Fuji Seal International, Inc.
Climate Impact & Sustainability Data (2022, 2023-04 to 2024-03)
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Climate Change
- Supplier Management
- Diversity, Equity & Inclusion (DE&I)
- Circular Economy
- Human Capital
- Intellectual Property
- Information Security
- Sustainable Supply Chain
- Corporate Governance
Environmental Achievements
- Received a Gold Rating from EcoVadis in 2022 (top 5% of all companies rated).
- Introduced a new shrink tunnel, "Vapor," reducing energy and water consumption.
- Increased renewable energy use in several factories (Germany, Thailand, Vietnam, Kentucky, Yamagata, Tokyo).
- Developed RecShrink™ labels recyclable with PET bottles.
- Developed liner-less PSLs to reduce waste.
- Commercialized foundation packing made from recycled pouch manufacturing waste.
Social Achievements
- Established a new DE&I policy and global DE&I committee.
- Launched Value Seminars to promote company values.
- Continued Global High Potential program.
- Conducted executive leadership programs at Vlerick Business School.
- Launched FSI Challenge for High Potentials to improve lead times.
Climate Goals & Targets
- Net-zero GHG emissions by 2050.
- Not disclosed
- Achieve sales of 3 billion yen in new fields by 2025.
- Increase the percentage of environmentally friendly products.
Environmental Challenges
- Slow response to rising material, utility, and logistics costs.
- Difficulty balancing strong individuals and an infallible organization.
- Meeting numerical targets in the Medium-Term Management Plan.
- Slow response to changes.
- Profitability issues in Europe and ASEAN regions.
- Maintaining stock price trend.
- Negative image of plastics among younger generation.
Mitigation Strategies
- Raising awareness of the value of responsible manufacturing.
- Improving the working environment (factory renovations).
- Speeding up response to various situations (reducing time to consensus, shortening process for resale products).
- Structural reforms in Europe to recover profitability.
- Focusing on solutions matching market needs in Europe.
- Active investment and dialogue with stakeholders.
- Strengthening communication with customers and business partners.
- Branding and marketing efforts to attract talent.
Supply Chain Management
Supplier Audits: Sustainable Supply Chain Questionnaire conducted to major suppliers.
Responsible Procurement
- FSG Sustainable Supply Chain Guidebook
- FSG Code of Ethics
- Requests for FSG Business Partners (Group Supplier Policy for Action)
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: GRI Sustainability Reporting Standards, IIRC International Integrated Reporting Framework, SASB Standards (Containers & Packaging)
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- RecShrink™ labels
- Mono-material pouches
- Liner-less PSLs
- Fuji Pouch
- Recycled PET labels
- Water-based flexographic printing
Awards & Recognition
- EcoVadis Gold Medal
Reporting Period: 2023-04 to 2024-03
Environmental Metrics
ESG Focus Areas
- Environmental Sustainability
- Social Responsibility
- Governance
Environmental Achievements
- Sourced 4.9% of electricity consumption from renewable energy in 2023.
- Started using renewable energy at factories in Germany and Tsukuba, Japan in January 2024.
- Reduced CO2 emissions in various regions (Germany, Italy, Thailand, Vietnam, Kentucky, Yamagata, Tokyo).
- Achieved SBTi Commitment Letter in March 2023, aiming for SBTi certification.
- Developed RecShrink™ label, recyclable with PET bottles.
- Developed RecTack recyclable label.
- Launched Label-to-Label and Label-to-Bottle initiatives.
Social Achievements
- Established Global DE&I Committee.
- Conducted Value Seminars in all regions.
- Continued Global High Potential program.
- Launched FSI Challenge program.
- Launched Executive leadership program supported by Belgium Business school.
- Renewed Global HR Policy and established Global HR Framework.
- Implemented Human Capital and Career part on global website.
- Achieved zero occupational accidents for 365 days a year at one or more factories in all business regions in FY2023.
Governance Achievements
- Formulated FSG.30, a new management plan with 2030 as the target year.
- Strengthened matrix management and decision-making from the customer's perspective.
- Improved corporate governance and transparency.
- Established a trust-type incentive plan (ESOP trust) in Japan.
- Revised dividend policy and cost of equity.
- Implemented a business portfolio review framework to improve capital efficiency.
- Established Group Risk Management Rule and emergency contact network.
- Created a digest video of the FSG Code of Ethics in 11 languages.
Climate Goals & Targets
- Achieve net-zero GHG emissions by 2050.
- Achieve net sales of 350 billion yen or more and a double-digit operating profit margin by FY2030 (FSG.30).
- Achieve zero occupational accidents for 365 days a year at one or more factories in each business region.
Environmental Challenges
- Sluggish European and American markets due to inflation and regional conflicts.
- Rising raw material and fuel costs.
- Intensifying price competition in the ASEAN market.
- Labor shortages in Europe and the Americas.
- Ransomware attack in the U.S. in August 2023.
Mitigation Strategies
- Improved profitability by changing materials and production methods.
- Reduced unprofitable products and increased competitive advantage in QCD.
- Withdrew from the ASEAN market temporarily.
- Improved value chain and engaged in digital transformation (DX).
- Developed new products and strengthened relationships with customers.
- Improved operating rate through collaboration between Production, Design, Sales, and Management Divisions.
- Implemented measures to respond to and recover from the ransomware attack and prevent recurrence.
- Strengthened IT security.
Supply Chain Management
Responsible Procurement
- Group Supplier Code of Conduct
- Sustainable Supply Chain Guidebook
- Sustainable Supply Chain Questionnaire Survey
- Sustainable Supply Chain Lecture for purchasing personnel
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI Sustainability Reporting Standards, IIRC International Integrated Reporting Framework, SASB Standards (Containers & Packaging), Ministry of Economy, Trade and Industry Guidance for Collaborative Value Creation 2.0
Certifications: APR certification for RecShrink™ and mono-material pouches
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)
FSG's initiatives contribute to these goals through renewable energy use, sustainable product development, waste reduction, and GHG emissions reduction.
Sustainable Products & Innovation
- RecShrink™ labels
- RecTack labels
- Mono-material pouches
- Water-based printed labels
- Energy-saving machinery
Awards & Recognition
- EcoVadis Gold Medal (2023)