Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Load Reduction
• Safe and Secure Society Construction
• Diverse Workforce
• Sustainable Supply Chain
• Improved Labor Environment
• Sustainability-Conscious Governance

Environmental Achievements

• Energy saving through equipment investment (LED lighting, high-efficiency equipment, air conditioning equipment, solar power generation)
• Strengthened supply system through the establishment of the Koka factory
• Development and manufacturing of substitute and successor models for various product parts

Social Achievements

• Realization of a personnel system that enhances independence and autonomy and creates a sense of fulfillment
• Implementation of personnel policies to achieve the right person in the right place
• Enrichment of the education system
• Introduction of hierarchical training and management training for managers
• Creation of a workplace that promotes the active participation of women
• Response to globalization
• Ensuring a safe and comfortable work environment
• Reduction of overtime work and promotion of paid leave
• Flexible work style
• Construction of a platform that offers high convenience for customers
• Energy saving through logistics efficiency and IT-based reduction of driver burden

Governance Achievements

• Establishment of a Sustainability Promotion Committee
• Implementation of environmental management
• Continuous environmental education
• Measures for stable supply and safety and security service provision (BCP)
• Strengthening of supply system through the establishment of Koka factory
• Development and manufacturing of substitute and successor models for various product parts
• Compliance training

Climate Goals & Targets

Environmental Challenges

• Increased procurement costs due to carbon tax and cost transfer for decarbonization investments in procurement sources
• Supply shortage risk of industrial gases and raw materials from steel manufacturers and petrochemical manufacturers due to the consolidation of CO2-intensive manufacturing sites
• Impact of rising temperatures on labor productivity and product yield/adhesiveness
• Risk of operational losses due to factory damage and loss of opportunities due to supply chain disruptions

Mitigation Strategies

• Recommendation of procurement of raw materials manufactured in processes with low CO2 emissions, minimizing the impact of carbon pricing
• Promotion of diversification of procurement sources to strengthen the supply chain
• Contribution to the realization of a decarbonized society by working on the production and supply of separated and collected CO2
• Strengthening of the supply chain and reduction of environmental burden in the manufacturing process through the construction of the Koka factory
• Promotion of diversification of procurement sources to prepare for future supply risks and price increases
• Implementation of measures for labor environment improvement in view of climate change
• Construction of a supply chain based on the disaster risk of each base
• Continuous improvement of manufacturing processes in response to climate change

Supply Chain Management

Responsible Procurement

• Diversification of procurement sources

Climate-Related Risks & Opportunities

Physical Risks

• Concentrated heavy rain, floods

Transition Risks

• Strengthening of decarbonization regulations, introduction/expansion of carbon pricing

Opportunities

• Expansion of non-combustion applications of acetylene, development of high value-added products
• Increased demand for ammonia and other carbon-free fuels
• Increased demand for heat-shielding paint due to the promotion of energy-saving buildings
• Acquisition of demand for infrastructure construction for hydrogen society

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Heat-shielding paint
• High value-added products such as carbon nanotubes, vacuum carburizing, and flame retardants
• Hydrogen pressure vessel

Environmental Metrics

ESG Focus Areas

• Climate change
• Environmental sustainability
• Human resources
• Governance
• Community engagement
• SDGs

Environmental Achievements

• Develop and increase sales of hydrogen accumulators for a zero-carbon world
• Company-wide power saving initiatives (introduction of solar power generation equipment, conversion of business sites to LED lighting, etc.)
• Response to logistics and vehicles (promotion of eco-driving, conversion to hybrid vehicles, consideration of EVs)
• Update manufacturing equipment (consider the introduction of power-saving equipment)
• Develop and increase sales of environmentally friendly products (water-based products, Thermal Barrier Paints, highly weather-resistant paints, damping products, etc.)

Social Achievements

• Establish various training systems, enhance welfare programs, and realize healthy and comfortable working environments and diversification of human resources through action plans such as promotion of the active participation of women
• As a community-based company, be active at various disaster prevention councils

Governance Achievements

• Expansion of the governance and risk management system
• Establish the Sustainability Promotion Committee, chaired by the President and Representative Director, to formulate and promote measures related to SDGs, climate change, etc.

Climate Goals & Targets

Environmental Challenges

• Market trends caused by the world situation affecting numerical targets

Mitigation Strategies

• Strive to further improve earning capacity while developing a system to respond to the changing business environment, and promote business activities aimed at achieving targets for the final fiscal year of the plan

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• hydrogen accumulators
• environmentally friendly products (water-based products, Thermal Barrier Paints, highly weather-resistant paints, damping products, etc.)

Environmental Metrics

ESG Focus Areas

• Climate change
• Environmental sustainability
• Human resources
• Regional communities
• Governance

Environmental Achievements

• Published research contributing to a carbon-free society (new gas carburizing technology)
• Initiatives for climate change including contributing to a zero-carbon world (normal pressure smart carburizing, hydrogen accumulators, etc.), taking on gas non-combustion fields (carbon nanotubes, flame retardants, vacuum carburizing, etc.), building a supply system for low-carbon gases (ammonia, next-generation refrigerant gas, etc.), company-wide power saving initiatives (introduction of solar power generation equipment, conversion of business sites to LED lighting, etc.), response to logistics and vehicles (promotion of eco-driving, conversion to hybrid vehicles, consideration of EVs), and updating manufacturing equipment (consider the introduction of power-saving equipment)
• Development and increased sales of environmentally friendly products (water-based products, Thermal Barrier Paints, highly weather-resistant paints, damping products, etc.)

Social Achievements

• Established various training systems aimed at improving the independence and diversity of its employees
• Expanded welfare benefit systems to improve the working environment, promoting initiatives to create a safe and comfortable workplace
• Active participation in various disaster prevention councils as a community-based company

Governance Achievements

• Established the Sustainability Promotion Committee, chaired by the President and Representative Director, to formulate and promote measures related to SDGs, climate change, etc.
• Expansion of the governance and risk management system

Climate Goals & Targets

Environmental Challenges

• Changing market environment
• High raw material price trends

Mitigation Strategies

• Company-wide efforts to achieve targets despite challenges
• Strive to further improve earning capacity while developing a system to respond to the changing business environment, and promote business activities aimed at achieving targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SDGs

Sustainable Products & Innovation

• Environmentally friendly products (water-based products, Thermal Barrier Paints, highly weather-resistant paints, damping products, etc.)