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Environment

Environmental Policy

Press Kogyo has set a basic environmental management philosophy and the promotion system necessary to achieve it, and effective initiatives are currently being implemented.

Basic Principle

Placing value on our irreplaceable planet, we promote environmentally friendly monozukuri (manufacturing) in all fields of corporate operations, and we contribute to the development of a sustainable and prosperous society.

Guideline

We take pride as a manufacturing company, placing value on the global environment and recognizing harmonious coexistence with society as one of our most important management issues. For this reason, we aim to continually improve our environmental management system and to enhance our environmental performance.

Key Initiatives

Complying with Environmental Laws and Regulations

To remain a trusted company, we will follow all environment-related laws and regulations as well as uphold our commitments to others.

Promoting the reduction of CO₂ emissions

We will promote the reduction of CO₂ emissions through resource and energy conservation by improving production methods, increasing work efficiency, and recycling waste.

Reduction of Environmental Risk

We will promote the reduction of the use and emission of chemicals and other environmentally hazardous substances, and the reduction of environmental risks due to noise, vibration, and odor.

Coexistence with Local Communities

We promote the beautification of the local community so we can coexist as a good corporate citizen.

Environmental Action Promotion System

ISO 14001 Certification

The Group has acquired ISO 14001:2015 certification, and we are striving for continual improvements using a PDCA (plan-do-check-act) cycle to achieve our environmental goals.

Production Sites Acquisition Certification Field
Kawasaki Plant Dec. 2018 ISO14001:2015 Manufacturing of Automotive Parts (Frame, Axle, Pressed Parts, etc.)
Utsunomiya Plant Jan. 2019 ISO14001:2015 Manufacturing of Frame Side Rails and Axle Side Plates
Fujisawa Plant Dec. 2018 ISO14001:2015 Manufacturing of Automotive Parts such as Frames and Axle Casing, Press Dies and Automated Welding Lines
Saitama Plant Nov. 2018 ISO14001:2015 Manufacturing of Automotive Parts
Onomichi Plant June 2017 ISO14001:2015 Finished Vehicle Assembly, Design, Development and Manufacturing of Automotive Parts and Assemblies, and Construction Vehicle Parts and Assemblies
PK U.S.A, INC. Feb. 2018 ISO14001:2015 Manufacturing of Plastic Components and Metal Stampings, Assembling and Coating Chassis Parts, Body Panels, and Suspension Parts
THAI SUMMIT PKK CO.,LTD. Dec. 2017 ISO14001:2015 Manufacturing of Chassis Frames, Component Parts of Chassis Frame, Suspension Systems and Transmission Systems
THAI SUMMIT PKK BANGPAKONG CO.,LTD. Dec. 2017 ISO14001:2015 Manufacturing of Chassis Frame and Component Parts of Chassis Frame and Rear Axle Housings
THAI SUMMIT PK CORPORATION LTD. Feb. 2016 ISO14001:2015 Manufacturing of Chassis Frame, Rear Axle Casing and Component Parts
PRESS KOGYO SWEDEN AB Apr. 2019 ISO14001:2015 Manufacturing of Metal Stampings, Laser Cuttings and Welding Steel Parts and Steel Components

Addressing Climate Change

Information Disclosures Based on TCFD Recommendation

Governance

The Press Kogyo Group has positioned the climate change issue as one of the important management challenges and works positively and proactively based on the Environment Policy under the supervision of the Board of Directors.
The Central Committee on Environment (held twice a year), which is led by the officers in charge of the Manufacturing Department and the Human Resources, manages and responds to environmental issues overall, including climate change.
To focus on the activities for the climate change issues, the CN (Carbon Neutral) Promotion Committee (held monthly) was newly formed on October 1, 2021, which works in Collaboration and shares information with the Central Committee on Environment, and strongly promotes CO2 emission reduction (target setting, measures and implementation).
These committees report details of activities to the Management Meeting and important items are discussed and determined at the Management Meeting and the Board of Directors as needed.

Strategy

Following the TCFD recommendations and its framework, the Group performs scenario analyses of risks and opportunities in order to evaluate the level of impact of climate change on the Group’s business activities. When performing these analyses, the Group considers a set of climate-related scenarios (4℃ scenario, 2℃ or lower scenario, etc.) of the IPCC (Intergovernmental Panel on Climate Change).
The actions against risks/opportunities are determined considering current/future issues and viewpoint of new-value creation of the Group.
The details and evaluation results of the scenario analyses are given below.

Risks/Opportunities Business Impact Index Time horizon Assessment Action
Risks Transition Policy and
Legal
・Enhanced regulation of
 Greenhouse Gas emissions
・Loss of business opportunities
 due to delay in responding to
 the market introduction of
 EV/FCV.
・Increase in capital investment.
Revenue
Cost
Asset
Medium-term
Long-term
High ・Development of low carbon
 products.
・Conversion of manufacturing
 process which optimized for
 EV/FCV.
・Creation of low carbon production
 line.
・Carbon pricing mechanisms ・Increase in raw material costs
 and energy costs.
Revenue
Cost
Short-term
Medium-term
High ・Use of low carbon material.
・Development of weight-saving
 products.
・Promotion of energy saving
Technology ・Risk of delay in responding
 to carbon-neutral technology
・Customer demands due to
 development of carbon neutral
・Loss of growth opportunities
 due to delay in responding to
 new technologies.
Revenue Medium-term
Long-term
High ・Development of products using
 new materials and new low carbon
 manufacturing process.
・Development of new technologies
 in line with the customer's
 development schedule.
・Incompatible of The supplier's
 technology
・Difficult to maintain supply chain.
・Decline of competitiveness.
Cost Medium-term Medium ・Engineering support and
 encouragement for existing
 suppliers.
Market ・Increase of raw materials cost
 and operation cost.
・Increase in manufacturing costs
 due to rising prices of fossil fuels
 and renewable energy.
Cost Short-term
Medium-term
Medium ・Switching to the optimal energy.
・Investment of highly efficient
 and energy saving equipment.
・Increase of purchasing costs
 due to shift to low carbon steel.
Cost Medium-term
Long-term
Medium ・Advance design development for
 weight saving and material saving.
・Study for alternative raw materials.
Reputation ・Reputational risk from
 stakeholders
・Decline in corporate value
 due to loss of trust.
Cost
Asset
Medium-term
Long-term
High ・Steady promotion towards
 CO2 zero emissions.
・Enhancement of ESG disclosure.
Physical Acute ・Frequent occurrence of
 abnormal weather
・Shutdown and recovery cost
 for damages to business
 operations.
・Damages to employee's property
・Increase in cost of disaster
 measures.
Revenue
Cost
Asset
Short-term
Medium-term
Long-term
High ・Improvement and enhancement of
 Business Continuity Plan.
Chronic ・Increase in the average
 temperature
・Increase in cost of air
 conditioning, etc.
・Decline in productivity due to
 worse working environment.
・Depletion risk in water resources.
Revenue
Cost
Asset
Medium-term
Long-term
High ・Replacement to energy saving
 equipment/system.
・Investment related to the work
 environment.
・Water saving, reuse & recycle.
Opportunities Resource efficiency ・Efficiency for production and
 distribution processes
・Reduction of manufacturing
 and distribution costs.
Cost Medium-term
Long-term
Medium ・Optimal production methods.
 (suitable location, equipment,
 process)
・Use of renewable energy ・Lower energy costs due to
 widespread of renewable energy.
Cost Medium-term
Long-term
High ・Introduction of green energy.
Products and services ・Development of EV/FCV ・Business expansion opportunities
 for new automotive parts of
 EV/FCV.
Revenue Short-term
Medium-term
Medium ・Product/technology development
 for EV/FCV.
・Specification change of
 current products to lower
 carbon thoroughly
・Enhancement of development
 capabilities.
Revenue
Asset
Medium-term
Long-term
High ・Advance the innovative
 design/engineering.
・Development strengthening
 competitiveness which create an
 entry barrier.
Markets ・Access to new markets ・Opportunities to newly enter
 the environmentally-friendly
 business.
Revenue Short-term
Medium-term
Medium ・Development of environmentally-
 friendly products.
・Initiatives of National Resilience ・Increase in demand for
 construction machineries and
 commercial vehicles due to
 infrastructure development.
Revenue Short-term
Medium-term
Long-term
High ・Establishment of flexible production
 system and solid supply-chain
 management.
・Increase in demand for disaster
 proof vehicles.
Revenue Short-term
Medium-term
Long-term
High

Risk Management

The Group’s Internal Control Committee (consisting of all internal and external Directors) evaluates priority of risks identified by each divisions and group companies, determines the risk management policy and checks regularly those management and progress of measures. For important risks related to product quality, safety and health, the environment, and disaster prevention, individual committees (subordinated to the Management Meeting) are responsible to manage and check the status in each division and group company.
Each divisions and group companies reports the risk management plans including measures for identified risks to the Internal Control Committee through the Internal Audit Department. The Internal Audit Department regularly audits the status of risk management in each division and group company and provides reports to the Internal Control Committee twice a year.
The climate change-related risks are also identified as the important risk of the Group and are to be managed in the risk assessment & management process given above.

Metrics and Targets

Metrics Scope Base Year Base Year
Actual
Target Year Target
CO2
emissions
Scope1,2 FY2019 42,100
t-CO2
FY2025 Reduce by 21% compared to FY2019
33,400 t-CO2
FY2030 Reduce by 41% compared to FY2019
24,700 t-CO2
FY2050 Net zero emissions

The Company has set emission reduction targets as stated above for the short term, medium term and long term.
To achieve each reduction targets towards realization of carbon neutrality, the Group proceed various measures including introduction of highly efficient facilities, revision of production processes, increase of productivity, new technology, streamlining of operations, and the utilization of green energy such as photovoltaic power generation system based on the perspectives of “quit, fix, stop, reduce, reuse, and change”.
Figures given above are the Company’s non-consolidated basis.
The Group is currently working on accurate calculations for actual figures and target-setting for the Group including Scope 3. The actual figures including FY2021 and targets shall be disclosed as soon as available.

CO2 emissions targets and actual results

The Company is promoting more efficient energy use and energy saving in production activities to reduce CO2 emissions.Regarding the results of Scope 1 and 2 for FY2021, due in part to the effects of the measures, the CO2 emissions are showing a steady downward trend toward the CO2 reduction targets for FY2025 and FY2030. However, CO2 emissions increased compared to the previous fiscal year due to the gradual resurgence of production activities since the COVID-19 disaster. We will continue to promote energy-saving measures, introduction of renewable energy, etc. to achieve the target.

Practical example

In this fiscal year, the Company replaced the boilers at its Fujisawa Plant with the latest high-efficiency models, and replaced the reinforcing paint boiler at its Kawasaki Plant with the latest boiler that uses low-carbon energy (from heavy oil A to city gas) , thus contributing to the reduction of CO2 emissions.

  • Fujisawa plant
    Reduce by about 420 t-CO2
    (FY2020 actual)
  • Kawasaki plant
    Reduce by about 140 t-CO2
    (FY2020 actual)

Energy consumption

As shown in the results of Scope 1 and 2, although the CO2 emissions are steadily decreasing toward the CO2 reduction target, energy consumption and electricity consumption are on the rise as production activities are gradually recovering from the COVID-19 disaster, and CO2 emissions in Scope 1 and 2 have also increased. We will continue to implement energy-saving measures and switch to renewable energy.

  • Direct energy consumption=Σ(Fuel consumption × Heat of combustion by fuel type)
    ※The fuel consumption used in the calculation was verified by a third-party.
  • Indirect energy consumption=Σ(Purchased electric energy × Heat of combustion)
    Heat of combustion :Daytime 9.97 / Night 9.28 (MJ/kWh)
    ※The purchased electric energy used in the calculation was verified by a third-party.

Addressing Climate Change:Scope1・2・3

Scope 3 calculation results show that 80% of the total emissions are generated in Scope 3 Category 1, the production process of materials and parts used in the manufacture of products, and upstream in the supply chain. We will continue our efforts to reduce GHG emissions in cooperation with related suppliers.

The third-party verification received is CO2 emissions [t-CO2] for Scope 1 and 2, and total GHG emissions [t-CO2e] for Scope 3. The above graphs are expressed by reading the values for Scope 1 and 2 as GHG emissions [t-CO2e] from the perspective of evaluating total emissions.

Initiatives to Reduce Emissions from Waste

With regard to waste, there has been a steady reduction in direct final landfill volume and a slight increase in the amount of waste recycled. However, the overall waste volume has increased in line with the recovery of production activities. Going forward, waste generation will be curbed through further production efficiency improvements and recycling.

Reporting Period

The reporting period covers April,2021 to March 31, 2022, in principle.
Note that some reports include the results of activities conducted before or after this period or some data from planned activities.

Disclosure of Environmental Data

*:The Data verified by Japan Quality Assurance Organization(JQA)

Independent Verification Report issued by Japan Quality Assurance Organization

Totals do not add up in some cases due to rounding off of fractions.

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