Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy Security and Safety
• Disaster Resilience
• Sustainable Urban Development
• Digital Transformation
• Climate Change Mitigation
• Human Rights
• Talent Development
• Workplace Environment
• Corporate Governance
• Community Contribution
• Compliance

Environmental Achievements

• Received and completed construction of a liquefied CO2 spherical tank for CCUS.
• Implemented LED lighting and air conditioning renovations at Haneda office and headquarters.
• Introduced a self-consumption type solar power generation facility at company-owned properties and started power sales.
• Started trial operation based on the created environmental management system (ISO14001) manual.

Social Achievements

• Published the "Ishii Iron Works Group Human Rights Basic Policy" on the website.
• Created a human rights due diligence sheet format.
• Revised the personnel evaluation system and started operation.
• Revised regulations regarding harassment prevention.
• Published the "General Business Operator Action Plan based on the Act to Promote Women's Participation in the Workplace" on the website.
• Published "Thoughts on Ensuring Diversity in the Appointment of Core Personnel, etc." on the website.
• Continued implementation of safety and health education for business offices, construction sites, and partner companies.
• Established a recurrence prevention verification committee to strengthen recurrence prevention measures for accidents and troubles.
• Continued to obtain the Health Excellent Company - Silver certification.
• Continued participation in the nationwide employment support organization (project to promote the reemployment of convicts).

Governance Achievements

• Submitted the corporate governance report to the TSE and held dialogues with institutional investors.
• Published the "Ishii Iron Works Corporate Governance Guidelines" on the website.
• Held a financial results briefing session on May 28, 2024 (held twice a year).
• Implemented IR meetings.
• Enriched the description of various disclosure documents (meeting notices, securities reports, corporate governance reports).

Climate Goals & Targets

Environmental Challenges

• Energy transition challenges related to carbon neutrality.
• Need to respond to storage needs for various energies including ammonia fuel and LNG.
• Addressing aging population and labor shortages.
• Promoting digital transformation and cybersecurity.
• Reducing GHG emissions.
• Improving energy efficiency.
• Promoting renewable energy.
• Ensuring human rights respect throughout the business domain and supply chain.
• Developing and securing human resources.
• Creating a workplace environment that fosters diversity and inclusion.
• Improving labor productivity and safety.
• Promoting health management.
• Enhancing corporate governance.
• Managing risks.
• Ensuring appropriate information disclosure.
• Contributing to the local community.
• Compliance with laws and international standards.

Mitigation Strategies

• Participating in domestic and international carbon-neutral related businesses.
• Developing new construction methods and automation technologies for labor-saving in field work.
• Strengthening the core system and promoting its use, improving the IT infrastructure.
• Improving the method of collecting actual construction data.
• Introducing a new expense settlement system and cloud storage.
• Promoting the use of groupware.
• Analyzing actual data as management decision-making materials.
• Setting a company-wide GHG emission reduction target.
• Investigating low-energy, high-efficiency equipment.
• Introducing LED lighting, high-efficiency air conditioning, and energy-saving equipment.
• Further promoting the installation of solar panels on company-owned properties.
• Promoting the use of renewable energy at company offices.
• Contributing to the realization of a new energy and hydrogen society.
• Implementing human rights due diligence and developing a human rights remedy process.
• Enhancing the education system for employees.
• Introducing telework and flexible systems.
• Strengthening the system for preventing harassment.
• Promoting women's active participation.
• Implementing measures to comply with the Act on Comprehensive Promotion of Labor Policies (power harassment prevention law).
• Implementing safety and health education for partner companies.
• Strengthening recurrence prevention measures for accidents and troubles.
• Promoting health management through health investments.
• Responding to the revision of the Childcare and Care Leave Act.
• Adapting to the revised Corporate Governance Code.
• Improving information disclosure through various disclosure documents and the company website.
• Strengthening IR activities.
• Conducting internal investigations related to the Subcontracting Act and the Antimonopoly Act.
• Conducting training sessions on the Subcontracting Act and the Antimonopoly Act.
• Creating and disclosing procurement basic guidelines and sustainable procurement guidelines.
• Continuing cooperation with disability employment support businesses.
• Continuing participation in the nationwide employment support organization.
• Continuing to conduct compliance training.

Supply Chain Management

Responsible Procurement

• Promoting transactions with companies that respect human rights and engage in environmental management.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO14001

Environmental Metrics

ESG Focus Areas

• Climate Change

Governance Achievements

• Established a Sustainability Promotion Committee chaired by the President and CEO to evaluate sustainability opportunities, discuss activity directions, and develop action plans. The committee reports to the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Transition risks (additional costs from carbon tax introduction)
• Physical risks (additional costs and damages from natural disasters such as floods and high tides)

Mitigation Strategies

• Information gathering on policies and related laws aimed at carbon neutrality
• Cost reduction through the use of external resources such as environmental consultants
• Efficiency improvement in GHG emission measurement using DX
• Development of new construction methods and automation technologies to reduce labor costs
• Optimization of maintenance business structure through reallocation of human resources
• Human resource development to achieve employee development
• Installation of watertight barriers and rainwater drainage equipment
• Waterproofing and high-altitude placement of switchboards and power receiving equipment
• Construction of a supply chain that considers climate change risks
• Examination of alternative office arrangements and the use of shared offices
• Initial training for employees at the stage where flooding is expected, review of disaster prevention manuals
• Review and adjustment of fire insurance conditions
• Diversification of material procurement sources, promotion of alliances with related companies to build a resilient supply chain
• Setting construction periods considering climate change risks
• Flood prevention measures such as installation of watertight barriers
• Elevation of buildings in newly constructed properties
• Waterproofing and high-altitude placement of switchboards and power receiving equipment
• Active participation in various carbon-neutral related markets in Japan and overseas (fuel ammonia, LNG, CCS/CCUS)
• Development of new construction methods and automation technologies to reduce labor costs
• Improvement of tank inspection methods using drone-based IoT technology
• Optimization of maintenance business structure through reallocation of human resources
• Incorporation of customer needs regarding maintenance business through strengthening of sales promotion system

Supply Chain Management

Responsible Procurement

• Building a resilient supply chain through diversification of material procurement sources and promotion of alliances with related companies

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• High tides

Transition Risks

• Carbon tax introduction

Opportunities

• Increased demand for CCS/CCUS tanks
• Increased demand for hydrogen tanks
• Increased demand for low-temperature ammonia tanks
• Increased demand for tank repair and maintenance due to changes in tank specifications
• Increased demand for repair, maintenance, and new construction of disaster-resistant tanks

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• New energy tanks (fuel ammonia, hydrogen, etc.)
• CCS/CCUS liquefied carbon dioxide storage tanks

Environmental Metrics

ESG Focus Areas

• Green Transformation (GX)
• Carbon Neutrality
• Sustainability

Environmental Achievements

• Delivered Japan’s largest (24,000 tons) low-temperature ammonia tank
• Delivered one of the largest (30,000 tons) low-temperature ammonia tank
• Renovated existing tanks to support new energy
• Construction of new solar power generation facilities

Social Achievements

• Developing human resources for next-generation
• Promote SDGs initiatives
• Residence Charmant Tsukishima acquired DBJ Green Building Certification

Governance Achievements

• Established the Sustainability Promotion Committee
• Reviewed administrative authority and budget system, reformed personnel system (personnel evaluation, etc.), strengthened IR

Climate Goals & Targets

Environmental Challenges

• Declining workforce and experienced engineers
• Responding to natural disasters
• Declining petroleum tank maintenance work due to lower demand for oil
• Decreasing number of field workers and aging workforce reduces responsiveness
• Declining value due to aging of buildings

Mitigation Strategies

• Introducing labor-saving and efficiency-enhancing equipment
• Training engineers and technicians
• Further improving profitability by redeveloping company-owned real estate, etc. and preventing loss of value by maintaining existing properties
• Participating in the carbon neutral market
• Deepening our presence in Southeast Asia, where energy infrastructure investment is growing

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Responding to natural disasters, such as earthquakes, tsunamis, and major typhoons due to global warming

Transition Risks

• Declining petroleum tank maintenance work due to lower demand for oil

Opportunities

• Expanding of new energy markets through carbon neutrality

Sustainable Products & Innovation

• Low-temperature ammonia tanks
• Solar power generation facilities