Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced environmental pollutants and waste plastics in each process
• Pursuing environmentally conscious painting and assembly

Social Achievements

• Implemented an internship program for future executives from Vietnam, fostering a diverse workforce and global talent development.
• Focus on quality improvement through QC circle activities and QA network, leading to loss reduction.

Governance Achievements

• Company-wide efforts to improve management after significant impairment losses in fiscal year 2016.
• Strengthening management foundation and financial structure through stable profits and internal reserves.

Climate Goals & Targets

Environmental Challenges

• Slowdown in new car sales in the US, Europe, and China.
• Gradual reduction in production of major electronic pen models.
• Geopolitical risks (US policy, North Korea), exchange rates, and stock market fluctuations.

Mitigation Strategies

• Focus on securing orders for high value-added products and strengthening mold sales.
• Developing new markets and customers to support steady growth.
• Concentrating management resources and building a group-wide management system to prevent future problems.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental conservation
• Employee well-being
• Global diversity

Environmental Achievements

• Reduced environmental pollutants and waste plastics in each process
• Used plant-based ink for printing the report

Social Achievements

• Implemented employee-first policy with improved welfare benefits
• Promoted communication among employees through events like慰安旅行 and 忘年会
• Provided diverse menus in the company cafeteria to cater to various needs
• Supported SGH (Super Global High School) program by accepting factory visits from Japanese high schools

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decreased orders from clients leading to reduced sales in major segments, particularly in automotive parts and electronic pen components for smartphones
• High fixed costs, including personnel expenses

Mitigation Strategies

• Focusing on high value-added product orders
• Strengthening production systems for labor saving
• Concentrating management resources and building a group-wide management system to prevent future problems
• Strengthening the financial foundation and improving financial health to secure sufficient internal reserves through stable earnings

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

• Environmental
• Social
• Governance

Environmental Achievements

• Aiming for 46% CO2 reduction by 2030 compared to 2013.
• Initiatives to reduce plastic waste and energy consumption.

Social Achievements

• Strengthening human resource development, including securing workforce diversity.
• Promoting employee engagement and work-life balance.

Governance Achievements

• Strengthening sustainability promotion system, including establishing an organization to identify, evaluate, and manage sustainability-related risks and opportunities.
• Implementing a stock option system.

Climate Goals & Targets

Environmental Challenges

• Potential loss of preferential tax treatment for foreign companies in overseas production bases.
• Risk of long-term inventory due to the shortening cycle from order to shipment.
• Impact of exchange rate fluctuations on the group's performance.
• Impact of natural disasters, virus infections, and wars on business activities.
• Concentration of sales to specific customers.
• Fluctuations in raw material prices.
• Securing human resources.
• Impact of impairment accounting.

Mitigation Strategies

• Establishing a worldwide optimal product supply system from production bases in four countries.
• Improving the technical capabilities of overseas production bases.
• Expanding direct transactions between overseas companies.
• Strengthening domestic production system.
• Developing alternative sourcing strategies.
• Implementing BCP (Business Continuity Plan).
• Maintaining good relationships with major customers.
• Continuous cost reduction and securing a stable supply of raw materials.
• Securing human resources and training.
• Regularly reviewing the profitability of assets and implementing impairment accounting when necessary.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Regulatory changes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO9002, ISO14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed