Kandenko Co., Ltd.
Climate Impact & Sustainability Data (2021-04 to 2022-03, 2022-04 to 2023-03)
Reporting Period: 2021-04 to 2022-03
Environmental Metrics
Total Carbon Emissions:24,542 tCO2e (location-based), 24,699 tCO2e (market-based)
Scope 1 Emissions:10,697 tCO2e
Scope 2 Emissions:13,104 tCO2e (location-based), 13,261 tCO2e (market-based)
Renewable Energy Share:4.1%
ESG Focus Areas
- Climate Change
- Resilience (Disaster Prevention + BCP)
- Innovation
- Human Capital
- Sound Management Base
Environmental Achievements
- Achieved "ZEB Oriented" evaluation criteria in the renovation of the Human Resource Development Center, reducing energy consumption by approximately 35%
- Continued operation of renewable energy power plants (solar, wind, biomass, hydropower)
Social Achievements
- Introduced a 65-year-old retirement system
- Two women appointed as line managers for the first time
- Held the "Kandenko Machi" exchange meeting for female technical/skilled workers
- Opened two farms for the further advancement of people with disabilities
Governance Achievements
- Strengthened the governance structure by adding one independent outside director, bringing the total to four out of 13 directors
- Established a management council to deepen discussions in the board of directors
- Established a group planning department to strengthen management of group companies and promote area management
Climate Goals & Targets
Long-term Goals:
- Achieve net-zero greenhouse gas emissions by 2050
Medium-term Goals:
- Achieve 15% renewable energy in electricity consumption by 2023
- Increase female management positions to double the 2020 level by 2024
Short-term Goals:
- Reduce energy consumption by 30% compared to 2009 levels by 2023
Environmental Challenges
- Rising and constrained supply of construction materials
- Upcoming overtime work restrictions (2024)
- Decreasing domestic workforce
- Climate change related risks (physical and transition)
- Maintaining and improving partnerships with subcontractors and material suppliers
Mitigation Strategies
- Implementing thorough cost management measures
- Back office work for design and technical review
- Development of alternative sourcing strategies
- Promoting prefabrication and unit construction methods
- Strengthening the remote support system
- Developing total solution services for decarbonization and disaster prevention/BCP needs
- Developing and implementing action plans based on climate risk analysis
- Expanding the disclosure scope to Scope 3 emissions
- Strengthening group governance and promoting area management
- Developing human resource development programs and promoting diversity and inclusion
Supply Chain Management
Responsible Procurement
- Kandenko Group Procurement Policy
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Flooding
- Heat stress at construction sites
Transition Risks
- Carbon tax introduction
- Strengthening decarbonization policies
- Mainstreaming ESG investments
Opportunities
- Increased demand for power generation and transmission equipment
- Increased demand for energy-efficient and decarbonized equipment
- Increased demand for renewable energy
- Increased demand for EV-related construction
- Increased demand for disaster-resistant buildings and equipment
- Opportunities in smart city development and urban data center development
Reporting Standards
Frameworks Used: TCFD
Certifications: ISO 14001, ISO 9001
Sustainable Products & Innovation
- EcoBACs (central monitoring system)
- Approach sensor
- Small-diameter curved piping method
- Energy demand prediction software
Awards & Recognition
- Minister of Economy, Trade and Industry Award at JECA FAIR 2022 for BLue measurement and recording support system
Reporting Period: 2022-04 to 2023-03
Environmental Metrics
Total Carbon Emissions:673,249 t-CO2e (location-based), 673,618 t-CO2e (market-based) in fiscal 2021
Scope 1 Emissions:110,351 t-CO2e (fiscal 2021)
Scope 2 Emissions:212,681 t-CO2e (location-based), 13,050 t-CO2e (market-based) (fiscal 2021)
Scope 3 Emissions:649,471 t-CO2e (fiscal 2021)
ESG Focus Areas
- Decarbonization
- Disaster preparedness
- Business continuity planning (BCP)
- Human resources development
- Sound management
Environmental Achievements
- Set a goal of reaching net-zero greenhouse gas emissions by 2050 and a 50% reduction by 2030 (compared to fiscal 2020) for Scopes 1 and 2 emissions.
- Increased the number of renewable energy power plants to 22 locations with a total capacity of 66.8MW.
Social Achievements
- Increased the number of women in managerial positions to 28 (5.5%), aiming for at least 36 by the end of fiscal 2024.
- Increased the male employees' paternity leave rate to 10.9%.
- Implemented various initiatives to enhance employee well-being, including a walking event and health awareness training.
- Published "Denki no Himitsu" (Secrets of Electricity) educational manga and donated 25,000 copies to schools and libraries.
- Partnered with Gakken Inc. to co-publish Denki no Himitsu (Secrets of Electricity).
Governance Achievements
- Implemented a team officer system in July 2023 to enhance strategic functions and collaboration.
- Improved the effectiveness of the Board of Directors through clarified agendas, improved information sharing, and the addition of an expert in electric energy.
- Maintained a financially secure position with an equity ratio of 61.2%.
Climate Goals & Targets
Long-term Goals:
- Net zero greenhouse gas emissions by 2050.
Medium-term Goals:
- Achieve a 50% reduction in greenhouse gas emissions by 2030 (compared to fiscal 2020) for Scopes 1 and 2 emissions.
- Achieve an ROE of 8% or more and an ROIC of 8% or more in fiscal 2023.
Short-term Goals:
- Increase the number of women in managerial positions to at least 36 by the end of fiscal 2024.
- Raise paternity leave take-up rate to 30% or higher.
Environmental Challenges
- Rising construction costs
- Limited supply of materials and equipment
- Impending "2024 issue" (maximum overtime work limit)
- Shrinking labor force
- Escalating frequency and intensity of natural disasters
- Semiconductor shortages
- Global economic slowdown
- Weakened yen
- Crisis in Ukraine
- Labor accidents at a subsidiary company
Mitigation Strategies
- Established a specialized organization for construction site administration and back-office functions.
- Broadened the scope of prefabricated and unitized construction methods.
- Incorporated digital technologies to enhance efficiency.
- Implemented meticulous management of work in progress for precise forecasts.
- Enhanced collaboration between sales and construction divisions.
- Developed comprehensive solutions for decarbonization, disaster preparedness, and BCP.
- Strengthened partnerships with companies specializing in weather analysis and disaster preparedness.
- Actively collecting sales information and analyzing construction market trends.
- Implementing the examination of VE and CD as a standard practice from the initial stage.
- Implementing measures to prevent facility accidents and the occurrence of quality failures.
- Strengthening of compliance awareness through seminars and training sessions.
- Promoting initiatives to enhance diversity.
- Promoting human resources development through various seminars and on-the-job training (OJT).
- Collaborating with industry organizations and clients to establish a system to prevent labor accidents.
Supply Chain Management
Responsible Procurement
- Kandenko Group Procurement Policy (respect for human rights, compliance with laws, health and safety, quality, environmental consciousness, information security, internal frameworks)
Climate-Related Risks & Opportunities
Physical Risks
- Flood and storm surge damage
Transition Risks
- Introduction of a carbon tax
Opportunities
- Growth in renewable energy sector
- Demand for decarbonization solutions
Reporting Standards
Frameworks Used: TCFD
Certifications: ISO 9001
Sustainable Products & Innovation
- BLuE measurement recording support system
- BLuE Kakeru system
- Self-propelling ceiling wiring robot
- Rakuraku Toru-kun NEO
Awards & Recognition
- DX-Certified Operator by the Ministry of Economy, Trade, and Industry in 2022