Marumae Corporation
Climate Impact & Sustainability Data (2021-09-01 to 2022-08-31, 2022, 2023)
Reporting Period: 2021-09-01 to 2022-08-31
Environmental Metrics
Total Carbon Emissions:3196.45 tCO2e/year (Scope 1+2)
Scope 1 Emissions:0.1 tCO2e/year
Scope 2 Emissions:3196.4 tCO2e/year
Scope 3 Emissions:605250 tCO2e/year
Renewable Energy Share:7.48% of total energy use
Total Energy Consumption:8805.9 MWh/year
Water Consumption:Not disclosed
Waste Generated:269.4 tons/year
Carbon Intensity:0.55 tCO2e/million JPY (marginal profit)
ESG Focus Areas
- Climate Change
Environmental Achievements
- Reduced energy consumption by 5.1% compared to the baseline year through the installation of solar power generation equipment at all four of its business sites. Increased renewable energy consumption from 2.4% to 7.5%.
Social Achievements
- Not disclosed
Governance Achievements
- Established an ESG committee to oversee climate-related issues, reporting to the board of directors on a quarterly basis (effectively monthly).
Climate Goals & Targets
Long-term Goals:
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Medium-term Goals:
- Reduce the CO2 emissions per unit of marginal profit by more than 50% compared to August 2021.
- Reduce the marginal profit ratio of defective rework costs by 40% from 1.69% (August 2021) by 2030.
- Increase sales in the semiconductor field by 2 billion JPY by August 2025.
Short-term Goals:
- Increase sales of solar cell manufacturing equipment to 720 million JPY/year by 2025.
Environmental Challenges
- Increased energy costs due to potential carbon tax implementation.
- Increased indirect costs (operating expenses) due to strengthened emission reporting obligations.
- Potential failure of investment in new technologies (e.g., battery technology).
- Decreased demand for products and services due to changing customer behavior.
- Increased raw material costs (aluminum).
- Negative stakeholder feedback due to concerns about environmental impact of aluminum usage.
- Potential damage to manufacturing facilities due to typhoons and flooding.
Mitigation Strategies
- Securing a budget of 640 million JPY for the installation of solar power generation and battery storage facilities by 2030.
- Internal efforts to calculate greenhouse gas emissions and training of personnel.
- Investment of 394.2 million JPY in battery storage facilities by 2030.
- Efforts to increase orders from other sectors to mitigate semiconductor sales fluctuations.
- Passing on increased raw material costs to sales prices.
- Improving manufacturing processes, securing a sustainable supply chain, and transparent information disclosure to address stakeholder concerns.
- Building repairs and implementation of waterproofing measures to mitigate typhoon damage, and business continuity plan (BCP) training.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Not disclosed
Climate-Related Risks & Opportunities
Physical Risks
- Typhoons
- Flooding
Transition Risks
- Carbon pricing
- Regulatory changes
- Market shifts
Opportunities
- Increased demand for renewable energy products and services.
- Development of energy-efficient products.
Reporting Standards
Frameworks Used: TCFD
Certifications: ISO14001
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 13 (Climate Action)
Initiatives such as renewable energy generation and energy efficiency improvements contribute to these goals.
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:0.559 t-CO2/¥ million
Renewable Energy Share:7.5%
Total Energy Consumption:8,147.4 MWh/year
Water Consumption:29,941 tons/year
Waste Generated:1,144 tons/year
Carbon Intensity:0.559 t-CO2/¥ million
ESG Focus Areas
- Carbon Neutrality
- Human Rights
- Workforce Diversity
- Work Environment
- Supply Chain Management
- Information Security
Environmental Achievements
- Rate of reduction through renewable energy: 7.5%
- Reduced wastewater treatment volume per marginal profit
Social Achievements
- Granted an additional 20 days of annual paid leave, increasing annual holiday from 101 days to 121 days
- Launched company canteen project
- Achieved 100% participation rate in safety training
- Achieved a ratio of female regular employees of 11.2%
- Achieved a ratio of female managers of 10.0%
- Employment ratio of people who have disabilities 2.94%
Governance Achievements
- Established the ESG Committee
- Established an Information Security Committee directly under the Board of Directors
Climate Goals & Targets
Long-term Goals:
- Aim for carbon neutrality by 2050
Medium-term Goals:
- Train 100 programmers
- Achieve asset-based ROIC of 23%
- Achieve liability-based ROIC of 19%
- Achieve marginal profit per employee of ¥20.0 million
- Reduce the volume of cutting fluid waste by 40% compared with fiscal 2021
- Reduce the percentage of the marginal profit ratio accounted for by packaging materials by 10% compared with fiscal 2021
- Reduce the percentage of the marginal profit ratio accounted for by costs arising from remanufacturing due to defects by 40% compared with fiscal 2021
- Conduct water risk and water stress assessments, take action on water risk and water stress, and make water risk and water stress disclosures
- Achieve a ratio of female regular employees of more than 20%
- Achieve a ratio of female managers of more than 18%
- Achieve a 3% employment ratio of people who have disabilities
- Reduce CO2 emissions per marginal profit by 50% or more compared with fiscal 2021
Short-term Goals:
- Achieve customer satisfaction (overall) score of more than 4.57 out of 5
- Establish a team dedicated to developing human resources (create a personnel section)
- Prepare and implement a human resource development plan and increase investment in training per employee
- Achieve rate of parental leave by female employees of more than 75%
- Achieve rate of parental leave and parental-related annual paid leave by male employees of more than 30%
- Reduce turnover rate, achieving a regular employee turnover rate or less than 1%
- Achieve welfare expenditure per employee of ¥120,000/year
- Implement human rights due diligence, take action on human rights, and make human rights disclosures
- Ensure a 100% participation rate in safety training
- Implement complete operation of schedulers
- Make 12 DX business improvements
- Develop an effective enterprise risk management system
- Establish an Information Security Committee and take effective measures to address risks
Environmental Challenges
- Fluctuations in the market environment
- Falling prices for orders
- Insufficient prototyping capabilities for the number of customers
- Fierce competition to secure human resources
- Climate change
- Supply chain risks
- Information security risks
Mitigation Strategies
- Increase orders for consumables
- Develop new business
- Control fixed costs
- Enhanced added value by acquiring new technologies
- Reduce costs through DX and greater productivity
- Increase personnel through the development of programmers
- Establish production system specializing in prototyping
- Establish HR divisions
- Improve employee satisfaction
- Install solar panels and power storage batteries to generate our own electricity
- Implement supply chain risk management system
- Identify and assess information security and cyber security-related risks and implement measures to address them
Supply Chain Management
Responsible Procurement
- Suppliers’ code of conduct based on the Responsible Business Alliance (RBA) Code of Conduct
Climate-Related Risks & Opportunities
Transition Risks
- Risk of incurring carbon taxes
- Risk of decline in business with business partners
- Business risks stemming from tighter regulation
Opportunities
- Fundraising advantages
- Ability to cope with rising energy prices
Reporting Standards
Frameworks Used: SASB, Ministry of Economy, Trade and Industry’s Guidance for Collaborative Value Creation, International Integrated Reporting Council’s International Integrated Reporting Framework
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:68.6%
Total Energy Consumption:6,808.7 MWh/year
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Reduced CO2 emissions by 7.5% in 2023 compared to 2022.
- Achieved 68.6% of total energy use from renewable sources in 2023.
Social Achievements
- Launched employee well-being programs.
- Maintained low employee turnover.
Governance Achievements
- Established anti-corruption training for all employees.
- Improved Board Diversity.
Climate Goals & Targets
Long-term Goals:
- Net zero emissions by 2050.
Medium-term Goals:
- Achieve 30% renewable energy by 2030.
Short-term Goals:
- Reduce water consumption by 10% by 2025.
Environmental Challenges
- Supply chain disruptions due to climate events and geopolitical factors.
- Global economic slowdown.
Mitigation Strategies
- Developed alternative sourcing strategies.
- Strengthened risk management systems.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Code of Conduct
- Supplier Sustainability Requirements
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: SASB, ISSB, TCFD, CDP
Certifications: ISO 27001
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed