Climate Change Data

Kurabo Industries Ltd.

Climate Impact & Sustainability Data (2023-04 to 2024-03)

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:162,294 tCO2e/year
Scope 1 Emissions:33,538 tCO2e/year
Scope 2 Emissions:128,756 tCO2e/year
Scope 3 Emissions:619,600 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:1,349,693 GJ/year
Water Consumption:5,315,733 tons/year
Waste Generated:10,776 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced CO2 emissions by 38% against FY2013 (target was 39%, achieving 40% by 2024)
  • Achieved 96% recycling rate in Japan (target was 97%)
  • Installation of solar power generation equipment at multiple plants in Japan and overseas.

Social Achievements

  • Launched Smartfit risk-management system for hot work environments, introduced to over 80 companies.
  • Expanded sales of NaTech functional cotton and L∞PLUS upcycling system.
  • Obtained gold certification in the Pride Index for the third consecutive year.
  • Certified as an advanced rank company in the D&I Award.

Governance Achievements

  • Established an Audit and Supervisory Committee in 2016.
  • Independent outside directors (including one female) account for one-third of the Board of Directors.
  • Created the Nomination and Remuneration Advisory Committee in 2019.

Climate Goals & Targets

Long-term Goals:
  • Carbon neutral in 2050
Medium-term Goals:
  • Reduce CO2 emissions by 46% from FY2013 levels in 2030
  • Achieve ROE of 8% or more during the next medium-term corporate business plan period and 10% or more by 2030
Short-term Goals:
  • Reduce CO2 emissions by 40% against FY2013 by 2024
  • Achieve 97% recycling rate in Japan by 2024
  • Inform suppliers about the Kurabo Group’s human rights policy (starting in FY2024)
  • Conduct CSR questionnaires at suppliers (starting in FY2024)

Environmental Challenges

  • Slowdown in the textile business.
  • Mid-year share transfer in the machine tool business.
  • Ongoing adjustment period in the semiconductor market.
  • Rising raw material and energy costs.
  • Decreased sales of high-performance plastic products due to a slowdown in the semiconductor market.
  • Lags in reflecting rising raw material costs in flexible polyurethane foam and housing construction material prices.
  • Lagging progress in infrastructure testing and robot vision systems for factory automation.
  • Worsening business environment for dairy farmers affecting FUNTO livestock waste treatment system sales.
Mitigation Strategies
  • Improving profitability by shifting costs onto prices and increasing sales of high-performance products.
  • Building global production structures with QR support, focusing on Southeast Asia.
  • Expanding sales and improvement efforts to strengthen core businesses.
  • Increasing production capacity at the Mie Plant for functional films.
  • Investing in expanding the semiconductor business, including constructing a new building and molding factory.
  • Accelerating investment of resources and taking steps to overcome lags in product rollouts.
  • Continuing to increase prices as necessary for rising raw material and energy costs.
  • Implementing capital policies founded on awareness of capital efficiency.
  • Actively considering M&As that promise synergies with businesses and employee happiness.

Supply Chain Management

Supplier Audits: CSR/sustainable procurement self-assessment questionnaire to suppliers starting in FY2024.

Responsible Procurement
  • Kurabo Group Human Rights Policy distribution to suppliers.
  • Compliance with Japanese government’s Guidelines on Respecting Human Rights in Responsible Supply Chains and the Japan Textile Federation’s Guidelines for Responsible Business Conduct.

Climate-Related Risks & Opportunities

Physical Risks
  • Increased severity of extreme weather events such as cyclones and floods
  • Rising mean temperatures
  • Equipment damage, decreased production due to suspension of activities, and increased recovery costs due to typhoons, floods, etc.
Transition Risks
  • Increased pricing of GHG emissions (carbon pricing)
  • Mandates on and regulation of existing products and services
  • Changing customer behavior
  • Costs to transition to lower-emissions technology
  • Increased stakeholder concern or negative stakeholder feedback
  • Increase in costs due to conducting energy conservation and introducing high-efficiency equipment, etc.
  • Increased air conditioning costs
Opportunities
  • Use of recycling
  • Use of lower-emission sources of energy
  • Development and/or expansion of low-emission goods and services
  • Access to new markets
  • Business continuity
  • Resource efficiency
  • Reduction of energy costs through energy-saving activities and procurement of low-cost, high-quality renewable energy and hydrogen
  • Reduction of carbon tax burden by reducing GHG emissions through decarbonization measures
  • Growing demand for parts and materials compatible with the circular economy against the backdrop of the transition to a circular economy

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • NaTech functional cotton
  • L∞PLUS upcycling system
  • Air Flake recycled polyester
  • Biodegradable fiber products
  • Recycled wood powder resin products such as Kurattice Eco
  • KURAPOWER SHEET thermoplastic carbon fiber composite material

Awards & Recognition

  • Gold certification in the Pride Index (3 years running)
  • Advanced rank company in the D&I Award