Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Social Inclusion
• Strengthen Governance

Environmental Achievements

• Replaced fluorescent lighting with LED in Singapore, resulting in estimated annual energy savings of 373.44 kWh.
• Malaysia achieved a 41% reduction in average energy usage per thousand square feet (PTS) from 7.78 kWh in 2022 to 4.57 kWh in 2023.
• Implemented motion sensor lights in UK offices.
• Initiated GHG emission data collection for ISO14064 certification.
• Conducted a feasibility study on design for recycling and reducing material/resource usage.

Social Achievements

• Published a statement on Human Rights and Diversity, Equity, and Inclusion (DEI).
• Launched a global Environment, Health, and Safety (EHS) campaign with sustainability awareness training.
• Implemented flexible, hybrid work-from-home arrangements in Singapore, UK, and Australia.
• Provided training to employees covering 288 topics in Singapore and access to a learning library with content from over 250 providers in Australia.
• Supported social enterprises and charities in Singapore and Australia.

Governance Achievements

• Implemented a Code of Conduct for all employees.
• Developed sound policies and standard operating procedures to govern sustainability practices.
• Incorporated ESG considerations into enterprise risk management.
• Adopted a combined assurance model integrating internal and external audit processes with a whistleblowing policy.

Climate Goals & Targets

Environmental Challenges

• Global recycling challenges identified in the feasibility study on circular design.
• Managing greenhouse gas emissions from refrigerants.

Mitigation Strategies

• Employing low-GWP refrigerants to manage and reduce greenhouse gas emissions from refrigerants.
• Developing a methodology for GHG inventory data collection to assess emissions and inform reduction strategies.
• Aligning emissions and net-zero targets with the Osaki Group’s Science-Based Targets initiative (SBTi) submission.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Sustainability Management Policy
• Requirement for suppliers to comply with EDMI’s Business Partner Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI 2021 Universal Standards, TCFD, CDP, SASB, MSCI Industry ESG Materiality Map 2023, UN Sustainable Development Goals (SDGs)

Certifications: ISO 45001 (Singapore, Malaysia, China, Australia)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 7 (Affordable and Clean Energy)
• 8 (Decent Work and Economic Growth)
• 10 (Reduced Inequalities)
• 12 (Responsible Consumption and Production)
• 13 (Climate Action)

EDMI's smart metering solutions contribute to energy efficiency, clean energy transition, decent work, reduced inequalities, responsible consumption and production, and climate action.

Sustainable Products & Innovation

• Smart metering solutions promoting energy and water efficiency.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Minimizing environmental impact
• Contributing to sustainable cities and communities
• Respect for human rights
• Creating a diversified workplace and fostering social issue-solving culture
• Strengthening corporate governance

Environmental Achievements

• Reduced greenhouse gas emissions by 46% compared to FY2013 (aiming for 46% reduction by FY2030)
• More than 99.5% recycling rate at the Saitama Operation Center
• Control water quality through operations for greener effects

Social Achievements

• Introduced an employee engagement survey in fiscal 2023 to enhance human capital
• Certified as a Health and Productivity Management Excellent Corporation 2024 (Large-scale Corporate Division) for a fifth consecutive year
• Supporting handball events for over 60 years, contributing to communities through youth classes and regional events

Governance Achievements

• Transitioned to a two-division structure (Grid Systems Business Unit and Solutions Business Unit) to strengthen collaboration and improve responsiveness
• Established a Nomination and Remuneration Committee to enhance fairness, objectivity, and transparency in director and auditor nomination and remuneration
• Implemented a restricted stock unit plan (excluding independent directors) to increase incentives for long-term performance improvement

Climate Goals & Targets

Environmental Challenges

• Reduced demand for smart meters in Japan (until deployment of second-generation meters)
• Low Price-to-Book Ratio (PBR) due to ROE below the cost of equity
• Need to improve profitability and capital efficiency
• Climate change related risks (transition and physical risks)

Mitigation Strategies

• Implementing a three-year Mid-Term Management Plan aiming for ¥9 billion operating income and 10% ROE by FY2026
• Transitioning to a divisional structure to enhance collaboration and profitability
• Improving profitability through profit model reform, asset reduction, and shareholder returns
• Setting a GHG emission goal to minimize climate change risks
• Disclosure based on TCFD recommendations
• Developing and marketing new value-added smart meters and decarbonization solutions

Supply Chain Management

Responsible Procurement

• Emphasis on fair and free competition, transparent transactions, and social responsibility

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events impacting manufacturing and supply chain

Transition Risks

• Increased costs related to regulations on renewable energy and energy saving

Opportunities

• High demand for smart meters and decarbonization solutions

Reporting Standards

Frameworks Used: IIRC

Certifications: ISO 9001:2015, ISO/IEC 27001

Sustainable Products & Innovation

• Second-generation smart meters
• DC electricity meter
• Smart locks
• Energy management systems
• Automated meter reading systems

Awards & Recognition

• Award from the town of Miyoshi in 2022

Environmental Metrics

ESG Focus Areas

• Minimizing environmental impact
• Contributing to sustainable cities and communities
• Respect for human rights
• Creating a diversified workplace and fostering social issue-solving culture
• Strengthening corporate governance

Environmental Achievements

• Reduced greenhouse gas emissions by 46% compared to FY2013
• More than 99.5% recycle rate at the Saitama Operation Center
• Control water quality through operations for greener effects

Social Achievements

• Introduced an employee engagement survey in fiscal 2023 to enhance human capital
• Certified as a Health and Productivity Management Excellent Corporation 2024 (in the Large-scale Corporate Division) for a fifth consecutive year.
• Supporting numerous organizations tackling social issues in Singapore (EDMI)
• Tree planting campaigns in Africa (EDMI) and Australia (EDMI)

Governance Achievements

• Transitioned to a two-division structure (Grid Systems Business Unit and Solutions Business Unit) to strengthen collaboration and improve responsiveness.
• Established a Nomination and Remuneration Committee to enhance fairness, objectivity, and transparency in director and auditor nomination and remuneration.
• Introduced a restricted stock unit plan (excluding independent directors) to increase incentives for long-term performance improvement.

Climate Goals & Targets

Environmental Challenges

• Reduced demand for smart meters in Japan due to the completion of full-scale deployment.
• Achieving sustainable growth amid ongoing changes in the business environment.
• Low Price-to-Book Ratio (PBR) due to ROE faltering below the cost of equity.
• Climate change related transition and physical risks

Mitigation Strategies

• Developed and will deploy second-generation smart meters.
• Revised Corporate Philosophy and formulated a new three-year Mid-Term Management Plan.
• Implemented initiatives to improve profitability, capital efficiency, and optimize capital structure.
• Setting a GHG emission goal to minimize climate change risks.
• Disclosure based on TCFD recommendations
• Setting the SBT (science-based targets)
• Proper execution of BCP such as production bases decentralization including outsourcing

Supply Chain Management

Responsible Procurement

• Emphasis on fair and free competition, transparent transactions, and social responsibility.

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events impacting manufacturing and supply chain.

Transition Risks

• Increased costs related to regulations on renewable energy and energy saving.

Opportunities

• High demand for smart meters and decarbonization solutions.

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), TCFD

Certifications: ISO 9001:2015, ISO/IEC 27001

Sustainable Products & Innovation

• Second-generation smart meters
• DC electricity meter
• Smart locks
• Energy management systems
• Automated meter reading systems

Awards & Recognition

• Award from the town of Miyoshi in 2022