Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Supply Chain Management
• Stakeholder Engagement

Environmental Achievements

• ISO14001 certification obtained in February 2011.

Social Achievements

• All overseas group companies achieved record-high sales.
• Significant increase in sales and profits.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Concerns about European fiscal problems and the waning effects of stimulus measures.
• Fluctuations in exchange rates affecting the export competitiveness of domestic automobile manufacturers.
• The impact of the Great East Japan Earthquake in March 2011 on production.
• Rising material prices and exchange rate fluctuations.

Mitigation Strategies

• Strengthened sales in both new car parts and repair parts markets.
• Increased production capacity through equipment investment, mainly at overseas bases.
• Development of cooperative manufacturers, mainly in China.
• Continued investment in production facilities in Korea and China to meet increased demand for new car parts.
• Improved supply capacity to enhance competitiveness in the repair parts market.
• Promotion of "optimal production and procurement" through group base development.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Governance
• Human Capital

Social Achievements

• Implemented a free address system and flexible work styles at Nara headquarters and Osaka Kitahama office to improve employee engagement and work-life balance.
• Introduced a new personnel evaluation system in April 2022 to provide fair, transparent, and highly satisfactory evaluations to all employees.

Governance Achievements

• Established a Corporate Governance system with a Board of Directors and a Board of Auditors, including external members. An advisory committee provides advice on director appointments and compensation.

Climate Goals & Targets

Environmental Challenges

• Slowdown in new car demand in the US, China, and India.
• Increased competition from emerging market manufacturers, particularly in China.
• Supply chain disruptions due to semiconductor shortages, rising raw material and energy prices, and volatile exchange rates.
• Geopolitical risks, including the war in Ukraine.
• Securing and retaining talent, particularly in a global market.

Mitigation Strategies

• Developing production and procurement systems that can flexibly respond to demand fluctuations and environmental changes.
• Improving quality and productivity, and securing stable procurement sources to strengthen cost competitiveness.
• Developing new products and technologies, particularly in electric vehicle components.
• Strengthening the global strategy through expansion of production bases, cost competitiveness, and technological and product development systems.
• Implementing measures to mitigate foreign exchange risk, including improving the balance of transaction currencies, increasing yen-denominated transactions, expanding overseas procurement, and promoting overseas production relocation.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Electric water pumps

Environmental Metrics

ESG Focus Areas

• Human Capital Management
• Governance
• Risk Management

Social Achievements

• Implemented a free address system and flexible work styles at Nara headquarters and Osaka Kitahama office to improve employee engagement and work-life balance.
• Achieved 100% retention rate for new graduate employees for three consecutive years (2020-2023).

Governance Achievements

• Established a Corporate Governance system with a Board of Directors and a Board of Auditors, including external members.
• Established an optional advisory committee composed of outside directors and auditors to provide advice on director appointments and compensation.

Climate Goals & Targets

Environmental Challenges

• Responding to technological innovation in the automotive industry (CASE)
• Intensifying competition with emerging market manufacturers (especially in China)
• Global economic uncertainty (raw material and energy price increases, exchange rate fluctuations, geopolitical risks)
• Securing and developing human resources to support growth and global strategy
• Competition in the US repair parts market with low-priced Chinese products
• Managing risks associated with global operations (economic conditions, laws, customs, etc.)
• Maintaining quality and production efficiency
• Managing risks related to exchange rate fluctuations (90.8% of sales are overseas)
• Managing product quality risks (potential for recalls and product liability claims)
• Managing risks related to natural disasters, war, terrorism, and infectious diseases
• Managing information security risks (cyberattacks, system failures)

Mitigation Strategies

• Developing products to meet industry technological innovations
• Strengthening supply chain management through group collaboration
• Continuously improving quality and productivity
• Implementing measures to secure and develop human resources (flexible work styles, improved HR and welfare systems)
• Shifting production bases to China and Thailand, and seeking product/parts suppliers within China to maintain quality and price balance
• Improving product quality to reduce returns in the US DIY market
• Strengthening technical support and guidance to overseas subsidiaries
• Exploring overseas procurement to maintain cost competitiveness
• Actively pursuing trademark protection
• Improving currency balance, increasing yen-denominated transactions, expanding overseas procurement, promoting overseas production relocation, and using foreign exchange hedging
• Building a quality assurance system to maintain and improve product quality
• Developing business continuity plans
• Implementing measures to prevent and mitigate information security risks (virus countermeasures, network security enhancements, backup systems, employee training)

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Electric water pumps
• Integrated thermal management modules
• Electric oil pumps