Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Achieved a 5% renewable energy share in 2022 through the purchase of non-fossil fuel certificates.
• Increased waste processing capacity at Green Arrows Kyushu's gypsum board plant, reducing dust and fuel consumption.
• Reduced CO2 emissions by 91.0% year-on-year in 2022 (though this fluctuates with sales).

Social Achievements

• Implemented a company-wide internal internship program to improve interdepartmental communication and skills.
• Launched a brother/sister mentorship program for new employees.
• Renovated Green Arrows Chubu's office and introduced a free address system.

Governance Achievements

• Introduced an executive officer system to enhance management decision-making and oversight.
• Established a compliance committee and conducts monthly compliance training sessions.
• Maintained a 60% external director ratio on the board.

Climate Goals & Targets

Environmental Challenges

• Decreased recycling rates due to an increase in contaminated or unsuitable materials for cement recycling.
• Slowdown in the reduction of overtime hours.
• Large infrastructure projects not proceeding as planned, leading to a change in market listing.

Mitigation Strategies

• Implementing new measures to further reduce overtime hours, including systematization for improved efficiency.
• Focusing on upstream sales and establishing a consulting sales model to increase high-value contracts.
• Strengthening the financial base and improving capital efficiency to ensure stable management and shareholder returns.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters impacting operations

Transition Risks

• CO2 emission regulations impacting profitability
• Carbon pricing increasing energy costs

Opportunities

• Increased profits from renewable fuel sales
• Increased profits from new businesses

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001 (Daiseki Environmental Solutions), Eco Action 21 (Green Arrows Chubu & Kyushu)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Biodiesel fuel

Awards & Recognition

• 2014 Aichi Environmental Award (Biodiesel fuel business)
• 2016 and 2017 Environmental Communication Award (Environmental Report Category)
• 2017 Aichi Environmental Award (Nagoya Mayor's Award)
• 2022 ESG Finance Award Japan (Environmental Sustainable Business Category)