Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced power consumption by about 30% compared to conventional systems through the development of a high oxygen transfer efficiency air diffusion system.
• Achieved approximately 40% power savings while maintaining the safety of fluidized bed incinerators with the introduction of a flow turbine system.
• Reduced office electricity usage by 2.0% and greenhouse gas emissions by 9.3% in FY2020.
• Increased green procurement rate for 12 frequently used items to approximately 94% in FY2020.
• Increased the adoption rate of electronic manifests to 98.9% in FY2020.

Social Achievements

• Established a COVID-19 emergency response division and implemented infection prevention measures at contracted business sites.
• Certified as a Grade 3 “Eruboshi company” by the Ministry of Health, Labour and Welfare for promoting women’s participation.
• Achieved 100% rate of returning to work after taking childcare leave.
• Promoted work style reforms, including the introduction of a telework system, establishment of satellite offices, and introduction of four-day workweeks.
• Reduced the number of employees on assignments away from their families from 300 in 2017 to 100 in 2020.
• Held seminars for subcontractor construction supervisors to promote safety at construction sites.

Governance Achievements

• Established the “Basic Policy on Corporate Governance” in compliance with the Corporate Governance Code.
• Established the Nomination and Renumeration Advisory Committee.
• Introduced share remuneration plan with restriction on transfer for directors and executive officers.
• Acquired an issuer credit rating of “A” from Rating and Investment Information, Inc. (R&I) in December 2020.

Climate Goals & Targets

Environmental Challenges

• Financial difficulties at local governments and shortages of engineers in Japan due to population decline.
• Aging of existing facilities and equipment in Japan.
• Measures to protect against natural disasters in Japan.
• Stricter environmental regulations and aging facilities in Europe and the United States.
• Use of reclaimed wastewater to secure water resources in the United States.
• Increasing coverage of water and sewerage facilities in Asia.

Mitigation Strategies

• Expanding the use of Public-Private Partnerships (PPPs) in Japan.
• Strengthening national land in Japan.
• Developing new business opportunities and business models using AI and IoT in Japan.
• Developing advanced filtration technology and energy-saving/creating technology overseas.
• Implementing measures to prevent the spread of infection and maintain water supply and sewage works infrastructure in response to COVID-19.

Supply Chain Management

Responsible Procurement

• Promoting transparent procurement
• Strengthening partner relationships with suppliers
• Promoting CSR procurement
• Promoting green procurement of eco-friendly office supplies
• Enhancing paperless operations through EDI

Climate-Related Risks & Opportunities

Physical Risks

• Major earthquakes, typhoons, and torrential rains

Reporting Standards

Frameworks Used: ISO26000, Ministry of Environment: Environmental Reporting Guidelines (Version 2018), International Integrated Reporting Council (IIRC): International Integrated Reporting Frameworks, GRI Sustainability Reporting Guideline, United Nations Global Compact, Guidance for Collaborative Value Creation, Ministry of Economy, Trade and Industry

Certifications: ISO 55001

UN Sustainable Development Goals

• 6
• 11
• 17

The METAWATER Group has positioned Goal 6 “Clean Water and Sanitation,” Goal 11 “Sustainable Cities and Communities,” and Goal 17 “Partnerships for the Goals” as its three most important challenges.

Sustainable Products & Innovation

• Ceramic Membrane Filtration System
• Ozone / accelerated oxidation process (AOP) system
• High-speed filtration systems
• Wastewater sludge fuel system
• Recycling and treatment systems
• Container Package Ceramic Mobile (CPCM)

Awards & Recognition

• 2014 Nikkei Global Environmental Technology Award for Excellence
• Top award in the Water Technology Company of the Year section at the Global Water Awards 2015
• Silver Prize from the Japan Safe Driving Center for excellent safe driving record

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• SDGs 6, 11, and 17

Environmental Achievements

• Reduced CO2 emissions by 4.7% in FY2019 due to office power consumption reduction.
• Achieved 95.3% recycling rate of industrial waste.
• Developed high-speed CSO filtration system to reduce river and sea pollution.
• Developed high integration configuration air diffusion system with significantly reduced power consumption (No. 1 market share in Japan).

Social Achievements

• Promoted work-style reforms, including satellite offices, telecommuting, and a four-day workweek.
• Increased participation in social contribution activities (from 1,116 in FY16 to 1,541 in FY20).
• Improved working conditions for employees aged 60 and older.
• Recognized as a “Grade 3 Eruboshi company” for promoting women’s participation.

Governance Achievements

• Established a Nomination and Remuneration Advisory Committee.
• Implemented company-wide compliance education.
• Strengthened Business Continuity Management (BCM) activities.
• Improved information security measures.

Climate Goals & Targets

Environmental Challenges

• Aging water and sewage infrastructure in Japan.
• Shortage of engineers in local governments.
• Decreasing local government revenue.
• Frequent natural disasters.
• Global spread of COVID-19.
• Aging facilities and equipment in overseas markets.
• Stricter environmental regulations in Europe and North America.
• Increasing demand for infrastructure in emerging countries.

Mitigation Strategies

• Promoting public-private partnerships (PPPs).
• Developing technologies using AI and ICT for wider area management and further comprehensiveness.
• Establishing three centers: Training center for facility operators, Supply center for parts, and Knowledge center.
• Developing WOODAP (Wisdom + OODA + Preparation) methodology for quick recovery in disasters.
• Strengthening partnerships with complementary companies and M&A.
• Utilizing ODA and yen loans for overseas projects.
• Focusing on “Deep Technology” and the “Remove strategy” in overseas business.
• Developing and implementing an emergency water treatment system.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• CSR procurement (promoting transparent procurement, strengthening partner relationships, and promoting eco-friendly office supplies).
• Promoting EDI (Electronic Data Interchange).

Climate-Related Risks & Opportunities

Physical Risks

• Frequent wind and flood damage
• Natural disasters (earthquakes, torrential rains)

Transition Risks

• Changes in government policies
• Technological advancements

Opportunities

• Development of energy-efficient products and services
• Expansion of PPP projects

Reporting Standards

Frameworks Used: ISO26000, GRI G3.1, G4, UN Global Compact

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 6
• SDG 11
• SDG 17

The company's business activities and CSR initiatives contribute to ensuring availability and sustainable management of water and sanitation, making cities and human settlements inclusive, safe, resilient and sustainable, and strengthening the means of implementation and revitalizing the global partnership for sustainable development.

Sustainable Products & Innovation

• Ceramic Membrane Filtration System
• High-speed CSO filtration system
• High integration configuration air diffusion system
• Wastewater sludge fuel system
• Recycling systems
• Emergency water treatment system

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Water environment
• Local communities
• Human resources
• Recycling-oriented society
• Reduction of greenhouse gas emissions
• Governance

Environmental Achievements

• Introduced virtually 100% renewable energy for electricity use at all 52 bases in Japan, reducing GHG emissions by approximately 2,600 t-CO2 in FY2023.
• Achieved a 95.4% recycling rate of industrial waste in FY2023.
• Participated in water source forest conservation activities across Japan.
• Scope 1 and 2: 70% reduction by 2030, net zero by 2050. Customer*: 50% reduction by 2030 through the introduction of products and systems.

Social Achievements

• Introduced a remote work system, side job system, and age-free system.
• Concluded a business consignment agreement with Kyoso, contributing to regional development and securing employment for people with disabilities.
• Provided emergency support for domestic water supply in Shika, Ishikawa Prefecture after the Noto earthquake.
• Increased the ratio of female managers to 3.8% in FY2023.
• Three-year retention rate of newly hired graduates increased to 98.2% in FY2023, while the turnover rate decreased to 1.8%.

Governance Achievements

• Established the Sustainability Committee to review and promote sustainability initiatives.
• Established GHG emission targets.
• Complied with the CG Code (establishment of a basic policy on sustainability, management with awareness of the cost of capital, etc.).
• Introduced a restricted stock compensation plan for directors and corporate auditors.

Climate Goals & Targets

Environmental Challenges

• Aging facilities, declining revenue, a shortage of technical staff, and the need to respond to frequent natural disasters in Japan's water supply, wastewater, and environmental resource sectors.
• Environmental issues (Climate change, major disasters, loss of biodiversity, and resource scarcity.)
• Increased competition for human resources.
• Financial difficulties at local governments and shortages of engineers as a result of population decline.
• Changes in the business environment due to the COVID-19 pandemic, shortages and long delivery times for raw materials and supplies, and rising prices and labor costs.

Mitigation Strategies

• Developed the Mid-Term Business Plan 2027, focusing on business-specific growth strategies, investment and financing strategies, and sustainability initiatives.
• Strengthening our ability to respond to the introduction of Water PPPs through business resource allocation.
• Enhancement of employee compensation to address increased competition for human resources.
• Investment in Digital Transformation (DX) to boost productivity and competitiveness.
• Implementing growth strategies in each business field by launching products and systems that contribute to the reduction of greenhouse gas emissions.
• Strengthening our business foundation by investing in human resources, updating core systems, and advancing digital transformation (DX) and engineering reforms.
• Investing in our people to build a strong foundation, enhance productivity and competitiveness through digital transformation, and maintain and improve profitability by reforming our engineering practices.
• Raising ¥10 billion through the issuance of Blue Bonds to secure base funding for longer fund recovery and to achieve diversification in terms of fund procurement.

Supply Chain Management

Supplier Audits: 91% collection rate of environmental conservation activity survey sheets (FY2023)

Responsible Procurement

• METAWATER Supply Chain Action Guidelines
• Green Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Disasters

Transition Risks

• Increased costs of low-carbon policies
• Increased impact on stock prices due to decarbonization/climate change responses

Opportunities

• Increased business opportunities which serve to contribute to GHG reductions
• Market expansion of energy saving, renewable energy, and energy creation

Reporting Standards

Frameworks Used: SDGs, IIRC: International Integrated Reporting Framework, GRI Sustainability Reporting Guideline, Guidance for Collaborative Value Creation, Ministry of Economy, Trade and Industry, United Nations Global Compact (10 Principles), Ministry of Environment: Environmental Reporting Guidelines (Version 2018)

Certifications: KURUMIN, ERUBOSHI (three stars)

UN Sustainable Development Goals

• Goal 6
• Goal 11
• Goal 17

Goal 6: Ensuring availability and sustainable management of water and sanitation for all. Goal 11: Making cities and human settlements inclusive, safe, resilient and sustainable. Goal 17: Strengthening the means of implementation and revitalizing the global partnership for sustainable development.

Sustainable Products & Innovation

• Ceramic Membrane Filtration System
• Ozone treatment system
• High-speed filtration system
• Sludge incinerator
• Flow turbine system
• Multi-layer fluidized incinerator

Awards & Recognition

• Not disclosed