Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety and Security
• Environmental Conservation
• Consumer Issues
• Community Involvement
• Human Rights and Labor Practices
• Fair Business Practices
• Corporate Governance

Environmental Achievements

• Developed and popularized "Mametsubu®" agent, reducing herbicide spraying labor and drift.
• Developed and expanded the lineup of "Kumika Eco Series®" microbial pesticides.
• Reduced CO2 emissions from the factory by switching from LPG to city gas.

Social Achievements

• Launched "Donburi Project®" for coastal reforestation in Miyagi Prefecture.
• Provided information and technical support for proper pesticide use.
• Implemented various initiatives to improve work-life balance, including childcare leave and flexible work arrangements.

Governance Achievements

• Strengthened corporate governance by establishing internal control systems and compliance committees.
• Implemented regular compliance training for all employees.
• Actively engaged in stakeholder communication and information disclosure.

Climate Goals & Targets

Environmental Challenges

• Aging farming population and labor shortages in agriculture.
• Resistance to herbicides in weeds.
• Ensuring proper pesticide use and reducing environmental impact.
• Maintaining compliance and preventing misconduct.

Mitigation Strategies

• Developed "Mametsubu®" agent for efficient and low-drift herbicide application.
• Developed and promoted environmentally friendly microbial pesticides.
• Provided education and information on proper pesticide use.
• Strengthened internal control systems and compliance training.

Supply Chain Management

Responsible Procurement

• Compliance with laws and regulations.
• Fair and ethical business practices.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO26000, GRI Sustainability Reporting Guidelines (G4), Environmental Report Guidelines (Ministry of the Environment)

Sustainable Products & Innovation

• Mametsubu® agent
• Kumika Eco Series® microbial pesticides

Awards & Recognition

• Agricultural and Forestry Technology Council Chairman's Award (2010)
• Japan Pesticide Society Achievement Award (Technology) (2015)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions significantly from 2014 to 2018 (Specific figures not provided in the report)
• Reduced PRTR Class I designated chemical substance emissions and transfers from 2015 to 2018 (Specific figures not provided in the report)
• Maintained and managed approximately 640 hectares of forest in Hokkaido, absorbing 2,400 tons of CO2 annually.

Social Achievements

• Launched employee happiness survey, showing high overall satisfaction.
• Implemented various initiatives to promote diversity and inclusion.
• Maintained a low employee turnover rate, especially among new hires.
• Provided internship opportunities for junior high school students.
• Conducted outreach programs at universities on pesticides.

Governance Achievements

• Established a robust corporate governance system with various committees and internal audit.
• Implemented a group-wide internal reporting system.
• Distributed a compliance manual to all employees.
• Conducted regular compliance awareness surveys and training.

Climate Goals & Targets

Environmental Challenges

• Aging farming population and labor shortages in Japan.
• Increasing natural disasters in Japan.
• Resistance to existing herbicides in some areas.
• Need to reduce environmental impact of pesticide production.

Mitigation Strategies

• Developed labor-saving pesticide formulations (e.g., Mametsubu®).
• Invested in drone technology for precise pesticide application.
• Improved wastewater treatment processes at factories.
• Implemented risk management and internal control systems.
• Strengthened compliance and ethics programs.

Supply Chain Management

Responsible Procurement

• Respect for supplier rights and fair trading practices.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (e.g., typhoons, earthquakes)

Opportunities

• Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines (G4), ISO 26000, Ministry of the Environment's Environmental Reporting Guidelines (2018)

Certifications: ISO 9001, ISO 14001

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 7: Affordable and Clean Energy
• Goal 13: Climate Action
• Goal 15: Life on Land

The company's activities contribute to these goals through pesticide development, sustainable agriculture practices, forest management, and community engagement.

Sustainable Products & Innovation

• Mametsubu® pesticide formulation
• Biopesticides

Environmental Metrics

ESG Focus Areas

• Environmental Impact
• Human Capital
• Shareholder Returns
• Sustainable Growth

Environmental Achievements

• Decreased greenhouse gas (GHG) emissions by approximately 13% compared to FY2019 levels while net sales increased by approximately 56%.

Social Achievements

• Promotion of diversity and inclusion and work-life balance.
• Substantial increase in dividends in FY2023.

Governance Achievements

• Maintaining reasonable levels of equity ratio and D/E ratio despite increasing interest-bearing liabilities.

Climate Goals & Targets

Environmental Challenges

• Increasing interest-bearing liabilities due to increased demand for working capital.

Mitigation Strategies

• Maintaining reasonable levels of equity ratio and D/E ratio.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Impact
• Biodiversity
• Recycling-Based Society
• Sustainable Food Systems

Environmental Achievements

• Reduced herbicide application for paddy rice from 3 kg/10 ares to 250 grams
• Introduced CO2-free electricity at factories and research institutes
• Promoting fuel conversion from heavy oil to lower GHG emission fuels
• Implemented wastewater treatment using a microorganism-based method at Shizuoka Factory
• Uses carbon-neutral city gas at Tatsuno Factory
• Reduced waste by reusing or substituting manufacturing equipment cleaning materials

Social Achievements

• Developed and launched MAMETSUBU® for smart agriculture, reducing labor for growers
• Participation in the 30by30 Alliance to Conserve Biodiversity
• Established a nature reserve in Fukushima, Hokkaido, and will create another in Kikugawa City, Shizuoka Prefecture

Governance Achievements

• Established an environmental management system in accordance with ISO14001
• Launched ESG Project in December 2021 aiming to create clean factories
• Sustainability Promotion Committee formulates ESG strategies and manages action plans
• Risk Management & Compliance Committee identifies and addresses risks and opportunities

Climate Goals & Targets

Environmental Challenges

• Stricter regulations on greenhouse gas emissions
• Increased energy costs due to changes in energy policies
• Decrease in demand for agricultural chemicals due to stricter regulations
• Loss of business due to increased damage from storms and floods
• Lower demand due to a decrease in farmland

Mitigation Strategies

• Setting long-term targets for reducing greenhouse gas emissions
• Promoting implementation of energy-saving equipment and renewable energy
• Development of chemical and biological control agents with less risk to humans and the environment
• Installing rainwater gates and drainage pumps, and formulating BCP
• Development and distribution of agricultural inputs that help improve agricultural productivity

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Storms and floods

Transition Risks

• Stricter regulations on greenhouse gas emissions
• Increased energy costs
• Decreased demand for agricultural chemicals

Opportunities

• Higher evaluation of ESG investment
• Higher evaluation by customers
• Greater demand for environmentally-friendly products
• Higher demand for our products due to stricter regulations on agricultural chemicals
• Higher demand for biopesticides and physical pest control

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO14001

Sustainable Products & Innovation

• MAMETSUBU®
• Biopesticides
• Environmentally-friendly products

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Sustainable Agriculture
• Food Security
• Human Rights
• Work-Life Balance
• Diversity & Inclusion
• Responsible Care
• Compliance
• Corporate Governance

Environmental Achievements

• Greenhouse gas emissions (Scope 1 and 2) from seven group companies: 66,124 t-CO2 in FY2022
• Target: 30% reduction in GHG emissions by FY2030 compared to FY2019
• Waste reduction: Total industrial waste generated 2,097 tons, landfill rate 2.2%
• Recycling rate: 94.7%

Social Achievements

• Launched new products contributing to smart agriculture (MAMETSUBU)
• Increased number of male employees taking childcare leave (24.1%)
• 31.3% of new graduate hires were women in FY2022
• 27.3% of annual hires were mid-career workers in FY2022
• Average rate of employees taking annual paid leave: 60.6%
• Human rights education and harassment training for all managers

Governance Achievements

• Established Basic Policy on Sustainability and Sustainability Promotion Committee
• Established Responsible Care Promotion Section
• Endorsed TCFD recommendations
• Established Risk Management & Compliance Committee
• Annual evaluation of Board of Directors effectiveness

Climate Goals & Targets

Environmental Challenges

• Soaring raw material costs
• Spread of herbicide-resistant weeds
• Climate change impacts on agriculture
• Aging farmer population and labor shortages in Japan
• Stricter regulations on agricultural chemicals and GHG emissions
• Exchange rate fluctuations
• Supply chain disruptions
• COVID-19 pandemic impacts

Mitigation Strategies

• Price pass-through and yen depreciation
• Development and sales of AXEEV® herbicide effective against resistant weeds
• GHG emission reduction targets and initiatives (energy efficiency improvements, renewable energy)
• Development of labor-saving products and technologies (MAMETSUBU)
• M&A for expanding business domains and sales routes
• Diversification of supply sources
• BCP for handling natural disasters and pandemics
• Remote work and staggered working hours systems

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Basic Policy on CSR Procurement and CSR Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Stricter GHG emission regulations
• Changes in energy policies

Opportunities

• Increased demand for environmentally-friendly products
• Development of biopesticides and smart agriculture technologies

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 2 (Zero Hunger)
• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)

Initiatives contribute to these goals through sustainable agriculture, GHG emission reduction, responsible care, and human resource development

Sustainable Products & Innovation

• AXEEV® herbicide
• EFFEEDA® herbicide
• DISARTA® fungicide
• MAMETSUBU formulation
• Microbial pesticides
• Bio-stimulants

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental impact of agricultural chemicals
• Food security
• Sustainable agriculture

Environmental Achievements

• Reduced environmental impact compared to conventional herbicides (AXEEV® uses 1/10 the dosage)
• Lower CO2 emissions due to reduced transportation needs from lower use rate

Social Achievements

• Contributed to resolving social issues related to food insecurity by providing an effective herbicide to combat herbicide-resistant weeds
• Increased crop productivity and yield through effective weed control

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Spread of herbicide-resistant weeds due to overuse of glyphosate
• Need to increase food production sustainably to meet growing global population

Mitigation Strategies

• Developed AXEEV®, a herbicide effective against glyphosate-resistant weeds with low environmental impact

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• AXEEV®

Awards & Recognition

• Not disclosed