Dexerials Corporation

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

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:34.7 thousand tons of CO2e/year (Scope 1+2)

Scope 1 Emissions:7.3 thousand tons of CO2e/year

Scope 2 Emissions:27.4 thousand tons of CO2e/year

Scope 3 Emissions:333.4 thousand tons of CO2e/year

Total Energy Consumption:853 TJ/year

Water Consumption:290,000 tons/year

Waste Generated:0.26 ten thousand tons/year

ESG Focus Areas

Creating new value/resolving social issues
Reinforcement of corporate governance and compliance
Cultivation of diverse human resources and engagement
Ensuring operational safety and business continuity

Environmental Achievements

Achieved zero environmental incidents and zero violations of laws and regulations.
Reduced CO2 emissions by approximately 27% compared with fiscal 2018 (Scope 1+2).
Achieved zero waste emissions (reuse/recycling ratio of 99.5% or more).
New Reception Hall building meets ZEB certification requirements and has zero CO2 emissions.

Social Achievements

Increased the number of female managers by approximately 36% compared to fiscal 2018.
Remote work implementation rate reached 74%.
Health checkup reexamination rate increased by 14.9 points and the high stress rate in stress checks decreased by 1.3 points (compared to fiscal 2019).
Introduced a “job-type” personnel system for manager-level employees in Japan.

Governance Achievements

Transitioned from a company with an Audit and Supervisory Board to a company with an Audit and Supervisory Committee.
Established a whistleblowing hotline with multilingual support (four languages).
Redesigned risk management systems and methods, resulting in the creation of a dedicated company-wide integrated risk management section.

Climate Goals & Targets

Long-term Goals:

Formulation of long-term goals for/measures against climate change based on the analysis of TCFD scenarios.

Medium-term Goals:

Achieve zero CO2 emissions from consuming electricity for business by fiscal 2030.
Increase the percentage of employees who are capable of self-care to at least 50% by fiscal 2030.

Short-term Goals:

Reduce CO2 emissions by 1% year-on-year (6% reduction compared with fiscal 2013 level).

Environmental Challenges

Heavy reliance on the consumer IT domain, making performance heavily influenced by final-product markets and trends in the activities of specific customers.
Global spread of infectious diseases, dependence on raw material suppliers, and geopolitical risks.
Climate change impacts, including intensified weather disasters and supply chain disruptions.
Rapid technological innovation and the risk of products becoming obsolete.

Mitigation Strategies

Accelerating business growth in new domains (automotives, photonics).
Qualitatively changing businesses in existing domains (developing differentiated technology products).
Strengthening the management base (relocating headquarters, introducing a job-type personnel system).
Implementing detailed research of target companies and investments, evaluating economics of investment.
Strengthening business continuity planning (BCP), considering inventory management and alternative sourcing strategies.
Developing new technologies and products, finding new applications and markets.

Supply Chain Management

Supplier Audits: CSR Procurement Survey conducted in July 2023 with 252 of 346 companies responding.

Responsible Procurement

Dexerials CSR Procurement Guidelines, Green Procurement Policy, Management Standards for Environment-related Substances, Supply Chain BCP Guidelines.

Climate-Related Risks & Opportunities

Physical Risks

Intensified weather disasters, supply chain disruptions

Transition Risks

Rise in carbon price, tightening of GHG emission regulations

Opportunities

Increased demand for environmentally friendly products, energy and resource conservation solutions.

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), GRI Standards, ISO26000, TCFD

Certifications: ISO 14001, IATF16949

UN Sustainable Development Goals

Goal 3, Goal 6, Goal 7, Goal 8, Goal 12, Goal 13, Goal 16

Initiatives contribute to these goals through various ESG activities.

Sustainable Products & Innovation

Lead-free Surface mounted type fuses, environmentally friendly products, products with reduced environmental impact.

Awards & Recognition

Health & Productivity Management Outstanding Organization 2023
All Japanese Listed Companies’ Website Ranking 2022 AAA Website
Gomez IR Site Ranking 2022 Silver Award
Excellence Award at the 2022 Internet IR Award

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:259.9 thousand tons of CO2 (FY2023)

Scope 1 Emissions:6.5 thousand tons of CO2 (FY2023)

Scope 2 Emissions:24.8 thousand tons of CO2 (FY2023, market-based)

Scope 3 Emissions:228.6 thousand tons of CO2 (FY2023)

Renewable Energy Share:Not disclosed

Total Energy Consumption:110,426 MWh (FY2023)

Water Consumption:310 thousand tons (FY2023)

Waste Generated:0.29 ten thousand tons (FY2023)

Carbon Intensity:Not disclosed