Climate Change Data

Environmental Metrics

ESG Focus Areas

• Maintain a sustainable global environment
• Supply safe and secure products
• Enhance R&D and technology capabilities
• Enhance corporate governance and compliance
• Respect for human rights and promotion of DEIB

Environmental Achievements

• Consolidated: GHG reduction from FY2022: 34.3% in FY2029 58.8% in FY2034 (Scope 1&2)
• Non-consolidated: 28.7% GHG reduction from FY2013 (Scope 1&2)
• Waste generation: reduced by 13.4% (intensity) from production in plants: reduced by 3.9% (amount) from non-production in plants
• 105kW (PC 63kW) solar panels were installed in the administration building of the Shiga Plant
• Shiga Plant's Sakata Forest was certified as a nature symbiosis site by the Ministry of the Environment (March 2023)

Social Achievements

• Health & Productivity Management Outstanding Organizations 2024 certification
• lTomonin z certification for support in balancing work and caregiving was awarded
• Annual paid leave utilization rate: 61.3% (including managers)
• Average monthly overtime of an ordinary employee: under 16 hours
• Childcare leave take-up rate: Female 100% Male 69.6%

Governance Achievements

• Establishment of an Asian regional management company
• Establishment of the Meeting of Independent Outside Directors
• Global Whistleblower System established
• The SAKATA INX Group Code of Conduct and Ethics has been established
• The SAKATA INX Group Anti-Corruption Basic Policy has been established

Climate Goals & Targets

Environmental Challenges

• Lower demand for information media due to rapid digitalization
• Emerging geopolitical risks
• Exchange rate effects (yen depreciation)
• Fluctuations in raw material costs
• COVID-19 pandemic
• Global inflation (rising labor costs and prices)
• Shrinking Japanese market (declining population, shrinking print market due to digitization)
• Rising labor costs and intensifying competition
• Market expectations for sustainable products
• Growing demand in the South American market
• Rising prices of raw materials and other commodities due to U.S.-China trade tensions
• Market demand for sustainability
• Growing demand from emerging markets
• Rising prices of raw materials and other commodities due to geopolitical risks
• Country risks

Mitigation Strategies

• Business structure reforms, including pricing strategies
• Restructuring our production system and promoting partial collaboration with peers
• Reducing the size of our supply structure
• Developing an efficient framework to fulfill our supply responsibilities and ensure business continuity
• Proactive investments to expand businesses and enhance profitability
• Developing environmentally friendly packaging ink
• Focusing on paper-based and recycling-oriented products and services
• Strengthening strategic partnerships and cooperation among Group companies
• Expanding into new markets for food, clothing, and housing
• Increasing our share of the LCD market, developing new products, and expanding into new areas
• Establishing a company in Malaysia to oversee local subsidiaries in six Asian countries
• Improving procurement capabilities and reducing inventories
• Open innovation with external parties
• Developing promising products and services in electronics, energy, bio-based and non-fossil materials, and healthcare
• Establishing an International Advisory Board
• Appointing a director in charge of each segment
• Merging the Human Resources Division and the General Affairs Division
• Implementing the PDCA cycle
• Formulating various ESG policies
• Participating in ESG platforms
• Declaring TCFD support
• Integrating financial and nonfinancial considerations
• Promoting ESG governance at overseas subsidiaries
• Enhancing businesses for solutions to social issues
• Strategic, visionary targeting based on technological exploration and database development
• Startup investment activities
• Developing (establishing) commercialization processes
• Enhancing cooperation activities
• HR development (corporate culture)
• Building a global strategic promotion structure
• Enhancing the governance structure through the Asia regional management company
• Promoting global projects (sales, ESG, procurement, safety, quality)
• Strengthening IR activities and enhancing dialogue with investors
• Proactive disclosure of financial and nonfinancial information
• Growing and enhancing programs and systems to enable employees to energetically tackle new challenges
• Introducing educational and development systems to promote autonomous career-building
• Holding meetings to exchange viewpoints
• Offering new workstyles targeting well-being, higher productivity, and co-creation

Supply Chain Management

Responsible Procurement

• Basic Procurement Policy and the Procurement Guidelines were transmitted to suppliers through the CSR surveys

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standard, ISO 26000

Sustainable Products & Innovation

• Botanical Ink series
• Ecostage series
• Britone series
• EB curable inks
• Washable inks
• Gas barriers
• Functional Coating Agents
• Plant-based functional food materials
• Product authentication solutions
• Digital can-printing inks
• Eco-friendly coatings
• Biomass resins
• New bio materials

Awards & Recognition

• Health & Productivity Management Outstanding Organizations 2024
• lTomonin z certification
• lOsaka City Leading Company in Women's Participation z certification