Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions per total working hour at Headquarters and per production efficiency at motor production bases
• Reduced CO2 emissions at parts production bases
• Increased renewable energy use (0.68 million kWh in 2019)
• Improved waste recycling rate (96.9% in 2019)
• No environmental accidents since the enactment of the 2006 RoHS Directive in Europe

Social Achievements

• Acquired “TOMONIN” certification for work-life balance
• Received Chiba Labor Bureau Director’s Encouragement Award for risk management and chemical substance risk assessment
• Danang Mabuchi received a “Contribution Award” for health and safety endeavors
• Recognized by “The Certified Health and Productivity Management Organization Recognition Program”
• Increased number of female managers
• Implemented various employee wellbeing initiatives (parental leave, nursing leave, support for self-improvement, etc.)
• Introduced telework and a satellite office

Governance Achievements

• Transitioned to a company with an audit committee in March 2019
• Strengthened corporate governance
• Established the Mabuchi Motor Ethical Standard
• Established an Ethical Standard Hotline
• No administrative or criminal penalties related to compliance

Climate Goals & Targets

Environmental Challenges

• Rising CO2 emissions due to increased motor production, plant facilities, and employees
• Shortage of labor due to declining birthrate and aging population

Mitigation Strategies

• Setting targets to reduce emissions by improving production efficiency and conserving energy
• Developing products that reduce fuel consumption (e.g., smaller, lighter, higher-torque motors)
• Promoting work-life balance initiatives to improve employee retention

Supply Chain Management

Responsible Procurement

• Green procurement activities
• Compliance with RoHS, ELV, REACH, GADSL, and other regulations
• Conflict mineral investigation

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Power window lifter motors (GD-538LA/RA, GD-548LA/RA)
• High-torque, compact motor (SF-266XA)

Awards & Recognition

• Chiba Labor Bureau Director’s Encouragement Award
• Danang Mabuchi’s Contribution Award
• Certified Health and Productivity Management Organization Recognition Program

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environment
• Society
• Governance

Environmental Achievements

• Achieved a waste recycling rate of 96.3% in 2021.
• Installed solar power generation systems at overseas bases.
• Introduced systems that recover and reuse waste heat.
• Reduced CO2 emissions by approximately 348 tons per year at Dongguan Mabuchi by optimizing production processes and saving space.

Social Achievements

• Established the Mabuchi Motor CSR Procurement Guidelines.
• Sponsored robot contests, providing motors and support.
• Held a Summer Holiday Motor Craft Workshop for Parents and Children.
• Certified as one of the “Excellent Health and Productivity Management Corporations” by the Ministry of Economy, Trade and Industry (METI) and the Japan Health Council.

Governance Achievements

• Increased the number of female directors to three.
• Replaced chairpersons of the Nominating Committee, Remuneration Committee, and Audit & Supervisory Committee with outside directors.
• Introduced sustainability indicators into the formula for calculating executive remuneration.
• Established the Sustainability Committee.
• Appointed one woman as Executive Officer for the first time.

Climate Goals & Targets

Environmental Challenges

• Soaring raw material prices and logistics costs.
• Disruptions to logistics and prolonged increases in logistics costs.
• Production plan adjustments by automobile manufacturers due to semiconductor supply shortages.
• Lockdowns in various regions due to COVID-19 resurgence.
• Lack of sufficient recognition of Mabuchi's brushless motors in some industries.

Mitigation Strategies

• Proceeding with price revisions with customer understanding.
• Developing a deliberate inventory policy to ensure stable supply.
• Smoothly transitioning to a backup production system at other bases in response to Vietnam production limitations.
• Opening a website for online sales of brushless motors.
• Expanding and enhancing the lineup of brushless motors and options.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Mabuchi Motor CSR Procurement Guidelines
• Green procurement activities
• Avoidance of conflict minerals

Climate-Related Risks & Opportunities

Physical Risks

• Increased losses due to direct damage from meteorological disasters and associated stoppages

Transition Risks

• Increased costs due to carbon pricing and higher energy prices

Opportunities

• Increased order opportunities due to the transformation of demand for EVs and other motor vehicles

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Mabuchi Motor aligns its Management Principle with the SDGs.

Sustainable Products & Innovation

• Sustainable Products and Sustainable Products Premium certifications

Awards & Recognition

• Excellent Health and Productivity Management Corporations

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environment
• Society
• Governance
• Human Rights

Environmental Achievements

• Reduced CO2 emissions by 0.9% from 2018 levels in 2023; targeting a 30% reduction by 2030 and carbon neutrality by 2050.
• Achieved a 97.9% waste recycling rate in 2023.
• 100% renewable energy use since April 2024 (real renewable energy).

Social Achievements

• Increased percentage of women in managerial roles to 16.8% in 2023.
• 100% of employees who took childcare leave returned to work.
• Held motor craft classes for children in Japan and Vietnam.

Governance Achievements

• Transitioned to a Board of Directors with a majority of outside directors in 2024.
• Established a Nominating Committee and a Remuneration Committee, both chaired by outside directors.
• Implemented a human rights risk assessment in 2023-2024.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic and geopolitical risks.
• Rising procurement prices of raw materials and parts.
• Slowdown in the automobile market.
• Climate change risks (physical and transition risks).

Mitigation Strategies

• Strategic inventory buildup to ensure stable supply.
• Price revisions and improved product mix.
• Initiatives in the 3M fields (Mobility, Machinery, Medical).
• M&A activities and collaboration with outside parties.
• Internal carbon pricing.
• Green procurement.
• BCP formulation and implementation.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green procurement
• CSR Procurement Guidelines
• Responsible mineral procurement (OECD Due Diligence Guidance)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Damage to facilities

Transition Risks

• Carbon pricing
• Changes in market demand

Opportunities

• Increased demand for EVs and energy-efficient products

Reporting Standards

Frameworks Used: TCFD, UN Global Compact

Certifications: ISO 14001, ISO 9001, IATF 16949, Platinum Kurumin

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Mabuchi Group supports the SDGs.

Sustainable Products & Innovation

• Sustainable Products
• Sustainable Products Premium

Awards & Recognition

• Health and Productivity Management Organization 2024
• Platinum Kurumin