Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environment
• Safety and Health
• Quality
• Human Rights / Labor Practices
• Social Contribution
• Information Management

Environmental Achievements

• Improved GHG emission per unit of sales by 12.5% (global) and 8.1% (Japan) from 2013 levels.
• Reduced water usage through various measures.
• Reduced waste materials through 3R initiatives.
• Installed solar panels at multiple plants, generating renewable energy and reducing reliance on fossil fuels.
• Launched a forestation program in partnership with Saitama Prefecture and Shiga Prefecture.

Social Achievements

• Implemented various community engagement activities in Japan and overseas.
• Established G-TEKT’s Supplier CSR Guidelines to promote responsible procurement.
• Enhanced employee safety through training programs and drills.

Governance Achievements

• Established a Risk Management Sub-Committee to monitor and address company-wide risks.
• Enhanced transparency through proactive disclosure of financial and non-financial information.
• Established “Our Code of Conduct” to promote ethical behavior and compliance.

Climate Goals & Targets

Environmental Challenges

• Managing risks related to business operations in a diversifying and complex environment.
• Balancing CSR activities with core business operations.
• Ensuring effective communication and engagement with stakeholders.

Mitigation Strategies

• Established a company-wide risk management structure and business continuity plans.
• Proactively addressed material issues identified through stakeholder engagement and internal assessments.
• Implemented proactive disclosure and communication strategies to enhance stakeholder understanding.

Supply Chain Management

Responsible Procurement

• Established G-TEKT’s Supplier CSR Guidelines.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 26000, GRI (Global Reporting Initiative), United Nations Global Compact, Ministry of Environment “Environmental Reporting Guidelines”

Certifications: ISO 14001 (multiple locations)

Sustainable Products & Innovation

• Lightweight, high-rigidity automotive bodies

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Information Management
• Safety and Health
• Quality
• Human Rights/Labor Practices
• Environment
• Social Contribution

Environmental Achievements

• Improved by 5.8% in GHG emissions per unit of sales (Japan)
• Reduced CO2 emissions by 93t compared to FY2013 (Japan)
• Reduced water usage through leak detection and system improvements
• Installed solar panels at multiple plants, generating significant renewable energy and reducing CO2 emissions
• Implemented LED lighting replacements, reducing power usage
• Launched forestation programs in Saitama and Shiga prefectures

Social Achievements

• Launched Global CSR Conference to discuss CSR issues across the Group
• Implemented various community engagement activities in North America (Meals on Wheels, Operation Backpack, etc.)
• Conducted social contribution activities in multiple regions (Europe, Asia, China, South America)
• Implemented initiatives to improve employee engagement and wellbeing

Governance Achievements

• Established a well-defined implementation framework for CSR activities worldwide
• Revamped CSR structure with CSR leaders in all committees and departments
• Formulated a business continuity plan (BCP) for each plant in Japan
• Enhanced communication with shareholders and investors through various channels

Climate Goals & Targets

Environmental Challenges

• Global CO2 emissions increased due to increased production for key customers in Europe and North America and exchange rate impacts
• Increased waste materials due to full-scale mass production of hot stamping materials

Mitigation Strategies

• Continued efforts to reduce emissions on a global scale and improve data accuracy
• Considering introducing a dehydrator to reduce waste production

Supply Chain Management

Responsible Procurement

• CSR procurement policies and guidelines
• G-TEKT’s Supplier CSR Guidelines (implemented April 2016)

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: ISO26000, GRI, UN Global Compact, Ministry of Environment “Environmental Reporting Guidelines”

Certifications: ISO 14001 (multiple locations)

Sustainable Products & Innovation

• Lightweight automotive bodies using proprietary analysis technology

Awards & Recognition

• Polk County Industry of the Year (JSC)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Improved emissions per unit of sales by 8.1% compared to FY2013
• Reduced waste generation by promoting 3R activities
• Acquired expanded ISO 14001 EMS certification at headquarters, GTL, and C&C Tochigi

Social Achievements

• Implemented rank-by-rank training sessions and selective training programs for employees
• Increased percentage of paid vacation taken to 59.0% in FY2018 from 47.9% in FY2015
• Established a Diversity Promotion Committee

Governance Achievements

• Revised G-TEKT’s Supplier CSR Guidelines
• Established an enhanced structure to promote global CSR activities
• Significantly reviewed the composition of the Board of Directors, appointing the company's first female director

Climate Goals & Targets

Environmental Challenges

• Increase in energy consumption and CO2 emissions due to strong sales in Japan, Europe, and China
• Need for a medium/long-term timeline for goals and results in CSR initiatives
• Globalization of disclosed information beyond Japan

Mitigation Strategies

• Promoting initiatives to improve the environment, such as the use of renewable energy, to reduce CO2 emissions
• Developing a medium/long-term timeline for CSR goals and results
• Expanding global reporting to include details from overseas operations

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Compliance and green procurement
• Fair and healthy relationship with suppliers
• Mutual prosperity based on mutual trust

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ISO 26000, GRI, UN Global Compact, Ministry of Environment “Environmental Reporting Guidelines 2018”

Certifications: ISO 14001, IATF 16949

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lightweight auto body frame components through hot stamping and multi-material body technology

Awards & Recognition

• Three-star rating in the Shiga Biodiversity Initiative Certification
• G-KTB took fifth place in all of Brazil in the “Quality and Partnership Rankings”

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 9% improvement in CO2 emissions compared to FY2013

Social Achievements

• Appointment of five female managers in April 2019
• Establishment of a Diversity Promotion Committee

Governance Achievements

• Appointment of female Outside Directors

Climate Goals & Targets

Environmental Challenges

• CO2 emission reduction target not actively contributing to the Paris Agreement and SDGs
• Lack of quantitative data on social initiatives, particularly regarding overseas employees (86% of consolidated employees)
• Focus of disclosed information still centered on Japan, needing globalization
• Lack of a medium/long-term timeline for goals and results

Mitigation Strategies

• Consideration of Science Based Targets (SBT), including renewable energy introduction
• Stepping up activities with the appointment of female Outside Directors and female managers
• Aiming to publish CSR Reports that are rich in content to gain the understanding of all stakeholders
• Working to continuously activate initiatives relating to CSR activities

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Labor Practices
• Diversity & Inclusion
• Corporate Governance

Environmental Achievements

• Introduced solar power generation at overseas plants, reducing CO2 emissions.
• Shifted company cars to hybrids at G-TEM (UK).

Social Achievements

• Implemented job-type system to secure talent, especially for EV-related expertise.
• Increased efforts to hire women in domestic factories, starting with Tochigi factory.
• Promoted employee well-being initiatives, including mental health support and flexible work arrangements.
• Improved employee engagement through various initiatives.

Governance Achievements

• Established a Sustainability Promotion Conference chaired by the representative director.
• Revised the Code of Conduct to reflect ESG progress.
• Strengthened global governance through enhanced communication and collaboration between domestic and overseas bases.

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions across the entire supply chain.
• Finding alternative processing technologies to reduce energy consumption in hot stamping.
• Securing and retaining diverse talent in a rapidly changing automotive industry.
• Maintaining a sustainable and ethical supply chain.

Mitigation Strategies

• Collaborating with automotive OEMs on product LCA to quantify environmental impact.
• Implementing a job-type system and improving employee benefits to attract and retain talent.
• Developing alternative sourcing strategies.
• Implementing supplier audits and CSR guidelines.

Supply Chain Management

Responsible Procurement

• G-TEKT Supplier CSR Guidelines

Climate-Related Risks & Opportunities

Awards & Recognition

• Shiga Biodiversity Initiative Certification (3 stars)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance

Environmental Achievements

• Reduced Scope 1 and 2 CO2 emissions from 102,343 t-CO₂ in FY2020 to 91,972 t-CO₂ in FY2022.
• Increased renewable energy share from 13% in FY2020 to 16% in FY2022.

Social Achievements

• Not disclosed

Governance Achievements

• Established a Global Environmental Section within the Corporate Business Planning Division in FY2022 to address climate change issues.
• Incorporated material climate risks and opportunities into business strategy and policy management.

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions (70% of total emissions), primarily from steel sheet raw materials.
• Potential supply chain disruptions due to climate change (4°C or higher scenario).
• Increased expenses due to strengthened greenhouse gas emission regulations.
• Potential decrease in sales due to delays in technological response to the shift to EVs.

Mitigation Strategies

• Shifting raw materials from blast furnace materials to green materials (electric furnace materials and hydrogen-reduced iron).
• Internalizing the capability to process green materials through press dies and welding technology.
• Promoting the circular economy by recycling scrap and increasing the yield rate of product materials.
• Implementing energy-saving initiatives and utilizing renewable energy.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Shifting to green materials (electric furnace materials and hydrogen-reduced iron).

Climate-Related Risks & Opportunities

Physical Risks

• Supply chain interruptions due to climate change.
• Factory stoppages due to floods or rising sea levels.

Transition Risks

• Increased expenses and investments due to strengthened greenhouse gas emission regulations.
• Higher material prices due to carbon neutrality measures.
• Soaring energy prices.

Opportunities

• Increased sales driven by weight-saving technology.
• Increased sales of EV-related products.
• Decreased expenses due to more efficient energy use.

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Weight-saving technology
• EV-related products

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Human Rights
• Workplace Environment
• Technical Innovation
• Compliance
• Corporate Governance

Environmental Achievements

• Lightweight auto body products reducing fuel consumption and environmental impact
• Initiatives to reduce CO2 emissions through business activities

Social Achievements

• Tochigi Plant held two blood drives with 39 participants.
• Tochigi Plant collects PET bottle caps and pull tabs.
• G-KTB (Brazil) donated approximately 300 liters of milk to an orphanage.
• G-TTC (Thailand) conducted tree-planting activities.

Governance Achievements

• Periodic checks on governance of bases in Japan and overseas using checklists.
• Sharing of issues between Head Office and local sites to improve governance.

Climate Goals & Targets

Environmental Challenges

• Balancing environmental protection and business promotion
• Addressing climate change risk

Mitigation Strategies

• Systematically reducing CO2 emissions
• Reducing environmental impact in the value chain
• Lightweighting auto bodies without lowering performance

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Lightweight, high rigidity technology for auto bodies

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Achieved near-zero greenhouse gas emissions (Scope 2) in May 2023 at all domestic factories and offices by switching to renewable energy.
• Installation of solar panels at five overseas factories (China, Thailand, India) for self-consumption of renewable energy.
• Solar power generation projects (full amount FIT sales) at three domestic locations (Saitama, Gunma, Shiga) since 2014.

Social Achievements

• Substantial refresh of the company's code of conduct in FY2023 to reflect ESG progress, emphasizing human rights and diversity.
• Implementation of various initiatives to improve employee well-being, including the introduction of a mental health industrial physician.
• Significant increase in paid leave utilization rate from 47.9% in FY2015 to 70% in FY2021.

Governance Achievements

• Establishment of a GX (Green Transformation) project led by the President to address climate change.
• Appointment of the Chief Risk Management Officer as the Global Environmental Management Officer.
• Continuous efforts to improve corporate governance, including increasing the proportion of independent outside directors and developing a skills matrix for board members.

Climate Goals & Targets

Environmental Challenges

• Grasping the environmental burden in the supply chain.
• Improving employee well-being and mental health.
• Ensuring effective corporate governance in a rapidly changing automotive industry.

Mitigation Strategies

• Collaboration with suppliers to reduce CO2 emissions across the supply chain.
• Implementation of various health management initiatives, including employee education and mental health support.
• Strengthening the corporate governance framework, including the establishment of committees and regular self-assessments.

Supply Chain Management

Responsible Procurement

• G-TEKT Supplier CSR Guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO14001:2015, IATF16949, ISO22301

Awards & Recognition

• Madison County Industrial Manufacturer of the Year 2022 (JIC)