Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Capital
• Governance

Environmental Achievements

• Reduced CO2 emissions by replacing drying oven burners from kerosene to gas.

Social Achievements

• Maintained employee wellbeing initiatives, resulting in a 1.4% turnover rate (2023) and 3.7% (2024).
• Maintained a disability employment rate above the legal requirement.
• Increased female management ratio to 7.6%.

Governance Achievements

• Established a management conference and several committees (risk management, system promotion, quality assurance, environmental management, safety and health) to oversee sustainability initiatives and risk management.

Climate Goals & Targets

Environmental Challenges

• High dependence on heating equipment sales, susceptible to weather conditions.
• Sales concentrated in the second half of the year.
• Rising raw material and energy prices.
• Information security risks.
• Cybersecurity risks.
• Product quality risks.
• Disaster risks.
• Market competition.
• Fluctuations in kerosene prices.
• Risks associated with contract manufacturing.
• Impairment accounting risks.
• Fluctuations in securities market prices.
• Retirement benefit liabilities.
• Intellectual property rights risks.
• Risks related to unknown infectious diseases.

Mitigation Strategies

• Increasing sales of environmental equipment to reduce weather-related performance fluctuations.
• Diversifying product lines (fuel cell units, air purifiers, coffee bean roasters) to reduce sales concentration.
• Negotiating with suppliers, improving productivity, and adjusting sales prices to address rising costs.
• Establishing information security basic policies and a system promotion committee.
• Establishing a system promotion committee and implementing 24/7 monitoring with an integrated SOC.
• Implementing ISO 9001 standards for product quality management and purchasing product liability insurance.
• Maintaining one-year production of heating equipment and securing inventory for peak demand.
• Maintaining technological and competitive advantages and proactively responding to price drops or increased sales costs.
• Monitoring and responding to changes in consumer behavior due to kerosene price fluctuations.
• Securing sufficient orders for contract manufacturing.
• Regularly assessing assets for potential impairment.
• Not holding securities for trading purposes.
• Making regular contributions to the defined benefit pension plan and monitoring investment performance.
• Assigning specialized personnel to manage intellectual property rights.
• Monitoring and responding to potential impacts of unknown infectious diseases.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14001, ISO 9001

Third-party Assurance: EY ShinNihon LLC

Sustainable Products & Innovation

• New model coffee bean roaster
• Improved humidifying ceramic fan heater