Climate Change Data

KYOKUTO BOEKI KAISHA, LTD.

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

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:671 t-CO₂ (Scope 1 & 2)
Scope 1 Emissions:169 t-CO₂e/year
Scope 2 Emissions:502 t-CO₂e/year

ESG Focus Areas

  • Climate Change
  • Human Capital
  • Governance

Environmental Achievements

  • Reduced energy consumption through initiatives like LED lighting and power saving measures.
  • Initiated handling of bio-products such as biodegradable promoting additives and bio-polypropylene.

Social Achievements

  • Increased percentage of women in upper management.
  • Established a farm for employees with disabilities.
  • Actively promoted employee wellbeing and work-life balance.

Governance Achievements

  • Endorsed the TCFD recommendations.
  • Implemented reforms to address shortcomings in corporate governance.
  • Established a Sustainability Committee and various other committees under the Governance Committee.

Climate Goals & Targets

Long-term Goals:
  • Contribute to the achievement of the national goal of carbon neutrality by 2050.
Medium-term Goals:
  • Increase the percentage of women in upper management to 50% by 2025.
  • Achieve 8% ROE.
Short-term Goals:
  • Increase paid leave rate to 75% by 2024.
  • Achieve 100% health checkup rate by 2023.

Environmental Challenges

  • Supply chain disruptions due to the war in Ukraine and the global economic situation.
  • Climate change related risks (physical and transition risks).
  • Securing human resources in a rapidly changing market.
Mitigation Strategies
  • Business portfolio optimization and reorganization of sales organization.
  • Development of alternative sourcing strategies.
  • Investment in new business domains (renewable energy, hydrogen/batteries, environmental sanitation, bio-products, industrial DX/IoT).
  • Strengthening risk management and internal control systems.
  • Active recruitment and training of young and diverse employees.

Supply Chain Management

Responsible Procurement
  • Emphasis on sustainable procurement practices and building a sustainable value chain.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events, flooding
Transition Risks
  • Carbon tax introduction, plastic regulations
Opportunities
  • Increased demand for bioplastics, clean energy services, and carbon fiber composite materials.

Reporting Standards

Frameworks Used: IIRC International Integrated Reporting Framework, METI's Guidance on Comprehensive Disclosure and Dialogue for Value Co-creation, GRI Sustainability Reporting Guidelines

Sustainable Products & Innovation

  • Biodegradable promoting additives, bio-polypropylene
  • Various items related to offshore wind power generation