Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Human Rights
• Diversity & Inclusion
• Supply Chain Management

Environmental Achievements

• Reduced Scope1+2 emissions by 14.3% year-over-year (67,475t)
• Achieved over 60% aluminum recycling rate (aiming for 70% in FY2023)
• Generated approximately 3,802 MWh of electricity from three mega-solar systems
• Improved energy consumption and CO2 emission intensity by 1.0% and 2.1% respectively
• Reduced electricity consumption by 3.0% year-over-year

Social Achievements

• Increased employee participation in health checkups (e.g., prostate cancer screening at 96%)
• Launched various initiatives to support employees' work-life balance (e.g., childcare support, flexible work arrangements)
• Increased the number of employees on parental leave by 43%
• Increased disability employment rate by 0.22%
• Increased the number of re-employed retirees by 1.3%

Governance Achievements

• Established a Sustainability Promotion Office in May 2023
• Developed and implemented the Fuji Sash Group Human Rights Policy
• Conducted compliance seminars for employees
• Established an ethics hotline for reporting compliance issues
• Implemented measures to enhance board effectiveness

Climate Goals & Targets

Environmental Challenges

• Delayed plans for updating machinery to energy-efficient types
• Maintaining quality while increasing aluminum recycling rate
• Supply chain disruptions
• Ensuring compliance with environmental regulations
• Managing risks associated with climate change

Mitigation Strategies

• Shifting investment planning to prioritize sustainability contributions
• Implementing stricter quality checks for recycled aluminum materials
• Developing alternative sourcing strategies
• Regular monitoring of water quality and compliance with regulations
• Implementing a demand response program to manage energy risks

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green procurement initiatives
• Focus on using recycled materials

Climate-Related Risks & Opportunities

Physical Risks

• Sea level rise impacting coastal factories

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Increased demand for sustainable building materials

Reporting Standards

Frameworks Used: GRI Standards, TCFD Recommendations, ISO 26000

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

The company's initiatives contribute to these goals through the development and sale of energy-efficient products, promotion of recycling, and support for sustainable communities.

Sustainable Products & Innovation

• Energy-efficient windows and doors
• Curtain walls with integrated solar panels

Awards & Recognition

• Good Design Award (Arbeam Plus LED-integrated capping)
• Good Design Award (Facing Front CF9 automatic door)
• Japan Industrial Advertising Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Capital Management
• Human Rights
• Circular Economy
• Supply Chain Management
• Community Engagement

Environmental Achievements

• Reduced energy consumption per unit of production by 1.9%
• Reduced Scope1+2 emissions per unit of production by 0.02%
• Achieved approximately 70% aluminum recycling rate at Higashi Casting Plant
• Introduced on-site PPA for solar power generation at Fuji Light Metal
• Introduced solar power generation system at Fuji Sash Philippines
• Developed eco-friendly kneader with reduced power consumption

Social Achievements

• Launched engagement survey to improve employee engagement
• Increased the proportion of women in new hires and specialist positions towards a target of 30% or more
• Implemented various initiatives to support work-life balance, including childcare support and flexible work arrangements
• Concluded a business consignment contract with a disability welfare service facility
• Received the Special Excellent Award in the Reiwa 4th Fiscal Year Labor Safety Award

Governance Achievements

• Established a Sustainability Committee and Sustainability Promotion Office
• Developed a Sustainability Vision 2050
• Implemented TCFD recommendations
• Obtained SBT certification for short-term and net-zero targets
• Participated in the GX League

Climate Goals & Targets

Environmental Challenges

• Rising energy costs due to carbon tax and other regulations
• Increased investment costs for low-carbon products
• Increased costs due to severe natural disasters
• Supply chain disruptions due to natural disasters
• Shortage of truck drivers
• Rising import material prices due to overseas conflicts and exchange rate fluctuations

Mitigation Strategies

• Introduction of energy-saving equipment, electrification, and hydrogenation of equipment
• Introduction of renewable energy
• Production consolidation and efficiency improvements
• Effective use of waste heat and optimization of production and equipment
• Strengthening of disaster prevention measures for factories and equipment
• Development of alternative sourcing strategies and diversification of logistics
• Establishment of production cooperation systems for risk diversification
• Installation of waterproof embankments and raising floor levels for important equipment and inventory

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green procurement initiatives
• Supplier surveys on human rights due diligence

Climate-Related Risks & Opportunities

Physical Risks

• Severe natural disasters

Transition Risks

• Increased costs due to carbon tax and other regulations
• Increased investment costs for low-carbon products
• Rising energy costs due to renewable energy price increases

Opportunities

• Increased sales due to growing demand for environmentally friendly products
• Increased sales due to growing demand for disaster-resistant products
• Cost reduction through efficient energy use

Reporting Standards

Frameworks Used: TCFD, GRI Standards, ISO 26000, International Framework

Certifications: ISO 9001, JIS Mark

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Various initiatives contribute to these goals through decarbonization efforts, sustainable product development, resource efficiency, and community engagement.

Sustainable Products & Innovation

• Arbeam Plus Fortina®, Implado II, eco-friendly kneader

Awards & Recognition

• Special Excellent Award in the Reiwa 4th Fiscal Year Labor Safety Award
• Second prize in the Newspaper Division Series Advertisement Award at the 2023 Japan Industrial Advertisement Award

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Recycling
• Renewable Energy
• Energy-saving products
• Disaster mitigation
• Sustainability
• Human Rights
• Product Safety

Environmental Achievements

• Increased rate of aluminum recycling by collecting aluminum from own and affiliated factories and procuring from external sources.
• Generating renewable energy from mega solar power generation panels installed on rooftops of major factories.
• Development of thermal insulation sashes and other energy-saving products.

Social Achievements

• Established a human rights policy.
• Acquired ISO 9001/14001 certification.
• Implementing product safety action guidelines.
• Upskilling employees to fully utilize new technologies and processes, boosting productivity and eliminating labor shortages.

Governance Achievements

• Established a sustainability promotion framework.
• Setting and achieving greenhouse gas emissions reduction targets.
• Identifying and strategically responding to business risks and opportunities arising from environmental and societal changes.

Climate Goals & Targets

Environmental Challenges

• Decreasing population, aging society, and declining birth rate in Japan leading to a fall in the productive-age population.
• Accelerating pace of automation of production equipment and the need for digital transformation (DX).

Mitigation Strategies

• Upskilling all employees to fully utilize new technologies and processes.
• Training employees to be multi-skilled to handle a range of tasks.
• Improving customer satisfaction by thinking and acting from the customers' perspective.

Supply Chain Management

Responsible Procurement

• Procuring recycled aluminum from external sources.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Thermal insulation sashes and other energy-saving products