ABHOTEL CO., LTD.
Climate Impact & Sustainability Data (2023-04-01 to 2024-03-31)
Reporting Period: 2023-04-01 to 2024-03-31
Environmental Metrics
Total Carbon Emissions:7762 tCO2e/year
ESG Focus Areas
- Governance
- Environmental
- Social
Environmental Achievements
- Reduced CO2 emissions (Scope 1+2) to 7,762 t-CO2 in the fiscal year 2024.
- Launched an "eco plan" in 2020 for long-term business travelers to reduce plastic waste by reducing room cleaning frequency.
Social Achievements
- Implemented a "tutor system" to improve service quality through mentoring.
- Promote employee health by designating days for exercise and subsidizing influenza vaccinations.
- Promote paid leave usage by tracking employee leave days and providing recommendations.
Governance Achievements
- Established a Sustainability Committee in April 2024.
- Maintained a board with 2 external directors and 2 external auditors.
Climate Goals & Targets
Long-term Goals:
- Achieve 100 hotel locations.
Medium-term Goals:
- Increase sales of environmentally friendly plans to over 50%.
Short-term Goals:
- Improve guest room satisfaction scores to 4.0 or higher.
Environmental Challenges
- Maintaining and improving the profitability of existing facilities.
- Securing new locations for hotel development.
- Increasing investment and strengthening financial health.
- Securing and developing human resources.
- Promoting sustainability management.
- Interest rate risk due to reliance on bank loans for construction.
- Concentration of hotels in the Tokai region, making the company vulnerable to regional disasters.
- Risk of asset impairment.
- Risk of loss of deposits and guarantees.
- Risk of information breaches.
- Vulnerability to economic downturns and international affairs.
- Risk of food hygiene incidents.
- Maintaining independence from parent company while the parent company holds a significant stake (52.8%).
- Potential impact of new or changed legal regulations.
- Challenges related to the company's short history and small organizational size.
Mitigation Strategies
- Improving service offerings and cost reduction measures to maintain business continuity.
- Setting a profitability target of 35% for new hotel developments and aiming for 3+ new hotels annually.
- Improving balance sheet through revenue enhancement and building leases.
- Strengthening employee training and implementing a tutor system.
- Regular monitoring of performance through monthly board meetings and weekly management meetings.
- Establishing a Sustainability Committee to address material issues.
- Diversifying funding sources and improving balance sheet.
- Developing alternative sourcing strategies.
- Implementing strict information security measures.
- Actively participating in government travel discount campaigns.
- Improving breakfast menus to increase customer satisfaction and repeat business.
- Continuous discussion with the parent company to meet listing maintenance standards.
Supply Chain Management
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- Eco plan for long-term business travelers