Climate Change Data

Ahresty Corporation

Climate Impact & Sustainability Data (2019-2021, 2022-04 to 2023-03, 2023-04 to 2024-03)

Reporting Period: 2019-2021

Environmental Metrics

ESG Focus Areas

  • Carbon neutral
  • Diversity
  • Shareholder return
  • Contribution to customers

Environmental Achievements

  • Increased ratio of parts for electric vehicles to new orders received in the first half of FY2021 to 65%

Social Achievements

  • Promoting the development of globally competitive human resources
  • Working to realize disaster- and accident-free workplaces

Governance Achievements

  • Establishing the Sustainability Meeting in 2020

Climate Goals & Targets

Long-term Goals:
  • Carbon neutral by FY2030
Medium-term Goals:
  • Achieve net sales of 160 billion yen and an operating margin of 6% by FY2030
  • Sales ratio of electric vehicles 55% by FY2030
  • Sales of vehicle body components 4.0 billion yen by FY2030
  • Reduction of CO2 emission intensity -50% (vs. FY 2013) by FY2030
  • Ratio of female employees (in Japan) 20% or over by FY2030
  • Ratio of female managers (in Japan) 10% or over by FY2030

Environmental Challenges

  • Poor performance of stock price and market capitalization due to failure to attain business performance levels required by shareholders and investors
  • Significant susceptibility of the Die Casting Business to fluctuations in demand in the automotive market
  • Dramatic change in the automotive industry (CASE)
Mitigation Strategies
  • Improve and strengthen profit constitution, realizing sustainable shareholder return
  • Enhance investor relations (IR) and social responsibility (SR) activities
  • Reduce cross-shareholdings
  • Increase order receipts of parts for electric vehicles and conventional powertrain components
  • Develop business to incorporate vehicle body components

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks
  • Changes in the automotive industry (CASE)
Opportunities
  • Increase in order receipts of parts for electric vehicles

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:204 thousand tCO2e/year (Scope 1 and 2)
Water Consumption:746,530 m3/year

ESG Focus Areas

  • Climate change
  • Diversity
  • Governance

Environmental Achievements

  • Reduced CO2 emissions in Scopes 1 and 2 by 28.7% compared to FY2013
  • Introduced solar power generation system at Tokai Plant
  • Switched to electricity from renewable energy sources at Ahresty Techno Service Corporation manufacturing sites
  • 97% of aluminum used in production is recycled

Social Achievements

  • Established Ahresty Inclusive Service Corporation to expand employment of people with disabilities
  • Obtained 3-star "Eruboshi" certification for women's empowerment
  • Certified as a Health & Productivity Management Outstanding Organization 2023
  • Renewed Silver Certification as an excellent health company

Governance Achievements

  • Introduction of new Independent Directors
  • Updated skill matrix of directors
  • Executive remuneration linked to restricted stock compensation plan

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050
Medium-term Goals:
  • Achieve 30% sales ratio of electric vehicle components by 2025
  • Reduce CO2 emissions in Scopes 1 and 2 by 50% by 2030
  • Achieve 55% sales ratio of electric vehicle components by 2030
  • Achieve 4 billion yen in sales of vehicle body components by 2030
  • 20% female employees in Japan by 2030
  • 10% female managers in Japan by 2030
Short-term Goals:
  • Reduce CO2 emissions in Scopes 1 and 2 by 29% by 2024

Environmental Challenges

  • Supply chain disruptions due to semiconductor shortage and China's zero-COVID policy
  • Soaring energy prices boosting production costs
  • Intensification of competition between Japanese and Chinese EV manufacturers in the Chinese market
  • Tight labor market in the U.S.
  • Risk of cyber-attacks
Mitigation Strategies
  • Streamlined production system and reduced manufacturing costs
  • Price revisions and cost compensation negotiations with customers
  • Flexible adjustment of operating days and personnel placement
  • Utilization of idle internal facilities to reduce capital investment
  • Strengthened information security management, established internal rules and regulations, limited access to information

Supply Chain Management

Supplier Audits: 97 domestic and overseas suppliers surveyed on labor and human rights and conflict minerals

Responsible Procurement
  • Informed suppliers of human rights policy

Climate-Related Risks & Opportunities

Physical Risks
  • Damage to production sites due to natural disasters
Transition Risks
  • Increase in procurement costs due to carbon tax
  • Decrease in sales of existing products due to electrification
  • Decrease in market size due to materials other than aluminum replacing steel
  • Increase in procurement costs due to soaring aluminum prices
Opportunities
  • Growing need for recycled ingots
  • Increase in demand for recycled materials
  • Decrease in renewable energy procurement costs
  • Increase in sales of climate change mitigation products
  • Sales increase due to increase in orders for ZEV products

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, Guidance for Integrated Corporate Disclosure and Company-Investor Dialogue for Collaborative Value Creation 2.0

Certifications: ISO 14001:2015, IATF 16949, ISO 9001, ISO 45001

UN Sustainable Development Goals

  • SDG 7 (Affordable and clean energy)
  • SDG 13 (Climate action)

Ahresty's initiatives contribute to these goals through the use of recycled aluminum, reduction of CO2 emissions, and development of energy-efficient products.

Sustainable Products & Innovation

  • Laser heat treatment technology

Awards & Recognition

  • Honda Environmental Sustainability Award (Ahresty Mexicana)
  • Shizuoka Labor Bureau Director's Excellence Award (Ahresty Techno Service Corporation)

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:213 thousand t-CO2e/year
Scope 1 Emissions:76 thousand t-CO2e/year
Scope 2 Emissions:137 thousand t-CO2e/year
Scope 3 Emissions:1109 thousand t-CO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:308,179 MWh/year
Water Consumption:807 thousand m3/year
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate change
  • Diversity & Inclusion
  • Governance
  • Human capital management
  • Human rights

Environmental Achievements

  • Reduced CO2 emissions in Scopes 1 and 2 by 28.9% compared to FY2013.
  • Introduced solar power generation at multiple plants.
  • Converted energy used for melting from heavy oil to city gas (LNG) resulting in approx. 29% reduction per calorific value.
  • Achieved 100% recycle rate for waste materials.

Social Achievements

  • Established Ahresty Inclusive Service Corporation to promote the recruitment and training of employees with disabilities.
  • Achieved 100% re-employment rate of employees retiring at the age of 60.
  • 100% of employees who took childcare leave returned to work.
  • Established the “D&I Community” to promote understanding of diversity promotion.
  • Granted the highest rank Eruboshi Certification as a women’s empowerment company.

Governance Achievements

  • Appointed an Independent Director with management experience in the manufacturing industry.
  • Introduced a restricted stock compensation plan for executives.
  • Updated the skill matrix of directors to match the needs of the times.
  • Improved the system for Independent Directors to regularly monitor management and business strategies.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050.
Short-term Goals:
  • Reduce CO2 emissions in Scopes 1 and 2 by 29% by 2024 (compared to FY2013).

Environmental Challenges

  • Sluggish sales of Japanese automobiles in the Chinese market.
  • Shortage of workers.
  • Declining workforce in Japan.
  • Climate change related risks (physical and transition risks).
  • Maintaining profitability in a rapidly changing automotive market.
Mitigation Strategies
  • Implementing a lean production system to improve production efficiency and reduce costs.
  • Shifting the business portfolio to parts for electric vehicles.
  • Developing technologies to create demand and improve productivity.
  • Shortening development lead time through the use of digital technologies.
  • Promoting global complementary production.
  • Implementing measures to reduce CO2 emissions (solar power, energy conversion, energy conservation).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Green purchasing
  • Disseminating the human rights policy to suppliers both in Japan and overseas
  • Periodic surveys of conflict minerals

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Natural disasters
Transition Risks
  • Increased procurement costs due to carbon tax
  • Increased costs of carbon offsets
  • Decrease in market size due to materials other than aluminum
  • Increase in procurement costs due to soaring aluminum prices
  • Decrease in sales of existing products due to electrification
  • Market evaluation decrease due to lack of response to climate change
Opportunities
  • Growing need for recycled ingots
  • Decrease in renewable energy procurement costs
  • Increase in sales of climate change mitigation products
  • Sales increase due to increase in orders for ZEV products
  • Increase in the proportion of aluminum die-cast products in automobile parts

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, Guidance for Integrated Corporate Disclosure and Company-Investor Dialogue for Collaborative Value Creation 2.0

Certifications: ISO 14001, ISO 9001, IATF 16949, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 7 (Affordable and clean energy)
  • SDG 13 (Climate action)

Ahresty's initiatives to reduce CO2 emissions and improve energy efficiency contribute to these goals.

Sustainable Products & Innovation

  • Laser heat treatment technology

Awards & Recognition

  • Certified Health & Productivity Management Outstanding Organization 2024
  • Silver Certification from the Tokyo Federation of Health Insurance Societies
  • Onoda Prize for laser heat treatment technology
  • Excellent Prize in Kubota Green Procurement Award