Climate Change Data

CHUDENKO CORPORATION

Climate Impact & Sustainability Data (2021-04 to 2022-03, 2022, FY2023)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:8,621 t-CO2e/year
Scope 1 Emissions:4,952 t-CO2e/year
Scope 2 Emissions:3,669 t-CO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:7,308,000 kWh/year
Water Consumption:46,000 m3/year
Waste Generated:20,738 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Aim to reduce CO2 emissions in 2030 by at least 46% from fiscal 2013 levels and to achieve carbon neutrality by 2050.
  • Achieved a 23% reduction in CO2 emissions compared to FY2013.
  • Achieved an 80% industrial waste recycling rate.

Social Achievements

  • Established a Health Management Promotion System.
  • Increased the ratio of female hires to 7.8%.
  • Implemented various work style reforms, including staggered working hours and telecommuting.

Governance Achievements

  • Announced endorsement of the TCFD recommendations.
  • Established the Sustainability Promotion Team.
  • Improved the efficiency and transparency of management.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve carbon neutrality by 2050.
  • Increase female managers to 4.5% of total managerial positions by FY2024.
  • Increase female employees to 5.0% or higher of annual hirings by FY2024.
Short-term Goals:
  • Reduce CO2 emissions by 46% or more from fiscal 2013 levels by 2030.

Environmental Challenges

  • Intense competition for orders.
  • Labor shortages.
  • Soaring raw material prices.
  • Concerns about the impact of COVID-19.
  • Risks related to climate change (physical and transition risks).
Mitigation Strategies
  • Strengthening the foundation in the Chugoku region.
  • Expanding business in urban areas.
  • Promoting operational reforms.
  • Implementing measures to improve construction efficiency, reduce costs, and increase productivity through DX.
  • Promoting environment-friendly material procurement and construction methods.
  • Developing and proposing construction technology with low environmental impacts.
  • Renewal of company vehicles to fuel-efficient and electric vehicles.
  • Proposing energy-saving/renewable energy facilities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Green purchasing rate (paper and stationery)

Climate-Related Risks & Opportunities

Physical Risks
  • Acute and chronic risks from more severe weather events
Transition Risks
  • Increased tax burden due to carbon tax.
  • Changes in customer selection.
  • Decline in corporate value due to inadequate climate change measures.
Opportunities
  • Increased demand for renewable energy products and services.
  • Increased demand for energy-conserving and decarbonization-related equipment.

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001:2015, ISO 9001:2015

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

  • Ground short circuit device and earth clamps for PD lines
  • Michi-Tera, a highly visible guidance light

Awards & Recognition

  • Shibusawa Prize (multiple times)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:8,334 t-CO2e/year
Scope 1 Emissions:4,564 t-CO2e/year
Scope 2 Emissions:3,770 t-CO2e/year
Waste Generated:20,269 tons/year

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced CO2 emissions by 29% compared to 2013.
  • Achieved 82% industrial waste recycling rate.
  • Implemented ZEB (Net-Zero Energy Building) in several facilities.
  • Promoted self-consumption solar power generation (PPA).

Social Achievements

  • Developed and implemented action plans for workplace environment improvement and women's career advancement.
  • Increased female employee ratio to 7.8%.
  • Established a safety training facility.
  • Implemented various wellbeing initiatives, including stress checks and health management programs.

Governance Achievements

  • Transitioned to an Audit & Supervisory Board Company.
  • Established a Sustainability Promotion Committee.
  • Established an internal control system.

Climate Goals & Targets

Medium-term Goals:
  • Achieve carbon neutrality by 2050.
Short-term Goals:
  • Reduce CO2 emissions by 46% compared to 2013 by 2030.

Environmental Challenges

  • Decreased sales and profits due to rising material and labor costs, and supply chain disruptions.
  • Intense competition in the construction industry.
  • Labor shortages.
  • Climate change related risks (extreme weather, etc.).
  • Risks related to M&A and investment in new businesses.
Mitigation Strategies
  • Strengthening cost management and improving profitability.
  • Expanding business in urban areas and overseas.
  • Promoting DX (digital transformation) to improve efficiency.
  • Strengthening human resource development and training.
  • Developing alternative sourcing strategies.
  • Implementing BCP (Business Continuity Plan) to mitigate risks from natural disasters.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather, natural disasters
Transition Risks
  • Regulatory changes, carbon tax
Opportunities
  • Increased demand for renewable energy related projects

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 9001, ISO 14001

Awards & Recognition

  • Health Promoting Company 2023 (Large-scale Company Division)

Reporting Period: FY2023

Environmental Metrics

ESG Focus Areas

  • Decarbonization
  • Renewable Energy
  • Human Resource Development
  • Sustainable Growth

Environmental Achievements

  • Installation of photovoltaic power generation equipment at 49 company buildings
  • 59 contracts in solar PPA projects (including 41 stores operated by Halows Co. Ltd)
  • 7 contracts signed in ZEB conversion projects
  • Acquisition of four solar power plants with a total capacity of 5 megawatts

Social Achievements

  • Continued hiring of 120-130 employees annually, planning 140 in FY2024
  • Focus on developing young workers under 30 (nearly 30% of workforce)
  • Promoting earning electrical and plumbing qualifications
  • Establishment of a Sustainability Promotion Committee

Governance Achievements

  • Transition to a company with an audit and supervisory committee
  • Reduction of executive officer remuneration due to losses

Climate Goals & Targets

Long-term Goals:
  • Consolidated net sales of JPY250 billion and operating profit of JPY17 billion, ROE of at least 5.0% by FY2030
Medium-term Goals:
  • Consolidated net sales of JPY210 billion, consolidated operating profit of JPY12 billion, and consolidated operating margin of 5.7% by FY2024
  • Reduce CO2 emissions by 46% or more compared to FY2013 toward carbon neutrality by FY2030
Short-term Goals:
  • Increase revenues and profits in FY2023

Environmental Challenges

  • Declining sales and operating income in FY2022
  • Significant equity in losses of affiliates due to overseas business investment decline
  • Soaring energy and raw material prices
  • High cost of materials and outsourcing costs
  • P/B ratio below one
Mitigation Strategies
  • Strengthening foundation in the Chugoku region and expanding business in urban areas
  • Promoting business reforms
  • Thorough cost control efforts
  • Improving construction efficiency
  • Securing medium-sized and additional construction projects
  • Investments in M&A, renewable energy, and other areas
  • Proactive IR and SR activities
  • Improving performance through business expansion and growth investments

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities
  • Renewable energy investments

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)

Investments in renewable energy and decarbonization efforts

Sustainable Products & Innovation

  • Photovoltaic power generation equipment
  • Solar PPA projects
  • ZEB conversion projects