Toyo Tanso Co., Ltd.
Climate Impact & Sustainability Data (2021)
Reporting Period: 2021
Environmental Metrics
Scope 1 Emissions:27,010 t-CO2e
Scope 2 Emissions:50,359 t-CO2e
ESG Focus Areas
- Climate Change
- Diversity & Inclusion
- Governance
- Resource Recycling
- Community Engagement
Environmental Achievements
- Reduced greenhouse gas emissions per unit of production (Specific figures not provided, but a graph shows a decrease from 3.79 t-CO2/millions of yen in 2019 to 3.36 in 2021)
- Head Office building switched to 100% renewable energy in April 2022
- Contributed to environmental protection activities and reduced emissions by 281 t-CO2/year through the Kagawa Smart Green Bank J-credit program
Social Achievements
- Introduced a health management system for employees
- Introduced a GLTD program for employee well-being
- Undertook community service activities (e.g., blood drives, food assistance, disaster relief)
- Implemented action plan to increase female hires and management positions
- Expanded paid-time-off savings program and established a program for employees to take up to three days off after their spouse gives birth
Governance Achievements
- Established Sustainability Committee and Risk & Compliance Committee
- Affirmed support for TCFD recommendations
- Strengthened corporate governance structures (e.g., Governance Committee, Nomination/Remuneration Committee)
- Implemented a business continuity plan (BCP)
Climate Goals & Targets
Long-term Goals:
- Net-zero emissions by 2050 (implied)
Medium-term Goals:
- Net sales of ¥54.5 billion, operating profit of ¥11 billion, and ROE of 9% by FY2026
- Increase environmentally friendly products as a percentage of net sales to 30% by 2026
- Double supply capacity for SiC-coated graphite products relative to 2019 during the plan’s five-year period
Short-term Goals:
- Increase the percentage of female hires to an average of at least 20%
- Increase the percentage of management positions filled by female employees to at least 7%
- Increase the paid-time-off utilization rate to at least 60%
Environmental Challenges
- Supply chain disruptions due to trade friction between the U.S. and China and the COVID-19 pandemic
- Global geopolitical instability caused by Russia’s invasion of Ukraine and lockdowns imposed by China
- Declining working population in Japan and other countries
- Rising resource and energy prices
- Increasingly sophisticated quality requirements
- Cybersecurity risks
Mitigation Strategies
- Carefully assessed the business environment and changed course in line with a new plan
- Unwaveringly advancing businesses in accordance with strategies derived from the three Company Policies
- Aggressive and strategic investment program (¥37 billion over five years)
- Boosting productivity through automation and introduction of state-of-the-art equipment
- Creating a workplace environment where a diverse workforce can fully participate
- Strengthening global governance structures
- Implementing a business continuity plan (BCP)
- Groupwide information security assessment to strengthen cybersecurity
Supply Chain Management
Responsible Procurement
- Sustainable Procurement Guidelines
Climate-Related Risks & Opportunities
Physical Risks
- Intensifying natural disasters
Transition Risks
- Stringent greenhouse gas emission reduction standards
- Shrinking demand for engine-related products due to the electrification of automobiles
- Widening adoption of next-generation solar panels
- Rising prices of procured products that comply with environmental requirements
- Increased costs due to stoppages in facility operations due to intensifying natural disasters
- Increased cost of manufacturing process improvements required in order to comply with environmental requirements
Opportunities
- Rising demand for environment-related products such as renewable energy
- Rising demand for graphite parts and materials due to the electrification of automobiles
- Rising demand for brushes used in wind power
- Rising demand for graphite for use in nuclear power applications
Reporting Standards
Frameworks Used: International Integrated Reporting Framework, TCFD
Certifications: ISO 9001, ISO 14001, ISO 50001, ISO 45001, IATF 16949
Sustainable Products & Innovation
- C/C composite product with exceptional durability for industrial furnace applications
- CNovel® catalyst carriers for fuel cells