Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Diversity & Inclusion
• Employee Well-being
• Digital Transformation (DX)
• Environmental Initiatives (Energy Consumption, Renewable Energy)

Environmental Achievements

• Reduced electricity consumption from 16,438,712 kWh in 2021-2022 to 11,593,148 kWh in 2022-2023. Increased solar power generation to 440,000 kWh in 2022-2023.

Social Achievements

• Established a Sustainability Committee in February 2023.
• Increased female representation in new graduate hires (from 5.9% to 21.1%) and experienced hires (from 22.2% to 36.8%) in 2022-2023.
• Increased female management ratio from 2.2% to 3.3% in 2022-2023.
• Implemented office casual dress code.
• Held an internal e-sports tournament.
• Introduced a new taxi system, KTS for Cloud, with enhanced features for labor management and efficiency.
• Launched a new collaborative transport robot system, "Thouzer".

Governance Achievements

• Established a Sustainability Committee.
• Improved female representation in management.

Climate Goals & Targets

Environmental Challenges

• Semiconductor device shortages, particularly power semiconductors.
• Rising material and energy costs.
• Decreased demand for large-scale equipment due to semiconductor market slowdown.
• Labor shortages.
• Long lead times due to material shortages.
• Decreased profitability in some business segments (e.g., printed circuit board manufacturing).

Mitigation Strategies

• Developing EMS (Electronics Manufacturing Service) and DMS (Development & Design Manufacturing Service) businesses.
• Withdrawal from printed circuit board manufacturing.
• Focusing on high-growth and high-profitability businesses.
• Strengthening sales capabilities.
• Exploring new materials and sales channels.
• Implementing M&A and VC strategies.
• Strengthening the management foundation through organizational reform.
• Promoting sustainable business creation and women's empowerment.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Conservation
• Human Capital Enhancement and Diversity
• Governance and Risk Management Enhancement

Environmental Achievements

• Reduced CO2 emissions (Specific figures not provided in the report)
• Promotion of green procurement
• Expansion of environmental business (cloud-based building management systems and solar power solutions)

Social Achievements

• Development of a system for career advancement tailored to individual employee characteristics
• Implementation of various measures to prevent problems and resolve issues promptly (harassment prevention, promotion of paid leave, improved welfare benefits, establishment of suggestion boxes and consultation windows)
• Establishment of a career development department to support employee education, human resource development, and career planning consultations
• Implementation of initiatives to improve employee engagement (e-sports tournaments, Family Day)

Governance Achievements

• Strengthening of corporate governance code compliance
• Establishment of a risk assessment system for business risks associated with new business areas and business transactions
• Strengthening of information security measures (security audits, cyber insurance, revision of internal regulations)

Climate Goals & Targets

Environmental Challenges

• Decreased profitability in the printed circuit board manufacturing business due to reduced factory production and operating rates
• Slowdown in the market for logistics warehouse control devices due to suppressed capital investment by customers
• Challenges in the 3D printer business in the medical field
• Competition for students in recruitment activities

Mitigation Strategies

• Withdrawal from the printed circuit board manufacturing business
• Strengthening of solution sales capabilities in the industrial equipment systems business
• Focus on expanding sales of products and systems that contribute to efficiency and labor savings in response to the 2024 problem in the logistics industry
• Active implementation of various recruitment measures (internships, open company events, advertising strategies)

Supply Chain Management

Responsible Procurement

• Green procurement

Climate-Related Risks & Opportunities

Opportunities

• Expansion of environmental business

Sustainable Products & Innovation

• Cloud-based building management systems
• Solar power solutions