Climate Change Data

Roland Corporation

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Supply Chain Management
  • Development of Music & Video Culture
  • Human Capital Management
  • Climate Change
  • Corporate Governance

Environmental Achievements

  • Construction of new global headquarters building will reuse existing buildings, expecting a reduction of about 60% in CO2 emissions compared to constructing a new building.

Social Achievements

  • Launched new stock compensation plan for Directors, Executive Officers, and executive employees.
  • Employee engagement index improved to 3.7 (out of 5) in 2023 from 3.6 in 2021 and 2022.

Governance Achievements

  • Established Sustainability Promotion Committee consisting of all Executive Officers.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050.
Medium-term Goals:
  • Achieve employee engagement index of 3.8 (out of 5) by 2025.
  • Achieve consolidated ROIC of 20% or higher by 2025.
Short-term Goals:
  • Raise new product sales ratio to approximately one-fourth of total sales by 2025.

Environmental Challenges

  • Supply chain disruptions due to raw material procurement, production, and logistics constraints.
  • Slow demand recovery in China.
  • Reactionary decline in digital piano sales after stay-at-home demand.
  • Oversupply and excess dealer inventories.
  • High raw material prices.
  • Intensified competition.
Mitigation Strategies
  • Developed a business continuity plan.
  • Maintained appropriate inventory stockpile levels.
  • Created new demand through Game Changer products and new products.
  • Strengthened sales structure in emerging countries.
  • Expanded Roland-operated retail stores.
  • Revamped Roland Cloud user interface.
  • Enhanced human resource system.
  • Invested in new headquarters building.
  • Implemented ERP software update.
  • Introduced production management systems.

Supply Chain Management

Responsible Procurement
  • Sharing of awareness of human rights protection and CO2 emissions reduction, and promotion of collaborations.

Climate-Related Risks & Opportunities

Physical Risks
  • Suspension of business operations due to sudden natural disasters
Transition Risks
  • Increased costs to respond to the introduction of carbon pricing
  • Increased prices of raw materials due to tighter regulations
Opportunities
  • Changes in consumer lifestyles and consumption trends

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 9001