Climate Change Data

JANOME Corporation

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

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:12,555 t-CO2e (FY2022)
Scope 1 Emissions:3,996 t-CO2e (FY2022)
Scope 2 Emissions:8,559 t-CO2e (FY2022)
Scope 3 Emissions:80,851 t-CO2e (FY2022)

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced CO2 emissions (Scope 1 & 2) from 16,621 t-CO2e in FY2021 to 12,555 t-CO2e in FY2022. Further reduction in FY2023 is being calculated.
  • Introduced and replaced with LEDs (light emitting diodes)
  • Replaced with environment-conscious equipment
  • Janome Servo Press compatible with clean room
  • JP Series 5 servo presses are “MF Eco machine” certified

Social Achievements

  • Acquired the Tomonin Mark for promoting a workplace environment that allows balancing work and nursing care.
  • Acquired the Eruboshi (Level 3) certification mark for promoting female career advancement.
  • Acquired the TOKYO Papa Ikugyo Promotion Companies registration mark (Bronze) for promoting male childcare leave.
  • Supported the Pink Ribbon Movement, donating $1,750 to the American Cancer Society.
  • Hosting factory tours for elementary school students
  • Installing greenhouses and donation of agricultural equipment to nearby schools
  • Supporting the Pink Ribbon Movement

Governance Achievements

  • Transitioned to a Company with Audit and Supervisory Committee system.
  • Established a Nomination and Compensation Advisory Committee.
  • Introduced a performance-based stock compensation plan for Directors and Officers.
  • Documented Basic Principles of Corporate Governance
  • Performed Efficiency Assessment of Board of Directors

Climate Goals & Targets

Long-term Goals:
  • Realize a decarbonized society by 2050.
Medium-term Goals:
  • Maintain a PBR of 1x or greater by improving ROE, reducing the cost of shareholder capital, and implementing measures for achieving sustainable growth.
Short-term Goals:
  • Increase the ratio of female managers among all managers to 20% by 2025.

Environmental Challenges

  • Impact of the protracted situation in Ukraine on the economies of neighboring countries and loss of sales to Russia due to economic sanctions.
  • Soaring prices including energy prices, and a sense of uncertainty about the future.
  • Decline in household purchasing power due to rising prices.
  • Accelerating price reduction due to the prevalence of internet sales.
  • Global decline in machinery capital investment, epitomized by the slowdown of the Chinese economy.
  • Cautious stance toward investment projects, resulting in a decline in sales.
  • Rising geopolitical risks.
  • Demand for parts is changing as products become more advanced and offer greater added value.
  • Environmental problems must be dealt with, and the management of companies we do business with is being passed on to future generations.
  • EOL (end-of-life) issues.
  • Constantly changing IT industry.
  • Accelerated IT investment sparked by corporate management motivation for digital management.
  • Increasingly apparent human asset shortages while market scale expands.
Mitigation Strategies
  • Make up for the loss of Russian business through sales in other regions.
  • Reinforce after-sales service as well as customer support systems and strive to promote the JANOME brand through brand penetration.
  • Further exploitation of latent demand through various communication channels with customers.
  • Identify market needs through various channels and establish market share.
  • Plant seeds for future sewists by enhancing support for sewing education at schools and maintaining No. 1 share for schools in Japanese domestic market.
  • Reduce costs and decentralize and diversify our supply chain by strengthening our in-house production capacities and promoting in-house processing of certain components.
  • Minimize risk and strengthen our production system.
  • Environmental considerations and strengthening of partnerships.
  • Accelerate promotional efforts to essential businesses such as the medical industry where the potential demand for Janome’s original clean room model is high.
  • Promote replacement of hydraulic and pneumatic presses with servo presses for energy conservation and a safer working environment.
  • Strengthen partner company relationships.
  • Improve productivity and operational efficiency while continuing with our decarbonization efforts.
  • Establish a solid position as our customers’ IT partner and grow together with our customers.
  • Improve our technological edge with research and development capability one step ahead of the market trends.
  • Building business models that leverage low code development tools, AI, etc.
  • Recruit and train IT engineers.

Supply Chain Management

Responsible Procurement
  • Green Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks
  • Increased occurrence of typhoons, thunderstorms, and torrential rains
Transition Risks
  • Carbon Tax/Emission Trading Scheme
  • Plastic regulations
  • Energy cost fluctuation
  • Global shortage of energy saving components
Opportunities
  • Increased replacement demand for environment-conscious products
  • Lower carbon material
  • Improving energy efficiency features
  • Further commoditization of parts

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, Eco-action 21

Sustainable Products & Innovation

  • Horizon Memory Craft 9480 QC Professional
  • Janome Servo Press compatible with clean room
  • JP Series 5 servo presses

Awards & Recognition

  • IDEA (International Design Excellence Awards) 2024 Finalist (Horizon Memory Craft 9480 QC Professional)