Climate Change Data

ALCONIX CORPORATION

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:18,463 t-CO2e/year (Scope 1 and 2 for all consolidated domestic bases)
Scope 3 Emissions:1,042,601 t-CO2e/year (estimated for domestic bases)

ESG Focus Areas

  • Human Capital
  • Environment
  • Society
  • Governance

Environmental Achievements

  • Endorsed TCFD recommendations
  • Surveyed Scope 1 and 2 greenhouse gas emissions for overseas Group companies
  • Surveyed Scope 3 emissions for domestic Group companies
  • Promotion of plastic-free activities through use of Waterlogic® water purifiers
  • Installation of solar power generation system at MARKTEC’s Narita factory
  • Use of electricity verified with Non-Fossil Certificates at MARKTEC’s Tokyo head office

Social Achievements

  • Formulation and announcement of human rights policies
  • Encouragement of Group companies to make local contributions
  • Updates on dialogues with shareholders and investors
  • Certification as a 2024 Health & Productivity Management Outstanding Organization
  • Increased the ratio of women in managerial positions to 6.4%
  • Reduced the gender pay gap

Governance Achievements

  • Revision of the basic policy for internal control systems
  • Efforts to enhance compliance
  • Review of the Group’s management and reporting systems
  • Appointment of a Managing Executive in Charge of Internal Control
  • Establishment of the Audit & Supervisory Board Member Office

Climate Goals & Targets

Long-term Goals:
  • Carbon neutrality by 2050
Medium-term Goals:
  • Achieve ROIC of 6% or higher
  • Achieve ROE of 12% or higher
  • Record ordinary profit of ¥12,000 million in fiscal 2026
  • 10% target ratio of women in managerial positions
Short-term Goals:
  • Improve ROIC
  • Increase sales
  • Lower cost of sales ratio
  • Improve work-capital turnover
  • Reduce cash and cash equivalents

Environmental Challenges

  • Prolonged slump in demand for semiconductors and automobile-related products
  • Drop in shipment volumes of aluminum and copper
  • Declining price of nickel
  • Rising labor and logistics costs
  • Stagnation of the Chinese economy
Mitigation Strategies
  • Enhance internal controls and build infrastructure
  • Reorganization of the Corporate Planning Department
  • Strengthening Groupwide collaboration
  • Implemented measures to improve capital efficiency
  • Reduced interest-bearing debt and strengthened controls for invested capital
  • Improved working capital turnover
  • Improved employees’ understanding of compliance
  • Reviewed the Group’s management system
  • Increased efforts to improve investment efficiency
  • Generating free cash flows for growth investments
  • Reviewing the composition and operations of each committee

Supply Chain Management

Responsible Procurement
  • Expanding procurement of recycled raw materials

Climate-Related Risks & Opportunities

Transition Risks
  • Decline in demand for internal combustion engine vehicles
Opportunities
  • Increased demand for copper and rare metals due to the shift to zero-emission vehicles

Reporting Standards

Frameworks Used: Integrated Reporting Framework (IFRS Foundation)

Certifications: 2024 Health & Productivity Management Outstanding Organization

Sustainable Products & Innovation

  • Waterlogic® water purifiers
  • Eco Check® series of aerosol dye penetrant inspection agents