MEC Group
Climate Impact & Sustainability Data (2020, 2021, 2022, 2023, 2024)
Reporting Period: 2020
Environmental Metrics
Total Carbon Emissions:1751 t-CO2e
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:3298 thousand kWh
Water Consumption:38.2 km³
Waste Generated:366 tons
Carbon Intensity:99 kg-CO2/t
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Improved wastewater treatment turnover rate from 1 rotation/day to 2 rotations/day
- Reduced waste treatment costs by 10.9%
- Reduced water usage costs by 7.1%
- 10 cases of newly adopting chemicals and equipment that can reduce environmental burden
Social Achievements
- Held life planning seminars for employees in their 40s or over
- Maintained high employee satisfaction (almost 100% response rate in survey)
- 92% of employees who took baby-care leave returned to work
Governance Achievements
- Established an ESG Committee
- Improved the effectiveness of the Board of Directors through questionnaires and interviews
- Maintained a 0 compliance incident rate for whistle-blowing
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- 100% completion of manufacturing process efficiency improvement plan in FY2021
Environmental Challenges
- Decreasing reuse rates of plastic containers due to increased overseas shipments
- Slight increase in waste generation (6.2% increase)
- Need to improve manufacturing process efficiency to reduce environmental burden
Mitigation Strategies
- Developing a plan to improve manufacturing process efficiency (implementation in FY2021)
- Implementing measures to reduce waste generation and improve recycling
- Strengthening the mechanism to prevent the shipment of non-conforming products using FTA
Supply Chain Management
Supplier Audits: Annual evaluation of major suppliers
Responsible Procurement
- Selection of suppliers based on quality, cost, delivery time, technical capabilities, and environmental conservation efforts
- Compliance with laws and regulations regarding raw material procurement
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: Null
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Products with lower environmental load
Awards & Recognition
- Not disclosed
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:1345 tCO2e/year
Scope 1 Emissions:59.9 tCO2e/year
Scope 2 Emissions:1285 tCO2e/year
Scope 3 Emissions:Under considering
Renewable Energy Share:0%
Total Energy Consumption:3616 thousand kWh/year
Water Consumption:41194 m3/year
Waste Generated:336 tons/year
Carbon Intensity:Not disclosed
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Reduced CO2 emissions by 132 t-CO2 (10%) compared to FY2020
- Reduced industrial waste emissions by 29.2 tons (8.0%) from fiscal 2020
- Increased reuse rate of plastic IBCs to 98.5%
Social Achievements
- Maintained high employee satisfaction (4.8 out of 5 points)
- Employee turnover rate decreased to 3.3% from 5.7% in FY2020
- Zero industrial accidents resulting in lost time injuries
Governance Achievements
- Established a whistle-blowing system with 2 reports in FY2021
- Improved the effectiveness of the Board of Directors
- Achieved a 98% pass rate in the annual compliance test
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Increase the number of female workers in managerial positions by two or more by March 2024
Environmental Challenges
- Increased electricity consumption due to increased manufacturing volume and operation of three factories
- Low recovery rate of plastic drums shipped overseas (21.7%)
- Some cases of exceeding the 45-hour monthly overtime limit
Mitigation Strategies
- Generating electricity from sunlight on the roof of the Amagasaki Headquarters
- Working to reduce the number of times equipment is cleaned and introduce automatic container-cleaning equipment
- Monitoring overtime hours per employee and following up with responsible departments
Supply Chain Management
Supplier Audits: 9 cases in FY2021
Responsible Procurement
- Selection of suppliers based on quality, cost, delivery time, technical capabilities, and environmental conservation efforts
- Promotion of RBA (Responsible Business Alliance)-related initiatives
- Response to conflict minerals
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: RBA Code of Conduct version 7.0, ISO26000: 2012, Environmental Reporting Guidelines 2018, Environmental Accounting Guidelines 2005, SASB (Chemicals_Standard_2018)
Certifications: ISO9001, ISO14001
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Products that reduce environmental load by increasing customer productivity
Awards & Recognition
- Not disclosed
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:1,422 t-CO2e/year
Scope 1 Emissions:66.8 t-CO2e/year
Scope 2 Emissions:1,355.3 t-CO2e/year
Scope 3 Emissions:Under consideration
Renewable Energy Share:0%
Total Energy Consumption:3,665 thousand kWh/year
Water Consumption:40,382 m3/year
Waste Generated:545 tons/year
Carbon Intensity:Not disclosed
ESG Focus Areas
- Climate Change
- Human Capital
- Environmental Conservation
- Corporate Governance
- Social Responsibility
- Supply Chain Management
- Chemical Substance Management
- Occupational Safety and Health
- Diversity and Inclusion
Environmental Achievements
- Reduced CO2 emissions (Scope 1 and 2) from 1,421.1 t-CO2 in 2021 to 1,422 t-CO2 in 2022 (Note: slight increase, needs further investigation from the report)
- Zero wastewater discharges exceeding standard values in 2022
- Implemented measures to reduce industrial waste, although the total amount increased due to factory closure and facility renewal
- Initiated renewable energy procurement in 2023
- Solar power generation of 193,117 kWh at Amagasaki Headquarters
Social Achievements
- Improved employee engagement score from 3.7/5.0 in 2021 to 3.8/5.0 in 2022
- Increased percentage of male employees taking childcare leave to 66.7% in 2022
- Increased percentage of women in managerial positions to 25.5% in 2022
- Zero lost-time industrial accidents in 2022
- Implemented various initiatives to improve employee health and well-being, including medical checkups, stress checks, and a walking event
Governance Achievements
- Endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
- Established an ESG Committee chaired by the CEO
- Maintained a Board of Directors with a majority of independent outside directors
- Implemented a robust internal control system and compliance program
- Established a whistle-blowing system
Climate Goals & Targets
Long-term Goals:
- Become a truly global company that creates new value through unique technologies by 2030 (Vision for 2030)
- Continue to be an R&D-oriented company by 2030
- Be a leading unique AI company by 2030
Medium-term Goals:
- Achieve at least 10% ROE and at least 20% operating margin by 2024 (financial targets)
- Construct a new factory in Kitakyushu with a production capacity of approximately 30,000 tons by 2025
Short-term Goals:
- Not disclosed
Environmental Challenges
- Increased industrial waste due to factory closure and facility renewal
- Rising energy costs
- Geopolitical risks affecting raw material procurement
- Semiconductor market inventory adjustment
- Potential impacts of climate change (physical and transition risks)
Mitigation Strategies
- Developing alternative sourcing strategies
- Implementing measures to reduce industrial waste
- Revamping production capacity, including building a new factory
- Conducting climate scenario analyses and identifying risks and opportunities
- Developing and strengthening BCPs
- Promoting renewable energy use
Supply Chain Management
Supplier Audits: 9-10 cases per year
Responsible Procurement
- CSR procurement practices focusing on quality, cost, delivery time, technical capabilities, and environmental conservation efforts of suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Increased frequency/severity of abnormal weather/natural disasters
- Instability of supply of natural resources
- Decreased demand for commodities that use large amounts of water
Transition Risks
- Increased production costs
- Delayed development for environmentally friendly products
- Increased investment costs for development of environmentally friendly products
- Increase in material prices due to the introduction/expansion of carbon pricing
- Difficulty in procuring raw materials and restrictions/prohibitions regarding production and sales of raw materials/products
Opportunities
- Increase in sales of environmentally friendly products
- Increased profits from sales of environmentally friendly products
- Increase in profitability by entering into and expanding new markets with low carbon (carbon neutral) products
- Increased credibility through a stable supply of products/services
Reporting Standards
Frameworks Used: GRI Standards, SASB (Chemicals_Standard_2023), TCFD, ISO26000: 2012, RBA Code of Conduct version 7.0, Environmental Reporting Guidelines 2018
Certifications: ISO 9001, ISO 14001
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Products designed for use-phase resource efficiency
Awards & Recognition
- Nadeshiko Brand (FY2015 and FY2016)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:1676 t-CO2 (Scope 1,2) + 292 t-CO2 (Scope 3)
Scope 3 Emissions:292 t-CO2
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Reduced Scope 1 and 2 GHG emissions from 2371 t-CO2 in FY2022 to 1676 t-CO2 in FY2023
Social Achievements
- 30.0% of managerial positions held by women
- 0 occupational accidents involving lost time in 2023
- 4.0% of employees returning to work after taking child-rearing leave (Female)
Governance Achievements
- 4 out of 7 board members are outside directors
- All MEC Group bases have acquired ISO9001 and ISO14001 certifications
Climate Goals & Targets
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: SASB (Chemicals_Standard_2023-12), TCFD
Certifications: ISO9001, ISO14001
Reporting Period: 2024
Environmental Metrics
ESG Focus Areas
- Corporate Governance
- Social Responsibility
- Environmental Conservation
Social Achievements
- 30% women in management positions
- Focus on health management, work-life balance, career development, engagement, and occupational health and safety
Governance Achievements
- Established various committees including Audit Committee, Nomination Compensation Advisory Committee, ESG Committee, J-SOX Committee, Compliance Committee, and Risk Management Committee.
- Majority of board members are independent outside members.
- Annual assessment questionnaire for all Directors to ensure effectiveness of the Board of Directors.
Climate Goals & Targets
Long-term Goals:
- Become a truly global company that creates new value through unique technologies (Vision for 2030)
Environmental Challenges
- Progress and progress reports on key issues, as well as further discussions, and discussions on issues surrounding succession planning, should continue to be further strengthened.
- Demonstration of a higher level of oversight by the Board of Directors
Mitigation Strategies
- Continuous improvements to further ensure the effectiveness of the Board of Directors and improve its functions.