GS Yuasa Corporation

Climate Impact & Sustainability Data (2019-04 to 2020-03, 2023-04 to 2024-03)

Reporting Period: 2019-04 to 2020-03

Environmental Metrics

Total Carbon Emissions:649,702 tCO2e/year (2019)

Water Consumption:6,545,593 m3/year (2019)

ESG Focus Areas

Environment
Social
Governance

Environmental Achievements

Achieved CO2 emissions reduction target (at least 2% from fiscal 2018) by implementing energy-saving measures in production processes.
Achieved annual target (31% or more) for the usage ratio of recycled lead with a ratio of 42%.

Social Achievements

Zero serious product incidents (global) in fiscal 2019 as a result of priority implementation of product safety education for employees.
Implemented rank-specific education and quality education in accordance with an annual plan, enhancing employees’ problem-solving capabilities and supporting future career development.

Governance Achievements

The Group did not commit any significant compliance violations in fiscal 2019.
Established the Nomination and Compensation Committee in February 2019.

Climate Goals & Targets

Long-term Goals:

Become an energy device company that continually creates new value by 2030

Medium-term Goals:

Strengthen the management platform through enhanced profitability of the lead-acid battery business and overseas business expansion
Lay the foundations for expanding the scale and profits of the lithium-ion battery business from the period covered by the Sixth Mid-Term Management Plan onward

Short-term Goals:

Increase the ratio of environmentally considered products to overall sales to 35% (2021)
Reduce CO2 emissions by 6% compared to fiscal 2018 (2021)
Reduce water consumption by 8% compared to fiscal 2018 (2021)
Raise ratio of women among new graduates recruited for career-track positions every year to over 30%

Environmental Challenges

Tightening of restrictions on lead in the European Union’s RoHS Directive and ELV Directive.
Increase of eco-compliant vehicles leading to a rise in the price and supply shortages of rare metals.
Rapid rise of eco-friendly vehicles, emergence of alternative batteries, and diffusion of car-sharing services.
Cobalt required for lithium-ion batteries being a conflict mineral and entailing the risk of child labor.
Decline of the working-age population in Japan due to aging and low birthrate.
Intense price competition in the markets.
Fluctuations in the market price of lead.
Foreign exchange rate fluctuations.
Risks related to international activities and overseas expansion (unforeseen changes to laws or regulations, difficulty in hiring and keeping human resources, inadequate technology infrastructure, social disturbances).
Environmental regulations in China.
Risks related to M&A.
Climate change.
Disasters and accidents.
Interest rate fluctuations.
Lawsuits and other legal proceedings.
Economic conditions.
COVID-19 pandemic.

Mitigation Strategies

Cutting costs and implementing measures to strengthen marketing power.
Optimizing production systems and working to reduce costs while building an optimum supply structure.
Conducting forex-hedged transactions to minimize the adverse effects of short-term foreign exchange rate fluctuations.
Strengthening communications between headquarters and various sites to build a framework capable of rapidly supplying products and services.
Establishing a Fundamental Environmental Policy and developing environmental management systems.
Monitoring results on a monthly basis for M&A.
Fully demonstrating the strengths of its brand and increasing the weighting of high value-added products.
Creating earthquake, flood, and snowstorm response manuals and working to enhance fire-prevention management and disaster preparedness.
Striving to keep the debt redemption period within three years and to achieve both growth and financial discipline.
Continuously surveying the rights, patents, and other intellectual property of other companies and working to minimize the risks by reinforcing internal information sharing.
Providing reassurance and confidence to customers through business operations based on a fundamental stance that emphasizes quality.
Establishing a crisis management headquarters chaired by the president, gathering and analyzing crisis information, implementing safety measures, and securing long-term financing.

Supply Chain Management

Supplier Audits: Supplier audits conducted for issues identified in the survey results (2019)

Responsible Procurement

CSR Procurement Guidelines (2018)

Climate-Related Risks & Opportunities

Physical Risks

Abnormal weather (floods, droughts)

Transition Risks

Changes in the automotive market
Increased carbon taxes
Shrinking gasoline vehicle market

Opportunities

Increased demand for large-scale storage batteries for power storage facilities
Expansion of HEVs and EVs

Reporting Standards

Frameworks Used: Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation

Sustainable Products & Innovation

Batteries for ISS vehicles
Storage battery system
Automotive lithium-ion batteries

Awards & Recognition

Nikkei Annual Report Awards 2019
FY2019 Grand Prize Award (presented by The Energy Conservation Center, Japan)
EcoVadis Business Sustainability Ratings
New Energy Award 2019 (presented by the New Energy Foundation)
Agency for Natural Resources and Energy Commissioner’s Award
New Energy Foundation Chairman’s Award
LEGA: LAMP-R street light LED lamp

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:328,138 tCO2e/year

Scope 1 Emissions:57,838 tCO2e/year

Scope 2 Emissions:270,299 tCO2e/year

Scope 3 Emissions:786,096 tCO2e/year

Renewable Energy Share:15.3%

Water Consumption:4,428,873 m3/year

Waste Generated:12,807 tons/year