CHINO CORPORATION

Climate Impact & Sustainability Data (2022-04 to 2023-03, 2023-04 to 2024-03)

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:461.38 tCO2e (Scope 1 & 2)

Scope 1 Emissions:265.08 tCO2e

Scope 2 Emissions:196.30 tCO2e

Renewable Energy Share:91.8% (head office), 100% (some branches and factories), 79.5% (Fujioka Factory)

Total Energy Consumption:53,040 GJ (CHINO CORPORATION non-consolidated)

Water Consumption:39,919 m3 (CHINO CORPORATION non-consolidated)

Waste Generated:92.37 tons (CHINO CORPORATION non-consolidated)

ESG Focus Areas

Decarbonization
Human Capital Management
Corporate Governance
Supply Chain Management
Stakeholder Engagement

Environmental Achievements

Reduced GHG emissions (Scope 1 & 2) by 83.0% (about 2,250 tons per year) compared to 2020 by switching to renewable energy sources at major domestic sites and the head office.
Achieved a final disposal rate of 1.45% in FY2022.

Social Achievements

Implemented a regular wage increase averaging 3.52%.
Increased the rate of male employees taking childcare leave to 70.6%.
Increased training hours per employee to 8.5 hours per year (146% year-on-year increase).

Governance Achievements

Established the Sustainability Promotion Council in December 2021.
Established the Human Resources and Organizational Development Committee in October 2022.
Established the Sustainability Planning Office in April 2023.
Revised the executive compensation system to abolish retirement benefits and boost performance-linked compensation.

Climate Goals & Targets

Long-term Goals:

Achieve 100% reduction in GHG emissions (Scope 1 & 2) by 2040 compared to FY2020.
Increase ratio of women in management positions to 7% by 2030.
Increase ratio of female executives to 30% by 2030.

Short-term Goals:

Maintain decarbonization-related products and systems sales ratio at 36% or higher.

Environmental Challenges

High resource costs and logistics disruptions.
Advancement of digital technology and the need for DX integration.
Acceleration of movements toward a decarbonized society.
Securing and developing necessary human resources due to labor shortages.

Mitigation Strategies

Early order placement by customers as a risk hedge against logistics disruptions.
Cost reduction initiatives.
Development of energy-efficient products and systems.
Investment in human resources, including wage increases, education, and training.
Digital transformation of business processes.
Strengthening of overseas businesses.

Supply Chain Management

Supplier Audits: 100% (implementing companies: 23)

Responsible Procurement

Green procurement guidelines
Purchasing regulations for materials

Climate-Related Risks & Opportunities

Physical Risks

Shutdown or slowdown of supply chains due to intensification of abnormal weather

Transition Risks

Increased manufacturing costs due to carbon pricing and rising prices

Opportunities

Advances in hydrogen utilization technologies
Shift to electric mobility
Expansion of demand for renewable energy

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 9001, ISO 14001

UN Sustainable Development Goals

Goal 7 (Affordable and clean energy)
Goal 9 (Industry, innovation, and infrastructure)
Goal 13 (Climate action)

CHINO's initiatives contribute to these goals through decarbonization efforts, provision of sustainable products and solutions, and promotion of environmental innovation.

Sustainable Products & Innovation

Fuel cell evaluation and testing equipment
Water electrolysis evaluation equipment
Energy-efficient measurement and control instruments

Awards & Recognition

METI Minister’s Award, Factory Greening Award Program
Kanto Bureau of Economy, Trade and Industry Award for Outstanding Greening Factory
Japan Greenery Research and Development Center Chairman’s Award for Outstanding Greening Factory
Biodiversity Conservation Activity Award

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:291 tCO2e/year (Scope 1 & 2)

Scope 1 Emissions:290.58 tCO2e/year

Scope 2 Emissions:0 tCO2e/year (at some sites)

Scope 3 Emissions:Not disclosed

Renewable Energy Share:98.5% (Head office), 100% (some branches and factories)

Total Energy Consumption:5348.9 MWh/year

Water Consumption:23840 m3/year

Waste Generated:101.7 tons/year

Carbon Intensity:Not disclosed