Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Successfully met goals for five out of seven environmental items in FY2019 (excluding expansion of eco-friendly products and reduction of environmental impact through rationalized logistics)
• Reduction in CO2 emissions from improvements in transport efficiency
• Developed biomass PET resin, substituting petroleum-derived MEG with Bio-MEG from sugar cane
• Developed aluminum catalyzed PET plastic with superior recyclability
• Constructed one of Japan’s largest-scale helium centers, reducing helium losses during filling

Social Achievements

• Established MaruiGas Disaster Relief Corps, deployed 30 times since 1995
• Support Team for Your Community (Kodomo 110-Ban Emergency Call Centers for Kids) activities
• Cooperation with NHK Symphony Orchestra
• Support for improvement and spread of welding techniques in Asia
• All Japan Elementary School Essay Contest

Governance Achievements

• Established a Compliance Committee under the Risk Management Committee
• Established a whistleblowing program
• Formulated the Outline of Iwatani Corporate Ethics in 1998
• Introduced the posts of executive officers to accelerate decision-making and delegate authority
• Established a Risk Management Committee

Climate Goals & Targets

Environmental Challenges

• Natural disaster and energy supply risks
• Population decline and aging
• Expectations for energy diversification and infrastructure enhancement
• Introduction of new policies for a low-carbon society
• Increasing demand for resources in emerging countries

Mitigation Strategies

• Developing Core LPG Centers for stable LPG supply during disasters
• Promoting the shift to alternative fuels (LPG and LNG)
• Creating demand for hydrogen energy through hydrogen refueling stations
• Participating in industry-government-academia projects
• Expanding use of biomass fuels and developing environmentally friendly products

Supply Chain Management

Responsible Procurement

• Procuring Bio-MEG from India for biomass PET resin
• Procuring helium from Qatar and the United States
• Procuring PKS from Indonesia and Malaysia

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Shifting to a low-carbon society

Opportunities

• Development of hydrogen energy and eco-friendly products

Sustainable Products & Innovation

• Biomass PET resin
• Aluminum catalyzed PET plastic
• Hydrocut® environmentally-friendly mixed fusing gas
• CFC-free dust blower

Awards & Recognition

• Minister of the Environment Prize for Activities against Global Warming (2007)

Environmental Metrics

ESG Focus Areas

• Clean Transportation
• Climate Change
• Sustainable Development Goals (SDGs)

Environmental Achievements

• Developing and constructing hydrogen supply facilities for fueling low-carbon transport.
• Commitment to transitioning toward the production of “green hydrogen” through electrolysis powered by low-carbon electricity.

Social Achievements

• Providing sufficient explanation to local residents regarding the construction process of hydrogen supply facilities.
• Commitment to confirming compliance with environmental laws and regulations.

Governance Achievements

• Established a robust project evaluation and selection process involving the Accounting Department, responsible business departments, and the Board of Directors.
• Quarterly tracking of green bond proceeds using an internal management system.

Climate Goals & Targets

Environmental Challenges

• Iwatani Corporation’s current reliance on hydrogen produced from fossil fuels for supply facilities financed under the Framework.
• Potential environmental and social risks associated with the development, construction, and operation of hydrogen supply facilities (noise, vibration, worker safety, adverse effects on local residents).

Mitigation Strategies

• Commitment to transitioning towards green hydrogen production.
• Compliance with environmental laws and regulations (High Pressure Gas Safety Act, Regulation on Safety of General High Pressure Gas, etc.).
• Establishment of the “Risk Management Committee” and specialized committees to manage risks.

Climate-Related Risks & Opportunities

Opportunities

• Development and construction of hydrogen supply facilities

Reporting Standards

Frameworks Used: Green Bond Principles 2021 (GBP), Japan’s Green Bond Guidelines 2020

Certifications: ISO 14001 (at Tokyo and Osaka Head Offices, all branch offices, and the Iwatani R&D Center)

Third-party Assurance: Sustainalytics

UN Sustainable Development Goals

• SDG 11

Investments in hydrogen supply facilities contribute to sustainable cities and communities.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Resources
• Technology
• Supply Chain Management and Human Rights
• Corporate Governance

Environmental Achievements

• Reduced Group CO2 emissions in Japan by 50% vs. the FY2019 level by FY2030 (target)
• Generated 1,993 tons in J-Credits in FY2023 (1,096 tons in FY2022)
• Installed a 100 kW power generation facility linking 20 Panasonic (5 kW) pure hydrogen fuel cells at Iwatani R&D Center, reducing CO2 emissions by 40% vs. FY2019.

Social Achievements

• Increased percentage of eligible male employees taking childcare leave from 30.6% in FY2022 to 55.9% in FY2023
• Launched a training program to develop human resources skilled in digital transformation (DX) in FY2023
• Opened a new training center in Kobe, Hyogo Prefecture, in October 2024

Governance Achievements

• Established the Iwatani Code of Corporate Ethics in 1998
• Established a whistleblowing program to enhance compliance
• Board of Directors consists of 13 members (including five Outside Members of the Board)

Climate Goals & Targets

Environmental Challenges

• Lower LPG import prices than in the previous year, lower selling prices, and declining sales of rechargeable battery materials
• Rising production costs
• Declining demand for energy due to changing community demographic trends
• Delays in raising the adoption of renewable energy
• Market contraction for existing products due to rising environmental awareness
• Rising costs of development, production, procurement, logistics, etc.
• Supply risks associated with rising geopolitical risks and natural disasters

Mitigation Strategies

• Progress of the Industrial Gases & Machinery Business’s efforts in addressing rising production costs
• Improvements in LPG market conditions
• Promoting M&A activities to strengthen retail business and streamline LPG business
• Streamlining delivery systems to cut business costs
• Using AI to make deliveries more efficient and consolidating facilities with those of affiliate companies
• Building robust supply chains to secure stable supplies of raw materials
• Diversification and greening of procurement sources

Supply Chain Management

Supplier Audits: 270 suppliers surveyed in FY2023 (95% of supply transactions by value)

Responsible Procurement

• Iwatani Group Supply Chain Conduct Policy
• CSR procurement surveys

Climate-Related Risks & Opportunities

Physical Risks

• Widening physical damage to production facilities due to natural disasters

Transition Risks

• Significant decline in demand for fossil fuels

Opportunities

• Large-scale growth in demand for hydrogen
• Major potential business opportunities associated with the development and adoption of green LPG
• Growing demand for lithium, cobalt, and other rechargeable battery materials

Reporting Standards

Frameworks Used: IIRC, International Integrated Reporting Framework, Ministry of Economy, Trade and Industry of Japan, Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation, TCFD

Certifications: ISO 14001

Third-party Assurance: SOCOTEC Certification Japan

Sustainable Products & Innovation

• Green LPG
• Hydrogen
• Ammonia
• Eco-friendly resins
• Biomass fuels
• Green titanium