Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Resources Development
• Corporate Governance
• Risk Management
• Global Environmental Conservation

Environmental Achievements

• Established a chemical substance management system to exclude harmful substances and implemented a system to control electricity usage to reduce CO2 emissions.
• Promotes resource efficiency, energy saving, and recycling.

Social Achievements

• Created a workplace culture of mutual respect and open collaboration.
• Implemented MDP (Management Development Program) and CDP (Career Development Program) to enhance employee development.
• Achieved a positive response rate of 70% or higher on the employee engagement survey.

Governance Achievements

• Established a Nomination and Remuneration Committee with a majority of independent outside directors.
• Implemented a robust internal control system with on-site audits and a special audit department.
• Established an employee code of behavior to prevent fraud and harassment.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in domestic and international economic trends.
• Exchange rate fluctuations affecting product costs and prices.
• Risks of information security breaches.
• Challenges in overseas business development due to political, economic, and social factors.
• Potential for large-scale product recalls due to quality issues.
• Risks from natural disasters and accidents affecting operations and supply chains.
• Changes in accounting standards and tax systems in different regions.
• Compliance with various national and international regulations.

Mitigation Strategies

• Risk diversification measures to reduce dependence on specific products, customers, or regions.
• Promoting overseas businesses and diversifying trading bases and currencies to mitigate exchange rate risks.
• Improving information literacy and strengthening IT governance to enhance information security.
• Careful consideration of profitability, market expansion potential, and various risks before overseas expansion.
• Implementing Group quality management systems and environmental management systems with ISO standard certification.
• Linking KEYENCE’s quality control departments to cooperating factories.
• Diversifying risks by promoting a management system that does not depend on any specific activity base, specific supplier, specific product, specific customer, or specific industry.
• Conducting business activities based on current accounting systems and tax systems, while monitoring for changes.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (earthquakes, tsunamis, floods, heavy rains, lightning)