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 |
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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.
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.
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.