Climate Change Data

CHORI CO., LTD.

Climate Impact & Sustainability Data (2021-04 to 2022-03, 2022-04 to 2023-03)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:1705 t-CO2e (Scope 1: 385, Scope 2: 956, Scope 3: 364 from employee commutes and business trips)
Scope 1 Emissions:385 t-CO2e
Scope 2 Emissions:956 t-CO2e
Scope 3 Emissions:364 t-CO2e (from employee commutes and business trips)

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Sales of environment-friendly products grew to approximately ¥10.0 billion in fiscal 2021.
  • Reduced CO2 emissions from fabric dyeing processes by 31.7% with WSTM.
  • Approximately 520 million plastic bottles recycled annually to produce ECO BLUETM.

Social Achievements

  • Increased the percentage of women among new graduates.
  • Made proactive efforts to promote the hiring of people with disabilities.
  • Launched a companywide charity walk event.

Governance Achievements

  • Transitioned to the Prime Market of the Tokyo Stock Exchange.
  • Increased outside directors to one-third of the Board of Directors.
  • Established a Governance Committee.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve sales of ¥50.0 billion from environment, health, and comfort products in the Fibers, Textiles, and Garments Business by the conclusion of the next medium-term management plan.
  • Consistently deliver ordinary income at the ¥10.0 billion level.
Short-term Goals:
  • Achieve ordinary income of ¥12.0 billion in fiscal 2022.

Environmental Challenges

  • Supply chain disruptions due to COVID-19.
  • Rising commodity prices.
  • Deteriorating Japanese yen.
  • Conflict between Russia and Ukraine.
  • Zero-COVID policy in China.
  • Delay in collecting receivables from business partners in the UAE.
  • Lack of brand recognition in the Chemicals Business.
  • Country risk associated with coups d’état and economic crises in emerging countries.
Mitigation Strategies
  • Developed alternative sourcing strategies.
  • Implemented risk management measures.
  • Strengthened supply chain management.
  • Discontinued operations in Russia.
  • Established a system to respond to future pandemics.
  • Strengthened subsidiaries.
  • Enhanced awareness of risk detection.
  • Diversified risks.

Supply Chain Management

Supplier Audits: CSR-based procurement survey every two years.

Responsible Procurement
  • CSR Procurement Guidelines
  • 11 Guidelines for Corporate Behavior

Climate-Related Risks & Opportunities

Physical Risks
  • Unseasonable weather
  • Floods
  • Rising sea levels
  • Water shortages
Transition Risks
  • Strengthening of environmental regulations
  • Shift to low-emission products
  • Declining demand for petrochemical products
Opportunities
  • Expansion of environment-friendly products (ECO BLUETM, Natural Dye)

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001

Sustainable Products & Innovation

  • ECO BLUETM recycled polyester fiber
  • Natural Dye apparel
  • TEXBRIDTM highly stretchable yarn
  • MILLENNIUM ORGANICTM ultra-white raw cotton material
  • MEDITERRANEAN GIZATM material made using 100% recycled water
  • WSTM quick-dyeing material
  • Biodegradable resin

Awards & Recognition

  • SDGs Promotion Coordinator by the Fukui Textile Association

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:1,196 t-CO2e (FY2021); 1,705 t-CO2e (FY2020)
Scope 1 Emissions:330 t-CO2e (FY2021)
Scope 2 Emissions:866 t-CO2e (FY2021)
Scope 3 Emissions:1,206,654 t-CO2e (FY2021)

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Corporate Governance

Environmental Achievements

  • Increased sales of SDG-oriented products to ¥180.0 billion (¥164.2 billion in FY2021)
  • Aiming for sales of ¥50.0 billion in SDG-oriented products in FY2025 (2.5 times the FY2022 level)
  • Participating in a lithium compound production project in Chile using a new method that reduces environmental impact
  • Expanding the lineup of biodegradable resin for seed sheets and other applications
  • Promoting the use of new protein sources to address food security concerns

Social Achievements

  • Increased employee engagement through face-to-face communication and surveys
  • Improved work-life balance through shortened work hours for childcare and other support systems
  • Increased percentage of women among new graduates and mid-career hires
  • Promoting diversity and inclusion in the workplace
  • Continued efforts in health and productivity management

Governance Achievements

  • Strengthened corporate governance through the Governance Committee and Legal Compliance Committee
  • Improved internal audit system with the establishment of the Internal Auditing Department
  • Increased the ratio of outside directors on the Board of Directors to more than one-third
  • Implemented performance-linked remuneration system for directors
  • Strengthened measures against country and geopolitical risks

Climate Goals & Targets

Long-term Goals:
  • Achieve net sales of ¥400.0 billion and net profit before income taxes and other adjustments of ¥20.0 billion in fiscal 2030
  • Become carbon neutral by 2050
Medium-term Goals:
  • Achieve net sales of ¥360.0 billion and net profit before income taxes of ¥16.0 billion in fiscal 2025
  • Increase the percentage of women among career-track hires and employees who have transferred to career-track positions to over 30%
  • Increase the percentage of women in management positions
  • Increase sales from BLUE CHAINTM initiatives to ¥30.0 billion by fiscal 2025
Short-term Goals:
  • Increase sales of SDG-oriented products to ¥50.0 billion in FY2025

Environmental Challenges

  • Sluggish apparel market in Japan
  • Global supply chain disruptions
  • Soaring raw material prices
  • Deteriorating market conditions for chemical products
  • Delay in collecting receivables from business partners in the UAE
  • Geopolitical risks and unseasonable weather
  • Decoupling of the United States and China
  • Supply-demand imbalance in China
  • Lack of foreign currency in Nigeria
  • Labor shortage
Mitigation Strategies
  • Developing and proposing higher value-added products
  • Strengthening cooperation and information sharing between overseas branches
  • Building a foundation and framework for next-stage growth
  • Strengthening risk management system
  • Diversifying supply chain and adapting to changing markets
  • Assigning more representatives from Japan to ASEAN countries
  • Developing a new supply chain in the ASEAN region and other Asian countries, particularly in India
  • Focusing on business in China while remaining keenly aware of the risks
  • Expanding business globally centered on Tokyo, Osaka, and Shanghai
  • Implementing CARAT project for business transformation and DX
  • Strengthening CSR-based procurement and human rights initiatives
  • Adopting ROIC as a management indicator

Supply Chain Management

Supplier Audits: CSR-based procurement surveys conducted every two years

Responsible Procurement
  • CSR Procurement Guidelines
  • 11 Guidelines for Corporate Behavior

Climate-Related Risks & Opportunities

Physical Risks
  • Unseasonable weather
  • Natural disasters
  • Water shortages
  • Rising sea levels
  • Rising average temperatures
Transition Risks
  • Introduction and expansion of carbon taxes
  • Strengthening of regulations on China
  • Rapid expansion of circular economy
  • Market changes associated with the transition to decarbonization
  • Increased stakeholder interest in sustainability
  • Strengthening of information disclosure requirements related to climate change measures
Opportunities
  • Greater demand for environment-friendly products
  • Greater demand for recycling-related products
  • Greater demand for bio-related products
  • Greater demand for lithium-ion-related products
  • Reduced cost of decarbonization measures by spearheading sustainability initiatives across the supply chain
  • Greater demand for non-petrochemical products and other sustainable products

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

Initiatives such as expanding the lineup of environment-friendly products, participating in the lithium compound production project in Chile, and promoting the use of new protein sources contribute to these goals.

Sustainable Products & Innovation

  • ECO BLUETM recycled polyester fiber
  • Biodegradable resin
  • BLUE CHAINTM products