Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Capital
• Governance

Environmental Achievements

• Calculated Scope 1 and Scope 2 CO2 emissions in FY2022. Planning to introduce solar panels at company facilities in FY2024.
• Aiming for a 50% reduction in CO2 emissions by FY2030.

Social Achievements

• Implemented a 65-year-old retirement system from April 2023.
• Introduced an employee incentive plan, "Stock Grant ESOP Trust", in 2014 (extended in 2020), aiming to improve employee engagement and long-term corporate value.

Governance Achievements

• Established a Sustainability Project across departments, with progress reported to the management meeting.
• Established a Risk Management Committee and project to address ESG and compliance issues.

Climate Goals & Targets

Environmental Challenges

• Raw material price increases and procurement instability due to the prolonged Ukraine situation and yen depreciation.
• Shortage of some raw materials leading to product shortages.
• Risk of supply chain disruptions due to natural disasters.
• Risk of large-scale fire or explosion accidents.
• Risk of IT system disruptions.
• Risk of product defects and resulting liability.
• Need for business portfolio optimization.
• Need for human resource strengthening (recruitment, training, diversity).
• Need for enhanced research and development.

Mitigation Strategies

• Price adjustments for some products to secure profits.
• Sourcing from multiple suppliers to ensure stable procurement.
• Developing a Business Continuity Plan (BCP) to minimize damage from natural disasters.
• Strengthening safety measures to prevent accidents.
• Strengthening information security measures to prevent IT risks.
• Maintaining product liability insurance.
• Actively engaging in human capital management and promoting work style reforms.
• Strengthening BCP measures.

Supply Chain Management

Responsible Procurement

• Sourcing from multiple suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (earthquakes, heavy rain, floods)

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 9001 (Roads Division), ISO 14001 (Paint Division, Kuki & Okayama Factories), ISO 27001 (Roads Division, Sales Department, Information Systems Section)

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Development of energy-efficient products, heat-shielding products, and products for visually impaired individuals.

Awards & Recognition

• Not disclosed