Climate Change Data

Kansai Paint Co., Ltd.

Climate Impact & Sustainability Data (2021 to 2023, 2022-04 to 2023-03)

Reporting Period: 2021 to 2023

Environmental Metrics

Total Carbon Emissions:211,015 tCO2e/year (2023)
Scope 3 Emissions:8,801,313 tCO2e/year (2023)
Renewable Energy Share:11.2% (2023)
Total Energy Consumption:691,364 MWh/year (2023)
Water Consumption:4,466,191 m3/year (2023)
Waste Generated:5,011 tons/year (2023)

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced GHG emissions (Scope 1 & 2) by 10.3% from 2021 to 2023. Target is 30% reduction by 2030.
  • Reduced energy consumption by 7.9% from 2021 to 2023. Target is 20% reduction by 2030.
  • Reduced water consumption by 3.5% from 2021 to 2023. Target is 20% reduction by 2030.
  • Reduced waste by 5.7% from 2021 to 2023. Target is 30% reduction by 2030.
  • Increased recyclable container usage rate to 55.5% in 2023.

Social Achievements

  • Increased female employee ratio to 12.4% in 2023.
  • Increased female management ratio to 3.9% in 2023.
  • Reduced total accident frequency rate to 0.29 in 2023. Target is below 1.5.
  • Increased female new graduate employment rate to 32.1% in 2023.
  • Implemented employee engagement surveys and KP way education.

Governance Achievements

  • Increased female board member ratio to 15.3% in 2023. Target is above 30%.
  • Implemented regular board evaluations.
  • Continued implementation of claw-back or malus clauses for executive compensation.

Climate Goals & Targets

Medium-term Goals:
  • Reduce GHG emissions (Scope 1 & 2) by 30% by 2030.
  • Reduce energy consumption by 20% by 2030.
  • Reduce water consumption by 20% by 2030.
  • Reduce waste by 30% by 2030.
  • Increase recyclable container usage rate to above 50% by 2030.
  • Increase female board member ratio to above 30% by 2030.
  • Reduce accident frequency rate to below 1.5 by 2030.

Environmental Challenges

  • Supply chain disruptions and ongoing investigation into GHG emissions from raw materials and containers (Scope 3).
  • Challenges in reducing Scope 3 emissions due to factors outside of direct control (e.g., customer processes).
Mitigation Strategies
  • Continued investigation and monitoring of Scope 3 emissions.
  • Setting targets for emission reductions (30% for Scope 1 & 2, 20% for energy and water consumption, 30% for waste by 2030).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:266,632 t-CO2e/year (consolidated)
Scope 1 Emissions:16,654 t-CO2e/year (single)
Scope 2 Emissions:21,030 t-CO2e/year (single)
Scope 3 Emissions:Not disclosed
Renewable Energy Share:6.7% (consolidated)
Total Energy Consumption:1,017,955 MWh/year (consolidated)
Water Consumption:4,578,060 m3/year (consolidated)
Waste Generated:46,153 tons/year (consolidated)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Resource and Economic Circulation
  • Quality of Life (QOL)
  • Diversity and Inclusion

Environmental Achievements

  • Reduced GHG emissions (Scope 1 & 2) by 3.5% (single) and slightly increased by 1.4% (consolidated) compared to 2021.
  • Achieved 48.6% renewable energy usage in India.
  • Developed low-temperature baking paint to reduce CO2 emissions in automotive painting processes.
  • Developed peelable paint for automotive applications.

Social Achievements

  • Launched Kansai Paint Burano Co., Ltd. for cross-coloring services, reducing waste and CO2 emissions in interior renovations.
  • Certified as a Health & Wellbeing Management Excellent Company 2023.
  • Implemented job-based performance evaluation system for management personnel.
  • Increased female hiring rate to 23.5%.

Governance Achievements

  • Established Sustainability Promotion Committee and dedicated Sustainability Planning and Promotion Departments.
  • Improved corporate governance through enhanced board diversity and strengthened risk management.
  • Implemented a new personnel system with a job-based approach for core employees.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050.
Medium-term Goals:
  • Increase sustainability product sales ratio to 30% by 2030.
  • Increase female management ratio to 30% by 2030.
Short-term Goals:
  • Reduce energy consumption by 20% by 2030.
  • Reduce water usage by 20% by 2030.
  • Reduce waste by 30% by 2030.
  • Increase renewable energy usage to 15% by 2030.

Environmental Challenges

  • Global raw material price increases.
  • Energy price increases.
  • Supply chain disruptions.
  • Labor shortages.
  • Geopolitical risks.
  • Climate change.
  • Achieving carbon neutrality.
  • Water stress in some production locations.
Mitigation Strategies
  • Aggressive price increases.
  • Cost reduction initiatives.
  • Supply chain optimization.
  • Portfolio optimization (e.g., Africa business divestiture).
  • Investment in renewable energy (e.g., solar and wind power).
  • Development of environmentally friendly products (e.g., water-based paints, low-VOC paints).
  • Implementation of Zero Liquid Discharge factories in India.
  • Development of new technologies and materials.
  • Strengthening relationships with suppliers.
  • Improving internal processes and efficiency.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Sustainable procurement practices.
  • Focus on ethical sourcing and responsible supply chains.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Natural disasters
Transition Risks
  • Carbon pricing
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products and services.
  • Growth in demand for sustainable products.
  • New business opportunities in renewable energy sectors.

Reporting Standards

Frameworks Used: International , TCFD Recommendations, GRI Standards, SASB Standards

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 9 (Industry, Innovation, and Infrastructure)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

The company's initiatives contribute to these goals through various environmental and social programs.

Sustainable Products & Innovation

  • Water-based paints
  • Low-VOC paints
  • Peelable paints
  • Powder coatings

Awards & Recognition

  • Health & Wellbeing Management Excellent Company 2023
  • DX Certified Company