Climate Change Data

Environmental Metrics

ESG Focus Areas

• Ecology
• Improvements in the quality of space
• Governance
• Human Rights
• Labor Practices
• Community Involvement

Environmental Achievements

• Reduced CO2 emissions from energy sources by achieving a discharge rate of 62.2 (t-CO2/¥100 million), below the target of 62.5
• Reduced total emissions to 105,100 t-CO2 (CO2 emission factor for electric power is fixed at the value of fiscal 2014), below the target of 110,000 t-CO2
• Achieved a 91.1% recycling rate of waste emissions
• Increased the recycling rate of insulation board to 90%
• Shifted energy sources for drying process in Okayama factory fully to biomass energy, reducing annual CO2 emissions by approximately 40,000 tons compared to 2006
• Carbon fixation of 777,000 t-CO2/year (MDF: 633,000 t-CO2/year, IB: 144,000 t-CO2/year)

Social Achievements

• Launched a workstyle change project to reduce long working hours, offering self-improvement incentives of ¥30,000 to all employees
• Obtained the “Kurumin” certification for supporting employees raising children
• Implemented mutual safety diagnosis in four plants in Japan, seven group manufacturers and three overseas companies
• Provided diversity management training for managers supervising female employees
• Expanded TDY collaboration showrooms to strengthen connections with customers

Governance Achievements

• Implemented analysis and assessment of the effectiveness of the Board
• Reinforced the compliance system with the cooperation of the Legal Affairs Department and Audit Department
• Developed and implemented a whistle-blowing system
• Established optimal corporate governance

Climate Goals & Targets

Environmental Challenges

• Decreased domestic housing starts
• Demand for interior work centered on the condominium market did not increase
• Soaring construction cost due to the shortage of skilled workers

Mitigation Strategies

• Injecting corporate resources into the home renovation market, public and commercial buildings market, and the global markets
• Promoting streamlining and focusing on sales of high-value-added products
• Expanding interior work in the metropolitan area and developing the condominium renovation business
• Securing skilled workers and enhancing the management system at each site

Supply Chain Management

Supplier Audits: 237 suppliers surveyed in fiscal 2017

Responsible Procurement

• Compliance with laws and regulations
• Fair and even-handed dealings
• Sharing excellent value
• Promotion of green procurement
• Promotion of CSR procurement
• Relationship of trust and co-prosperity

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines 4, ISO26000, International Integrated Reporting Council (IIRC), The International Integrated Reporting Framework

Sustainable Products & Innovation

• Eco-friendly products
• Recycled wood boards
• Dai-Lite (using shirasu)
• Insulation board (using recycled wood)
• MDF (using recycled wood)

Awards & Recognition

• Award of excellence as a leading company for women's participation in workplace from Osaka City

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 36% (compared to FY 2014) in Japan, exceeding the target of 26%
• Increased utilization of domestic timber for flooring substrates to approximately 51% in FY2022 (from approximately 4% in FY2015).

Social Achievements

• Increased total diversity index by 30 points (compared to FY 2019), exceeding the target of 20 points.
• Certified as a Health & Productivity Management Outstanding Organization in 2022.

Governance Achievements

• Improved the degree of penetration of the group corporate philosophy by five points compared to FY 2018.
• Reorganized the CSR committee to the sustainability promotion committee to enhance sustainability initiatives.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to greater-than-expected increase in orders and delays in product delivery.
• Failure to achieve sales expansion target for public and commercial buildings due to decreased demand.
• Failure to achieve the goal of a ten-point increase in the degree of penetration of the group corporate philosophy.

Mitigation Strategies

• Strengthening sales structure for public and commercial buildings and expanding items with new ideas.
• Implementing penetration programs to disseminate the Group Corporate Philosophy.
• Working to prevent supply chain disruptions from happening again.

Supply Chain Management

Responsible Procurement

• Daiken Procurement Policy and Daiken CSR Procurement Standards

Climate-Related Risks & Opportunities

Physical Risks

• Damage on and shutdown of production and sales bases due to natural disasters

Transition Risks

• Difficulty in obtaining wood chips
• Responses to regulations on products and materials
• Increase in costs associated with decarbonization

Opportunities

• Appeal to customers by recycling raw materials
• Formation of markets for energy-saving products
• Mitigation of climate change and expansion of the sale of adaptive products

Reporting Standards

Frameworks Used: International Integrated Reporting Council (IIRC): The International Integrated Reporting Framework, ISO 26000

Certifications: ISO 14001

Sustainable Products & Innovation

• DAILITE (using volcanic ash)
• DW fiber (soil improvement additive)
• GLOW EARTH (wood culture medium)
• Special MDF (using domestic timber)
• WPC flooring (using domestic natural wood)

Awards & Recognition

• KIDS DESIGN AWARD

Environmental Metrics

ESG Focus Areas

• Sustainable society
• Global environment
• Economy
• Human capital
• Stakeholder engagement
• Corporate governance

Governance Achievements

• Reorganized the existing CSR committee to the sustainability promotion committee

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Daiken Procurement Policy and Daiken CSR Procurement Standards

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced final waste landfilling treatment amount (production departments in Japan and overseas) by 21.2% (compared to fiscal 2022)
• Reduced total greenhouse gas emissions in Japan and overseas (Scope1+2) by 15.8% (compared to fiscal 2022)
• Reduced total greenhouse gas emissions in Japan and overseas (Scope3) by 16.1% (compared to fiscal 2022)
• Increased renewable energy utilization ratio in Japan to 50% and overseas to 36%
• Increased amount of carbon storage by the wood industrial materials business (MDF and insulation board) to 672,100 t-CO2/year
• Reduced Lauan usage rate in flooring substrates by 8.9% increase (compared to fiscal 2022)
• Reduced release/transfer amount of the substances subject to the PRTR law by 7.0% (compared to fiscal 2022)
• Reduced water resource input (Group production bases in Japan and overseas) by 5.1% (compared to fiscal 2022)
• Reduced use of plastic containers and packaging by 2.2% (compared to fiscal 2022)
• Achieved 0 environmental accidents and violations at home and abroad (Those with administrative guidance and penal charge)

Social Achievements

• Achieved 0 accidents caused by design in new product development
• Achieved 100% manufacturing and product audit implementation cover rate
• Achieved 100% product safety and quality improvement education execution rate
• Achieved 100% CSR survey implementation rate
• Achieved 0 serious violations of the Anti-Monopoly Act and Subcontract Act
• Conducted 25 enlightenment activities by division and job type
• Improved Total Diversity Index 3rd Stage by +25.9pt (compared to fiscal 2022)
• Increased the ratio of female employees hired (New graduate nationwide course) to 48.5%
• Increased the female full-time employee ratio to 21%
• Increased the percentage of male employees taking childcare leave (Three-year average) to 60%
• Increased the female manager ratio to 2%
• Achieved 64% long-term care seminar attendance rate
• Achieved 80% diversity training attendance rate (Managers)
• Achieved 104% degree of attainment of the employment rate of persons with disabilities
• Improved Health score (Exercise, rest, and nutrition) by 16.2 pt
• Reduced Presenteeism loss rate to 28.8%
• Reduced total work time by 2.0%
• Increased rate of taking annual paid leave to 70.7%
• Improved Employee satisfaction by 57.4 pt
• Reduced job separation rate within three years to 11.6%
• Achieved 100% young employees’ career plan training attendance rate
• Achieved 55% attendance rate for the priority market enhancement program
• Achieved 81% attendance rate for training for management staff training program
• Achieved 100% plant mutual safety diagnosis execution rate in Japan and 50% overseas
• Achieved 100% human rights enlightenment training attendance rate
• Achieved 100% supervisor harassment training attendance rate
• Held a total of 93 events planned by cooperating with local communities in 17 bases at home and abroad

Governance Achievements

• Increased female executive ratio (Director) to 11.1%
• Improved degree of penetration of the group corporate philosophy to 61 pt
• Achieved 87% degree of empathy for our philosophy and activities by customers
• Held a policy explanation meeting for suppliers once
• Improved Compliance consciousness degree by +1.32 pt (compared to fiscal 2022)
• Achieved 0 serious compliance violations

Climate Goals & Targets

Environmental Challenges

• Product raw materials partially leaked into a river by the overseas plant

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• CSR Procurement Standards

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed