Climate Change Data

Hirata Corporation

Climate Impact & Sustainability Data (2021-04 to 2022-03)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:6376 tCO2e
Total Energy Consumption:15924 MWh
Water Consumption:35365 m3
Waste Generated:456 tons

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced energy usage by 1.9% compared to FY2020 (based on actual production amounts).
  • Reduced water usage by 18% compared to FY2020 (based on actual production amounts).
  • Reduced industrial waste generation by 11% compared to FY2020 (based on actual production amounts).

Social Achievements

  • Established health management centers.
  • Implemented workplace vaccinations for COVID-19 prevention.
  • Implemented measures to improve work-life balance, including reduced working hours and expanded childcare leave eligibility.

Governance Achievements

  • Established a Sustainability Promotion Committee.
  • Endorsed the final report of the Task Force on Climate-related Financial Disclosures (TCFD).
  • Improved the effectiveness of Board of Directors’ meetings based on third-party evaluations.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality across all businesses, including their supply chains by 2050.
Medium-term Goals:
  • Achieve carbon neutrality across all businesses, including their supply chains by 2050.
Short-term Goals:
  • Reduce energy usage by 3% or more compared with FY2020 by the end of FY2023.
  • Reduce CO2 emissions by 3% or more compared with FY2020 by the end of FY2023.
  • Reduce water usage by 3% or more compared with FY2020 by the end of FY2023.
  • Reduce industrial waste generated by 3% or more compared with FY2020 by the end of FY2023.

Environmental Challenges

  • Increased CO2 emissions by 3.8% despite reduced energy consumption due to increased electric power company CO2 emission factor.
  • Insufficient strengthening of systems relating to local production, engineering, and procurement in high-demand regions for EVs (Europe and China).
  • Need to improve profitability for further corporate growth.
Mitigation Strategies
  • Promoting the reduction of energy consumption by introducing energy-saving equipment.
  • Strengthening cost competitiveness, speed, quality, local support, and modification response in EV-related equipment.
  • Cultivating cooperation with peer companies and suppliers in Eastern European countries to lower prices and build supply chains.
  • Strengthening sales and production capabilities and cost response in China.
  • Preparing for a smooth transition to production systems in Southeast Asia.

Supply Chain Management

Responsible Procurement
  • CSR procurement questionnaire targeting top 70% of suppliers by transaction value.
  • CSR Procurement Guidelines formulated with reference to the Responsible Business Alliance (RBA) Code of Conduct.

Climate-Related Risks & Opportunities

Physical Risks
  • Abnormal weather events leading to increased restoration/operating costs.
Transition Risks
  • Increased manufacturing costs due to carbon taxes, emissions trading, and border carbon adjustment measures.
  • Increased raw material costs due to restrictions on raw materials and purchases due to emission regulations.
  • Increased costs for materials containing plastic.
  • Increased electricity costs due to decarbonization.
  • Increased air-conditioning costs due to rising temperatures.
  • Increased distribution costs due to shift to EVs for large vehicles.
Opportunities
  • Increased demand for energy-saving products.

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001 (Kumamoto, Kanto, and Kansai region production bases), ISO 9001

Sustainable Products & Innovation

  • Hirata ECO electric series