Climate Change Data

Daifuku Co., Ltd.

Climate Impact & Sustainability Data (2021-04 to 2022-03, 2022-04 to 2023-03, 2023-04 to 2024-03, 2024)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:34706 t-CO2e/year
Scope 1 Emissions:9566 t-CO2e/year
Scope 2 Emissions:25139 t-CO2e/year
Scope 3 Emissions:2366666 t-CO2e/year (Japan only)
Renewable Energy Share:9.9%
Total Energy Consumption:772 GJ/year
Water Consumption:207033 m3/year
Waste Generated:9485 t/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Energy
  • Resource Recycling
  • Human Rights
  • Supply Chain Management
  • Diversity and Inclusion
  • Employee Safety and Health
  • Corporate Governance
  • Compliance

Environmental Achievements

  • Reduced Daifuku's total CO2 emissions by 13.8% over FY2018
  • Achieved 63% sales ratio of projects including environmentally friendly products
  • Avoided CO2 emissions of 69,694 t-CO2
  • 99.4% waste recycling rate in Japan
  • 99.3% waste recycling rate outside Japan (excluding North America)

Social Achievements

  • Zero serious accidents related to product/system safety
  • Increased paternity leave acquisition rate to 8.7%
  • Improved paid leave acquisition rate to 73.3%
  • Increased employment rate of people with disabilities to 2.54%
  • Increased number of female managers to 20

Governance Achievements

  • Established a Risk Management Committee chaired by the CEO
  • Implemented e-learning on the Group Code of Conduct globally
  • Conducted e-learning on general compliance globally

Climate Goals & Targets

Long-term Goals:
  • Zero environmental impact from material handling systems by 2050
Medium-term Goals:
  • 70% or higher sales ratio of projects with environmentally friendly products by 2030
  • 300,000 t-CO2 or more avoided CO2 emissions by 2030
  • 25% or more reduction in total CO2 emissions by 2030 (from FY2018 levels)
  • 50% or more corporate participation in supply chain CO2 reduction program by 2030
  • 90% or higher recyclability rate for new products by 2030
  • 99% or higher recycling rate of waste by 2030
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Labor shortages in logistics and production sites
  • Climate change risks (typhoons, floods)
  • Transition risks (regulatory changes, carbon taxation)
  • Supply chain disruptions
  • Reputational risks from social media
  • Cybersecurity threats
Mitigation Strategies
  • Developing and implementing smart logistics solutions
  • Business continuity planning (BCP)
  • Diversifying production sites and suppliers
  • Developing environmentally friendly products
  • Strengthening information security measures
  • Implementing risk assessments and risk response training
  • Media training for officers

Supply Chain Management

Supplier Audits: Annual visits to major suppliers

Responsible Procurement
  • Green Procurement Guidelines
  • CSR Procurement Standards
  • Supplier Quality Development (S.Q.D.) Award

Climate-Related Risks & Opportunities

Physical Risks
  • Typhoons
  • Floods
  • Heatstroke
Transition Risks
  • Carbon taxation
  • Tighter regulations on CO2 emissions
Opportunities
  • Growing demand for cold chain, e-commerce, and labor-saving solutions

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: Third-party inspection of GHG emission volume calculations

UN Sustainable Development Goals

  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 12
  • Goal 13
  • Goal 16
  • Goal 17

Initiatives aligned with various SDGs through business activities and sustainability action plan

Sustainable Products & Innovation

  • Daifuku Eco-Products

Awards & Recognition

  • CDP Climate Change A- rating
  • CDP Supplier Engagement Leaderboard highest rating

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:26,408 tCO2e (Scopes 1+2)
Renewable Energy Share:29.1% (end of FY2022)
Water Consumption:219,730 m3

ESG Focus Areas

  • Climate Change
  • Resource Recycling
  • Coexisting with Nature
  • Human Rights
  • Diversity & Inclusion
  • Governance
  • Supply Chain Responsibility
  • Product Quality and Safety
  • Employee Safety and Health

Environmental Achievements

  • Switched to 100% renewable energy at Shiga Works in November 2022
  • Reduced CO2 emissions by 34% compared to FY2018
  • Achieved a 95.3% recycling rate of waste (excluding North America)
  • Avoided 121,356 t-CO2 emissions

Social Achievements

  • Held round table discussions between CEO and employees
  • Launched Daifuku Leadership Academy
  • Employee turnover rate of 2.70% (non-consolidated)
  • Increased number of female managers to 26
  • Increased employment rate of people with disabilities to 2.48%

Governance Achievements

  • Added a foreign national director in 2023, resulting in a 50% outside director ratio
  • Established new C-suite roles for chief officers
  • Improved the effectiveness of the Board of Directors
  • Implemented measures to propagate the Group Code of Conduct globally
  • Carried out internal audits in Japanese business units and global subsidiaries

Climate Goals & Targets

Long-term Goals:
  • Net-zero CO2 emissions throughout the supply chain by 2050
  • Zero negative impact on natural capital by 2050
Medium-term Goals:
  • Reduce CO2 emissions from purchased goods and services (Scope 3 Category 1) by 30% by 2030 (relative to FY2018)
  • Reduce CO2 emissions from the use of sold products (Scope 3 Category 11) by 30% by 2030 (relative to FY2018)
  • Reduce water use intensity by 30% by 2030 (relative to FY2018)
  • Achieve 100% implementation of biodiversity conservation activities at major sites by 2030
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Soaring raw material and labor costs
  • Supply chain disruptions
  • Labor shortages
  • Geopolitical risks
  • Inflation
  • Extended lead times for procurement of materials
  • One fatal accident involving a contractor at a global subsidiary
Mitigation Strategies
  • Effective cost cutting
  • Gradual steps to reflect inflation in contracts
  • Cost reduction measures (standardization of products and review of designs)
  • Building new factories in India, China, and North America
  • Consolidating production sites
  • Developing alternative sourcing strategies
  • Implementing measures to prevent accident recurrence and improve the effectiveness of safety and health training
  • Conducting risk assessments and implementing risk mitigation measures

Supply Chain Management

Responsible Procurement
  • CSR procurement system
  • Sustainable Procurement Guidelines (in progress)
  • Supply Chain CO2 Reduction Program
  • Information sharing with major suppliers regarding human rights and environmental issues

Climate-Related Risks & Opportunities

Physical Risks
  • Increased incidence of typhoons, heavy rains, flooding
  • Heatstroke
Transition Risks
  • Carbon tax
  • Regulatory changes
Opportunities
  • Increased demand for products and services that support decarbonization
  • Expansion of cold chain and e-commerce markets
  • Growing demand for labor savings

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC

Certifications: ISO 9001, ISO 45001

Sustainable Products & Innovation

  • Daifuku Eco-Products

Awards & Recognition

  • Ranked No. 1 in Modern Materials Handling’s “Top 20 Materials Handling Systems Suppliers” for nine consecutive years.

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:20,926 tCO2e (Scopes 1+2) in FY2023
Scope 3 Emissions:2,115,601 tCO2e in FY2023
Renewable Energy Share:54.0% (FY2023)
Waste Generated:4,519 tons (Japan) in FY2023

ESG Focus Areas

  • Climate Change
  • Resource Recycling
  • Coexisting with Nature
  • Occupational Safety and Health
  • Human Rights
  • Supply Chain Management
  • Diversity and Inclusion
  • Employee Engagement
  • Governance

Environmental Achievements

  • Reduced Scopes 1 + 2 CO2 emissions by 48.0% compared to FY2018
  • Achieved 54.0% renewable energy share in total energy consumption (FY2023)
  • 95.6% recycling rate of waste (including valuable wastes)

Social Achievements

  • Increased number of female managers from 20 (2.5%) in FY2021 to 41 (5.3%) in FY2024
  • Launched internal secondment and job posting programs to support employee career development
  • Conducted human rights impact assessments with third-party support, identifying no major concerns

Governance Achievements

  • Established the Sustainability Management Committee to oversee ESG initiatives
  • Revised executive remuneration system to include ESG indicators
  • Strengthened compliance through training and a whistleblowing system

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050
Medium-term Goals:
  • Reduce Scopes 1+2 CO2 emissions by 60% by 2030 (compared to FY2018)
  • Achieve 80% renewable energy share by 2030
  • Reduce Scope 3 Category 1 and 11 emissions by 30% by 2030 (compared to FY2018)
  • Achieve 100% prospective successor sufficiency rate for key positions by 2027
  • Increase number of female managers to 60 (7.6%) by 2027
Short-term Goals:
  • Reduce water consumption by 60% by 2030 (compared to FY2018)

Environmental Challenges

  • Rising material and labor costs
  • Poor project management in some large projects outside Japan
  • Supply chain disruptions
  • Labor shortages
  • Intensified competition
  • Geopolitical risks
  • High polarity in semiconductor demand
  • Changes in the business environment
  • Economic crises and business fluctuation
  • Loss of important customers
  • Political upheaval
  • Delays, shortages, or inability to procure raw materials
  • Inadequate management of subsidiaries
  • Scandals involving Group companies
  • Large-scale natural disasters
  • Leakage of confidential information
  • Cyberattacks
Mitigation Strategies
  • Improving project management with better visualization
  • Standardizing products and reducing costs
  • Increasing production capacity in North America, China, and South Korea
  • Establishing new C-suite roles to strengthen management
  • Accelerating the introduction of cutting-edge technologies
  • Expanding investment in human capital
  • Improving capital efficiency and cash flows
  • Implementing risk mitigation measures
  • Strengthening Group governance
  • Formulating the Sustainable Procurement Guidelines
  • Conducting regular risk assessments
  • Implementing business continuity plans
  • Introducing AI and DX to improve productivity
  • Strengthening information security

Supply Chain Management

Supplier Audits: 80% agreement rate on Sustainable Procurement Guidelines (July 2024)

Responsible Procurement
  • Sustainable Procurement Guidelines
  • Supplier Quality Development (S.Q.D.) Award

Climate-Related Risks & Opportunities

Physical Risks
  • Increased frequency and severity of weather-related disasters
  • Chronic rise in sea level
  • Heat waves and chronic temperature increases
  • Increasing water risk due to droughts
Transition Risks
  • Increase in operating costs due to carbon tax
  • Increase in procurement costs due to carbon tax or GHG reduction measures
  • Increasing stringency in evaluation of climate change initiatives
Opportunities
  • Progress in decarbonization technology development
  • Increase in sales of products for semiconductor lines
  • Shift to EVs
  • Progress in low-carbon technologies using IoT
  • Growing demand for waste reduction

Reporting Standards

Frameworks Used: IFRS Foundation, GRI Standards, TCFD recommendations

Certifications: ISO

UN Sustainable Development Goals

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

Daifuku's initiatives contribute to these goals through renewable energy adoption, sustainable product development, waste reduction, and CO2 emission reduction.

Sustainable Products & Innovation

  • Energy-efficient products
  • Automated picking systems
  • Conveyorless transport systems
  • AI-assisted transport systems
  • D-PAD wireless battery charging system
  • AI car wash machines
  • Shower Hopper cleaning machine

Awards & Recognition

  • Supplier Quality Development (S.Q.D.) Award

Reporting Period: 2024

Environmental Metrics

Total Carbon Emissions:27,067 tCO2e (FY2023)
Scope 3 Emissions:2,115,601 tCO2e (FY2023)
Renewable Energy Share:54% (end of FY2023)
Water Consumption:163,384 m3 (FY2023)

ESG Focus Areas

  • Climate Change
  • Resource Recycling
  • Coexisting with Nature
  • Supply Chain Management
  • Human Rights
  • Diversity and Inclusion
  • Talent Development
  • Workplace Environment
  • Corporate Governance
  • Compliance

Environmental Achievements

  • 48.0% reduction in Daifuku CO2 emissions (Scopes 1 + 2) compared to FY2018
  • 29.6% reduction in CO2 emissions from the use of sold products (Scope 3 Category 11) compared to FY2018
  • 0.67% landfill disposal rate in Japan
  • 35.5% reduction in water use intensity compared to FY2018

Social Achievements

  • Increased number of female managers
  • Increased employment rate of people with disabilities
  • Increased paternity leave acquisition rate
  • Established Sustainable Procurement Guidelines
  • Conducted human rights due diligence initiatives globally
  • Implemented various health promotion policies and organized events

Governance Achievements

  • Revised executive remuneration system to include ESG indicators
  • Improved the effectiveness of the Board of Directors
  • Strengthened compliance throughout the Group
  • Established a whistleblowing system

Climate Goals & Targets

Long-term Goals:
  • Net-zero CO2 emissions by 2050
Medium-term Goals:
  • Achieve 80% renewable energy share by 2030
  • Achieve 30% reduction in Scope 3 Category 1 emissions by 2030 (compared to FY2018)
  • Achieve 100% sufficiency of successor candidates for key positions by FY2027
Short-term Goals:
  • Achieve 60% reduction in Scope 1 and Scope 2 emissions by 2030 (compared to FY2018)

Environmental Challenges

  • Climate change related risks (transition risks, physical risks)
  • Supply chain disruptions
  • Labor shortages
  • Maintaining high rate of stress check testing
  • Achieving diversity and inclusion targets
  • Securing and developing talent
Mitigation Strategies
  • Group-wide Scope 1 and Scope 2 reductions
  • Reduction of environmental impact in the supply chain
  • Enhancement of climate-related information disclosure
  • Risk assessments and implementation of risk mitigation measures
  • Maintenance and improvement of working environment
  • Reduction of water use
  • Strategic response to semiconductor demand
  • Adaptation to the shift to EVs
  • Utilization of IoT, ICT, AI, and other advanced technologies
  • Response to cold chain and e-commerce demand
  • Balancing environmental and social value in material handling systems
  • Strengthening collaboration with suppliers
  • Implementing various health promotion policies and organizing events
  • Introducing a new personnel handling system
  • Introducing an internal secondment system and an internal job posting system
  • Developing and implementing a human rights due diligence system

Supply Chain Management

Responsible Procurement
  • Sustainable Procurement Guidelines
  • Supplier Quality Development (S.Q.D.) Award
  • Management and Safety Policy and Production Trends Presentation
  • Supplier Operations Verification System

Climate-Related Risks & Opportunities

Physical Risks
  • Floods
  • Storm surges
  • Droughts
  • Heat waves
Transition Risks
  • Tighter GHG emissions regulations
  • Introduction of carbon pricing
  • Progress in decarbonization technology development
  • Increasing stringency in ESG evaluations
Opportunities
  • Increasing demand for energy-efficient products
  • Shift to EVs
  • Utilization of IoT, ICT, AI, and other advanced technologies
  • Growing demand for cold chain and e-commerce solutions

Reporting Standards

Frameworks Used: TCFD, UNGC, GRI, CDP

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: SGS Japan, British Standards Institution

UN Sustainable Development Goals

  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 12
  • Goal 13
  • Goal 15
  • Goal 16
  • Goal 17

Daifuku's initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

  • Energy-efficient products
  • Products contributing to a recycling-based society