harvest and shipping volumes.
• Improving profitability through diversification of sales routes.
• Reducing fuel costs through thorough temperature control in cultivation houses.
• Reducing personnel costs through the introduction of agricultural machinery.
• Negotiating reductions in commissions for outsourced work.

Supply Chain Management

Responsible Procurement

• Emphasis on building trust-based relationships with partner factories.
• Flexible selection of procurement sources based on materials.

Climate-Related Risks & Opportunities

Transition Risks

• Changes in the automotive industry (EV transition)
• Changes in energy sources

Opportunities

• Development of energy-efficient products and services
• Development of new business models related to decarbonization

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 11 (Sustainable Cities and Communities)
• Goal 2 (Zero Hunger)

The company's initiatives contribute to these goals through various activities, including the development of sustainable products, community engagement, and responsible business practices.

Sustainable Products & Innovation

• ONE Bio (biomass additive)
• Recycled resin products
• Environmentally friendly chemical products
• Refrigerant recovery equipment
• High-performance heat-insulating glass
• CNF application products

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Human Rights
• Social Impact
• Circular Economy

Environmental Achievements

• Developed and expanded sales of ONE Bio, a biomass additive for general-purpose resins, contributing to CO2 emission reduction.
• Developed and expanded sales of Biotonic series, a fuel additive for biomass power generation, contributing to decarbonization.
• Increased use of recycled materials in products.
• Implemented LED lighting in parking lots to reduce energy consumption.
• Promoting the use of refrigerant recovery equipment to reduce greenhouse gas emissions.

Social Achievements

• Launched a global talent development plan to support the expansion of overseas business.
• Implemented a harassment prevention education program for all employees.
• Established an anonymous consultation window for harassment.
• Continued to improve work-life balance through initiatives such as 5-day consecutive holidays and 1-hour increments of paid leave.
• Community investment through agricultural activities in Kochi Prefecture.

Governance Achievements

• Established a Nomination and Remuneration Committee to enhance the fairness, transparency, and objectivity of procedures related to the nomination and remuneration of directors.
• Maintained a high percentage of female executives (21.4%) exceeding the average for prime market listed companies in 2023.
• Enhanced communication with stakeholders through various methods, including company briefings and participation in IR-related exhibitions.

Climate Goals & Targets

Environmental Challenges

• Decarbonization of society
• Electrification and automation of automobiles
• Increase in maintenance costs due to rising maintenance fees
• Reduction in refueling volume due to the spread of fuel-efficient vehicles
• Changes in the maintenance system due to the increase in EVs
• Decline in the wholesale business of machine tools
• Risk of business stagnation due to failure to adapt to changing times
• Maintaining stable profitability in the face of economic downturns and external factors
• Securing stable funding in times of financial market turmoil
• Fluctuations in crude oil prices
• Competition in the market
• Risk of residual value in automobile leasing business
• Risks associated with M&A and new business entry
• Quality-related risks
• Expansion of overseas sales and business development
• Securing stable material procurement sources
• Improving production efficiency and expanding product lineup
• Diversification of sales routes for new customer development
• Promotion of DX in collaboration with agricultural venture companies
• Construction of sales in new businesses other than cultivated crops
• Expansion of business scale in the newly acquired glass processing business

Mitigation Strategies

• Developing and expanding sales of environmentally friendly products
• Building a maintenance service network that supports next-generation automobiles
• Developing new mobility-related products in anticipation of EV adoption
• Actively developing new markets and expanding sales channels
• Improving the profitability of vehicle sales business
• Diversifying disposal routes for vehicles
• Building a new fuel/power business
• Implementing business process re-engineering (BPR) and introducing digital technologies
• Strengthening the relationship with partner factories
• Developing new products and services
• Expanding the lineup of plant-derived industrial chemicals
• Accelerating and strengthening the development of fuel additives for biomass boilers
• Accelerating overseas expansion
• Flexible selection of procurement sources
• Strengthening sales engineers
• Introducing cashless payment and flapless systems
• Strengthening sales capabilities and expanding the number of parking lots
• Expanding the lineup of products and developing original products
• Strengthening sales through the company's website
• Consolidating and integrating overlapping functions
• Reducing procurement costs
• Improving productivity through IT and DX
• Creating a flexible work environment
• Developing and selling environmentally friendly resin products
• Building a development and mass production system that can handle multi-variety, small-lot, and short lead times
• Developing materials for next-generation game machines
• Expanding sales of high value-added recycled resins
• Aiming to become a standard manufacturer in the industry
• Strengthening development, manufacturing, sales, and maintenance departments
• Developing and selling new products such as EV parts
• Developing new sales channels
• Improving profitability through various measures
• Exploring alternative procurement sources
• Exploring and developing domestic underutilized resources
• Developing new products that support labor-saving and smart agriculture
• Developing high-performance heat-insulating glass
• Developing CNF-applied products
• Improving sales capabilities, technical capabilities, and production capabilities
• Pursuing uniqueness and superiority in the industry
• Developing new technologies and products
• Developing new markets

Supply Chain Management

Responsible Procurement

• Strict screening of suppliers at the start of transactions
• Setting credit limits for each transaction
• Monitoring business conditions and credit risk

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Development of low-carbon products and services

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 2 (Zero Hunger)

The company's initiatives contribute to these goals through various ESG-related activities such as developing and selling environmentally friendly products, promoting sustainable practices, and investing in renewable energy.

Sustainable Products & Innovation

• ONE Bio
• Biotonic series
• Recycled resin products
• Environmentally friendly chemical products
• Low-GWP refrigerant-compatible tools