Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced industrial waste disposal by approximately 10% (about 13 tons) year-over-year by improving waste separation and recycling.

Social Achievements

• Expanded group company maintenance service areas (from 18 to 29 locations nationwide), enabling faster service provision to a wider range of customers.
• Launched cloud-based IT asset management services and medical institution services.
• Developed a Japanese version of the open-source software CMS Sakai (a class support system) in collaboration with Hosei University (first achievement in Japan).

Governance Achievements

• Strengthened internal controls, including business case quality assessment reviews and compliance with business regulations with overseas subsidiaries.

Climate Goals & Targets

Environmental Challenges

• Continued severe domestic economic environment, including high yen, deflation, and the impact of the Great East Japan Earthquake in March 2011, which caused a decline in production and stagnation in domestic demand.
• Cautious attitude of many companies in the domestic IT industry towards capital investment, hindering a full recovery.

Mitigation Strategies

• Implemented key strategies from the mid-term management plan: strengthening service businesses, creating unique businesses, and entering global markets.
• Strengthened virtualization business, developed cloud service menus, and opened 11 new maintenance and service bases in Japan.
• Established a local subsidiary in Chengdu, China, and actively expanded business activities in the Chinese market (Shanghai, Chengdu, Shenzhen).

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Health Management
• Work Style Reform
• SDGs

Environmental Achievements

• Reduced paper usage by approximately 10 million sheets (2019 compared to previous years)
• Reduced industrial waste by approximately 10 tons (2019 compared to previous years)

Social Achievements

• Promotion of satellite offices and telecommuting through virtual desktops (Work Style Reform)
• Contribution to quality improvement in education through ICT utilization

Governance Achievements

• Transitioned to an Audit Committee Company in 2016
• Established a Nomination and Remuneration Committee with independent outside directors

Climate Goals & Targets

Environmental Challenges

• Securing and developing IT human resources
• Responding to the increasing demand for cloud services and hybrid cloud environments
• Adapting to the rapid changes in the IT industry

Mitigation Strategies

• Active investment in human resources
• Development of new cloud services
• Strengthening alliances to secure technical capabilities
• Development of new application businesses

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SDGs

UN Sustainable Development Goals

• SDG 3: Good Health and Well-being
• SDG 4: Quality Education
• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation and Infrastructure
• SDG 12: Responsible Consumption and Production
• SDG 17: Partnerships for the Goals

The report details how Kanematsu Electronics' initiatives contribute to these SDGs through various projects and services.

Environmental Metrics

ESG Focus Areas

• Health and Wellbeing
• Quality Education
• Economic Growth
• Industry, Innovation and Infrastructure
• Responsible Production and Consumption
• Climate Action
• Peace, Justice and Strong Institutions

Environmental Achievements

• PLM solutions supporting efficient design and development in manufacturing, reducing waste and promoting resource efficiency.
• Virtual analysis and verification using "3DEXPERIENCE" platform, reducing the need for physical prototypes and minimizing environmental impact.

Social Achievements

• Promoting remote work and satellite offices through virtual desktops (VDI), improving work-life balance and employee well-being.
• Supporting ICT infrastructure development in educational institutions, enhancing learning environments.
• Providing virtualization technology and HCI solutions for medical IT environments, improving healthcare quality and efficiency.
• Strengthening cybersecurity measures to protect against cyberattacks and ensure data security.

Governance Achievements

• Transitioned to an executive officer system to enhance decision-making speed and clarify roles and responsibilities.
• Established a more transparent governance structure with at least one-third independent outside directors, including women, on the board.
• Introduced a restricted stock compensation system to align executive compensation with long-term value creation.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Increasing demand for remote work solutions and enhanced cybersecurity measures.
• The need for rapid adaptation to the changing IT landscape and technological advancements.

Mitigation Strategies

• Developed alternative sourcing strategies and strengthened supply chain resilience.
• Expanded offerings of remote work solutions (VDI, cloud services) and enhanced cybersecurity measures (zero-trust network, SASE).
• Invested in new technologies, skills development, and strategic partnerships to adapt to the evolving IT environment.

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• 3
• 4
• 8
• 9
• 12
• 13
• 16
• 17

The company's IT services contribute to these SDGs through various initiatives such as promoting remote work, supporting education, enhancing cybersecurity, and promoting sustainable practices in manufacturing.

Sustainable Products & Innovation

• KEL Custom Cloud (KCC)
• VDI solutions
• Cybersecurity solutions

Environmental Metrics

ESG Focus Areas

• Health and Wellbeing
• Quality Education
• Responsible Production and Consumption
• Decent Work and Economic Growth
• Industry, Innovation and Infrastructure
• Climate Action
• Peace, Justice and Strong Institutions

Environmental Achievements

• Supporting the construction of design and development environments for manufacturers using PLM solutions
• Building a global integrated platform based on the "3D Experience" platform

Social Achievements

• Promoting satellite offices and telecommuting using virtual desktops (VDI) (work style reform)
• Providing technology to hospitals and medical institutions with consideration for health
• Deployment of virtualization technology and HCI solutions in medical IT environments
• Implementation of a new personnel system in July 2020

Governance Achievements

• Transitioned to an executive officer system in June 2020 to further strengthen the supervisory function of the board of directors and to speed up decision-making through the separation of supervision and business execution
• The ratio of independent outside directors in the board of directors is more than 1/3

Climate Goals & Targets

Environmental Challenges

• The COVID-19 pandemic significantly impacted business activities in 2021, leading to slower sales negotiations, prolonged project timelines, and decreased sales of servers and storage-related products for manufacturers and service industries.
• Cyberattacks are a significant management risk, and many companies have not yet transitioned from on-premise security measures.

Mitigation Strategies

• Implemented various measures to prevent the spread of COVID-19, including promoting telecommuting and staggered work hours, suspending non-essential business trips and social gatherings, and strengthening internal network quality and security.
• Collaborated with various security vendors to provide services for building new network designs and security boundaries in the zero-trust era.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SDGs

Certifications: DX-Ready, Health and Wellbeing

UN Sustainable Development Goals

• 3
• 4
• 8
• 9
• 12
• 13
• 16
• 17

The report details how their business activities contribute to these goals through various initiatives.

Awards & Recognition

• JPX Nikkei Index 400 constituent
• DX-Ready
• Health and Wellbeing

Environmental Metrics

ESG Focus Areas

• Digital/Cybersecurity talent development and work style reform
• Implementation of cutting-edge technology in social infrastructure
• Reduction of environmental burden through cloud and service deployment
• Knowledge sharing through the promotion of digitalization of our own business

Environmental Achievements

• Reduced environmental burden through cloud and service deployment, resulting in reduced physical servers and decreased energy consumption.
• Utilized data centers operated with renewable energy.

Social Achievements

• Launched new wellbeing initiatives, including Hello Baby Leave, Wellness Leave, and expanded childcare support.
• Achieved certification as a Health & Wellbeing Management Excellent Company (White 500) for four consecutive years.
• Increased new graduate recruitment and strengthened career recruitment.
• Extended the residency period of single employee dormitories from 5 to 7 years.

Governance Achievements

• Established a compliance committee to monitor compliance and handle emerging issues.
• Implemented an internal whistleblowing protection system.
• Maintained ISO/IEC 27001 certification for information security management system.

Climate Goals & Targets

Environmental Challenges

• Increasing cybersecurity risks
• Shortage of IT engineers
• Need for global talent development

Mitigation Strategies

• Strengthened security-related service lineup, including capital and business tie-up with Broadband Security.
• Established a cybersecurity fund to revitalize the industry.
• Implemented training programs for cybersecurity talent development.
• Implemented short-term trainee programs in overseas offices to foster global talent.

Supply Chain Management

Responsible Procurement

• Basic policy on respecting human rights throughout the supply chain

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, Value Co-creation Guidance (Ministry of Economy, Trade and Industry, Japan)

Certifications: ISO/IEC 27001

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 3 (Good Health and Well-being)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 8 (Decent Work and Economic Growth)

Initiatives contribute to these goals through the provision of ICT infrastructure to educational and medical institutions, talent development, and work style reform.

Awards & Recognition

• Health & Wellbeing Management Excellent Company (White 500)