Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Promoting CO2 emission reduction
• Promoting procurement of renewable energy and introduction of solar power generation systems
• Promoting electrification of company cars and forklifts
• Replacing forest resources with non-forest resources (waste plastic products, etc.)
• Switching paper resources such as copy paper and catalogs to FSC or PEFC certified paper
• Grasping and reducing industrial waste emissions and improving yield through improvements in manufacturing processes
• Promoting paperless initiatives to reduce paper purchases and reuse

Social Achievements

• Strengthening human resource development through improvements to the personnel evaluation system and in-house training system
• Strengthening leadership through management training
• Reviewing employment systems and utilizing senior human resources
• Promoting safety measures in the work environment
• Realizing ways of working that respond to social changes (IT environment improvement, DX promotion)
• Cultivating a culture that fosters a sense of fulfillment and purpose
• Improving diversity and inclusion through respect for human rights (extending the application of labor regulations to related companies)
• Promoting the acceptance of foreign technical trainees
• Providing opportunities for active participation regardless of gender, nationality, or race
• Supporting regional revitalization through sponsorship of regional sports competitions and media

Governance Achievements

• Appointing outside directors with diverse backgrounds and skills
• Activating the board of directors and making swift and accurate decisions
• Thorough management with awareness of legal compliance
• Constructive dialogue with investors (enhancing IR)

Climate Goals & Targets

Environmental Challenges

• Continued socio-economic impact of the novel coronavirus infection
• Global surge in resource prices

Mitigation Strategies

• Cost reduction and expenditure suppression
• Review of sales prices

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Promoting CO2 emission reduction
• Promoting procurement of renewable energy and introduction of solar power generation systems
• Promoting electrification of company cars and forklifts
• Replacing forest resources with non-forest resources (waste plastic products, etc.)
• Switching paper resources for copy paper and catalogs to FSC or PEFC certified paper
• Reducing industrial waste emissions, improving yield through manufacturing process improvements, and promoting paperless initiatives

Social Achievements

• Contributing to the maintenance and development of cities and infrastructure while improving the efficiency of construction sites
• Developing products that enhance transportation and storage efficiency in various industries while keeping environmental impact in mind
• Strengthening human resource development through improved personnel evaluation and in-house training systems
• Strengthening leadership through management training
• Improving employment systems and utilizing senior human resources
• Promoting workplace safety and creating a work style that adapts to social change (IT environment improvement, DX promotion)
• Cultivating a work environment that fosters a sense of purpose and fulfillment
• Promoting diversity and inclusion (respect for human rights, expanding application of labor regulations to related companies, promoting acceptance of foreign technical trainees, providing opportunities for people of all genders, nationalities, and races)
• Supporting regional revitalization through sponsorship of local sports competitions and media

Governance Achievements

• Appointing outside directors with diverse backgrounds and skills
• Activating the board of directors and making swift and accurate decisions
• Thorough management with a focus on compliance
• Constructive dialogue with investors (enhancing IR)
• Introduction of stock compensation system

Climate Goals & Targets

Environmental Challenges

• Rising steel prices (major raw material)
• Increased labor costs due to employee benefits improvements

Mitigation Strategies

• Efforts to secure profitability
• Reviewing sales prices to secure profitability

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Switched to FSC or PEFC certified paper for copy paper and catalogs.
• 25% of forklifts have been electrified; aiming for 34% by March 2024 and 40% by March 2026.

Social Achievements

• Improved human resource evaluation and in-house training systems.
• Introduced a 65-year-old retirement system and a part-time employee system.
• Achieved a Bronze rating in the 2022 EcoVadis sustainability assessment.

Governance Achievements

• Appointed external directors with diverse backgrounds and skills.
• Implemented a whistleblowing system.
• Introduced a stock compensation system in June 2022.

Climate Goals & Targets

Environmental Challenges

• Decreased sales revenue in Q1 2024 due to delayed material purchases in the construction materials sector and decreased sales of large-scale logistics warehouse projects in the logistics equipment sector.
• High material prices (steel) and rising expenses.
• Slow progress in switching from framework scaffolding to next-generation scaffolding due to high material prices.

Mitigation Strategies

• Cost reduction efforts through fixed cost and new investment project reviews.
• Diversification of procurement methods for scaffolding construction companies through various proposals, including rental with repurchase options.
• Strengthening alliances to expand into new business areas.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Next-generation scaffolding
• Liquid transport bulk containers

Environmental Metrics

ESG Focus Areas

• carbon neutrality
• protection of forest resources & use of non-forest resources
• promotion of waste material reductions
• promotion of social issues as a business
• reinforcement of talent development
• development of workplace environment
• improvement of diversity and inclusion
• revitalization support for communities
• execution of highly effective governance
• constructive dialogues with investors (enhancement of IR)
• consideration of implementing share-based compensation

Environmental Achievements

• Actively procuring green power and introducing photovoltaic power system, cutting back on CO2 emissions.

Social Achievements

• Developing new products with a view to reducing environmental impacts, while reinforcing safety assurance and accelerating efforts to further improve efficiency by means of providing construction sites with all those products and services.
• Developing new products with a view to reducing environmental impacts, while intending to improve efficiency in transportation and storage amongst a variety of industries.

Governance Achievements

• Keep on hiring outside directors with diverse backgrounds and skills.
• Revitalizing the board of directors with a proper way of administration and develop fast and shrewd decision-making as well as aiming to ensure management that is thoroughly conscious of legal compliance.

Climate Goals & Targets

Environmental Challenges

• Price hike of steel, which is the main raw material of system scaffoldings.

Mitigation Strategies

• Revision of selling prices (due to the price hike of steel) and the continued improvement in sales mix are giving positive impacts more than compensating.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Developing new products with a view to reducing environmental impacts

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Initiatives to reduce CO2 emissions (Vehicle electrification, emissions monitoring)
• Reducing waste (improving the yield rate, going paperless)
• Development of products that help reduce environmental impact, an efficient supply of products to industries that operate in a carbon-neutral manner

Social Achievements

• Work style reform and promotion of diversity
• Strengthened human resource development
• Promoting diversity and inclusion
• Supporting regional revitalization

Governance Achievements

• Transparent and sound corporate management
• Effective governance (Appointment of outside directors, etc.)
• Constructive dialogues with investors (promoting investor relations)

Climate Goals & Targets

Environmental Challenges

• Aging of social infrastructure
• Decreasing numbers of construction workers
• Surging raw materials prices

Mitigation Strategies

• Development of products that can be used by workers without special skills or physical strength
• Development of products that can be used safely anywhere for a wide range of construction projects
• Strengthening the rental business
• Expanding the rental business
• Forming alliances with leading companies to expand the rental business
• Offer solutions, leveraging our development capabilities and expertise. Expand the service areas
• Provide products at low costs and with short delivery times, leveraging our manufacturing and trading capabilities

Supply Chain Management

Climate-Related Risks & Opportunities