Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Received the Ministry of Economy, Trade and Industry's highest S rating for six consecutive years in their classification of business operators under the Act on the Rational Use of Energy
• Continued efforts to reduce standby power and enable production with lower power consumption at plants in Japan
• Increased energy conservation initiatives, including the reduction of standby power at each plant
• Committed to new activities such as Cool Choice, an initiative promoted by the Ministry of the Environment

Social Achievements

• 100% of women taking childcare leave returned to work
• One of the first companies to have men take childcare leave
• Acquired Kurumin Mark certification from the Minister of Health, Labour and Welfare as a company supporting childcare
• Certified as a company promoting balance between treatment and work (platinum certification) under a Kanagawa prefectural government certification program
• Announced the Furukawa Battery Health and Productivity Management Declaration
• Established a health and productivity management promotion system

Governance Achievements

• Increased the percentage of outside directors on the Board of Directors to 33%
• Established the Nominating and Compensation Committee and the Conflict of Interest Management Committee, each consisting mainly of independent outside directors
• Began to review the officer compensation system to ensure it functions as a sound incentive for responsible management
• Established the Conflict of Interest Management Committee and the Nominating and Compensation Committee

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic negatively impacted businesses, including reduction of new vehicle production and postponement of capital spending plans
• Uncertainty of the international situation
• Declining working-age population in developed countries
• Strengthened environmental regulations around the world
• Shift from lead-acid batteries to next-generation batteries
• Intensifying price competition and fall in market prices attributed to entry of players from other industries and overseas manufacturers
• Decline in demand resulting from changes to the world situation

Mitigation Strategies

• Focused efforts on online business talks, cost reduction activities
• Proceeded with new initiatives as strategic moves to achieve medium- to long-term growth, including the development of bipolar storage batteries and taking over the laminated lithium-ion battery business of Maxell, Ltd.
• Investing in environmentally friendly facilities and striving to reduce CO2 emissions from the entire supply chain
• Implementing measures to address risks presented by the COVID-19 pandemic, natural disaster risks, and risks related to occupational health and safety and human resource management

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Shift from lead-acid batteries to next-generation batteries

Opportunities

• Expansion of markets related to renewable energy

Sustainable Products & Innovation

• Bipolar lead-acid batteries
• Laminated lithium-ion batteries

Awards & Recognition

• Excellence Prize at “New Tohoku” Restoration Business Contest 2018

Environmental Metrics

ESG Focus Areas

• Decarbonized society
• Recycling-oriented society
• Eco-friendly products
• Technology innovation and R&D
• Respect for human rights
• Promotion of diversity
• Promotion of human resource development
• Resilient infrastructure

Environmental Achievements

• Developing bipolar lead-acid battery for renewable energy storage
• Aiming for 25% reduction in CO2 emissions from 2018 levels by 2025
• Improving manufacturing and charging processes to reduce electricity consumption
• Planning to transition to alternative fuels and install solar power generation equipment

Social Achievements

• Completed takeover of Maxell's laminated lithium-ion battery business
• Added “Stay healthy” to internal greetings to increase health awareness
• Introduced various programs to support diverse workstyles, including flexible working hours and work-from-home program
• Targeting 5% female employees in management posts by FY2026

Governance Achievements

• Established Sustainability Committee and working groups
• Expressed support for TCFD recommendations
• Announced Furukawa Battery Health and Productivity Management Declaration
• Obtained Stage II certification under the management system integration program of JQA

Climate Goals & Targets

Environmental Challenges

• Unfavorable results in FY2022 due to COVID-19, decline in new car sales, soaring raw material prices, and impact of the Russian invasion of Ukraine
• Soaring prices of lead and other raw materials
• Difficulty procuring parts
• Concerns over human rights issues in cobalt mining

Mitigation Strategies

• Reviewing supply chain
• Developing bipolar lead-acid battery as a rival to lithium-ion batteries
• Improving productivity and achieving higher profitability through cost reduction
• Driving initiatives related to human rights due diligence

Supply Chain Management

Responsible Procurement

• CSR Procurement Guidelines
• Self-Assessment Questionnaire (SAQ) surveys

Climate-Related Risks & Opportunities

Physical Risks

• Increase in energy costs due to temperature rise
• Disruptions to supply chain due to abnormal weather

Transition Risks

• Impact of carbon pricing
• Cost of introducing sustainability initiatives

Opportunities

• Increased demand for high-efficiency storage batteries and power storage systems
• Commercialization of bipolar lead-acid batteries and ESS products

Reporting Standards

Frameworks Used: SDGs, GRI Standards, TCFD

Certifications: ISO 9001, ISO 14001

Sustainable Products & Innovation

• Bipolar lead-acid battery
• Lithium-ion batteries for drones

Awards & Recognition

• Certified Health & Productivity Management Outstanding Organizations Recognition Program (Class AAA)
• Yokohama Health Management Certification program
• Sports Yell Company
• Kenko Choju Tochigi Zukuri Saiyushu-sho

Environmental Metrics

ESG Focus Areas

• Decarbonized society
• Recycling-oriented society
• Eco-friendly products
• Resilient infrastructure
• Technology innovation and R&D
• Human rights
• Diversity
• Human resource development

Environmental Achievements

• Reduced electricity consumption for manufacturing
• Launched feasibility testing of a power storage system linking bipolar lead-acid batteries to solar power (March 2023)

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Disappointing results in the first year of Mid-term Management Plan 2025, with sales growth but operating profit decline.
• Negative impact of COVID-19, rising energy costs, and resource shortages.
• Need to revise product prices due to rising costs.
• Inward-looking corporate culture hindering independent thinking and inter-departmental collaboration.
• Insufficient contact with other companies.
• Concerns about the long-term use of lead-acid batteries.

Mitigation Strategies

• Continuing improvements in various areas, including reductions in electricity consumption.
• Redesigns and changes in materials to address resource shortages.
• Implementing rapid improvements within the organization based on precise internal target-setting.
• Bringing to market storage battery technologies, including bipolar lead-acid batteries.
• Promoting co-creation with partners to develop renewable energy solutions.
• Development of high-precision battery charge measurement technologies for drones.
• Feasibility testing of energy storage system (ESS) at the Imaichi Plant (November 2022).
• Internal discussions on resource allocation and investment fields.
• Improving profitability by linking efforts to a sustainability perspective.
• Expanding share of the repairs market (FY2024).
• Identifying clear ESS targets and concentrating on launching related sales activities (FY2024).
• Improving the precision of sales.
• Transforming internal awareness through internal briefings and intranet communiques.
• Building systems in which a diverse workforce can thrive.
• Enhancing communication externally and deepening joint efforts with external stakeholders.
• Developing new products for next-generation businesses.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Replacement of lead-acid batteries with next-generation batteries due to environmental regulations.

Opportunities

• Growing demand for storage batteries in renewable energy market.

Reporting Standards

Frameworks Used: Null

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Push forward with a global strategy that contributes to the achievement of the SDGs.

Sustainable Products & Innovation

• Bipolar lead-acid batteries
• Next-generation batteries

Awards & Recognition

• Excellence Prize at “New Tohoku” Restoration Business Contest 2018