Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• SDGs

Environmental Achievements

• CO2 emissions are about 1/4 of those from blast furnaces.
• Planning to update to a state-of-the-art energy-saving and environmentally friendly electric furnace (scheduled to start operation in autumn 2024), aiming for a 15% reduction in electricity consumption per ton of steel.

Social Achievements

• Wide range of social contribution activities, including welfare, disaster relief, and blood donation.
• Community contribution activities such as factory tours and work experience for elementary and junior high school students, and cleaning and afforestation activities around the company.
• Action plan to enable both men and women to balance work, family life, and childcare.

Governance Achievements

• Established basic principles for corporate governance.
• Publishing an integrated report (CHUBU KOHAN REPORT) since 2022 to communicate efforts towards sustainable corporate value enhancement to stakeholders.

Climate Goals & Targets

Environmental Challenges

• Steel scrap price fluctuations.
• Order adjustments by processing users anticipating steel price increases.
• Temporary production suspension due to the renewal of the electric furnace and other large-scale construction works in FY2024.
• Decreased sales volume due to temporary production suspension.
• Increase in energy prices.

Mitigation Strategies

• Securing stable supply during the production suspension period by suppressing slab supply to Nakayama Steel Works and using it for stockpiling.
• Successful price transfer of cost increases.
• New electric furnace construction to improve productivity and cost competitiveness.
• Expansion of steel scrap and product/semi-finished product storage and shipping yards.
• Establishment of a sales team specializing in general contractors to promote the use of electric furnace products.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Increased demand for electric furnace products due to decarbonization efforts.

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)

Contribution to SDGs through resource recycling and reduction of environmental impact.

Environmental Metrics

ESG Focus Areas

• Governance
• Sustainability

Governance Achievements

• Continuation of Policy for Responding to Large-Scale Purchase of the Company’s Shares (Takeover Response Policy)

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Steel Plate with Improved Machinability
• Steel Plate for Laser-Cutting

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by aiming for a reduction from 357 thousand tons to 129 thousand tons by 2030 through the use of a new electric furnace and renewable energy.

Social Achievements

• Engaging in various social contribution activities, including factory tours and work experience for elementary and junior high school students, and community cleanup and greening activities.
• Creating a work environment where employees can work comfortably and fully utilize their abilities, and establishing an action plan to enable both men and women to balance work, family life, and childcare.

Governance Achievements

• Transitioned to a company with an audit committee in June 2021.
• Reviewing the composition of the board of directors (increasing the ratio of outside directors and appointing women).
• Strengthening measures against climate change risks and cybersecurity.
• Establishing an internal whistleblowing system and conducting compliance training for officers and employees.

Climate Goals & Targets

Environmental Challenges

• Decreased demand for thick steel plates due to reduced equipment investment in major industries (industrial machinery, construction machinery, and civil engineering/construction) and delays in construction projects.
• Temporary production suspension due to large-scale electric furnace equipment construction in the second quarter.
• Rising raw material (iron scrap), energy, and material costs, as well as logistics costs due to the 2024 logistics problem.

Mitigation Strategies

• Actively engaging in sales activities to achieve planned sales despite challenges.
• Cost reduction due to lower raw material and material prices.
• Appropriate transfer of procurement costs to selling prices.
• Implementing measures to appropriately reflect cost increases in selling prices.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Null

Certifications: ISO9001:2015, ISO14001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green steel (planned launch in FY2026)

Awards & Recognition

• Not disclosed