Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 37% by 2025 (compared to 2013 levels) (Scope 1 and 2)
• Launched JUKI Green Rewards Program for refurbishing used products

Social Achievements

• Creating employment opportunities in developing countries through vocational education support
• Supporting technological innovation through productivity improvements in the electronics industry
• Expanding upcycling activities to reduce clothing waste

Governance Achievements

• Established Sustainability Promotion Committee
• Endorsed TCFD recommendations
• Increased the number of outside directors on the Board of Directors from two to three

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical risks and the COVID-19 pandemic
• Increased material costs and logistics costs
• Sluggish capital investment demand in China
• Climate change related risks (transition and physical)

Mitigation Strategies

• Restructuring production, logistics, and procurement networks
• Implementing cost structure reforms
• Strengthening business continuity plans
• Promoting automation and labor-saving solutions
• Developing products with high environmental performance
• Expanding local procurement

Supply Chain Management

Responsible Procurement

• Green Procurement Guidelines
• Coexistence and co-prosperity with suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (floods, typhoons, etc.)

Transition Risks

• Increased business costs due to climate change policies and regulations
• Lower demand for products that don't contribute to decarbonization
• Changes in supply-demand balance of raw materials

Opportunities

• Growing demand for energy-efficient products and services
• Expansion of the used equipment business

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

JUKI's initiatives contribute to these goals through various programs and strategies outlined in the report.

Sustainable Products & Innovation

• Energy-saving products
• Products using eco-friendly materials
• Refurbished products

Awards & Recognition

• Good Design Award 2022 (HZL-UX8 sewing machine)
• Texprocess Innovation Award 2022 (AW-3S)
• Sustainability at Texprocess Award 2022 (AW-3S)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Commitment to achieving carbon neutrality by 2050
• Endorsement of TCFD recommendations
• Reduced Scope 1 and Scope 2 CO2 emissions by 37% in FY2025 compared to FY2013 levels (target)
• Developed JUKI Sustainable Products Certification System
• Launched upcycling activities using used clothes, waste materials, and by-products

Social Achievements

• Creating employment opportunities in developing countries through vocational education support
• Promoting social participation through e-learning and vocational training
• Contributing to reduced clothing waste through optimized production and expanded business domains
• Ensuring occupational health and safety through improved working environments and automation
• Support for technological innovation through improved productivity in the electronics industry

Governance Achievements

• Established Sustainability Promotion Committee
• Enhanced corporate governance system
• Strengthened compliance and risk management
• Improved management transparency through timely and accurate information disclosure
• Added an outside director and three outside audit & supervisory board members

Climate Goals & Targets

Environmental Challenges

• Delayed capital investment linked to economic stagnation in China and Southeast Asia
• Declines in net sales due to incomplete grasp of market and customer trends
• Weakening yen pushing up various costs
• Lagging speed of transformations in Borderless X, Business Model X, R&D Model X, and Financial Structure X
• Sluggish sales delaying production plan adjustments and increasing inventories

Mitigation Strategies

• Cost structure reforms by reducing distribution costs, scaling back personnel, curbing recurring expenses, implementing furloughs, and reducing production costs
• Inventory reductions through thorough PSI management
• Redefining businesses into three categories: Sustainable Mainstay Foundation, Expansion and Growth Foundation, and New Exploration Foundation
• Focusing management resources through selection and concentration
• Reviewing organizational structure and officers in charge

Supply Chain Management

Responsible Procurement

• Compliance with laws and regulations
• Coexistence and co-prosperity with suppliers
• Fair and equitable evaluation and selection of suppliers

Climate-Related Risks & Opportunities

Physical Risks

• More frequent natural disasters causing damage to facilities and supply chains

Transition Risks

• Increased business costs due to climate change policies and regulations
• Lower demand for products due to higher R&D costs for environmental performance improvements

Opportunities

• Growing demand for energy-saving products and services
• Increased demand for products due to digitization and decarbonization

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Energy-saving products
• Products using eco-friendly materials
• Products with reduced weights and sizes

Awards & Recognition

• Good Design Award (2022, 2023)
• Long Life Design Award (2023)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Established a Sustainability Promotion Committee in August 2022.

Social Achievements

• Improving the treatment of workers and increasing the working population by supporting vocational education.
• Promoting diversity to revitalize the organization.
• Promoting work-style reforms, rewarding work, and human resources training.

Governance Achievements

• Enhance the corporate governance system.
• Ensure compliance and strengthen risk management.

Climate Goals & Targets

Environmental Challenges

• Interest-rate hikes in major countries
• Ongoing turmoil caused by Russia's invasion of Ukraine
• Intensifying proposals by competitors for smarter customer factories
• Accelerated market entry by different industries
• Zero-COVID-19 policy shift in China

Mitigation Strategies

• Strengthen our response to risks and opportunities based on the business environment to fill in the gaps between what it is today and what it should be in 2028
• Actively use forefront and differentiating technologies.
• Take strong sustainable actions that allow society to grow sustainably.
• Promote automation in production facilities.
• Focus on high-technologies/SDGs in development.
• Build management infrastructure in information systems.
• Improve employee treatment based on added value.
• Provide all employees with opportunities to relearn.

Supply Chain Management

Responsible Procurement

• Increase the use of recycled materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD