Climate Change Data

NISSIN CORPORATION

Climate Impact & Sustainability Data (2021-04 to 2022-03, 2022-04 to 2023-03)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:13,753 t-CO2 (FY2021)

ESG Focus Areas

  • Decarbonization
  • Recycling-based society
  • Green management
  • Human resource development
  • Diversity
  • Harmonizing with local communities
  • Addressing social issues
  • Responsible corporate activities
  • Corporate governance
  • Stakeholder engagement

Environmental Achievements

  • Acquired S-class rating for seven consecutive years for energy consumption reduction.
  • Green Management Certification at 16 locations.
  • ISO 14001 certifications in Japan and overseas.
  • Modal shift initiatives in Vietnam reducing CO2 emissions by approximately 60%.
  • Yokohama Heavy Cargo Packing Center achieved rank A of CASBEE Yokohama.

Social Achievements

  • Received three stars of the “Eruboshi” certification for promoting women’s empowerment.
  • Appointed first female director to the Board of Directors.
  • Acquired “Kurumin” certification for supporting childcare and work balance.
  • Halal certification for warehouse storage operations in Singapore and Indonesia.
  • GDP certification for pharmaceutical logistics in Germany, France, and Belgium.

Governance Achievements

  • Established Sustainability Committee.
  • Established Risk Management Committee.
  • Established Nominating and Compensation Committee.
  • Implemented a whistleblowing system.
  • DBJ BCM (Business Continuity Management) Rating for sufficient disaster measures and BCP.

Climate Goals & Targets

Long-term Goals:
  • Carbon neutrality by 2050
Short-term Goals:
  • Reduce five-year average emission intensity by 1% or more per year.
  • Achieve 10% female managers by 2025.
  • At least three male employees taking childcare leave by 2025.

Environmental Challenges

  • Understanding the greenhouse gas (GHG) emissions of the Group as a whole.
  • Responding to extreme weather and natural disasters.
  • Responding to environmental regulations.
Mitigation Strategies
  • Preparing measures for TCFD recommendations based on the 1.5 scenario analysis.
  • Establishing a GHG emissions calculation system.
  • Setting CO2 reduction targets that also take Scope 3 emissions into account.
  • Promoting efforts to achieve carbon neutrality by 2050.
  • Formulating a medium- to long-term reduction plan for energy consumption.

Supply Chain Management

Responsible Procurement
  • Elimination of slave labor, child labor, human trafficking and other forms of illegal labor.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Natural disasters
Transition Risks
  • Environmental regulations

Reporting Standards

Frameworks Used: SASB Standards, IIRC, GRI

Certifications: ISO 14001, Green Management Certification, Eruboshi, Kurumin, Halal, GDP

Sustainable Products & Innovation

  • Environmentally friendly logistics services using rail and coastal vessels
  • Digital forwarding service (Forward ONE)

Awards & Recognition

  • Certificate of appreciation for the 50th anniversary of Police Fellowship Association

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:12,635 t-CO2e/year (Scope 1 & 2, non-consolidated)
Renewable Energy Share:14.73% (FY2022)

ESG Focus Areas

  • Decarbonization
  • Circular Economy
  • Diversity & Inclusion
  • Corporate Governance
  • Stakeholder Engagement

Environmental Achievements

  • Reduced GHG emissions (Scope 1 and 2) by approximately 20% (annualized) at ten facilities in FY2022 through introducing renewable energy.
  • Increased proportion of electricity consumption from renewable energy to 14.73% in FY2022 (from 0% in FY2020).
  • Achieved rank A of the CASBEE Yokohama for Yokohama Heavy Cargo Packing Center.
  • Obtained I-RECs for electric trailers in Thailand.
  • Introduced North-South railway transportation service in Vietnam, reducing CO2 emissions by approximately 60% compared to truck transportation.
  • Provided railway transportation service between Jakarta and Surabaya in Indonesia, reducing GHG emissions compared to truck transportation.

Social Achievements

  • Implemented policies on recruitment and training of human resources and improvement of the internal environment.
  • Established new policies on recruitment and training of human resources and the improvement of the internal environment, with the aim of promoting the Group’s human capital management by securing diverse human resources and boosting the abilities of each employee.
  • Took active steps to enhance personnel systems and reform workplace environments to support active participation by female employees.
  • Donated 5 million yen to aid Turkey–Syria earthquake recovery.
  • Supported job-seeking activities of international students in Japan through mock interviews.
  • Acquired halal certification at two overseas subsidiaries in Singapore and Indonesia.

Governance Achievements

  • Declared support for TCFD recommendations in June 2023.
  • Established the Sustainability Committee, chaired by the President.
  • Established the Risk Management Committee.
  • Established the Compliance Committee.
  • Established the Internal Controls Evaluation Committee.
  • Established a whistleblowing hotline.

Climate Goals & Targets

Long-term Goals:
  • Aim for carbon neutrality by 2050.
Medium-term Goals:
  • Achieve net sales of 275.0 billion yen, operating profit of 11.0 billion yen, ordinary profit of 11.5 billion yen, profit attributable to owners of parent of 8.6 billion yen, and ROE of around 9.0% by FY2026.
  • Reduce strategic shareholdings by approximately 5.0 billion yen by the end of FY2026.
Short-term Goals:
  • Reduce GHG emissions by 42% by FY2030 (compared to FY2020; Scope 1 and 2 for the Company on a non-consolidated basis).
  • Increase the ratio of female managers to 10.0% by FY2024.
  • Increase average days of annual paid leave taken to 12.0 days or more by FY2024.

Environmental Challenges

  • Rising energy prices and supply chain disruptions.
  • Achieving GHG emission reduction targets.
  • Preventing decline in service quality amid labor shortages.
  • Responding to climate change risks (transition risks and physical risks).
Mitigation Strategies
  • Securing a variety of transportation modes and proposing alternative transport routes.
  • Switching to renewable energy, introducing energy-saving equipment, and using electric vehicles.
  • Promoting the use of electric trucks and other commercial vehicles with high environmental performance, as well as the use of alternative fuels.
  • Utilizing DX to achieve personnel and labor savings.
  • Strengthening BCPs at facilities in coastal areas.
  • Decentralizing facilities.
  • Expanding the use of standby generators.

Supply Chain Management

Responsible Procurement
  • Eliminate illegal labor in the supply chain

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Flooding
  • Rising sea levels
  • Rising temperatures
Transition Risks
  • Increase in costs due to carbon taxes
  • Increase in vehicle purchase costs
  • Increase in capital investment costs
  • Decline in sales due to insufficiently addressing customers emphasizing low-carbon transportation
Opportunities
  • Reduce fuel costs by improving vehicle fuel efficiency
  • More efficient logistics through the introduction of new transportation modes
  • Higher sales with the provision of new services utilizing DX and IoT
  • Increase in revenue due to expansion into new businesses such as EVs and hydrogen fuel
  • Increase in sales due to greater customer trust resulting from the maintenance of logistics functions and the transportation of supplies in the event of a disaster

Reporting Standards

Frameworks Used: TCFD, SASB Standards, IIRC, GRI

Certifications: AEO, GDP, CASBEE Yokohama, Kurumin, Eruboshi

Sustainable Products & Innovation

  • Forward ONE digital forwarding service
  • HACO Lab. returnable packaging container management service