Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 3% to approximately 41,900 t-CO2 in 2022 compared to the previous year. Improved energy consumption per unit of sales by 0.13 points to 0.64.

Social Achievements

• Strengthened quality management system prioritizing customer satisfaction.
• Implemented a new logistics management system in the head office warehouse in September 2021, improving traceability and efficiency.
• Provided outreach classes to local elementary school children.
• Participated in internships for local middle and high school students.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increased greenhouse gas emissions in the logistics sector due to increased demand.

Mitigation Strategies

• Improved efficiency at manufacturing sites and implemented energy-saving measures in sales and administration departments.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Procurement of low-environmental-impact materials and support for suppliers' environmental management activities.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ISO14001

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 27.7% in Scope 1+2 and 1.7% in Scope 3 in 2023 compared to 2022. Achieved SBT (Science Based Targets) initiative certification.
• Increased carbon storage through wood and wood-based products to approximately 440,000 t-CO2 equivalent in 2023.
• Reduced greenhouse gas emissions by 33% in 2023 compared to the previous year.

Social Achievements

• Launched new products catering to diverse customer needs and lifestyle changes.
• Implemented a new logistics management system using 2D barcodes to improve traceability and efficiency.
• Maintained zero serious accidents.

Governance Achievements

• Established a comprehensive safety management system and implemented various measures to prevent recurrence of accidents.
• Strengthened information security measures and risk management systems.
• Established a corporate governance framework based on five fundamental principles.

Climate Goals & Targets

Environmental Challenges

• Major fire accident at the Tsuruga particleboard factory in May 2023, resulting in fatalities and injuries.
• Decreasing new housing starts.
• Rising material and energy costs.
• Logistical challenges (Logistics 2024 problem).

Mitigation Strategies

• Closed the material processing section of the Tsuruga factory and implemented various safety measures to prevent recurrence.
• Developed alternative sourcing strategies.
• Focused on improving productivity and reducing costs.
• Implemented a new logistics management system to address the Logistics 2024 problem.
• Developed new products for non-residential sectors and renovations to reduce reliance on new housing starts.

Supply Chain Management

Responsible Procurement

• Using legally harvested wood and environmentally friendly materials.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14001, ISO 26000:2010, SBT (Science Based Targets)

Certifications: ISO 14001, SBT (Science Based Targets)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

The company's initiatives contribute to these goals through resource circulation, renewable energy generation, sustainable product development, and waste reduction.

Sustainable Products & Innovation

• Pre-cut products to reduce waste
• Particleboard made from recycled wood

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Promoting sustainable wood procurement and reducing waste
• Efforts to reduce greenhouse gas emissions

Social Achievements

• University collaboration programs
• Efforts to foster a diverse and inclusive workplace

Governance Achievements

• Strengthened safety management system
• Establishment of a corporate ethics charter and compliance manual

Climate Goals & Targets

Environmental Challenges

• Fatal accidents at the Tsuruga plant in February and May 2023
• Fire accidents at Tsuruga and EN Board Co., Ltd. plants

Mitigation Strategies

• Thorough investigation of accident causes
• Strengthened safety measures and prevention measures
• Closure of Tsuruga particleboard plant's material processing section

Supply Chain Management

Responsible Procurement

• Sustainable wood procurement

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Production of environmentally friendly products to contribute to the construction of a circular economy
• Expansion of PB utilization ratio in flooring, etc.

Social Achievements

• Strengthening of the quality management system based on ISO9001 (QMS)
• Development and dissemination of easy-to-install, short-delivery-time products
• Use of two-dimensional codes for new management systems and main warehouses to strengthen traceability from production to logistics

Governance Achievements

• Strengthening of information security
• Development of human resources with professionalism and expertise through automation and reduction of work burden
• Thorough compliance and strengthening of governance

Climate Goals & Targets

Environmental Challenges

• Decrease in the number of new housing starts
• Decrease in the domestic population
• Increase in construction costs
• Decline in mind due to high interest rate outlook
• Increase in costs (electricity costs)
• Increase in material prices (raw materials/sub-materials)
• Shortage of skilled workers
• Aging population
• Severe natural disasters
• Labor accidents and accident risks
• Information security incidents

Mitigation Strategies

• Shifting to a business structure that is not dependent on the number of new housing starts
• Product development that prioritizes “market-in”
• Active use of websites and SNS
• Development and expansion of non-residential fields
• Development and popularization of easy-to-install products
• Strengthening and expansion of wood-based board business
• Stable production system of 15,000 tons per month at EN Board Co., Ltd.
• Strengthening of the quality management system based on ISO9001 (QMS)
• Use of two-dimensional codes for logistics systems
• BCP, BCM initiatives
• Strengthening of information security
• Human resource development
• Improvement of internal environment
• Contribution to safer and more secure housing construction by improving customer satisfaction
• Development of easy-to-install products and use of online sales support system (EDnet Plus) to cope with labor shortages
• Use of two-dimensional codes for new management systems and main warehouses to strengthen traceability from production to logistics
• Setting GHG reduction targets, countermeasures, and performance management (SBT certification)
• Creation of renewable energy

Supply Chain Management

Responsible Procurement

• Appropriate selection of procurement destinations and construction of a stable supply chain

Climate-Related Risks & Opportunities

Physical Risks

• Severe natural disasters

Sustainable Products & Innovation

• Environmentally friendly products