MonotaRO Co., Ltd.
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:3,832 t-CO2 (Scope 1 + Scope 2 in 2022)
Scope 1 Emissions:15 t-CO2e (2022)
Scope 2 Emissions:3,817 t-CO2e (2022)
ESG Focus Areas
- Climate change
- Human rights
- Diversity & Inclusion
- Resource recycling
- Sustainable procurement
Environmental Achievements
- Switched electricity used in three largest distribution centers to renewable energy sources.
- Applied insulating coating to roof of distribution centers to reduce air-conditioning needs and electricity usage.
- Optimized compressor pressure of equipment to reduce electricity usage.
- Implemented measures to reduce waste and promote recycling.
Social Achievements
- Launched Sustainability Project in 2021.
- Distributed guidelines to establish procurement networks that consider the environment and human rights.
- Implemented initiatives to promote diversity and inclusion, including efforts to eliminate discrimination and support systems for women and parents.
- Support for employees with disabilities and strengthening retention support.
Governance Achievements
- Established a robust corporate governance system with independent outside directors.
- Implemented a risk management system to identify and mitigate risks.
- Established a Management Audit Department to conduct internal audits and ensure compliance.
Climate Goals & Targets
Medium-term Goals:
- 50% reduction of GHG emissions (Scope 1 and 2) compared to 2020 levels by 2030.
Short-term Goals:
- Later cut-off time for same-day shipping.
Environmental Challenges
- Downturn in sales of COVID-19 and semiconductor-related products in 2023.
- Supply chain disruptions.
- Labor shortages.
- High rate of returns in India due to cash on delivery payments.
- Higher purchase prices from suppliers in South Korea.
Mitigation Strategies
- Deepened understanding of markets and customers to identify future growth opportunities.
- Increased efforts to handle products with high customer demand.
- Enhanced private brand products to improve profit margins.
- Introduced automation and robotics in distribution centers to improve efficiency and reduce labor needs.
- Strengthened cooperation with suppliers and delivery companies to improve efficiency and reduce costs.
Supply Chain Management
Responsible Procurement
- MonotaRO Sustainable Procurement Policy and Guidelines
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: IFRS’ Integrated Reporting Framework, Ministry of Economy, Trade and Industry’s Guidance for Collaborative Value Creation
Certifications: MSCI ESG rating: A, MSCI Japan Empowering Women (WIN): Certified, Eruboshi (three stars), Kurumin
Sustainable Products & Innovation
- Development of environmentally friendly private brand products.
Awards & Recognition
- 2024 Certified KENKO Investment for Health Outstanding Organizations Recognition Program