Climate Change Data

Duskin Co., Ltd.

Climate Impact & Sustainability Data (2020-04 to 2021-03)

Reporting Period: 2020-04 to 2021-03

Environmental Metrics

Total Carbon Emissions:442,461 t-CO2e/year
Scope 1 Emissions:12,365 t-CO2e/year
Scope 2 Emissions:19,430 t-CO2e/year
Scope 3 Emissions:410,666 t-CO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:2,110,000 GJ/year
Water Consumption:2,145,000 m3/year
Waste Generated:13,481 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Safety, Reliability and Quality
  • Human Resources
  • Environment
  • Local and Social Contributions
  • Corporate Governance

Environmental Achievements

  • Reduced CO2 emissions by 22.4% from the FY2013 level
  • Increased recycling rate of food waste to 55.0% (up 4.4 points from the previous fiscal year)
  • Reduced food loss by 41.6% from the FY2000 level

Social Achievements

  • Increased rate of female employees in managerial positions to 9.0% (up 0.9 points from the previous year)
  • Increased rate of employees with disabilities to 2.81% (up 0.13 points from the previous year)
  • Increased training hours per employee to 18.7 hours (up 1.6% from the previous year)
  • Provided COVID-19 relief money of 1,658 million yen to franchisees

Governance Achievements

  • Revised the Operating Officer System
  • Established the Investment Assessment Committee
  • Launched a succession plan

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050
Medium-term Goals:
  • Reduce CO2 emissions by 46% from the FY2013 level at Duskin Group locations by 2030
  • Achieve 50% renewable energy share in total energy use by 2030
  • Reduce food waste by 50% (compared to 2000) by 2030
  • Reduce fossil-fuel-derived plastics by 25% compared to 2020 by 2030
  • Recycle 60% of plastic containers and packaging by 2030
Short-term Goals:
  • Increase hygiene-related sales to 55% of total sales by end of FY2023
  • Open 206 new Care Service locations and 84 new Senior Care locations by end of FY2023
  • Have delivery service available at 635 shops and online ordering sales at 8% by end of FY2023
  • Maintain 97% reuse rate of mops and mats, achieve 60% food waste recycling rate, and reduce food loss by half from FY2000 levels by end of FY2023
  • Reduce fossil-based plastic waste by 25% from FY2020 levels by end of FY2023
  • Achieve 15 or more training hours per employee per year by end of FY2023
  • Achieve 80% or higher employee career fulfillment scores in employee surveys by end of FY2023
  • Achieve 1,800 hours or less total annual hours worked per employee by end of FY2023
  • Achieve 40% teleworking rate among eligible employees by end of FY2023
  • Have all 27 production/logistic facilities certified as Health & Productivity Management Organizations by end of FY2023

Environmental Challenges

  • COVID-19 pandemic impact on sales, particularly in the Direct Selling Group
  • Declining birthrate and aging society
  • Changes in values and lifestyles
  • More diverse employment and work styles
  • Deteriorating global warming issues
  • Accelerating digitization
Mitigation Strategies
  • Sales recovery strategies focusing on hygiene products and services
  • Expansion of Care Service and Senior Care Businesses
  • Adaptation of shops and operations to new lifestyles (e.g., online ordering, delivery)
  • Digital transformation strategies
  • Investment in new growth opportunities (M&As, venture companies)
  • Structural reforms to improve efficiency and profitability
  • ESG initiatives to achieve long-term growth (e.g., decarbonization, human resource development)

Supply Chain Management

Supplier Audits: 100% periodic inspections at contracted food processing plants

Responsible Procurement
  • Fair and appropriate transactions
  • Multiple sourcing strategies
  • Identifying substitute goods
  • Continuity plans for mainstay products

Climate-Related Risks & Opportunities

Physical Risks
  • Higher average temperatures
  • Larger typhoons
  • Higher typhoon frequency
  • Higher flooding frequency
  • Higher power outage frequency
  • Procurement and logistics disruptions
Transition Risks
  • Stronger GHG emission regulations
  • Higher carbon tax rates
  • Progress in energy-saving technologies among competitors
  • Higher market sensitivity to climate change
  • Divestment from companies that do not reduce GHG emissions
Opportunities
  • Resource efficiency (next-generation automobiles, lower battery prices)
  • Energy sources (renewable energy)
  • Markets (demand for environmentally responsible products)

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), Guidance for Integrated Corporate Disclosure and Company-Investor Dialogue for Collaborative Value Creation (METI), GRI Standards

Certifications: ISO 9001, ISO 22000, ISO 14001, HACCP

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 3
  • Goal 4
  • Goal 7
  • Goal 8
  • Goal 9
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 17

Duskin's initiatives contribute to these goals through various ESG activities.

Sustainable Products & Innovation

  • Raku-in Pack system for detergent
  • Antibacterial and antiviral mops and mats
  • Hygiene service packages

Awards & Recognition

  • Health & Productivity Management Organization 2021 certification (5 consecutive years)