Climate Change Data

Arakawa Chemical Industries, Ltd.

Climate Impact & Sustainability Data (FY2023, FY2024)

Reporting Period: FY2023

Environmental Metrics

ESG Focus Areas

  • Safety
  • Corporate Governance
  • Diversity & Inclusion
  • Environmental Conservation
  • Sustainable Procurement
  • Employee Well-being
  • Social Contribution
  • Technology and Innovation
  • Sustainable Products

Environmental Achievements

  • More than 10 tons of CO2 absorption per year
  • 30% reduction in CO2 emissions compared to FY2016
  • 17% increase in index of sustainable products in consolidated sales compared to FY2020

Social Achievements

  • Maintain zero-work-related-accident records
  • 56.2% utilization rate of childcare leave
  • 92.3% continuation of cleanup activities in communities, blood donation, etc., and implementation of new contribution activities
  • Increased employee motivation (60% or more employees with high motivation for challenging work and a sense of accomplishment)

Governance Achievements

  • Maintain zero-fraud and zero-compliance-violation records
  • Establishment and operation of the Sustainability Committee

Climate Goals & Targets

Long-term Goals:
  • Rescheduled in FY2026
  • Rescheduled in FY2026
Medium-term Goals:
  • Increase index of sustainable products in consolidated sales by 25% or more compared to FY2020
  • Increase number of female managers by 5 persons
  • 8 or more cases of missions advanced per 2 years for 5 years
  • 5 cases of themes advanced to “RAISE” mission for 5 years
Short-term Goals:
  • Maintain zero-work-related-accident records
  • Maintain zero-fraud and zero-compliance-violation records
  • 7% or more operating profit ratio
  • 7% or more ROE
  • Maintain 70% or more sustainable procurement rate
  • Maintain 50 cases or more supplier audits
  • 50% reduction in quality-related complaints compared to FY2020
  • Commercialization of one product/project

Environmental Challenges

  • Down 20.4% in value-added labor productivity compared to FY2020
  • Down 24% in Career Satisfaction Questionnaire scores after medical leave related to mental health over the past three years
  • Down 22% in index of sales volume converted to biomass degree compared to FY2020
Mitigation Strategies
  • Implementation of various measures for products, employees, and production optimization
  • Implementation of initiatives for sustainable management and improvement of corporate value
  • Continuous improvement of safety level
  • Promotion of strengthening measures to minimize incidence

Supply Chain Management

Supplier Audits: 22 cases (target: 50 cases or more)

Responsible Procurement
  • Sustainable procurement rate(in terms of monetary amount) 71.9%

Climate-Related Risks & Opportunities

Reporting Period: FY2024

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Safety
  • Environmental Conservation
  • Sustainable Procurement
  • Diversity & Inclusion
  • Corporate Governance

Environmental Achievements

  • 53.0% reduction in CO2 emissions compared to FY2016
  • Tree planting resulting in more than 8 tons of CO2 absorption per year

Social Achievements

  • Maintain zero-work-related-accident records
  • 66.7% utilization rate of childcare leave
  • 50.3% of employees with high motivation for challenging work and a sense of accomplishment
  • 8.5% of employees highly stressed (less than 50% of the manufacturing industry average)

Governance Achievements

  • Maintain zero-fraud and zero-compliance-violation records
  • 68.8% sustainable procurement rate
  • 26 supplier audits conducted

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Not disclosed
Mitigation Strategies
  • Not disclosed

Supply Chain Management

Supplier Audits: 26 cases

Responsible Procurement
  • Sustainable procurement rate of 68.8%

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed