Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Development Goals (SDGs)
• Environmental sustainability
• Safety
• Community engagement
• Employee well-being

Environmental Achievements

• Introduced wheelchair-accessible lift-equipped buses on the Hiroshima Airport Limousine Bus route.
• Implemented regular disinfection and ventilation in trains and buses.
• Installed a design wall depicting Itsukushima Shrine's torii gate at the Hiroden Miyajimaguchi Station relocation construction site.

Social Achievements

• Held the "Hiroden no Hi 2020" event, featuring a parade of historic trams.
• Launched the AI-powered on-demand transportation service "SMART MOVER" in Hiroshima.
• Implemented various infection prevention measures across group companies (e.g., reduced seating capacity, provided masks).

Governance Achievements

• Revised the "Hiroden Group Comprehensive Three-Year Plan 2022" to address the impact of the COVID-19 pandemic.
• Continued efforts to maintain employment through measures like applying for employment adjustment subsidies.

Climate Goals & Targets

Environmental Challenges

• Significant revenue decrease in transportation, distribution, and leisure/service sectors due to the COVID-19 pandemic and resulting restrictions.
• Decreased passenger numbers in various transportation services.
• Closure of Hotel New Hiroden.

Mitigation Strategies

• Implemented cost reduction measures, including reviewing equipment investment plans.
• Developed alternative sourcing strategies (not explicitly stated, but implied by business portfolio optimization).
• Applied for various government subsidies related to COVID-19.
• Continued efforts to maintain employment through measures like applying for employment adjustment subsidies and employee transfers/dispatch.
• Business portfolio optimization and expansion into new business areas.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SDGs

Environmental Metrics

ESG Focus Areas

• Sustainable Transportation
• Community Development
• Public Transportation Improvement
• SDGs

Environmental Achievements

• Installed solar panels on the roof of the new Kohachi maintenance factory, supplying part of the electricity for the new Hiroshima Kita branch office.
• Improved energy efficiency in new Hiroshima Kita branch office

Social Achievements

• Launched a rent-a-cycle business at Shobara and Mishima stations to improve accessibility in northern Hiroshima Prefecture.
• Extended the bus route from Hatchobori and Nishi-Hiroshima stations to the Driver's License Center, improving convenience.
• Held various events at KOI PLACE (Koi Pre) in front of Nishi-Hiroshima Station, including a sketching contest and a Tanabata wrapping event.
• Implemented a two-bus system for the community bus "Akinotsu Kaifu Bus", improving convenience.
• Participated in the Hiroshima City Center Conference to promote area management and regional revitalization.
• Improved accessibility in new Hiroshima Kita branch office with wheelchair-accessible toilet

Governance Achievements

• Revised the medium-term management plan "Hiroshima Electric Railway Group Comprehensive 3-Year Plan 2022" in May 2021 to address the changing business environment due to the COVID-19 pandemic.

Climate Goals & Targets

Environmental Challenges

• Significant decrease in domestic and international tourists due to the COVID-19 pandemic.
• Cancellation of various events and business facility closures leading to a decline in transportation demand.
• Decline in revenue in retail, construction, and leisure/service sectors.
• Decreased revenue in the real estate rental business due to tenant withdrawals.
• Impact of the COVID-19 pandemic on tourism demand in the transportation and hailing businesses.

Mitigation Strategies

• Prioritized safety transportation and implemented thorough COVID-19 prevention measures.
• Implemented measures to ensure the safety of customers and employees, such as mandatory mask wearing, health management, installation of splash-proof sheets in vehicles, and promotion of staggered commuting and off-peak use.
• Revised the medium-term management plan "Hiroshima Electric Railway Group Comprehensive 3-Year Plan 2022" in May 2021 to address the changing business environment due to the COVID-19 pandemic.
• Focused on transforming existing businesses and exploring new business opportunities to achieve sustainable growth in the post-COVID-19 era.
• Reallocating management capital to more growth-oriented areas to transform into a high-profit structure and create new revenue.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Safety
• Community Engagement
• Sustainable Transportation
• Employee Well-being
• Next-Generation Education

Environmental Achievements

• Not disclosed

Social Achievements

• Launched "Smart Mover" AI-powered on-demand bus service in Hiroshima, increasing usage and app registrations.
• Held a sketching contest with a local community center and ran a Tanabata (Star Festival) bus decorated by local kindergarten children to promote ridership.
• Implemented "Barrier-free Learning" program for elementary school students to promote understanding of accessibility needs.
• Implemented "Miyajima Stamp Rally" to promote tourism.
• Organized a food education event for families using the "Tran Rouge" dining train.

Governance Achievements

• Revised the medium-term management plan "Hiroshima Electric Railway Group Comprehensive 3-Year Plan 2022" in May 2022 to adapt to the changing business environment.

Climate Goals & Targets

Environmental Challenges

• Continued difficult business environment due to the impact of the COVID-19 pandemic.
• Decreased revenue in the distribution, real estate, and other industries.
• Increased revenue in the transportation, construction, and leisure service industries.
• Uncertainty in the economic outlook due to the seventh wave of COVID-19 infections, rising energy prices, and volatile exchange rates.

Mitigation Strategies

• Implemented measures to improve operational efficiency, such as adjusting routes and service frequencies.
• Implemented a unified fare system for buses and trams in the Hiroshima city center to improve convenience and profitability.
• Introduced a common commuter pass for buses and trams to reduce customer burden and improve mobility.
• Launched a new passenger-cargo mixed transport business using high-speed buses.
• Implemented sales promotion activities to increase demand for the hailing service.

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

• SDGs
• ESG

Environmental Achievements

• Introduced fuel-efficient Airbus A321neo aircraft for China Airlines flights to Taipei.
• Implemented LED lighting in some areas of Green Birds Hiroden golf course.

Social Achievements

• Launched a crowdfunding campaign to create three full-wrap trams featuring Hiroshima's major professional teams (Hiroshima Symphony Orchestra, Sanfrecce Hiroshima, Hiroshima Toyo Carp).
• Introduced new bus vehicles with improved interiors for passenger comfort and safety.
• Implemented a new passenger terminal parking facility at Miyajimaguchi.
• Started cargo-passenger mixed transport business.
• Held the 52nd Hiroden Chugoku Open Golf Championship and the 7th Hiroden Open Golf Championship.

Governance Achievements

• Developed a new three-year management plan (2023-2025) focusing on maximizing group strength and addressing social issues.
• Established a new passenger ticket system to replace PASPY, scheduled for launch in Autumn 2024.

Climate Goals & Targets

Environmental Challenges

• Rising resource prices and inflation.
• Stagnation risk in the global economy due to rising interest rates in major countries.
• Changes in customer lifestyles and decreasing population.
• Uncertainty in the business environment due to the COVID-19 pandemic and its aftermath.

Mitigation Strategies

• Implemented a new three-year management plan (2023-2025) to address these challenges.
• Developed a new passenger ticket system to improve convenience and efficiency.
• Introduced ICT technology for remote roll call and shift scheduling of drivers.
• Focused on increasing profitability in high-yield sectors.
• Strengthened investment in non-transportation businesses (real estate, etc.).

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• SDG 11: Sustainable cities and communities

The company aims to contribute to sustainable city development through initiatives such as improving public transportation and infrastructure.

Environmental Metrics

ESG Focus Areas

• SDGs
• ESG
• Safety
• Human Capital Development
• Work-Life Balance
• Community Engagement
• Environmental Sustainability
• Governance

Environmental Achievements

• Introduction of large electric buses (EV buses) to reduce greenhouse gas emissions.
• Development of energy-efficient buildings (ZEH-M Oriented) in real estate projects.
• Reduction of greenhouse gas emissions through the introduction of 5200-series Green Mover Apex trams.

Social Achievements

• Promotion of diverse work styles and work-life balance.
• Implementation of employee training programs based on a human resource vision.
• Improvement of the internal work environment to maximize employee potential.
• Establishment of an in-house childcare center.
• Participation in urban development projects, contributing to the creation of an attractive Hiroshima.
• Community engagement through the creation of public spaces and the operation of commercial facilities.

Governance Achievements

• Establishment of a sustainability basic policy (2021).
• Integration of ESG into business operations.
• Efficient management through the integration of business bases and systematization of crew management.

Climate Goals & Targets

Environmental Challenges

• Declining birthrate and aging population.
• Competition from other transportation modes.
• Need for continuous improvement in operational efficiency.

Mitigation Strategies

• Reviewing fares and systems to meet needs.
• Collaboration with other operators and transportation modes.
• Improving connectivity at transfer points.
• Introducing new low-floor vehicles.
• Systematization of crew management using "The Hiroshima Front".

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SDGs

UN Sustainable Development Goals

• SDG 11: Sustainable cities and communities

The company's initiatives contribute to SDG 11 through urban development projects, community engagement, and sustainable transportation solutions.

Sustainable Products & Innovation

• Energy-efficient buildings (ZEH-M Oriented)
• Green Mover Apex trams
• Electric buses

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environmental
• Sustainability
• SDGs

Environmental Achievements

• Not disclosed

Social Achievements

• Implementation of various initiatives to improve employee wellbeing, including flexible work arrangements and support for diverse lifestyles. Achieved "Health & Wellbeing Management Excellent Company 2024" certification.
• Commitment to 'Sustainable Public Transportation' through employee development and innovation.

Governance Achievements

• Establishment of a robust corporate governance framework, including a board with a significant number of independent outside directors, and a comprehensive internal reporting system.
• Implementation of various policies and guidelines to ensure compliance, transparency, and stakeholder engagement.

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: TCFD (partially)

Certifications: Health & Wellbeing Management Excellent Company 2024

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 11 (Sustainable Cities and Communities)

The company's focus on sustainable public transportation and community engagement aligns with SDG 11.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Health & Wellbeing Management Excellent Company 2024