Climate Change Data

Environmental Metrics

ESG Focus Areas

• Global warming control
• Reduction of traffic accidents
• Promotion of health and welfare
• Labor safety and health
• Human rights
• Promotion of diversity
• Job satisfaction reform
• Work-life balance
• Compliance
• Sustainable procurement
• Biodiversity

Environmental Achievements

• Achieved 18.4% renewable energy introduction rate (exceeding the target of 12% or more)
• Achieved 2,280,000 t-CO2 reduction in production CO2 emissions (meeting the target of 2,289,000 t-CO2 or less)
• Achieved 64,400 t-CO2 reduction in logistics CO2 emissions (meeting the target of 67,500 t-CO2 or less)
• Reduced waste in Japan to 3.47 t/100 million yen (meeting the target of 5.29 t/100 million yen or less)
• Reduced packaging material usage to 0.27 t/100 million yen (meeting the target of 0.317 t/100 million yen or less)
• Achieved 242 m3/100 million yen water intake (meeting the target of 306 m3/100 million yen or less)
• Certified three additional sites as plants that coexist with nature (total of four sites)

Social Achievements

• Increased job satisfaction (result of employee awareness survey; 5-point rating) to 3.4 points (four Group companies)
• Increased ratio of female managers at four Group companies to 21%
• Achieved 0 serious violations of laws and ordinances
• Deployed Group-wide global guidelines for suppliers to U.S., Australia, Asia, and Europe (50% or more compliance rate)
• Implemented various initiatives to improve employee well-being and job satisfaction, including ATBA activities and 1-on-1 meetings between supervisors and subordinates
• Strengthened mid-career hiring, achieving 23.6% ratio of mid-career employees in managerial positions

Governance Achievements

• Established CxOs to drive key management issues and assist the president
• Reduced the number of Internal Directors to eight (including three Independent Outside Directors)
• Selected the Chair of the Executive Nomination & Compensation Committee from among Independent Outside Directors
• Strengthened internal control through thematic audits and audits based on the internal control reporting system

Climate Goals & Targets

Environmental Challenges

• Climate change risks (transition and physical risks)
• Biodiversity loss
• Supply chain disruptions due to natural disasters, geopolitical risks, and logistics issues
• Quality issues
• Parts certification violations
• Economic security and export control risks
• Mental health issues among employees
• Heatstroke cases among employees

Mitigation Strategies

• Developed a carbon neutrality strategy with SBTi-certified targets
• Implemented the Seventh AISIN Consolidated Environmental Action Plan
• Conducted scenario analyses based on TCFD and TNFD recommendations
• Implemented risk management measures, including BCPs and regular drills
• Strengthened supplier audits and quality management systems
• Established a Group Regulatory Certification Committee
• Implemented various initiatives to improve employee well-being and mental health
• Implemented heatstroke prevention measures, including education and awareness-raising activities

Supply Chain Management

Supplier Audits: 66 supplier audits in FY2024

Responsible Procurement

• AISIN Group Supplier Sustainability Guidelines
• AISIN Group Green Procurement Guidelines
• Declaration of Partnership Building
• Responsible mineral procurement policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heavy rain, typhoons, floods)
• Supply chain disruptions due to natural disasters

Transition Risks

• Rising procurement costs due to increased demand for low-carbon raw materials
• Increased costs due to carbon tax and renewable energy policies
• Shifting demand for products due to electrification

Opportunities

• Increased demand for electric vehicle products
• Development of energy-efficient products and services (Perovskite solar cells, bio-briquette charcoal)
• Creation of new businesses in response to growing demand for products and services that contribute to reducing CO2 emissions

Reporting Standards

Frameworks Used: GRI Standards, TCFD Recommendations, TNFD Recommendations

Certifications: ISO 14001, ISO 45001, SBTi certification for Scope 1 and 2 emissions

Third-party Assurance: SGS Japan Inc.

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 3 (Good health and well-being)
• Goal 17 (Partnerships for the goals)

AISIN's initiatives contribute to these SDGs through various activities, including the development of sustainable products, reduction of environmental impact, promotion of employee well-being, and collaboration with stakeholders.

Sustainable Products & Innovation

• Electric vehicle parts (HEVs, PHEVs, BEVs, FCEVs)
• Cooperative regenerative brake systems
• Aerodynamic devices
• Perovskite solar cells
• Bio-briquette charcoal
• ENE-FARM household fuel cell cogeneration system

Awards & Recognition

• CDP Climate Change Rating of A
• CDP Water Rating of A-
• SBTi certification for Scope 1 and 2 emissions
• White 500 Outstanding Health and Productivity Management Organization

Environmental Metrics

ESG Focus Areas

• Global warming control
• Reduction of traffic accidents
• Promotion of conversion to clean energy
• Promotion of health and welfare
• Promotion of sustainable industrialization through technological innovation
• Prevention of contamination, reduction of emissions of substances of environmental concern, resource circulation, and improvement in efficiency
• Health, labor safety and sanitation; protection of human rights; promotion of diversity and job satisfaction reform
• Work-life balance and sustainable procurement

Environmental Achievements

• Reduced CO2 emissions from production by 18% compared to FY2014 (2.279 million t-CO2)
• Reduced life cycle CO2 emissions by 6% compared to FY2020 (16.83 million t-CO2)
• 28% reduction in process cycle time and a halving of quality defects in aluminum die casting plant, along with a 40% reduction in CO2 emissions.
• Nishio Die Casting Plant started a resource recycling system to separate, collect, and reuse CO2.

Social Achievements

• Selected for three years in a row as a “Nadeshiko brand” (awarded in recognition of companies with excellent support for women in the workplace).
• Established the EV Promotion Center to develop various products that increase power consumption efficiency.
• Launched initiatives led by the CN Promotion Center for a recycling-oriented society through the realization of a zero-emissions plant.
• Established AISIN AUTO PARTS SERVICE CORPORATION and James Komaki Minami Store.

Governance Achievements

• Established the CxO system to speed up decision making and execution in key areas.
• Revised the skill matrix for executive management and changed the appointment method for the Chair of the Executive Nomination & Compensation Committee.
• Unified the committees for the appointment and remuneration of the Executive Management and renamed them.
• Achieved 80% of its goals for the effect of integration for 2025.

Climate Goals & Targets

Environmental Challenges

• Continued reduction of production by customers due to the shortage of semiconductors and soaring raw material prices.
• Changes in the external environment, such as the situation in Ukraine and deterioration of the U.S.-China relationship.
• Rapid rise in raw material and energy expenses.
• Supply chain disruptions due to climate events.

Mitigation Strategies

• Executed structural reforms and the reinforcement of its framework, comprised of the unification of its supply chain.
• Strengthened the shift of resources and investment into key areas.
• Formulated a medium-term management plan for 2025.
• Developed alternative sourcing strategies.

Supply Chain Management

Supplier Audits: At least every three years for 415 suppliers in Japan; 91 audited in FY2023

Responsible Procurement

• Accreditation verifications (ISO9001, IATF16949, ISO14001)
• Quality audits
• Basic transaction agreements focused on safety and health and pollution prevention
• Compliance with the laws of competition, bribery prevention, and elimination of antisocial forces
• Declaration of Partnership Building

Climate-Related Risks & Opportunities

Physical Risks

• Disruption of supply chains and temporary suspension of business as a result of larger and more frequent weather disasters

Transition Risks

• Increasing procurement costs for necessary raw materials
• Additional costs due to policies including the introduction of carbon tax and renewable energy
• Decreased demand for gasoline-powered vehicle products

Opportunities

• Increased demand for AISIN’s electric-unit-related products
• Cost reduction by standardizing units by vehicle model
• Improving the cruising range of electric vehicles
• Expansion of production capacity for related products
• CO2 recovery and utilization
• Development of new business using AISIN's proprietary technology
• Further increase in efficiency and sales of ENE·FARM household fuel cells

Reporting Standards

Frameworks Used: ISO26000, International Integrated Reporting Framework, Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation, SASB, GRI Standards, TCFD, TNFD

Certifications: ISO 14001, ISO 45001, ISO 27001

UN Sustainable Development Goals

• Goal 7
• Goal 9
• Goal 11
• Goal 12
• Goal 13

Aisin aims to contribute to the accomplishment of the SDGs through its business activities.

Sustainable Products & Innovation

• eAxle
• Cooling modules
• Lightweight battery frame parts
• Aerodynamic devices
• Regenerative cooperative regenerative brake
• Thermal management system
• ENE-FARM household fuel cells

Awards & Recognition

• R&D 100 Awards
• 2022 Development Award
• Minister of Economy, Trade and Industry Award
• Prime Minister’s Award
• Iwatani Naoji Memorial Award
• ESG Finance Awards Japan
• CDP A List (Water Security)