Climate Change Data

Environmental Metrics

ESG Focus Areas

• Technological Innovations
• Enhancing Resilience
• Smart Service
• Wellness

Environmental Achievements

• Achieved a recycling rate of 99.7% within Japan; total waste has been falling both inside and outside Japan.
• Switched from conventional blister (plastic) packing to paper boxes for Gumy Wireless HA-FX9BT headphones, reducing yearly plastic use.
• In FY2018, greenhouse gas emissions greatly exceeded the reduction target.

Social Achievements

• Lost-time injuries frequency rate for FY2018 was 0.163, below national and industry averages.
• 100% of employees (excluding executives and managerial personnel) belong to the union.
• 1,283 people used teleworking in fiscal 2018.
• 156 social contribution programs implemented throughout the JVCKENWOOD Group in FY2018 (greatly exceeding the target).
• Recognized as a White 500 Certified Health and Productivity Management Organization for three consecutive years since 2017.

Governance Achievements

• Established the Nomination and Remuneration Advisory Committee in December 2015, with all external directors as members.
• Appointed an external director independent from management as the Chairman of the Board of Directors in June 2016.
• Added the CEO to the Nomination and Remuneration Advisory Committee in April 2019.
• Introduced an executive officer system in October 2008, separating management supervision from business execution.
• Conducted the fourth effectiveness evaluation of the Board of Directors in January 2019, confirming its sufficient effectiveness.

Climate Goals & Targets

Environmental Challenges

• Shrinking consumer product market and intensified competition (2011-2014) resulting in low employee motivation.
• Need to exert more ability and catch up with contributions of global companies to international society.

Mitigation Strategies

• Strengthened capabilities as a solution provider under the slogan of “a Customer Values Creator” in 2015.
• Enhanced initiatives focused on diversity and inclusion.
• Established a Sustainability Management Office in 2018 to formulate SDGs, a mid- and long-term vision, sustainability strategy topics, and material issues.

Supply Chain Management

Supplier Audits: 1,558 suppliers received conflict mineral survey forms (FY2014-2018), with a 96.2% response rate; 3TG refineries inspected.

Responsible Procurement

• JVCKENWOOD Group Procurement Policy (established October 2018)
• JVCKENWOOD CSR Procurement Guidelines (established 2017, based on JEITA code of conduct)
• Prohibition of child/forced labor

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (earthquakes, etc.)

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SDGs

Certifications: White 500 Certified Health and Productivity Management Organization, Resilience certification (Business Continuity Plan)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Eight priority goals out of the 17 SDGs were identified and linked to the eight topics.

Sustainable Products & Innovation

• Environmentally friendly products with paper packaging (FY2019)
• Products that help early detection of developmental disabilities, dementia, cancer, etc.

Awards & Recognition

• Encouragement and letters of thanks from the Yamagata Prefecture Environmental Conservation Council
• Award for excellence at 5th Biodiversity Japan Awards (How Far Does a Dragonfly Fly Forum)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Safety
• Sustainable Manufacturing
• Human Rights
• Supply Chain Management

Environmental Achievements

• Reduced greenhouse gas emissions (Scope 1+2) to 38,000 tons in FY2020, well below the target of 69,000 tons. Aiming for a 25.2% reduction by FY 2025 compared to FY 2019 levels.
• Reduced plastic use by 11.9 tons in FY2020 through packaging changes.
• Achieved a 99.7% recycling rate in Japan.

Social Achievements

• Increased the ratio of women in executive positions to 5.0% in April 2021 (from 2.1% in FY 2015).
• Recognized as an enterprise under the 2021 Certified Health & Productivity Management Outstanding Organizations Recognition program for four consecutive years.
• Established the JVCKENWOOD Group Human Rights Policy.

Governance Achievements

• Appointed an Independent External Director as Chairman of the Board of Directors.
• Established the Nomination and Remuneration Advisory Committee.
• Implemented a company-wide quality management system.

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 on revenue.
• Worsening global supply chain risks for semiconductors.
• Growing global geopolitical risk.
• Supply chain disruptions due to climate change.
• Impact of U.S.-China trade friction.

Mitigation Strategies

• Implemented COVID-19 Emergency Measures (CEM) project to reduce fixed costs.
• Redefined business portfolio to focus on priority business and next-generation new business.
• Accelerated manufacturing reforms and consolidated production bases.
• Strengthened budget and performance management using cash flow and ROA.

Supply Chain Management

Supplier Audits: Over 90% of major suppliers responded to a self-assessment questionnaire in March 2021.

Responsible Procurement

• JVCKENWOOD Group Procurement Policy (October 2018)
• JVCKENWOOD CSR Procurement Guidelines (2017, revised 2020)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Sustainable Products & Innovation

• Communication-type dashcams
• Eco-friendly packaging

Awards & Recognition

• FTSE Blossom Japan Index constituent
• Donor Recruitment Award of the Emperor Showa Memorial Fund for Blood Programme
• Eruboshi certification
• 2021 Certified Health & Productivity Management Outstanding Organizations Recognition
• Gold in the PRIDE Index

Environmental Metrics

ESG Focus Areas

• Safety & Security Initiatives
• Environmental Response
• Sustainable Monozukuri

Environmental Achievements

• Reduced CO2 emissions (Scope 1+2) by 16.8% from FY2019 levels by FY2023
• Achieved a global recycling rate of 91% in FY2022
• Reduced plastic consumption volume for containers and packaging by 13.1% from FY2019 levels by FY2023
• Launched portable power station using recycled batteries from electric vehicles

Social Achievements

• Received the White 500 certification for the fifth time in 2023 for health and productivity management
• Received the highest rating (third level) of Eruboshi certification for promoting women's active engagement in professional life
• Implemented human rights due diligence and identified four significant human rights risks

Governance Achievements

• Established the Sustainability Committee in April 2023 under the direct control of the CEO
• Endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
• Increased the quota of External Directors of the Board and their areas of expertise

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical risks, semiconductor shortages, and the COVID-19 pandemic
• Exchange rate fluctuations impacting revenue and profits
• Maintaining profitability in existing businesses while adapting to market changes

Mitigation Strategies

• SCM reform, including securing multiple business partners, holding BCP inventory, and adopting general-purpose parts
• Implementing hedging transactions such as exchange contracts
• Business portfolio transformation focusing on growth potential and capital efficiency

Supply Chain Management

Supplier Audits: Responses from more than 90% of business partners to a self-assessment questionnaire (SAQ)

Responsible Procurement

• JVCKENWOOD Group Procurement Policy
• JVCKENWOOD CSR Procurement Guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, SDGs

Certifications: ZEBReady, CASBEE, Eruboshi

UN Sustainable Development Goals

• Goal 11: Sustainable cities and communities
• Goal 13: Climate action

Sustainable Products & Innovation

• Portable power station using recycled batteries from electric vehicles
• NXR-1700/1800 repeater (miniaturized)
• Bluetooth® headphones (reduced power consumption)

Awards & Recognition

• GOOD DESIGN GOLD AWARD
• International Design Excellence Award 2023 finalist
• Selected for the ESG Index “FTSE Blossom Japan Index” and “FTSE Blossom Japan Sector Relative Index”