Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Impact Reduction
• Human Resources Development
• Corporate Governance
• Supply Chain Management
• Community Engagement

Environmental Achievements

• Reduced CO2 emissions per unit by 3.7% from the FY2013 level.
• Reduced industrial waste emission unit by 10.3% compared to the FY2011 level.
• Reduced CO2 emissions generated from transportation by 61% compared to the base year of FY2013.
• Maintained 0% direct landfill waste.

Social Achievements

• Improved paid holiday acquisition rate.
• Increased number and rate of re-employment after retirement.
• Provided various training opportunities for employees.
• Engaged in community activities such as clean-up activities, educational activities, and donations.

Governance Achievements

• Defined “Basic Policy for Musashi Corporate Governance” according to the “Corporate Governance Code” issued by the Tokyo Stock Exchange.
• Established a compliance system with a Compliance Officer and Internal Control Committee.
• Implemented a whistle-blowing system.

Climate Goals & Targets

Environmental Challenges

• Increase in CO2 emissions due to increased domestic production.
• Increase in industrial waste due to a temporary increase in water-based waste.

Mitigation Strategies

• Improved energy efficiency by improving processes and production efficiency.
• Implemented measures to reduce sewage sludge and other water-based waste.

Supply Chain Management

Responsible Procurement

• Fair and equal business practices
• Compliance with anti-bribery laws
• Green Purchasing Guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (GRI Standards), ISO 26000:2010 Guidelines on Social Responsibilities, Guidelines on Environmental Report (Ministry of Environment, Government of Japan)

Certifications: ISO 14001

Sustainable Products & Innovation

• Lightweight MS Diff assembly
• Energy-efficient products

Awards & Recognition

• Highest DBJ Environmental Rank for three consecutive years

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Energy
• Diverse Work Styles
• Quality of Employment
• Open Innovation for Social Issue Solutions
• Corporate Governance
• Supply Chain Sustainability
• Human Rights
• Community Engagement

Environmental Achievements

• Reduced transportation-related CO2 emissions by 6.8% compared to FY2016.
• Maintained 0% external direct landfill of industrial waste.
• Implemented various initiatives for energy saving and resource conservation across global production sites.

Social Achievements

• Launched Agritrio Co., Ltd. to address labor shortages in agriculture and connect farmers with individuals seeking flexible work.
• Introduced “Nou-Care” service to connect welfare service offices with farmers who can accept disabled workers.
• Implemented various initiatives to support diverse work styles, including work-from-home and flexible hours.
• Provided various training opportunities to employees to deepen their understanding of Musashi Philosophy and boost their growth.
• Maintained a low industrial accident frequency rate.
• Engaged in various community engagement activities globally, such as providing meals during lockdowns and donating to schools.

Governance Achievements

• Implemented initiatives to enhance the soundness, transparency, and diversity of the Board of Directors.
• Established a robust compliance system, including a whistle-blowing system.
• Strengthened internal control systems and risk management.

Climate Goals & Targets

Environmental Challenges

• Achieving CO2 emission reduction targets due to energy loss in new model launches.
• Managing industrial waste volume increase due to new plant operations.
• Addressing increasing water consumption due to new plant operations.
• Supply chain disruptions due to COVID-19 pandemic and natural disasters.

Mitigation Strategies

• Improving processes and production efficiency to enhance energy efficiency.
• Controlling waste generated from each process and reducing industrial waste volume.
• Implementing water-saving activities and replacing old pipes for leakage prevention.
• Strengthening cooperation with suppliers for immediate information sharing and appropriate decision-making during disasters.
• Implementing a global management system to monitor the status of group companies and provide technical and material support during the COVID-19 pandemic.

Supply Chain Management

Responsible Procurement

• Green Purchasing Guidelines
• Periodic surveys of CO2 emissions at business partners
• Sharing examples of CO2 reduction measures
• Equal and fair business practices with suppliers

Climate-Related Risks & Opportunities

Transition Risks

• Stronger environmental regulations and initiatives in electrification
• Stricter regulations on CO2 emission and fuel economy

Opportunities

• Development of new products suited to the acceleration of global development and electrification era
• Development of energy-efficient products

Reporting Standards

Frameworks Used: IIRC, GRI Standards, ISO 26000

Certifications: ISO 14001

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 7: Affordable and Clean Energy
• Goal 13: Climate Action
• Goal 5: Gender Equality
• Goal 9: Industry, Innovation and Infrastructure
• Goal 15: Life on Land

Musashi's initiatives contribute to these goals through various programs and activities related to employment, sustainable energy, climate change mitigation, gender equality, innovation, and environmental conservation.

Sustainable Products & Innovation

• Lightweight differential gears
• Electric driven units
• Lithium-ion capacitors

Awards & Recognition

• 2020 AgTech Breakthrough Award (Agritrio)
• Bloomberg NEF Pioneer Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Management
• Electrification
• Efficient use of resources
• Supply chain management
• Quality and safety of products and services
• Human Resource development
• Health/occupational health and safety
• Diversity
• Compliance
• Governance

Environmental Achievements

• Achieved a 10.3% reduction in CO2 emissions compared to the FY18 target of 7% reduction.
• Increased renewable energy ratio (electric power) to 6.9% in 2022.
• Improved recycling rate to 78% in 2022.
• Reduced water consumption per unit by 10.3% compared to FY18.

Social Achievements

• Established a “Special Paid Leave System for Medical Treatment”.
• Established a “Shorter Working Hour System for Childcare and Nursing Care”.
• Established a “full-flex work system” and a “job return system” for those engaged in childcare and nursing care.
• Increased percentage of women in management positions to 2.68% in 2022.
• Increased male childcare leave acquisition rate to 38.3% in 2022.

Governance Achievements

• Strengthened corporate governance system to reflect climate actions.
• Incorporated the Sustainability Strategy Committee into the corporate governance system.
• Introduced a new gathering for outside directors to delve into management issues.
• Increased percentage of women on the Board of Directors to 36% in 2022.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19 and semiconductor shortages.
• Reduced demand for existing components for gasoline-powered vehicles.
• Intensified global development competition in the EV market.
• Rising raw material costs.
• Changes in customer awareness and behaviors.
• Climate change risks (physical and transition risks).

Mitigation Strategies

• Improving adaptability to changes and implementing electrification strategies.
• Expanding orders for EV components and increasing added value.
• Strengthening the earnings base by expanding sales of strategic products.
• Optimizing the supply chain.
• Developing low-carbon products and services and creating new businesses.
• Strengthening BCP measures.
• Promoting the digitalization of business.
• Strengthening governance and risk management mechanisms.

Supply Chain Management

Responsible Procurement

• Green Purchasing Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of abnormal weather events
• Changes in precipitation patterns
• Extreme changes in weather patterns
• Rising sea levels
• Rise in average temperatures

Transition Risks

• Government policy changes
• Advance of CO2 emissions pricing
• Strengthening of emissions regulations
• Introduction and expansion of carbon taxes
• Stricter environmental regulations
• Market changes
• Changing customer awareness

Opportunities

• Development of low-carbon products and services
• Optimization of existing product functions
• Development of new products and services
• Creation of new businesses
• Expansion of products for EVs
• Development of electric drive units
• Development of solutions that utilize HSC

Reporting Standards

Frameworks Used: TCFD, SDGs, SASB

Certifications: IATF 16949, ISO 27001

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Musashi's initiatives contribute to these goals through green transformation, electrification, efficient resource use, and sustainable business practices.

Sustainable Products & Innovation

• EV drive units
• Hybrid supercapacitors
• AI visual inspection systems
• Automated Mobile Robots (AMRs)

Awards & Recognition

• Sustainability award from a client (MDA plant)