A&T Corporation (6722)
Climate Impact & Sustainability Data (2017, 2019-01 to 2019-06)
Reporting Period: 2017
Environmental Metrics
Climate Goals & Targets
Medium-term Goals:
- Sales of 12 billion yen or greater, an ordinary income rate of over 10%, and an overseas direct sales ratio of 10% or more by December 2020.
Environmental Challenges
- Decreased gross profit and gross profit rate due to increased sales of purchased products accompanying large-scale transactions.
- Increase in SG&A expenses due to the augmentation of R&D cost (investment in the development of subsystems for Laboratory Information System).
- Sales of electrolyte units were sluggish during the first half due to a product change by one of the OEM clients.
- Strong price competition for large transactions both domestically and overseas.
- Outsourcing expenses (outsourcing of system engineers) increased.
- High dependence on a specific OEM client for sales.
- Decline in sales to some OEM clients.
- Strong demands for price revisions from existing routes.
- Hospital management continues to be difficult, competition is intense.
Mitigation Strategies
- Focus on finding new OEM clients and developing competitive products.
- Developing new clients in Japan and China while strengthening relationships with existing OEM clients.
- Continuous cost reductions, standardization in production, and sales in China.
- Work-style reforms and human resource development.
- Enrich employee education by consolidating and organizing the structure and programs for human resource education.
- Introducing a new career path system and appropriately arranging human resources.
- Introducing a region-specific full-time employee system to increase productivity.
- Actively recruiting students from technical colleges.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2019-01 to 2019-06
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:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Not disclosed
Environmental Achievements
- Not disclosed
Social Achievements
- Not disclosed
Governance Achievements
- Adopted the system of audit and supervisory committee to separate supervision and execution of business administration, actualize highly transparent management, and streamline the decision-making process of the board of directors.
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Achieve sales of 12 billion yen or greater, an ordinary income rate of over 10%, and an overseas direct sales ratio of 10% or more by FY Dec. 2020.
- Achieve a ratio of virtual overseas sales of over 50%.
Short-term Goals:
- Not disclosed
Environmental Challenges
- Sluggish sales to China due to changes in the Chinese financial environment and inventory adjustment of OEM client, Runda.
- Sales concentrated on specific OEM clients.
- Decline in sales to some OEM clients.
Mitigation Strategies
- Increase domestic transactions in the IT and automation support business to cover for the shortfall in China.
- Find new OEM clients.
- Increase sales of original products to improve profitability.
- Establish quality assurance division to improve product quality at Esashi Factory while reducing costs.
- Continue strategy of selling V4 as a packaged product by utilizing the customer base and service system of Runda.
- Improve basic service pattern and enrich product lineup while considering profitability.
- Enhance marketing and educational support for service engineers, including training of Chinese staff at Esashi Factory.
- Business alliance with ARKRAY to expand market share and explore new business opportunities.
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