JUKI CORPORATION
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:700,471 tCO2e (FY2022)
Scope 3 Emissions:669,677 tCO2e (FY2022)
Waste Generated:2,220 tons (FY2023)
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Commitment to achieving carbon neutrality by 2050
- Endorsement of TCFD recommendations
- Reduced Scope 1 and Scope 2 CO2 emissions by 37% in FY2025 compared to FY2013 levels (target)
- Developed JUKI Sustainable Products Certification System
- Launched upcycling activities using used clothes, waste materials, and by-products
Social Achievements
- Creating employment opportunities in developing countries through vocational education support
- Promoting social participation through e-learning and vocational training
- Contributing to reduced clothing waste through optimized production and expanded business domains
- Ensuring occupational health and safety through improved working environments and automation
- Support for technological innovation through improved productivity in the electronics industry
Governance Achievements
- Established Sustainability Promotion Committee
- Enhanced corporate governance system
- Strengthened compliance and risk management
- Improved management transparency through timely and accurate information disclosure
- Added an outside director and three outside audit & supervisory board members
Climate Goals & Targets
Long-term Goals:
- Achieve carbon neutrality by 2050
Medium-term Goals:
- Reduce Scope 1 and Scope 2 CO2 emissions by 50% in FY2030 compared to FY2013 levels
- Achieve net sales of 140 billion yen or more by FY2025
Short-term Goals:
- Reduce Scope 1 and Scope 2 CO2 emissions by 37% in FY2025 compared to FY2013 levels
Environmental Challenges
- Delayed capital investment linked to economic stagnation in China and Southeast Asia
- Declines in net sales due to lagging response to market and customer trends
- Weakening yen pushing up various costs
- Delays in developing emerging industrial sewing machine markets and reducing dependence on China
- Delays in expanding priority areas such as knit sewing machines and non-apparel sewing machines
Mitigation Strategies
- Cost structure reforms by reducing distribution costs, scaling back personnel, curbing recurring expenses, and implementing furloughs and production cost reductions
- Thorough production adjustments
- Inventory reductions through PSI management
- Redefining businesses into three categories: Sustainable Mainstay Foundation, Expansion and Growth Foundation, and New Exploration Foundation
- Focusing management resources through selection and concentration
Supply Chain Management
Responsible Procurement
- Compliance with laws and regulations
- Coexistence and co-prosperity with suppliers
- Fair and equitable evaluation and selection of suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Floods
- Severe typhoons
- Torrential rains
- Storm surges
Transition Risks
- Increased business costs due to climate change policies and regulations
- Lower demand for products due to higher R&D costs for environmental performance improvements
- Price hikes and procurement difficulties due to changes in the supply-demand balance of raw materials
Opportunities
- Growing demand for energy-saving products and services
- Increased demand for products due to digitization and decarbonization
Reporting Standards
Frameworks Used: TCFD
Sustainable Products & Innovation
- Energy-saving products
- Products using eco-friendly materials
- Products with reduced weights and sizes
Awards & Recognition
- Good Design Award (2022, 2023)
- Long Life Design Award (2023)