Climate Change Data

Oki Electric Industry Co., Ltd.

Climate Impact & Sustainability Data (2023-04 to 2024-03)

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:59,900 tCO2e/year
Scope 1 Emissions:8,100 tCO2e/year
Scope 2 Emissions:51,800 tCO2e/year
Scope 3 Emissions:1,510,000 tCO2e/year
Renewable Energy Share:10.4%
Total Energy Consumption:354,000 MWh/year
Water Consumption:1,596,000 m3/year
Waste Generated:12,400 tons/year
Carbon Intensity:0.142 tCO2e/million yen

ESG Focus Areas

  • Providing products and services that help solve social issues
  • Reducing environmental impact through business activities
  • Transforming into a corporate culture that continuously creates value
  • Strengthening management foundation to support sustainable growth

Environmental Achievements

  • 23.7% reduction in CO2 emissions at business sites (compared to FY2020)
  • Recycling rate of 86% for factory waste
  • Environmentally contributing product net sales ratio of 39%

Social Achievements

  • 5.1% female management ratio (OKI)
  • 53% positive response rate on the “job satisfaction” item in awareness surveys
  • 111 high-potential innovation talent identified

Governance Achievements

  • 100% participation rate in compliance manager training
  • Established a system in line with the United Nations Global Compact (UNGC), enabling continuous implementation and disclosure of human rights due diligence
  • Introduced a performance-linked stock compensation plan for directors

Climate Goals & Targets

Long-term Goals:
  • Net-zero CO2 emissions across the entire value chain, including at OKI sites by 2050
Medium-term Goals:
  • 42% CO2 emissions reduction at OKI sites (compared to FY2020)
  • 25% CO2 emissions reduction at suppliers and from the use of products (compared to FY2020)
  • Environmentally contributing product net sales ratio of 50%
  • Female management ratio of 5% or higher (OKI, by April 2026)
  • 70% positive response rate on the “job satisfaction” item in awareness surveys (OKI Group, Japan)
Short-term Goals:
  • Reduce water consumption by 0.2% (compared to the previous fiscal year)

Environmental Challenges

  • Intensifying price competition due to a decline in product superiority
  • Heightened interest from foreign manufacturers to enter the market as domestic defense budgets rise
  • Increasing opportunities for the entry of new technologies and manufacturers, such as AI, that are not aligned with traditional business models
  • Stagnant customer demand related to the uncertainty of the Chinese market
  • Rising material costs due to currency fluctuations and increased labor costs
  • Decreased handling of cash, bankbooks, cash cards, slips, and other paper documents
  • Reduction in physical handling tasks in the back offices of stores
  • Continued market contraction due to the maturation of the printer and business communication markets
  • Rising costs associated with compliance due to stricter regulations in such areas as the environment, security, and human rights
Mitigation Strategies
  • To address resource shortages for production expansion, we are reallocating resources across different businesses and factories, as well as making capital investments
  • To overcome the lack of distinctive solutions and products, we are developing underwater acoustic communication solutions and products for both defense and commercial sectors
  • Mitigating production capacity shortages due to labor shortages
  • Enhancing cost competitiveness
  • Provide BPO services for customer operations
  • Leverage the nationwide service centers and maintenance network to enter the maintenance service sector for new social infrastructure
  • Enhancing profitability by continuing structural reforms in the printer and business communication businesses
  • Securing new OEM business partners
  • Entering new markets, such as environmental conservation and disaster prevention, by developing unique products that leverage strong existing technologies

Supply Chain Management

Supplier Audits: 38/year

Responsible Procurement
  • CSR procurement promotion program
  • OKI Group Supply-Chain CSR Deployment Guidebook

Climate-Related Risks & Opportunities

Physical Risks
  • Intensification of storms and flooding
Transition Risks
  • Growing and widespread demand for decarbonization
Opportunities
  • Increased demand for decarbonization and labor-saving solutions
  • Increased demand for technologies that support the spread of renewable energy
  • Increased demand for renewable energy-powered products

Reporting Standards

Frameworks Used: IFRS Foundation’s International Integrated Reporting Framework, Ministry of Economy, Trade and Industry’s Guidance for Collaborative Value Creation, TCFD, UNGC, SBT

Certifications: ISO 14001, SBTi, PrivacyMark (8 companies)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 7
  • Goal 13

Not disclosed

Sustainable Products & Innovation

  • Zero Energy IoT series
  • LocoMoses
  • Wellbit

Awards & Recognition

  • Japan’s first ZEB certification (Honjo Plant)