Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Launched "Re VALUE +" project for horizontal recycling of used blue sheets, aiming to recycle 5000 tons annually.
• Launched "Tarpee Eco-Friend Sheet", a blue sheet using over 60% recycled plastic and designed for easy recycling.
• Reduced CO2 emissions by 78% using BarChip instead of rebar in construction (based on ISO14025).

Social Achievements

• Opened a company-sponsored nursery in 2018.
• Launched "BRIDGE SETOUCHI" project, upcycling waste blue sheets into tote bags and donating 30% of proceeds to disaster relief and prevention.
• Increased female new graduate hiring rate from approximately 10% to approximately 30% over the past 5 years.

Governance Achievements

• Established an internal whistleblowing system.
• Appointed a female outside director in 2019.
• Extended retirement age from 60 to 65.

Climate Goals & Targets

Environmental Challenges

• Increased raw material prices, shipping costs, and electricity expenses.
• Decreased demand for sheets and sandbags.
• Closure of the Qingdao Hagiwara Kogyo Co., Ltd. due to land acquisition for public works.

Mitigation Strategies

• Focused on price increases for products.
• Reviewed procurement methods.
• Developed horizontal recycling technology and sales schemes.
• Established new production bases in overseas locations to reduce logistics risks and tariff barriers.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Tarpee Eco-Friend Sheet
• BarChip

Awards & Recognition

• Japan's Most Valuable Company Award (Economic Industry Minister's Award)
• Health & Wellbeing Management Excellent Company 2022

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Launched "Re VALUE +" project for horizontal recycling of used blue sheets, aiming to recycle 5000 tons annually.
• Launched "Tarpee Eco-Friend Sheet", using over 60% recycled plastic and designed for easy recycling.
• Reduced CO2 emissions by 78% using BarChip instead of rebar (manufacturing and transportation).

Social Achievements

• Opened Nagomi Nursery school for employees' children.
• Launched "BRIDGE SETOUCHI" project, upcycling used blue sheets into tote bags and donating 30% of proceeds to disaster relief.
• Increased female new graduate hiring rate from approximately 10% to approximately 30% over the past 5 years.

Governance Achievements

• Established an internal whistleblowing system.
• Appointed a female outside director in 2019.
• Implemented a comprehensive internal control system.

Climate Goals & Targets

Environmental Challenges

• Increased raw material prices, shipping costs, and electricity expenses.
• Decreased sales of sheets and sandbags due to increased inventory and decreased demand for disaster preparedness.
• Operational halt of Qingdao Hagihara Kogyo Co., Ltd. due to land acquisition for public works.

Mitigation Strategies

• Focused on price increases for products.
• Reviewed various procurement methods.
• Developed horizontal recycling technology and established sales schemes.
• Developed a new high-quality resin regeneration process ("GX line").

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Tarpee Eco-Friend Sheet
• Recycled blue sheet products

Awards & Recognition

• Japan's Most Valuable Company Award (Economic Industry Minister's Award)
• Health & Productivity Management Excellent Company 2022

Environmental Metrics

ESG Focus Areas

• Climate change adaptations
• Work-style reform
• Recycling-oriented society
• Solutions for industry and technology innovations

Environmental Achievements

• Installation of equipment for the horizontal recycling of Blue Sheet, recognized by the Ministry of Economy, Trade and Industry for reducing greenhouse gases via recycling.
• Development of flame retardant cloth for coating applications, selected by the Ministry of Land, Infrastructure, Transport and Tourism as a “Recommended Technology for FY2023” for its lighter weight and improved workability.

Social Achievements

• BarChip used on a Slovenian railway tunnel project.

Governance Achievements

• Release of the “HAGIHARA REPORT 2022” to enhance stakeholder understanding of sustainability and ESG initiatives.

Climate Goals & Targets

Environmental Challenges

• Impact of higher costs from electricity rates
• Impact of rise in procurement costs and poorer production efficiency
• Impact of rise in SG&A

Mitigation Strategies

• Sales prices raised to pass through higher raw materials and other input costs

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 7
• Goal 9
• Goal 12
• Goal 13

The report highlights contributions to climate change adaptations, work-style reform, a recycling-oriented society, and solutions for industry and technology innovations, aligning with several UN SDGs.

Sustainable Products & Innovation

• Re VALUE+
• Flame retardant cloth for coating applications

Environmental Metrics

ESG Focus Areas

• Sustainable Development Goals (SDGs)

Environmental Achievements

• Increased sales of SDGs-related products to ¥14,435mil (48.2% of consolidated sales), exceeding initial guidance.
• Record sales of BarChip (used in sustainable construction) at ¥4,825mil (+31.1% YoY).
• Significant increase in sales of domestically produced sheets (+14.3% YoY) despite weak Blue Sheet demand.
• Sales of Recycling-oriented Society products rose 49.0% YoY to ¥1,131mil, exceeding the initial full-year target.
• Record screen changer sales surged +56.6% YoY to ¥930mil.

Social Achievements

• Opened a new BarChip factory in Paraguay to meet local demand, investing approximately ¥200mil.
• Super-light flame retardant sheets improve worker safety at construction sites.
• Plans to establish a horizontal recycling model for Blue Sheets.

Governance Achievements

• Aims to raise total shareholder returns from 54.7% in FY22 to 70% in FY25.
• Plans to cancel excess treasury shares above 5% of shares outstanding.

Climate Goals & Targets

Environmental Challenges

• Rapid surge in crude oil prices leading to higher raw material costs (plastic resin).
• Rapid surge in semiconductor and component prices due to global distribution network disruptions.
• Time lag between raw material cost increases and price adjustments.
• Weak demand for Blue Sheet due to fewer natural disasters and excess inventory.
• Sluggish demand for sandbags from the civil engineering and construction sector.
• Difficulties in procuring components and delays in final inspection for Engineering Products.
• Supply chain disruptions affecting the Engineering Products segment.

Mitigation Strategies

• Opening new production facilities in Paraguay (BarChip) and potentially the US (Meltac) to reduce shipping costs and improve market access.
• Bringing sheet production back to Japan from China (investing ¥2,500mil in Kasaoka Factory).
• Considering optimal production location for the ENG segment.
• Eliminating unprofitable products.
• Optimal pricing strategies.
• Increase in local production and cultivating overseas demand.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• BarChip
• Meltac
• Domestically produced sheets
• Screen changers
• Plastic recycling machines