Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Supply Chain Responsibility
• Employee Well-being

Environmental Achievements

• Reduced energy consumption by 5% year-on-year in Suzhou JDI Electronics Inc. through energy-saving initiatives.
• Reduced CO2 emissions by 5,023 t-CO2
• Reduced water usage by 52 m3
• Reduced waste discharge by 27 t
• Achieved all environmental targets for FY2021.

Social Achievements

• Launched an academic degree acquisition support system and expanded support to professional degrees (MBA/MOT, etc.) to develop human resources.
• Implemented Management by Objectives at the individual level to improve communication and support employee capability development.
• Improved work-life balance through various initiatives including annual leave acquisition promotion, joyful holiday program, and hourly paid leave program.
• Recognized as a 2022 Certified Health & Productivity Management Outstanding Organization by the Ministry of Economy, Trade and Industry.

Governance Achievements

• Maintained a “company with committees” governance structure, separating supervisory and business execution functions.
• Continued regular internal training programs and improved the internal reporting system to enhance compliance and internal controls.
• Implemented a robust risk management system encompassing eight risk categories.

Climate Goals & Targets

Environmental Challenges

• Continuing semiconductor shortage, rising inflation, and heightened geopolitical tensions.
• Insufficient electricity supply in China impacting energy consumption.
• Waste gas concentration exceeding regulatory value at Ishikawa plant (addressed with implemented measures).

Mitigation Strategies

• Expanded BCP efforts to conserve electricity and establish a system to promote energy-saving projects.
• Implemented measures to prevent recurrence of waste gas concentration exceeding regulatory values.
• Regular meetings with global manufacturing subsidiaries to improve communication and propose improvements.

Supply Chain Management

Supplier Audits: Voluntary CSR surveys for primary and secondary suppliers

Responsible Procurement

• JDI Supply Chain CSR Promotion Guidebook
• Green Procurement Guidelines
• Requests for non-use of conflict minerals

Climate-Related Risks & Opportunities

Physical Risks

• Rising temperatures impacting business activities

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and renewable energy adoption

Reporting Standards

Frameworks Used: TCFD, CDP, UN Global Compact, ISO 26000

Certifications: ISO 14001, ISO 9001, IATF 16949

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 10 (Reduced Inequalities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

JDI's initiatives contribute to these goals through energy conservation, renewable energy adoption, development of eco-friendly products, responsible supply chain management, and climate change mitigation.

Sustainable Products & Innovation

• Eco-products with focus on product lifecycle; energy-efficient products.

Awards & Recognition

• 2022 Certified Health & Productivity Management Outstanding Organization

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Transition
• Human Rights
• Diversity & Inclusion
• Supply Chain Sustainability
• Governance
• Employee Well-being

Environmental Achievements

• Reduced CO2 emissions by 9,290 tons; achieved all environmental targets
• Reduced total water consumption by 10,000 m3; achieved all environmental targets
• Reduced waste discharge by 182 tons; achieved all environmental targets
• Implemented eLEAP technology, reducing CO2 emissions by up to 150,000 tons per year (projected)
• Completed disposal of all PCB waste

Social Achievements

• Launched various self-development programs for employees
• Set a target to increase the proportion of female managers to 3.8% by April 2026
• Implemented work-style reforms to promote work-life balance
• Conducted social contribution activities in various locations (e.g., donations, volunteer work)
• Improved re-employment rate

Governance Achievements

• Established multiple committees and management systems related to ESG
• Strengthened internal controls and compliance awareness
• Implemented Management by Objectives (MBO) at the individual level
• Maintained a Three Committees governance structure

Climate Goals & Targets

Environmental Challenges

• Increased costs, decreased demand, and reduced utilization in the display industry
• Climate-related risks (new regulations, supply chain disruptions, increased costs)
• Maintaining technological leadership in a competitive market

Mitigation Strategies

• Developed and commercialized Global No.1 proprietary technologies (eLEAP, HMO, LumiFree)
• Optimized production sites and strengthened cost competitiveness
• Secured significant capital increase and became debt-free
• Started discussions for a strategic alliance with HKC
• Incorporated climate change factors into supplier audits and procurement agreements
• Developed alternative sourcing strategies and BCP verification
• Improved production intensity by applying eLEAP production techniques
• Promoted renewable energy introduction

Supply Chain Management

Supplier Audits: Regular voluntary audits

Responsible Procurement

• Distribution of JDI Supply Chain Sustainability Promotion Guidebook
• Use of Voluntary JDI Supplier Sustainability Survey
• Green Procurement Guidelines
• Conflict Minerals Survey System (JCOMS)

Climate-Related Risks & Opportunities

Physical Risks

• Supply chain disruptions due to natural disasters
• Decline in labor productivity due to increased temperature

Transition Risks

• Increased raw material costs due to carbon tax
• Increased outsourcing costs due to carbon tax
• Increased costs for decarbonization
• Decline in sales due to customer evaluations

Opportunities

• Increased sales through licensing of eLEAP and HMO technologies
• Increased demand for low-power eLEAP and LumiFree
• Increased demand for high-definition displays for metaverse

Reporting Standards

Frameworks Used: UN Global Compact, TCFD

Certifications: ISO 14001, ISO 9001, IATF 16949

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

JDI's initiatives contribute to these goals through GreenTech, sustainable product development, and waste reduction

Sustainable Products & Innovation

• eLEAP (next-generation OLED)
• HMO (high-mobility oxide)
• LumiFree (free lighting technology)
• Rælclear (transparent interface)

Awards & Recognition

• 2023 Certified Health & Productivity Management Outstanding Organization

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Transition
• Natural Disasters
• Human Rights
• Lifestyle Diversification
• Developing and Commercializing Proprietary Technologies that Solve Social Issues
• Contributing to Solutions to Environmental Issues with GreenTech
• Building a Sustainable Supply Chain
• Ensuring Compliance
• Strengthening Risk Management
• Recruiting and Developing Talented Employees
• Cultivating Diversity in The Workplace

Environmental Achievements

• Reduction of CO2 emissions from energy sources: 2,035 t-CO2 (FY2023)
• Reduction of CO2 emissions from energy sources in FY2024: 897 t-CO2
• eLEAP production (without FMM) reduced CO2 emissions by 150,000 tons annually (equivalent to the annual absorption capacity of 17 million cedar trees)
• Improved light utilization efficiency of LumiFree (target transmittance +10%)
• Supplier Sustainability Self-Audit Implementation Rate: 100%
• Ratio of Supplier Sustainability Self-Audits scoring 80 points or more (out of 100): 85%

Social Achievements

• Hired 13 new graduates and 96 mid-career recruits
• Permanent establishment of the internal public recruitment system (15 successful applicants)
• Implemented promotion training, reviewed curriculum for training aimed at promoted managers
• Implemented various health and safety activities, measures to improve health management, and fire and disaster prevention activities
• Certified as a “Health & Productivity Management Outstanding Organization” for the third consecutive year in 2024
• Rælclear, which contributes to reducing communication stress, was selected for the Ministry of Internal Affairs and Communications’ Information Accessibility Good Practice FY2023
• Paternity Leave Take-up Rate for Men (including spouse maternity leave): 86%

Governance Achievements

• More than half of our board is comprised independent external directors.
• Ethics Code Education Attendance Rate: 100%
• Human Rights and Harassment Education Attendance Rate: 99%
• Mitigation Measure Follow-up Rate for All Risk Items: 100%
• Established a Crisis Management Committee (established in 2023)

Climate Goals & Targets

Environmental Challenges

• Declining birthrate, aging population, and labor shortages
• Changes in the business environment pushing back some elements of METAGROWTH 2026
• Excessive competition and commoditization
• Climate change risks and opportunities
• Supply chain disruptions from increased frequency and severity of natural disasters
• Decline in labor productivity caused by an increase in temperature
• Increased BCP response costs due to frequent occurrence and enlargement of natural disasters

Mitigation Strategies

• Actively promoting the advancement of human resources regardless of age, implementing dynamic personnel placement
• Promoting reskilling to align with JDI’s evolving business portfolio
• Concentrating management resources on six growth drivers
• Halting production at older generation fabs
• Targeting achieving operating profitability in the second half of FY2026
• Addition of climate change elements to the Supply Chain Sustainability Promotion Guidebook (scheduled for 2024)
• Addition of climate change elements to the provisions of the Basic Procurement Agreement (scheduled for 2024)
• Conduct surveys on emissions and reduction activities by contractors
• Improve production intensity by applying eLEAP production techniques
• Reduce energy consumption by improving operations at manufacturing sites
• Promote renewable energy introduction
• Establish SBT and promote initiatives to achieve targets
• Request for diversification of manufacturing/supply bases to major suppliers
• Addition of Business Continuity Plan (BCP) items to the Supply Chain Sustainability Promotion Guidebook (scheduled for 2024)
• Keeping product inventory at global sales companies
• Maintain product inventory at sales companies
• Create multiple production sites
• Expand outsourcing of manufacturing
• Continuous review of Business Continuity Plan (BCP) through the establishment of a Crisis Management Committee
• Mitigation of disaster risk impact through risk assessment and implementation of countermeasures
• Expansion of technology income through license provision
• Formulation of strategies to expand sales to new customer segments
• Expand JDI's supply network through technological provision of eLEAP to other companies
• Ensure superiority in the market through continuous technological improvements

Supply Chain Management

Supplier Audits: 100%

Responsible Procurement

• Green Procurement Guidelines
• JDI Supply Chain Sustainability Guidebook
• Request for Sustainability Self-Audit of Suppliers
• Implementation of Conflict Mineral Survey
• Establishment of Supplier Whistleblowing Hotline

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of natural disasters
• Increase in temperature

Transition Risks

• New Regulation
• Increase in raw material costs due to carbon tax hike
• Increase in outsourcing costs due to carbon tax hike
• Increase in costs for decarbonization due to rising carbon taxes and tightening regulations
• Reputation Decrease in sales due to being excluded from customers’ supply chains for insufficient efforts towards climate change issues

Opportunities

• Increase in revenue through the provision of licenses for eLEAP and HMO technology
• Increased sales of products effective for disaster support, such as Rælclear
• Increased demand for low-power eLEAP
• Increased demand for the new business LumiFree (Free Lighting) due to the promotion of energy conservation

Reporting Standards

Frameworks Used: Minister of Economy, Trade and Industry: Value Co-creation Guidance, IFRS Foundation: International Integrated Reporting Framework, Ministry of the Environment: Environmental Reporting Guidelines 2018 Edition, TCFD

Certifications: ISO 14001, ISO 9001, IATF16949

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• eLEAP (next-generation OLED)
• HMO (High Mobility Oxide)
• LumiFree (free control lighting technology)
• Rælclear (transparent interface)
• Virgo (smart ring with biosensor and health monitoring service)

Awards & Recognition

• Special Award at the 25th Logistics Environmental Awards