Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 9.1% compared to 2021
• Introduced solar power generation equipment at the Ryuyo factory, reducing CO2 emissions by approximately 350t-CO2
• Achieved 89% recycling rate for the Kawai Group as a whole
• Planted a total of approximately 840,000 trees in Indonesia, covering approximately 800ha

Social Achievements

• Held the 4th Shigeru Kawai International Piano Competition
• Held the KAWAI PREMIUM CONCERT
• Supported various musical organizations
• Continued operation of Kawai Music Schools in various countries
• Held Kawai Cups for rhythmic gymnastics and apparatus gymnastics competitions

Governance Achievements

• Established a Sustainability Committee directly under the Board of Directors
• Implemented a corporate governance system
• Established an internal control system
• Improved the effectiveness of the Board of Directors

Climate Goals & Targets

Environmental Challenges

• Rising costs due to increases in material costs (semiconductors, etc.) and overseas shipping costs
• Climate change risks such as extreme weather events and supply chain disruptions
• Potential for increased business operating costs due to carbon pricing and the shift to renewable energy

Mitigation Strategies

• Improving productivity and adjusting sales prices to address cost increases
• Developing BCP (Business Continuity Plan) to mitigate risks from natural disasters and supply chain disruptions
• Implementing energy-saving measures, switching to renewable energy, and developing environmentally friendly products to address climate change risks

Supply Chain Management

Responsible Procurement

• Kawai Green Procurement Guidelines
• Kawai Timber Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Disasters affecting company facilities and suppliers
• Damage to forests and impact on timber procurement

Transition Risks

• Increased business operating costs due to carbon pricing and the shift to renewable energy
• Increased material prices due to decarbonization

Opportunities

• Increased demand for indoor entertainment products due to stay-at-home needs

Reporting Standards

Frameworks Used: TCFD, SASB, SDGs, ISO26000

Certifications: ISO 14001, ISO 9001

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 17 (Partnerships for the Goals)

Various initiatives contribute to these goals through environmental protection, music education, employee well-being, and community engagement.

Awards & Recognition

• Health Management Excellent Company 2024

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions by 11.3% year-on-year in FY2023
• Reduced CO2 emissions intensity by 9.1% from FY2021 levels
• Installed a solar power generation system at Ryuyo Factory, covering approximately 14% of the factory’s total power consumption in 2023
• Achieved an 89% waste recycling ratio in FY2023
• Planted trees in Karawang and Purwakarta Regency, Indonesia, increasing the cumulative afforested area to approximately 800 ha and the cumulative number of planted trees to approximately 840,000

Social Achievements

• Held the 4th Shigeru Kawai International Piano Competition with 237 contestants from 21 countries
• Operates music schools across Asia, promoting musical education and teacher development
• Held the 56th Kawai Piano Competition with 96 finalists
• Increased the number of mid-career hires by 33 in the past five years
• Maintained a 100% childcare leave usage ratio among female workers in FY2023

Governance Achievements

• Established the Sustainability Committee directly under the Board of Directors
• Conducted an annual evaluation of the Board of Directors’ operations
• Established the Corporate Ethics Committee, including outside expert members

Climate Goals & Targets

Environmental Challenges

• Climate change risks including increased business operation costs due to carbon tax, higher power prices, changes in raw material prices, and catastrophic disasters
• Transition risks related to decarbonization, including changes in power prices, raw material prices, and customer behavior
• Labor and successor shortages faced by local small and medium-sized enterprises

Mitigation Strategies

• Setting and working toward CO2 emissions reduction goals
• Using renewable energy (solar panels)
• Using periodical energy conservation diagnosis services from power companies
• Replacing lighting apparatus with LED types
• Introducing energy-saving factory equipment
• Establishing and applying a Kawai green procurement guideline
• Reducing waste and raising the recycling rate
• Developing and applying environmental policies pursuant to the Kawai Earth Environment Charter
• Developing and strengthening BCP
• Establishing a central disaster prevention measures committee
• Tree planting activities by Kawai Forest Project
• Developing and applying a Kawai wood materials procurement guideline

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Kawai Green Procurement Guideline
• Kawai Wood Materials Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Catastrophic disasters (flooding, drought, forest fires)
• Damage to business facilities
• Supply chain disruption due to extreme weather

Transition Risks

• Increased business operation costs due to carbon tax
• Higher power prices
• Changes in raw material prices
• Changes in customer behavior

Opportunities

• Greater demand for musical instrument products due to higher average temperature
• Opportunities to stimulate eagerness to buy among customers with greater ethical commitment through the development of products with limited environmental load

Reporting Standards

Frameworks Used: TCFD, ISO 26000

Certifications: ISO 14001 (multiple facilities), ISO 9001 (multiple facilities)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 7 (Affordable and Clean Energy)
• 13 (Climate Action)
• 4 (Quality Education)
• 8 (Decent Work and Economic Growth)
• 11 (Sustainable Cities and Communities)
• 15 (Life on Land)

Initiatives described in the report contribute to these SDGs through environmental protection, musical education, community engagement, and human capital development.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Health & Productivity Management Outstanding Organization 2024 (consecutive years since 2020)