Climate Change Data

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