Climate Change Data

MAX CO., LTD.

Climate Impact & Sustainability Data (2023-04 to 2024-03)

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:12,702 tCO2e/year (Scopes 1 and 2)
Scope 1 Emissions:1,710 tCO2e/year
Scope 2 Emissions:10,992 tCO2e/year
Scope 3 Emissions:2,569,525 tCO2e/year (Category 11)

ESG Focus Areas

  • Human resources development
  • Diversity
  • Respect for human rights
  • Work-life balance
  • Occupational safety and health
  • Environmental management and compliance
  • Development of environmentally friendly products
  • Response to climate change
  • Resource recycling and waste
  • Corporate governance
  • Compliance and risk management
  • Information security
  • Responsible supply chain management

Environmental Achievements

  • Reduced energy use and CO2 emissions at Fujioka Factory by thoroughly increasing operational efficiency and reducing late-night work.
  • Launched “Re:max” sustainable stationery series using upcycled materials.

Social Achievements

  • Achieved average total annual working hours below 1,900 hours.
  • Increased the percentage of women in management positions to 7.6%.
  • Hosted a workplace experience program for a special support school.
  • Donated wheelchairs to Ukraine.

Governance Achievements

  • Abolished anti-takeover measures.
  • Increased the number of outside directors and elected female directors.
  • Introduced restricted share-based remuneration for directors and employees.
  • Expanded information disclosure and dialogue with investors.

Climate Goals & Targets

Long-term Goals:
  • Net sales over ¥110.0 billion, operating profit over ¥20.0 billion, ROE over 12%, PBR over 2 times, overseas sales ratio over 55% by FY2030.
Medium-term Goals:
  • Achieve net zero CO2 emissions by 2042.
  • Increase overseas sales ratio to 50% by FY2026 and more than 55% by FY2030.
  • 10% of management positions held by women by 2030.
Short-term Goals:
  • Reduce CO2 emissions 50% from FY2018 level by 2030 (Scopes 1 and 2); Reduce CO2 emissions 30% from FY2018 level by 2030 for Scope 3 Category 11

Environmental Challenges

  • Uncertain business environment including foreign exchange rate movements, labor shortages, geopolitical risks, sluggish economies, and rising costs.
  • Slowing pace of sales growth in the final year of the previous Medium-Term Management Plan.
  • Need to increase planning capabilities and speed of implementing initiatives.
  • Need to further increase profitability in some businesses.
  • Addressing rising costs.
  • Labor shortages and aging workforce.
  • Stricter environmental regulations in Europe.
  • Maintaining supplies of products in the event of large-scale disasters.
Mitigation Strategies
  • New Medium-Term Management Plan with strategies for business, management infrastructure, and growth investment.
  • Increased operational efficiency and reduced late-night work.
  • Price revisions to reflect higher raw material prices.
  • Investment in R&D and new technologies.
  • Launch of new businesses (e.g., “Rentool”).
  • Digital transformation (DX) initiatives.
  • Human capital measures including hiring new graduates and mid-career hires.
  • Strengthening corporate governance.
  • Proactive injection of funds for R&D and capital investment.
  • Revised dividend policy.
  • Increased manufacturing efficiency and in-house production.
  • Expansion of sales channels and service offices.
  • Developing alternative sourcing strategies.
  • Strengthening BCMS (Business Continuity Management System).

Supply Chain Management

Responsible Procurement
  • MAX Group Supply chain Sustainability Guidelines for Business Partners

Climate-Related Risks & Opportunities

Physical Risks
  • More severe natural disasters
  • Rising sea levels
  • More extreme weather events
Transition Risks
  • Introduction of carbon tax
  • Enforcement of energy conservation standards
  • Shift to renewable energy
  • Stricter regulations on waste disposal
  • Need for environment-friendly products
  • Growing environmental awareness
  • Changes in consumer preferences
Opportunities
  • Growth in ZEH/ZEB market
  • Increased demand for decarbonization products
  • Need to reinforce infrastructure

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: ISO 9001, ISO 14001, ISO 22301, ISO 27001

UN Sustainable Development Goals

  • Not disclosed

Sustainable Products & Innovation

  • Re:max sustainable stationery series
  • Products with reduced environmental impact