Climate Change Data

CKD Corporation

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

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:38,753 t-CO2e/year
Water Consumption:535,000 m3/year
Waste Generated:1,566 tons/year

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Governance
  • Supply Chain Management
  • Human Rights

Environmental Achievements

  • Introduced green energy for 5 million kWh (equivalent to approximately 2,200 tons of CO2), equivalent to the amount of electricity used annually at the Inuyama Plant.
  • Started offsetting greenhouse gases emitted from four plants using the J-Credit Scheme.
  • Developed 11 low environmental impact products in fiscal 2021.
  • Received the Golden Award at the 2021 AICHI Environmental Award for HP Series components and NS Series nitrogen gas extraction units.

Social Achievements

  • Opened an onsite day care center in April 2018.
  • Launched an internal job posting system in December 2021.
  • Established the Diversity Promotion Office in December 2021.
  • Established the CKD Group Human Rights Policy in April 2022.
  • Recognized as an Outstanding Organization for Health & Productivity Management in 2022 (large enterprise category).

Governance Achievements

  • Launched a new management structure (W Engine) in June 2021, separating management and business execution functions.
  • Increased the proportion of independent External Directors to 50% in 2022.
  • Introduced a Corporate Officer System in 2022.
  • Established the Sustainability Committee in April 2021.
  • Announced support for the Task Force on Climate-related Financial Disclosures (TCFD) in June 2022.

Climate Goals & Targets

Long-term Goals:
  • Achieve virtually zero CO2 emissions by fiscal 2050.
Medium-term Goals:
  • Reduce CO2 emissions per unit of sales by 50% from 2013 levels by fiscal 2030.
  • Increase the ratio of female managers to 10% or higher by fiscal 2030.
  • Achieve consolidated net sales of ¥180.0 billion and an ROE of 10–13% by fiscal 2025.
Short-term Goals:
  • Increase the ratio of female managers to 3% by fiscal 2022.
  • Achieve an average of at least 65% paid leave utilization rate by all employees by fiscal 2022.

Environmental Challenges

  • Supply chain disruptions due to the COVID-19 pandemic and geopolitical risks.
  • Shortages of semiconductors and other components.
  • Rising raw material prices.
  • Climate change risks (extreme weather events, regulations).
  • Securing and training human resources.
Mitigation Strategies
  • Established a Crisis Management Committee.
  • Strengthened non-contact support (remote sales, services).
  • Strengthened development of sensors and image processing technology.
  • Set CO2 reduction targets, installed solar power generation systems, used green electricity, and implemented carbon offsetting.
  • Established and upgraded disaster prevention management/BCP regulations.
  • Advanced automation in domestic plants.
  • Implemented a global-based human resource development plan.

Supply Chain Management

Responsible Procurement
  • Revised Purchasing Principles and Fundamental Policy (April 2022), emphasizing trust, legal compliance, environmental protection, and human rights.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (storms, floods, droughts).
Transition Risks
  • Introduction of carbon tax and emissions trading.
  • Compliance with GHG emissions regulations.
  • Advancement of low-carbon technologies.
Opportunities
  • Increased sales of products contributing to environmental protection.
  • Strengthened electric motion products business.
  • Development of low environmental impact products.
  • Joint development of lithium-ion battery pre-doping equipment.

Reporting Standards

Frameworks Used: IIRC, GRI

UN Sustainable Development Goals

  • Goal 5
  • Goal 12
  • Goal 13

CKD contributes to these goals through various initiatives, including the development of low environmental impact products, promotion of diversity and inclusion, and efforts to reduce CO2 emissions.

Sustainable Products & Innovation

  • HP Series high-durability components
  • NS Series nitrogen gas extraction units
  • Eco Blister packaging machines
  • ROBODEX brand of electric motion components

Awards & Recognition

  • 2021 AICHI Environmental Award (Golden Award)
  • 2021 Cho-Monozukuri Innovative Parts and Components Award
  • 2022 Certified Health & Productivity Management Outstanding Organizations