Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 9.1% compared to 2021
• Installed a solar power generation system at Ryuyo Factory, covering approximately 14% of the factory’s total power consumption and reducing CO2 emissions by approximately 350 tons
• Reduced total amount of industrial waste generated by the entire Kawai Group in FY2023 to 2,001 tons, down 4.2% from the previous year’s level and down 37.5% from the FY2012 level
• Increased overall waste recycling ratio from 57% in FY2012 to 89% in FY2023
• Planted approximately 840,000 trees in Indonesia, reaching a cumulative afforested area of approximately 800 ha

Social Achievements

• Held the 4th Shigeru Kawai International Piano Competition with 237 contestants from 21 countries and regions
• Continued 100% childcare leave usage ratio among female workers
• Increased the spouse maternity leave usage ratio to 63%
• Recognized as a “Health & Productivity Management Outstanding Organization (The Large Enterprise Category) 2024” for consecutive years since 2020
• Increased the number of mid-career-hired employees by 33 in the past five years

Governance Achievements

• Established the Sustainability Committee directly under the Board of Directors
• Improved Board of Directors’ effectiveness through increased seats for outside directors and the appointment of a female director
• Established a BCP (Business Continuity Plan) to prepare for emergencies
• Established the Corporate Ethics Committee

Climate Goals & Targets

Environmental Challenges

• Climate change risks, including extreme weather events, supply chain disruptions, and changes in raw material prices
• Transition risks associated with decarbonization policies, such as carbon pricing and changes in energy prices
• Labor and successor shortages faced by local small and medium-sized enterprises

Mitigation Strategies

• Developing and strengthening BCP
• Establishing a central disaster prevention measures committee
• Establishing and applying a Kawai green procurement guideline
• Reducing waste and raising the recycling rate
• Developing and applying environmental policies pursuant to the Kawai Earth Environment Charter
• Considering products using recycled materials first in procurement operations
• Promoting mid-career recruitment

Supply Chain Management

Responsible Procurement

• Green Procurement Guideline
• Wood Materials Procurement Guideline

Climate-Related Risks & Opportunities

Physical Risks

• Catastrophic disaster due to extreme weather conditions
• Damage to forests due to region-specific risks such as flooding, drought and forest fire, and their impact on the procurement of raw wood materials
• Poor wood growth in specific regions and their quality deterioration

Transition Risks

• Increased business operation costs due to the introduction of a carbon tax
• Increased expenditure due to the reduction of greenhouse gas emissions
• Higher power prices due to changeover to power generated with renewable energy etc.
• Increased transportation costs due to changes in demand for fossil fuel
• Wood material price increases due to forest resource regulations and behavioral change
• Metal price increases due to the price pass-through of the impact of transition to decarbonization etc.

Opportunities

• Greater need for indoor entertainment due to outdoor activity restriction and demand from people spending more time at home
• Stimulating eagerness to buy among customers with greater ethical commitment through the development of products with limited environmental load
• Enhancing the environmental performance of our products will not only contribute to society but also bring us business opportunities

Reporting Standards

Frameworks Used: TCFD, ISO 26000, SDGs

Certifications: ISO 14001 (Ryuyo Factory, Kawai Hyperwood Co., Ltd., Kawai Seimitsu Kinzoku Co., Ltd., PT. Kawai Indonesia Plants No.1, No.2 and No.3, Shanghai Kawai EMI Co., Ltd., Kawai Musical Instruments (Ningbo) Co., Ltd.), ISO 9001 (Ryuyo Factory, Kawai Hyperwood Co., Ltd., Kawai Seimitsu Kinzoku Co., Ltd., PT. Kawai Indonesia Plants No.1, No.2 and No.3, Shanghai Kawai EMI Co., Ltd., Kawai Musical Instruments (Ningbo) Co., Ltd.)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 4 (Quality education)
• Goal 8 (Decent work and economic growth)
• Goal 11 (Sustainable cities and communities)
• Goal 15 (Life on land)

Kawai Group is committed to taking additional actions to accomplish all of its goals, including the relevant ones, through its business activities.

Awards & Recognition

• CSR awards (Indonesia)
• Health & Productivity Management Outstanding Organization (The Large Enterprise Category) 2024