SEIKA CORPORATION
Climate Impact & Sustainability Data (2022-04 to 2023-03, 2023)
Reporting Period: 2022-04 to 2023-03
Environmental Metrics
Total Carbon Emissions:266 tCO2e (FY2020), 297 tCO2e (FY2021), 321 tCO2e (FY2022) (Seika Corporation only)
ESG Focus Areas
- Decarbonization
- Energy and Resources Conservation
- Circular Economy
- DX (Digital Transformation)
Environmental Achievements
- Reduced CO2 emissions per transaction value from 2.39 kg/million yen in FY2021 to 2.18 kg/million yen in FY2022.
- Increased transaction value for green innovation-related products by 14% year-on-year to 95,600 million yen in FY2022.
- Started agent operations for nuclear power generation facilities in April 2023.
Social Achievements
- Increased employee satisfaction rate to 79% in FY2022 (8.5% improvement from the previous survey).
- Raised the monthly salary base of all employees by 15,000 yen in FY2023.
- Increased mid-career hiring ratio of full-time workers to 67% in FY2022.
Governance Achievements
- Transitioned from a “company with a board of auditors” to a “company with an audit and supervisory committee” in June 2022.
- Established the Sustainability Committee in July 2023.
- Established the Nomination Review Committee and the Compensation Review Committee.
Climate Goals & Targets
Long-term Goals:
- Supporting the sustainable generation of energy and industrial activities in harmony with the global environment.
Medium-term Goals:
- Achieve a consolidated net profit of 4.5 billion yen and transaction value related to green innovation of 200 billion yen by FY2030.
Short-term Goals:
- Achieve sales of 110 billion yen, operating profit of 5.2 billion yen, and consolidated net profit of 3.5 billion yen by FY2026.
Environmental Challenges
- Decreased sales of conventional fossil fuel-based thermal power generation-related equipment due to the trend toward decarbonization.
- Decline in domestic investment sentiment within the business domain due to changes in economic conditions.
- Dependence on specific business partners for responding to environmental regulations and maintaining and updating product competitiveness.
Mitigation Strategies
- Promoting a shift to ammonia and hydrogen co-firing power generation.
- Developing and proposing new technology/new materials that contribute to the circular economy.
- Strengthening business competencies in facilities, equipment, and products with functions and characteristics beneficial or friendly to the environment.
Climate-Related Risks & Opportunities
Physical Risks
- Intensification of extreme weather
- Damage at business locations due to flooding
Transition Risks
- Introduction of carbon taxes and GHG emission regulations
- Structural transformation of energy mix
Opportunities
- Expanded business opportunities related to the introduction of energy-saving equipment
- Expanded sales opportunities for renewable energy-related products
- Expanded sales opportunities for nuclear power generation facilities
Reporting Standards
Frameworks Used: International Integrated Reporting Council (IIRC), Guidance for Integrated Corporate Disclosure and Company-Investor Dialogue for Collaborative Value Creation by the Ministry of Economy, Trade and Industry, TCFD
Certifications: ISO14001
Sustainable Products & Innovation
- Ultra-lightweight solar panels
- Laser-type gas analyzer for measuring toxic and corrosive gases
- Small-scale hydropower generation equipment
- Recycled carbon fiber
- Next-generation biodiesel fuel (SUSTEO)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:2027 tCO2e/year
Scope 1 Emissions:1006 tCO2e/year
Scope 2 Emissions:989 tCO2e/year
Scope 3 Emissions:32 tCO2e/year
ESG Focus Areas
- Expansion of clean energy
- Decarbonization of thermal power generation
- Initiatives based on TCFD recommendations
- Improvement of employee engagement
- Promoting diversity
- Coexistence with local communities
- Strengthen corporate governance
- Reinforcement of compliance system
- Enhancing data security
- Promotion of energy and power conservation
- Promotion of DX
- Contributing to the sustainability of marine resources
Environmental Achievements
- Started monitoring Scope 1 and Scope 2 greenhouse gas (GHG) emissions including those from four major companies in the Group. Total GHG emissions for FY2023 were 2,027 t-CO2e (Scope 1: 1,006 t-CO2e; Scope 2: 989 t-CO2e; Scope 3 (partly): 32 t-CO2e).
Social Achievements
- Established a Sustainability Committee.
- Held six company information sessions for private investors.
- Increased number of shareholders by 35.0% (from 7,734 to 10,444).
- Disaster relief donation for the Noto Peninsula Earthquake.
- Donations to the red feather community chest, Kainaniji Ikueikai, Foodbank Tama, and Fukushima Inochi-no Mizu.
- Participation in Marunouchi Kirapika Sakusen (neighborhood cleanup).
- Support for employees' participation in volunteer activities.
Governance Achievements
- Shifted from a company with a board of company auditors to a company with an audit and supervisory committee.
- Introduced a board incentive plan (BIP) trust program based on market capitalization, ROE, and implementation of the medium-term management plan.
- Published an Integrated Report.
Climate Goals & Targets
Long-term Goals:
- Achieve a profit target of 4.50 billion yen and an operating income target of 6.50 billion yen for FY2030.
Medium-term Goals:
- Achieve a total payout ratio of 45%.
Environmental Challenges
- Increased SG&A expenses due to upfront investment in sales distributor operations and soaring personnel expenses.
Mitigation Strategies
- Selection as a primary distributor in the energy business and buoyant performance of Group companies led to increased operating income despite increased SG&A expenses.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: TCFD