Climate Change Data

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Safety
• Healthcare
• Quality of Life
• Sustainable Infrastructure

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Renewed management structure of overseas subsidiaries
• Strengthened HQ control over subsidiaries' finance
• Established Advanex Standard for group-wide management

Climate Goals & Targets

Environmental Challenges

• Sales decline in April-June 2020 due to COVID-19
• Production losses due to decreased demand and transfer restrictions
• Deficit companies within the group

Mitigation Strategies

• Cost cuts (personnel expenses)
• Sales recovery efforts
• Group reorganization plan
• Deficit elimination plan for each company
• Factory relocation and transfer to improve profitability

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 3 (Good Health and Well-being)
• Goal 9 (Industry, Innovation and Infrastructure)

Contribution to decarbonization of automobiles, healthcare through medical device components, and sustainable infrastructure

Sustainable Products & Innovation

• Electric vehicle components
• Medical device components (inhalers, syringes)
• Components for renewable energy infrastructure

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• SDGs
• CO2 emissions reduction
• Human resources
• ESG/SDGs disclosure
• Diversity

Environmental Achievements

• Solar panel installation at Saitama and Singapore factories, resulting in a 19.2% CO2 reduction in Saitama and 45% in Singapore.

Social Achievements

• Introduction of full flextime and continued telework.
• Establishment of a reporting system (multiple internal and external channels).
• Implementation of harassment seminars, promotion of male employees' parental leave, and encouragement of paid leave.
• Introduction of benefits and RPA.
• Expansion of social contribution projects.

Governance Achievements

• Shifting many top executives and officers of 14 overseas subsidiaries to employees seconded from headquarters.
• Restructuring of capital relationships in four Chinese subsidiaries.
• Introduction of a consolidated accounting automatic aggregation system.
• Introduction of a consignment loan system in four Chinese locations.
• Grasping and coordinating all owned equipment of overseas subsidiaries.

Climate Goals & Targets

Environmental Challenges

• Increased personnel costs, energy costs, and material costs.
• Slowdown of the Chinese economy impacting global economics.
• Continued inflation and high interest rates.
• Conflicts in the Middle East and Ukraine.
• Losses in Singapore and Mexico factories.
• Decreased sales in OA and home appliances.

Mitigation Strategies

• Planned reduction of losses in Singapore and Mexico factories.
• Active recruitment of highly skilled personnel and aggressive investment in equipment.
• Structural reforms in Singapore factory (changing function to sales, marketing, and technology center).
• Integration and rationalization of four Chinese locations.
• Review of production capacity and allocation.
• Improvement of Mexico factory (with significant investment of personnel and resources).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Focus on SDGs markets (medical, energy saving, renewable energy, safety and security).

Sustainable Products & Innovation

• Heatnex (CNT heater)
• Various spring products for EVs/HEVs and other sustainable applications.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• SDGs
• CO2 emissions reduction
• Human resources
• ESG disclosure
• Diversity and Inclusion

Environmental Achievements

• Solar panel installation at Saitama and Singapore factories, resulting in a 19.2% CO2 reduction in Saitama and 45% in Singapore.

Social Achievements

• Introduction of full flextime and continued telework.
• Establishment of multiple internal and external reporting channels.
• Implementation of various employee well-being initiatives (e.g., harassment seminars, promotion of paid leave, introduction of benefits, RPA introduction, employment up to 70 years old, communication tools, job rotation, various training programs, health management programs).

Governance Achievements

• Replacement of many top executives and officers in 14 overseas subsidiaries with employees seconded from headquarters.
• Restructuring of capital relationships in four Chinese subsidiaries.
• Introduction of a consolidated accounting automatic aggregation system and a consignment loan system in four Chinese locations.

Climate Goals & Targets

Environmental Challenges

• Red ink expansion in Singapore and Mexico subsidiaries.
• Rising labor, material, and energy costs.
• Increased fixed costs due to aggressive recruitment of highly skilled personnel and equipment investment.
• Impact of China's economic slowdown on global economy.
• Continued inflation and high interest rates.
• Conflicts in the Middle East and Ukraine.

Mitigation Strategies

• Aiming for break-even in Singapore and Mexico factories.
• Structural reforms in Singapore and Mexico factories (Singapore factory will cease production and become a sales/marketing/technology center).
• Integration and rationalization of four Chinese locations.
• Review of production capacity and allocation.
• Deployment of executives and expert personnel to Mexico factory.
• Rebuilding the system from scratch in Mexico factory.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• CNT (carbon nanotube) heater
• Products for EV/HEV, railway accident prevention, and autonomous driving

Awards & Recognition

• Not disclosed