Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Achieved large-scale reduction in energy consumption by upgrading facilities
• Reduced carbon dioxide emissions by changing company cars in Germany to electric vehicles
• Introduced large-scale working from home and the reduction in use of public transport for business trips, aiming to continue normal operations even during the COVID-19 pandemic, which resulted in reduced carbon dioxide emissions
• Decided to commence use of electricity from alternative energies at Dongguan Sumida (Tai Ping) Electric Co., Ltd. in China
• Installed and verified the impact of solar power generation systems at R&D centers in Germany

Social Achievements

• Continued thorough policies to prevent COVID-19 and activities to protect the health and safety of employees
• Supported reconstruction of typhoon damage at the Quang Ngai factory in Vietnam and its surrounding area
• Implemented re-education of the Company’s Code of Conduct with participation by 7,669 employees across all Sumida Group offices

Governance Achievements

• Implemented education concerning thorough compliance with laws and regulations for Directors and executive officers
• Implemented education concerning corruption and cartels
• Implemented education concerning insider trading regulations (in Japan)
• Implemented education concerning harassment (in Japan)
• Held The Risk Management Committee quarterly and evaluated risk and proposed mitigation measures
• Provided a cookie policy on the Company’s website and clarified the privacy policy protection

Climate Goals & Targets

Environmental Challenges

• Increasingly unstable global economy due to the COVID-19 pandemic, US-China relations, and the emergence of mutant strains of COVID-19.
• Substantial drop in automotive-related revenue in the first half of the year due to lockdowns and client factory shutdowns.
• Changes in strategies by some major clients and deterioration in relations between the U.S. and China led to revenue decline in consumer electronics.

Mitigation Strategies

• Secured a structure to maintain normal operations through the thorough implementation of measures to prevent the spread of COVID-19 at all offices, including working from home.
• Reviewed operational processes, such as using cloud services and reconsidering the frequency of receiving and placing orders.
• Expanded production in Thai and Vietnam plants from China.
• Developed a global technology system that can flexibly respond to the globalization of design and development.
• Improved profitability throughout the year with initiatives to reduce fixed costs and curtail selling, general and administrative expenses.
• Received government support in relation to COVID-19.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO26000

Certifications: ISO14001, ISO45001

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Announced commitment to set a science-based target for greenhouse gas emissions reduction through the Science Based Targets initiative by the end of FY2023.

Social Achievements

• Merger of Pontiac Coil Inc. and Sumida America Components Inc. in North America, accelerating synergistic effects and market development.
• Improved productivity through measures including improvements in bottleneck processes, initiatives to reduce the defect rate, reduced use of jigs, and promotion of in-house production.

Governance Achievements

• Continued focus on strengthening corporate governance system, with seven of nine directors being outside directors with diversified expertise.

Climate Goals & Targets

Environmental Challenges

• Sluggish pace of global economic recovery in the second half of 2021 due to supply chain turmoil caused by semiconductor and parts shortages and a resurgence of COVID-19.
• Rise in the price of raw materials such as copper and plastic molding materials.
• Impact of adjustments to production due to semiconductor supply shortages.
• Depreciation of the yen/appreciation of the renminbi leading to higher costs in China.
• Decline in capacity utilization due to power shortages in China and the impact of COVID-19 in Vietnam.

Mitigation Strategies

• Secured a structure to maintain normal operations through thorough implementation of COVID-19 prevention measures, including working from home.
• Progress in improving productivity through cost control and ongoing revision and improvement in business processes.
• Expansion of production capacity in Vietnam to diversify manufacturing bases and cut production costs.
• Global cash management to enable management of funds on a global base.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Committed to setting a science-based target for greenhouse gas emissions reduction through the Science Based Targets initiative by the end of July in FY2023.
• Solar panels installed or planned at plants in Germany, Slovenia, Romania, and Mexico, using renewable energy in production.

Social Achievements

• Not disclosed

Governance Achievements

• Strengthened corporate governance, including a Board of Directors with a majority of outside directors (seven of nine), one female director, and two foreign directors.
• Established a Risk Management Committee.

Climate Goals & Targets

Environmental Challenges

• Rising raw material and energy prices
• Rising logistics costs
• Supply chain disruptions due to China’s zero-Covid policy and semiconductor supply and demand problems

Mitigation Strategies

• Issued rolling forecasts and managed funds effectively.
• Maintained open commitment line from financial institutions.
• Implemented thorough product inventory management to reduce DIO.

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: Science Based Targets initiative

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed