MISUMI Group Inc.
Climate Impact & Sustainability Data (2021, 2023, 2024)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:70 thousand t-CO2 (2020)
Scope 1 Emissions:9 thousand t-CO2 (2020)
Scope 2 Emissions:62 thousand t-CO2 (2020)
Total Energy Consumption:113,397 MWh (2020)
ESG Focus Areas
- Climate change
- Resource depletion
- Air pollution
- Product quality and safety
- Decline in the working population
- Human rights protection
- Data security
- Corporate governance
- Ethical behavior
- Stakeholder engagement
Environmental Achievements
- Reduced waste emissions by maintaining a company-wide recycling rate of over 80%
- Promoted paperless work environment through digitization and mobile tablets, reducing waste and improving business efficiency
- Expanded lineup of environmentally conscious products, such as non-halogen-type cables
Social Achievements
- Achieved diverse employee composition with 44% female employees in Japan, and 35% globally; 13% female managers in Japan and 23% globally
- Implemented “No Harassment” policy across the Group and conducted periodic “Human Resources Compliance Training”
- Sponsored “ROBO-ONE”, a biped robot battle tournament, to support the passion of people involved in manufacturing
- Provided “MISUMI Student Manufacturing Support” initiative, supporting over 2,000 student groups since FY2008
Governance Achievements
- Established a Sustainability Committee to strengthen sustainability initiatives
- Enacted and disclosed the MISUMI Group Corporate Governance Basic Policy in 2015
- Established a Nomination and Compensation Committee with a majority of independent Outside Directors
Climate Goals & Targets
Environmental Challenges
- Impact of market trends in specific industries on earnings
- Expansion of overseas business operations and related political and economic risks
- Quality control issues and potential economic damages or loss of credibility
- Management of customer information and potential information leaks
- Natural disasters and other emergencies that could disrupt production or logistics
- System and internet failures that could impede product orders, production, and distribution
- Foreign exchange rate fluctuations
- Human resources challenges in recruiting, securing, and training capable personnel
Mitigation Strategies
- Actively pursuing business expansion overseas by strengthening the establishment of Regional Business Companies
- Established information management rules including the Basic Policy on Information Security and the Information Security Guidelines
- Has a system in place to address disasters and other emergencies in accordance with its business continuity plan (BCP)
- Implements measures such as forward exchange contracts to alleviate foreign exchange rate risk
- Actively recruiting outside personnel who have experienced many difficult situations to form a strong management team
Supply Chain Management
Responsible Procurement
- Green procurement initiatives
- Green Procurement Guidelines to observe legal restrictions and requirements concerning environmental chemical substances
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: TCFD
Certifications: ISO 14001:2015
Sustainable Products & Innovation
- Non-halogen-type cable
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:1708 thousand t-CO2e/year (2021)
Scope 1 Emissions:8 thousand t-CO2e/year (2021)
Scope 2 Emissions:63 thousand t-CO2e/year (2021)
Scope 3 Emissions:1637 thousand t-CO2e/year (2021)
Total Energy Consumption:116,741 MWh/year (2021)
ESG Focus Areas
- Climate Change
- Resource Depletion
- Air Pollution
- Product Quality and Safety
- Human Rights Protection
- Data Security
- Corporate Governance
- Ethical Behavior
- Stakeholder Engagement
Environmental Achievements
- Reduced GHG emissions by more than 60% compared with emissions in FY2020 (Scope 1 & 2).
- Introduced photovoltaic Onsite PPAs at its Vietnam production site.
- Promoted energy conservation related to air conditioning at its domestic production site (Shizuoka).
- Introduced CO2-free electricity at domestic production sites and its Head Office building.
- Purchased renewable energy certificates (I-REC, TIGR) for production sites in Vietnam, China, Thailand, and India.
- Achieved at least 80% recycling ratio.
- Implemented paperless operations by introducing digital shipment collection and production order forms and providing tablets.
- Introduced EV vehicles to one of its delivery routes in the Chubu region.
Social Achievements
- Established a Human Rights Policy.
- Global male to female ratio as of March 2023 is 64%:36%; percentage of female managers is 23%.
- Promotes remote working and flexible work schedules.
- Developed MISUMI Group Sustainable Procurement Guidelines.
- Established a variety of training programs for employee development (MISUMI Strategy School, Management Forum, Presentation of results, Management training, Logical thinking training, Supporting self-development training, In-house English conversation class).
- Enhanced benefits programs (in-house massage facility, recreational facility contract).
Governance Achievements
- Established a Sustainability Committee.
- Established a Nomination and Compensation Committee.
- Enacted and disclosed the MISUMI Group Corporate Governance Basic Policy.
- Established a “Basic Policy on the Internal Control System”.
- Established the “MISUMI Group Code of Conduct”.
- Established a Whistle Blowing System called “MISUMI Compliance Helpline”.
Climate Goals & Targets
Long-term Goals:
- Monitoring of carbon pricing in countries where MISUMI does business.
- Develop models for prompt recovery and proper supplies in the event of disaster damage and stoppages at business locations.
- Stronger communication for PR and publicity directed at investors.
- Achieve zero carbon emissions by 2050.
Medium-term Goals:
- PR and supplies of necessary components in conjunction with customer-led final product development.
- Conduct necessary development and investment while responding to the needs of an environmentally conscious society.
- Improvements to globally optimal production and reliable quick delivery.
- Select appropriate suppliers.
- Reduce costs by lowering purchase quantities and VA to lower the cost of materials expected to rise steeply in price.
Short-term Goals:
- Build information networks to infer behavioral changes, and take action on ways to address environmental issues for each region and customer.
- Market products that comply with energy consumption and GG emission regulations before they come into force.
Environmental Challenges
- Increased sales prices and transportation expenses due to power consumption constraints and rate hikes.
- Reputational damage from insufficient disclosure of information on GHG emission reductions.
- Suspended business from violent storm and flood damage.
- Suspended functions from disaster damage to non-factory locations.
- Higher steel prices from soaring metal prices.
- Higher delivery costs.
- Lose European customers for climate change non-compliance.
- Tarnished reputation from insufficient disclosure of climate change information.
Mitigation Strategies
- Hedging risks by dispersing production between multiple locations.
- Strengthening the resiliency of facilities in areas where damage from storms and flooding is expected.
- Conducting training focused on employee and facility safety.
- Building a risk management system.
- Conducting a risk assessment once a year of Business Companies and Platforms.
- Building a system for business continuity planning.
- Establishing a system of documents, processes, and communication for disaster countermeasures at overseas subsidiaries.
- Disclosing the “Sustainable Procurement Guidelines” to main suppliers and encouraging them to agree to these guidelines.
- Requesting a questionnaire to verify suppliers’ efforts in environmental activities.
Supply Chain Management
Responsible Procurement
- MISUMI Group Sustainable Procurement Guidelines
Climate-Related Risks & Opportunities
Physical Risks
- Violent storms and flood damage
- Typhoons, tsunamis, flooding
- Rising sea levels
- Rising average temperatures
- Intensified water and raw material shortages
Transition Risks
- Introduction of carbon pricing
- Strong regulations on power conservation and GHG/emissions
- Requests by EU companies to disclose GHG emissions
- Degraded performance of existing products
- Delayed product development investments
- Changes in customer behavior
- Higher raw material costs
- Higher transportation costs
Opportunities
- Changes to products and production processes for customers’ decarbonization
- Strengthening social resilience against natural disasters
- Higher demand for products and services that stand up well to temperature increase measures and disasters
- Larger production auxiliary materials market from greater demand for decarbonization products and services
- Lower costs from renewable energy to reduce CO2 emissions
Reporting Standards
Frameworks Used: TCFD
Certifications: ISO 14001:2015
Sustainable Products & Innovation
- Non-halogen-type cable
Reporting Period: 2024
Environmental Metrics
Total Carbon Emissions:1549 thousand t-CO2e/year (FY2022)
Scope 1 Emissions:6 thousand t-CO2e/year (FY2022)
Scope 2 Emissions:15 thousand t-CO2e/year (FY2022)
Scope 3 Emissions:1528 thousand t-CO2e/year (FY2022)
Total Energy Consumption:111,907 MWh/year (FY2022)
ESG Focus Areas
- Climate Change
- Resource Depletion
- Air Pollution
- Product Quality and Safety
- Human Rights Protection
- Data Security
- Corporate Governance
- Ethical Behavior
- Stakeholder Engagement
- Supply Chain Management
Environmental Achievements
- Reduced greenhouse gas emissions by more than 60% compared to FY2020
- Introduced photovoltaic Onsite PPAs at Vietnam production site
- Promoted energy conservation at domestic production site (Shizuoka)
- Introduced CO2-free electricity at domestic production sites and Head Office building
- Purchased renewable energy certificates for production sites in Vietnam, China, Thailand, and India
- Achieved at least 80% recycling ratio
- Implemented paperless operations
Social Achievements
- Established a “Sustainability Committee”
- Developed “MISUMI Group Sustainable Procurement Guidelines”
- Implemented a Zero Tolerance for Harassment declaration
- High percentage of female managers (17% in Japan, 24% globally)
- 85% of hires in MISUMI Japan are mid-career professionals
- Sponsoring of the Biped Robot Battle Tournament (ROBO-ONE)
- MISUMI Student Manufacturing Support
Governance Achievements
- Established a Sustainability Committee
- Revised the existing “Code of Conduct” and implemented a new “Corporate Code of Conduct” and “Employee Code of Conduct.”
- Established a Nomination and Compensation Committee
- Improved the diversity of the Board of Directors by appointing a female Outside Director
Climate Goals & Targets
Long-term Goals:
- Monitoring of carbon pricing in countries where MISUMI does business
- Develop models for prompt recovery and proper supplies in the event of disaster damage and stoppages at business locations
- Select appropriate suppliers
- Achieve carbon neutrality by 2050
- Raise the global ratio of female managers to 30%
Medium-term Goals:
- PR and supplies of necessary components in conjunction with customer-led final product development
- Conduct necessary development and investment while responding to the needs of an environmentally conscious society
- Improvements to globally optimal production and reliable quick delivery
- Stronger communication for PR and publicity directed at investors
- Reduce costs by lowering purchase quantities and VA to lower the cost of materials
Short-term Goals:
- Build information networks to infer behavioral changes and address environmental issues
- Market products that comply with energy consumption and GG emission regulations
Environmental Challenges
- Increased sales prices and transportation expenses due to power consumption constraints and rate hikes
- Reputational damage from insufficient disclosure of information on GHG emission reductions
- Suspended business from violent storm and flood damage
- Delayed procurement and suspended production from disaster damage
- Higher costs from revising procurement networks due to rising sea levels
- Higher energy costs from rising average temperatures
- Altered long-term weather patterns due to climate change
- Suspended factory operations due to intensified water and raw material shortages
- Higher steel prices from soaring metal prices
- Lifecycle GHG reduction requests, info disclosure
- Higher delivery costs
- Cost burden from excessive steel price increases
- Higher medium-/long-term costs from carbon taxes
- Lose European customers for climate change non-compliance
- More cost burden if unable to pass on higher logistics prices
- Suspended operations from power consumption regulations
- Tarnished reputation from insufficient disclosure of climate change information
- Lost financial opportunities for incentives
Mitigation Strategies
- Building a risk management system focusing on high CO2 emissions associated with customers’ energy use
- Strengthening the resiliency of facilities in areas at risk of storms and flooding
- Conducting training focused on employee and facility safety
- Daily monitoring in areas with unpredictable risk
- Disclosing “Sustainable Procurement Guidelines” to main suppliers
- Requesting questionnaires to verify suppliers’ environmental activities
- Implementing measures to reduce greenhouse gas emissions
- Introducing CO2-free electricity
- Introducing EV vehicles for delivery
- Launching a service to collect and recycle bobbins
Supply Chain Management
Responsible Procurement
- MISUMI Group Sustainable Procurement Guidelines
Climate-Related Risks & Opportunities
Physical Risks
- Violent storms, flood damage
- Typhoons, tsunamis, flooding
- Rising sea levels
- Rising average temperatures
- Intensified water and raw material shortages
Transition Risks
- Increased sales prices and transportation expenses
- Reputational damage from insufficient disclosure
- Higher costs from revising procurement networks
- Higher energy costs
- Changes in customer behavior
- Higher raw material costs
- Higher transportation costs
- Increased cost of enhancing environmental performance
- Higher steel prices
- Lifecycle GHG reduction requests, info disclosure
- Higher delivery costs
- Cost burden from excessive steel price increases
- Higher medium-/long-term costs from carbon taxes
- Lose European customers for climate change non-compliance
- More cost burden if unable to pass on higher logistics prices
- Suspended operations from power consumption regulations
- Tarnished reputation from insufficient disclosure of climate change information
- Lost financial opportunities for incentives
Opportunities
- Changes to products and production processes for customers’ decarbonization
- Strengthening social resilience against natural disasters
- Larger production auxiliary materials market from greater demand for decarbonization products and services
- Lower costs from renewable energy to reduce GHG emissions
- Demand for highly disaster-resilient products and services rises
Reporting Standards
Frameworks Used: TCFD
Certifications: ISO 14001:2015
Sustainable Products & Innovation
- Non-halogen-type cable