Mitsuuroko Group Holdings Co., Ltd.
Climate Impact & Sustainability Data (2020-04 to 2021-03, 2021-04 to 2022-03)
Reporting Period: 2020-04 to 2021-03
Environmental Metrics
Total Carbon Emissions:5,790,604 t-CO2eq/year
Scope 1 Emissions:11,579 t-CO2/year
Scope 2 Emissions:14,249 t-CO2/year
Scope 3 Emissions:5,760,604 t-CO2eq/year
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Began selling labelless mineral water bottles in April 2021, reducing plastic waste and simplifying recycling.
- Reduced delivery time by approximately 30% and travel distance by approximately 20% through SmartOWL® delivery operation streamlining solution.
- Implemented various initiatives to reduce water usage at SPA EAS: Yokohama Onsen-Natural Hot-spring.
Social Achievements
- Implemented a total ban on smoking on company premises from October 1, 2021.
- Launched 'Mitsu-mail Imakoko,' a GPS-based child monitoring service.
- Held women's health seminars focusing on well-being in the age of COVID-19.
Governance Achievements
- Established a Board of Directors, Audit and Supervisory Committee, and Accounting Auditor in June 2015.
- Established a Compliance Hotline for reporting violations.
- Formulated the Mitsuuroko Group Tax Policy to enhance tax compliance and transparency.
Climate Goals & Targets
Long-term Goals:
- Achieve carbon neutrality by FY2050.
Medium-term Goals:
- Achieve carbon neutrality by FY2050.
Short-term Goals:
- Increase ratio of female employees to 33% by March 2027.
- Increase ratio of female managers to 11% by March 2027.
- Achieve 90% rate of thorough examinations by FY2023.
Environmental Challenges
- Climate change impacts on LPG filling stations and transportation.
- Decreasing sales of LPG and petroleum products due to market shifts towards renewable energy.
- Increased costs to meet investor expectations regarding climate change initiatives.
Mitigation Strategies
- Implemented disaster prevention measures at facilities and formulated a business continuity plan (BCP).
- Promoting natural energy and the installation of energy-saving household equipment; selling natural energy and new energy equipment.
- Actively working to meet changing investor and market expectations; proactively engaging in ESG-related initiatives and enhancing relevant information disclosures.
Supply Chain Management
Responsible Procurement
- Selection of business partners based on JFS-B certification (food safety); using 100% Australian beef in Carl's Jr. Japan Inc.
Climate-Related Risks & Opportunities
Physical Risks
- Damage to plants and facilities, supply chain, and power companies due to heavy rain and floods.
Transition Risks
- Tightening of fossil fuel regulations; operating cost increases due to carbon taxes; decrease in sales for LPG and petroleum products.
Opportunities
- Increased sales in the Power & Electricity Business due to increased demand for renewable energy; reduction of future in-house power generation costs.
Reporting Standards
Frameworks Used: GRI Sustainability Reporting Standards, TCFD recommendations
Certifications: JFS-B certification (food safety)
Third-party Assurance: KPMG AZSA Sustainability CO., Ltd.
Sustainable Products & Innovation
- Labelless mineral water bottles; high-efficiency water heaters (ECO FEEL, ECO-JOZU, ECO ONE); ENE FARM household fuel cells; SmartOWL® delivery operation streamlining solution.
Awards & Recognition
- Health & Productivity Management Outstanding Organization 2022 (White 500); Sports Yell Company 2022.
Reporting Period: 2021-04 to 2022-03
Environmental Metrics
Total Carbon Emissions:5,958,716 tCO2e/year
Scope 1 Emissions:17,049 tCO2e/year
Scope 2 Emissions:16,972 tCO2e/year
Scope 3 Emissions:5,924,700 tCO2e/year
Water Consumption:6,454,000 m3/year
Waste Generated:35,088 tons/year
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Reduced Scope 1 and 2 CO2 emissions by +31.7%
- Reduced customer CO2 emissions by +3.6%
- Implemented water-saving initiatives at Yokohama Tennen Onsen SPA EAS and rental apartments
- Adopted business cards made primarily from limestone, saving water
- Introduced label-less PET bottles and eliminated plastic in the Foods Business
- Achieved approximately 30% reduction in delivery operation time and approximately 20% reduction in travel distance in a demonstration test using LPWA connection
- Mitsuuroko Green Energy Co., Ltd. received a five-star rating from the Energy Conservation Communication Ranking System
Social Achievements
- Continued to provide 100% of employees with health checkups
- Implemented measures to prevent passive smoking
- Implemented women's health measures and mental health measures
- Supported new normal work styles and promoted telecommuting
- Increased ratio of female employees to 27.4%
- Held career training for female employees
- Launched the Project Team for the Promotion of Women’s Participation and Advancement
- Implemented various systems to support work-life integration
- Provided training for managers on maternity leave and parental leave
Governance Achievements
- Improved the effectiveness of auditing and supervision
- Strengthened the supervisory function of the Board of Directors
- Established the Risk Management Committee
- Established a compliance reporting system
- Enacted a basic policy related to prevention of bribery
- Formulated the Mitsuuroko Group Tax Policy
Climate Goals & Targets
Long-term Goals:
- Carbon neutrality by 2050
Medium-term Goals:
- Achieve 35% male parental leave rate by 2025
- Achieve 50% male parental leave rate by 2027
- Carbon neutrality by 2050
Short-term Goals:
- Increase ratio of female employees to 33% by 2026
- Increase ratio of female managers to 11% by 2026
- Reduce vehicle accidents to zero severe accidents and reduce other accidents by 50% or less compared to previous year
Environmental Challenges
- Fluctuation in cost of sales due to crude oil prices, LPG prices, and exchange rates
- Intensified competition in the energy sector
- Risk of damage to plants and facilities due to disasters
- Risks associated with investments in subsidiaries and affiliated companies
- Compliance with laws and regulations
- Risks inherent in overseas business
- Impact of COVID-19 on business operations
- Cybersecurity risks
Mitigation Strategies
- Hedging transactions using futures and other instruments
- Diversifying procurement sources
- Periodic inspections and repairs of facilities
- Careful consideration of investment risks
- Regular compliance training and internal audits
- Strengthening risk management systems
- Developing business continuity plans (BCP)
- Implementing cybersecurity measures
Supply Chain Management
Responsible Procurement
- Compliance with desirable trade practices for main contractors and subcontractors
- Upholding the Charter of Corporate Ethics and the Mitsuuroko Group Human Rights Policy
Climate-Related Risks & Opportunities
Physical Risks
- Damage to plants and facilities due to heavy rain and floods
Transition Risks
- Tightening of fossil fuel regulations
- Increase in carbon taxes
- Decrease in sales for LPG and petroleum products
Opportunities
- Increased demand for renewable energy
- Reduction of future in-house power generation costs
- Development of energy-efficient products
Reporting Standards
Frameworks Used: GRI Sustainability Reporting Standards, TCFD Recommendations
Certifications: JFS-B (Yamanakako Plant, Narusawa Plant, Gifu Yoro Plant), FSSC (Ihara Factory and Okitsu Factory)
Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.
Sustainable Products & Innovation
- ECO-JOZU and ECO ONE high-efficiency water heaters
- ENE-FARM residential-use fuel cell
- Solar power generation systems
- Label-less PET bottles
Awards & Recognition
- Five-star rating from the Energy Conservation Communication Ranking System
- Health & Productivity Management Outstanding Organization 2023 (White 500)
- Sports Yell Company certification