Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance

Governance Achievements

• Transitioned from a board of auditors system to an audit committee system.
• Appointed 3 outside directors who meet the Tokyo Stock Exchange's independence criteria.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Sustainability
• Human Capital
• Intellectual Property

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Established a Board of Auditors system.
• Appointed multiple outside directors.
• Implemented a performance-based compensation system for directors.

Climate Goals & Targets

Environmental Challenges

• Insufficient progress in promoting diversity and inclusion, particularly regarding foreign and mid-career hires.
• Lack of a specific plan for succession of the CEO and other top executives.

Mitigation Strategies

• Actively considering measures to promote diversity and inclusion.
• Ongoing discussions within the Board of Directors regarding succession planning.

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: Null

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
• Environmental
• Social

Environmental Achievements

• Reduced CO2 emissions through daily efficiency improvements, productivity enhancements, and yield improvements (Scope 1 and 2 focus). Plans to increase renewable energy use through purchasing renewable energy and installing solar panels.
• Utilizes sustainable material (stainless steel) which is durable, environmentally friendly, and recyclable.

Social Achievements

• Low employee turnover rate (5.2% within 3 years for new graduates over the past 10 years).
• Promoting work-life balance and reducing long working hours.
• Developing action plans to create a workplace where women can thrive and focusing on promoting employment of the elderly and people with disabilities.

Governance Achievements

• Established a Sustainability Committee chaired by the Representative Director to promote ESG management.
• Regular reporting to the Board of Directors.
• Developed a Code of Conduct to guide ethical behavior, including environmental responsibility and circular economy initiatives.

Climate Goals & Targets

Environmental Challenges

• Long-term impact of the Ukraine situation, global inflation, and economic slowdown.
• High energy prices and resulting cost increases.
• High material prices (nickel) and resulting high-price buying restraint and inventory adjustments.
• Risk of supply chain disruptions due to reliance on overseas manufacturers for materials.
• Risk of users switching to alternative materials.
• Risk of natural disasters impacting the main factory.
• Risk of human resource shortages.

Mitigation Strategies

• Establishing a more efficient production system.
• Investing in promising areas to increase production capacity.
• Maintaining transactions with multiple suppliers to avoid supply shortages.
• Gathering information on new materials and adapting to changes in the market.
• Passing on material price increases to product prices.
• Strengthening the main factory's resilience to natural disasters through earthquake-resistant reinforcement and insurance.
• Promoting diverse work styles, including greater utilization of re-employed workers, to address human resource shortages.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Abnormal weather and disaster risks

Transition Risks

• Increased energy costs due to carbon taxes and regulations.
• Reduced product demand due to regulatory changes.

Opportunities

• Development of energy-efficient products.
• Expansion into new markets.

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Sustainable stainless steel products.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Sustainability
• Human Capital
• Intellectual Property

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Established a Board of Directors with multiple outside directors; implemented a performance-based compensation system for executives; regularly reviews the effectiveness of the board of directors.

Climate Goals & Targets

Environmental Challenges

• Insufficient progress in promoting diversity and inclusion, particularly regarding the recruitment of foreign nationals and mid-career professionals.
• Lack of a specific plan for succession of the CEO.

Mitigation Strategies

• Actively considering measures to promote diversity and inclusion.
• Ongoing discussions within the Board of Directors regarding CEO succession.

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: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed