Climate Change Data

Nippon Light Metal Holdings Company, Ltd.

Climate Impact & Sustainability Data (2019-04 to 2020-03)

Reporting Period: 2019-04 to 2020-03

Environmental Metrics

Total Carbon Emissions:731000 tCO2e/year (Scope 1 & 2)
Scope 3 Emissions:1773000 tCO2e/year
Total Energy Consumption:11.6 PJ/year
Water Consumption:21000000 m3/year
Waste Generated:43900 tons/year

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Greenhouse gas emissions (Scope 1 and Scope 2) decreased by 154 thousand tons CO2 (17%) year-on-year, to 731 thousand tons CO2. Emissions in Japan included in the above were 606 thousand tons CO2, down 142 thousand tons CO2 year-on-year.
  • Energy consumption in Japan decreased by 2.3 PJ (16%) year-on-year, to 11.6 PJ.
  • SOx emissions in Japan decreased 18 tons year-on-year, to 326 tons.
  • Amount of discharged water in Japan decreased 1.2 million m3 year-on-year, to 21.0 million m3

Social Achievements

  • Established Nikkeikin OhLis Co., Ltd., a special subsidiary company for employing people with disabilities, extending job opportunities to nearly 30 people in FY2019.
  • Enhanced internal programs to help employees balance work and childcare/nursing care, including extending eligibility of shorter working hour program for childcare until elementary school graduation.
  • Introduced nursing care support leave and life support leave to support employees' long-term work while receiving medical treatment.

Governance Achievements

  • Established the Nomination and Compensation Committee to strengthen Board of Directors’ supervision of director nomination and compensation.
  • Increased the ratio of independent outside directors on the Board of Directors to fulfill the standard “at least one-third” ratio recommended in the Corporate Governance Code.
  • Switched to a specialist firm for the NIKKEI HOTLINE, strengthening the independence of the whistleblower contact office.

Climate Goals & Targets

Medium-term Goals:
  • Reduce greenhouse gas emissions per unit of sales to 1.82 tons CO2/million yen by FY2030
Short-term Goals:
  • Implement a solution to prevent floods and mudslides at Amehata Dam (FY2020-2021)

Environmental Challenges

  • Sedimentation in Amehata Dam reservoir causing flooding and damage to surrounding areas.
  • COVID-19 pandemic impacting business operations and employee safety.
  • Workplace injuries, particularly pinching/catching incidents.
Mitigation Strategies
  • Established the Amehata Area Sediment Countermeasures Investigative Commission to develop and implement a basic plan for addressing sedimentation.
  • Launched a COVID-19 task force to implement infection control and business continuity measures, including teleworking and enhanced hygiene practices.
  • Implemented thorough countermeasures at business locations where workplace injuries occurred and initiated activities to prevent similar injuries by identifying and eliminating potential accident causes.

Supply Chain Management

Responsible Procurement
  • CSR procurement questionnaire survey of suppliers
  • BCP initiatives with suppliers
  • Thorough initiatives to prevent bribery and similar misconduct within the procurement department

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Temperature rise
  • Sea level rise
Transition Risks
  • Decarbonization market shifts
  • Energy cost rise
  • Changes in aluminum-producing nations' policies
Opportunities
  • Increased demand for disaster-resistant products and services
  • Increased demand for aluminum packages and cold chain logistics
  • Greater demand for decarbonized aluminum
  • Greater demand for aluminum with a high recycling ratio
  • Shift to materials with a competitive edge regarding the 3Rs

Reporting Standards

Frameworks Used: GRI Standards, Environmental Reporting Guidelines 2018 (Ministry of the Environment), ILO Prevention and Mitigation of COVID-19 at Work Action Checklist

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.