Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Reduced GHG emissions (though specific quantification is not provided in the report, there's mention of reduction targets and initiatives like increased renewable energy use and energy-efficient technologies)
• Reduced water withdrawal (though specific quantification is not provided in the report, there's mention of water recycling efforts at IBIDEN Electronics (Beijing) exceeding 90%)
• Reduced solid waste (though specific quantification is not provided in the report, there's mention of a 5% reduction target in the medium-term management plan)

Social Achievements

• Launched Act on Promotion for Women’s Empowerment to increase the number of female managers
• Established IBIDEN Oasis Co., Ltd. to promote employment of people with disabilities
• Implemented a mentor system to support new employees
• Improved work-life balance support system leading to increased male employees taking childcare leave

Governance Achievements

• Transitioned to a Company with Audit and Supervisory Committee in 2017 to streamline management and accelerate decision-making
• Streamlined the executive system in April 2020, reducing the number of executives
• Increased the number of Outside Directors and Outside Audit and Supervisory Committee Members

Climate Goals & Targets

Environmental Challenges

• Slowdown in the PC market and sluggish growth of the high-end smartphone market
• Decrease in DPF demand due to the shift towards EVs
• Rising energy procurement costs due to tighter climate change-related regulations
• Suspension of operations at plants or supply chain disruptions due to natural disasters
• Sluggish supply chains due to pandemics
• Geopolitical risks
• Decrease in domestic working population
• Water resource risks at IBIDEN Electronics (Beijing)

Mitigation Strategies

• Withdrawal from unprofitable businesses and flexible investment in growth fields
• Transition to a production and supply structure focused on growth markets
• Realization of energy-efficient production processes and increased power generation facilities with high efficiency
• Formulation of business continuity and recovery plans
• Maintaining essential business continuity levels
• Efforts to stabilize revenues in each region
• Improving efficiency through IT tools and supporting active participation of diverse human resources
• Increasing the use of recycled water at IBIDEN Electronics (Beijing)

Supply Chain Management

Supplier Audits: Annual CSR investigation and site visits

Responsible Procurement

• IBIDEN Group Green Procurement Guidelines (2009)
• IBIDEN Group Supplier CSR Guidelines (2011)

Climate-Related Risks & Opportunities

Physical Risks

• Increased natural disasters

Transition Risks

• Rising energy procurement costs due to tighter climate change-related regulations
• Decrease in DPF demand due to shift towards EVs

Opportunities

• Growing demand for new technologies in the transition to a low-carbon society

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 9001, IATF16949, ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

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

IBIDEN contributes to these goals through its renewable energy initiatives, technological innovations, and efforts to reduce its environmental footprint.

Sustainable Products & Innovation

• Alternative meat made of soy protein
• Antiviral coating materials

Awards & Recognition

• Grand prize of the Cogeneration Award by ACEJ
• Certified Health & Productivity Management Outstanding Organization for 2020

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Corporate Governance
• Supply Chain Management
• Human Rights

Environmental Achievements

• Reduced total emissions by 16% and carbon intensity by 50% or more compared to FY2017 (target for FY2030)
• Increased renewable energy generation to 174,267 MWh in FY2020
• IBIDEN Electronics (Beijing) Co., Ltd. achieved material reduction in emission (down by around 80 to 90%) and obtained a certificate as a green company from Beijing City in April 2020.

Social Achievements

• Achieved goal of having at least five female managers (middle manager and above) in April 2021.
• 91% of male employees took childcare leave in FY2020.
• Established IBIDEN OASIS Co., Ltd. to provide stable employment to people with disabilities.
• Extended the retirement age of personnel in Japan to 65.

Governance Achievements

• Transitioned to a Company with an Audit and Supervisory Committee in 2017.
• Discontinued the Executive Officer position in 2020.
• Welcomed two new Directors who are Audit and Supervisory Committee Members in June 2021.

Climate Goals & Targets

Environmental Challenges

• Sudden fluctuations in PC demand
• Decline in exhaust gas-related products due to electric vehicle market growth
• Accelerating climate change (rising energy costs, increased natural disasters)
• Pandemics (supply chain disruptions)
• Decrease in domestic working population (human resource shortage)
• Strengthening environmental regulations in emerging countries
• Growing needs for reducing environmental burdens in manufacturing processes

Mitigation Strategies

• Resource allocation to respond flexibly to changes in product mix
• Transition to a production and supply structure focused on growth markets
• Realization of energy-efficient production processes, increasing power generation facilities with high power generation efficiency by driving GX and effective use of in-house-generated renewable energy
• Enhancing a framework to immediately implement business continuity and recovery plans
• Maintaining business continuity levels essential for corporate survival
• Flexible operations to mitigate the impact of unexpected events
• Improving efficiency through the use of digital technologies (DX)
• Increasing large-scale production capacity
• R&D of products that contribute to carbon capture and fixation, use of renewable energies and enhancing businesses that contribute to greening
• Establishment of a global ceramic product supply system
• Promoting use of renewable energy and introducing technologies to reduce environment burden and improvement activities throughout the supply chain

Supply Chain Management

Responsible Procurement

• IBIDEN Group Green Procurement Guidelines
• IBIDEN Group Supplier CSR Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Intensification of meteorological disasters
• Suspension of supply of some raw materials due to local meteorological disasters

Transition Risks

• Increases in carbon price and other relevant taxes
• A sharp increase in procurement costs of raw materials
• Changes in demand for products and technologies to mitigate climate change

Opportunities

• Growing demand for new technologies in the transition to a low-carbon society
• Increase in demand for ceramic products in large vehicle markets in developing countries due to stricter exhaust gas regulations

Reporting Standards

Frameworks Used: IIRC / The International Framework, Task Force on Climate-related Financial Disclosures (TCFD)

Certifications: ISO9001, IATF16949, ISO14001, ISO45001

UN Sustainable Development Goals

• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 11 (Sustainable Cities and Communities)
• Other SDGs

Contribution through technologies and business activities, contribution by enhancing basic activities

Sustainable Products & Innovation

• Materials for electric vehicles
• Decarbonization technologies

Awards & Recognition

• Platinum Kurumin certification
• Certified Health & Productivity Management Outstanding Organization – White 500

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Capital Management
• Supply Chain Management
• Corporate Governance
• Social Contribution
• Diversity & Inclusion

Environmental Achievements

• Switched to 100% renewable electricity at an IC package substrate manufacturing base in Southeast Asia, expected to reduce over 100,000 tons of CO2 emissions annually.
• Reduced total emissions and carbon intensity compared to FY2017 (Specific figures not provided in the report, but a target of 30% reduction in total emissions and 50% or more reduction in carbon intensity by FY2030 is mentioned).

Social Achievements

• Achieved a lower occupational accident frequency rate than the all-industry average in Japan.
• Certified as a Health & Productivity Management Outstanding Organization for 2023.
• Increased the ratio of female managers.
• Made a donation to Ogaki City for future city planning.
• Successfully developed a plant-based shrimp substitute.

Governance Achievements

• Moved to the Prime Market of the Tokyo Stock Exchange.
• Increased the number of outside directors.
• Implemented significant revisions of rules on administration authority.
• Revised Supplier CSR Guidelines.

Climate Goals & Targets

Environmental Challenges

• Sudden fluctuations in PC demand.
• Electrification of the passenger vehicle market.
• Soaring energy prices.
• Increasing intensity and frequency of natural disasters.
• Geopolitical risks.
• Cyber risks.
• Decrease in the domestic working population.
• Supply chain disruptions.
• High raw material costs.
• High energy prices.

Mitigation Strategies

• Resource allocation to respond flexibly to changes in the product mix.
• Transition to a production and supply structure focused on growth markets.
• Realization of energy-efficient production processes.
• Enhancing a framework to implement business continuity and recovery plans.
• Flexible operations to mitigate the impact of unexpected events.
• Enhancing technical and physical information security measures.
• Improving efficiency through the use of digital technologies.
• Promoting the use of renewable energy and introducing technologies to reduce environmental burdens.
• Leveraging four production bases (Japan, China, Hungary, Mexico) for optimal location production.
• Strengthening sales capabilities in growth markets (China, India).

Supply Chain Management

Responsible Procurement

• Supplier CSR Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Intensification of weather disasters
• Decrease in available water resources

Transition Risks

• Fuel efficiency regulations and emission reduction policies
• Introduction of carbon taxes

Opportunities

• Growing demand for technologies and products serving decarbonization
• Demand for products that enable power-saving servers and electrification of passenger vehicles

Reporting Standards

Frameworks Used: TCFD, IFRS Foundation / The International Framework

Certifications: ISO 14001, ISO 45001, IATF16949

UN Sustainable Development Goals

• SDG 9: Industry, innovation and infrastructure
• SDG 11: Sustainable cities and communities

The report mentions contributions to SDGs 9 and 11 through various initiatives.

Sustainable Products & Innovation

• Plant-based shrimp substitute
• Battery safety materials for EVs
• Plant activator LEAFENERGY®

Awards & Recognition

• Suzhou City Outstanding Contribution Award for Stable Foreign Trade Growth (IBIDEN Fine Ceramics (Suzhou) Co., Ltd.)
• National OSH Award of Excellence (IBIDEN Electronics Malaysia SDN. BHD.)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Capital Management
• Corporate Governance
• Supply Chain Management
• Social Contribution

Environmental Achievements

• Reduced total GHG emissions by approximately 56% compared to FY2017 (aiming for 30% reduction by FY2030)
• Reduced direct CO2 emissions (Scope 1) to 163 thousand tons in FY2023
• Reduced indirect CO2 emissions (Scope 2) to 127 thousand tons in FY2023
• Renewable energy generation of 179,869 MWh in FY2023
• Successfully developed sustainable interior materials (UP-BORN LEATHER and PIECE WOOD)

Social Achievements

• Occupational accident frequency rate of 0.35 in FY2023 (lower than the all-industry average in Japan)
• Certified as a Health & Productivity Management Outstanding Organization for 2024
• Ratio of female managers increased to 2.0% in FY2023 (aiming for 3% or higher by FY2027)
• Average training hours per employee increased to 17.2 hours/year in FY2023 (aiming for 20 hours/year by FY2027)
• Initiatives to improve work-life balance, including measures to encourage employees to take annual paid holidays and reduce overtime

Governance Achievements

• Transitioned to a company with an Audit and Supervisory Committee in 2017
• Discontinued the Executive Officer System in 2020
• Annual Climate Change Response Status and Plan Report presented at the Board of Directors meeting since FY2021
• Regular discussions on non-climate-related ESG issues at the Board of Directors meeting

Climate Goals & Targets

Environmental Challenges

• Slower-than-expected recovery in the PC market
• Continued investment restraint and inventory adjustments in the traditional data center-oriented server market
• Slow growth in global automobile production
• Rising energy and raw material prices
• Increasing intensity and frequency of natural disasters
• Geopolitical risks
• Cyber risks
• Decrease in domestic working population

Mitigation Strategies

• Revised plans for the Electronics Operation, aiming to launch Ono Plant in FY2025 and Gama Plant in FY2026
• Realization of energy-efficient production processes
• Consideration of alternative products and technologies
• Effective use of in-house-generated renewable energy
• Enhancing a framework to immediately implement business continuity and recovery plans from natural disasters
• Flexible operations to mitigate the impact of unexpected events in specific regions
• Enhancing technical and physical information security measures
• Developing business continuity and recovery mechanisms
• Continuing security education
• Improving efficiency through the use of digital technologies (via DX)
• Supporting active participation of diverse human resources

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• IBIDEN Group Supply Chain CSR Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Intensification of weather disasters
• Decrease in available water resources

Transition Risks

• Rapid shrink of certain market (internal combustion engine)
• Rise in the cost of energy and material procurement

Opportunities

• Emergence and growth of new markets (new energy vehicles [NEV]), high energy efficient electronic devices)
• Increase value of renewable energy

Reporting Standards

Frameworks Used: Ministry of Economy, Trade and Industry / Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation, IFRS / The International Framework, Task Force on Climate-related Financial Disclosures (TCFD)

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 9: Industry, innovation and infrastructure

Contribution through cultivated technological expertise and basic activities

Sustainable Products & Innovation

• UP-BORN LEATHER
• PIECE WOOD
• Batteries safety materials for EV

Awards & Recognition

• Best Value Creation and Best Quality awards at the 2024 Best Supplier Awards (IBIDEN Electronics (Shanghai) Co., Ltd.)