Addressing Climate Change

Approach to the Climate Change Issue

As a key player in the automotive parts industry, we have long supported social development. However, the global scale of climate change poses significant challenges to our operations and society at large. Thus, our commitment to addressing this critical issue is crucial for ensuring the sustainability of our business. Our efforts towards achieving carbon neutrality are a vital part of this commitment.

Towards Carbon Neutrality

Based on the Act on Promotion of Global Warming Countermeasures, we have meticulously tracked our CO₂ emission. In May 2022, we established CO₂ emission reduction targets for the short, medium and long term for scope1 and scope2 emissions on a non-consolidated basis. Since then, we have been dedicated to reducing CO₂ emissions by enhancing energy efficiency and promoting conservation measures. As a result of scope1 and scope2 CO₂ emissions in FY2021, we achieved a steady reduction, working towards our medium-term targets for FY2025 and 2030. However, due to the resumption of production activities post-COVID-19, our total emissions have increased compared to the previous year.

In May 2024, as a Group, we set CO₂ emission reduction targets for the short, medium and long term for scope1 and scope2 emissions. Additionally, we established the emission reduction target for scope3 emissions, including supply chain activities on a consolidated basis.

We will continue to strive for CO₂ emission reduction by adopting renewable energy and energy conservation initiatives in collaboration with our supply chain partners.

Scope1・2 down 41% in 2030

Scope3 down 20% in 2030

Metrics	Scope	Base Year	Emissions in Base Year	Target Year	Target
CO₂ emissions	Scope1・2（Consolidated）	FY2019	110,000 t-CO₂	FY2025	86,900 t-CO₂, down 21% compared to FY2019
				FY2030	64,900 t-CO₂, down 41% compared to FY2019
				FY2050	Net zero emissions
	Scope3（Consolidated）		1,134,072 t-CO₂	FY2030	907,200 t-CO₂, down 20% compared to FY2019（based on C1,3,5）
			1,134,072 t-CO₂	FY2050	Net zero emissions

Initiative for Carbon Neutrality

The Company has set emission reduction targets as follows for the short term, medium term and long term. To achieve each reduction targets towards realization of carbon neutrality, the Group proceeds various measures including introduction of highly efficient facilities, revision of production processes, increase of productivity, new technology, streamlining operations, and the utilization of green energy such as photovoltaic power generation system based on the six perspectives of “quit, fix, stop, reduce, reuse, and change”.

Six Perspectives	Initiatives under Scope1	Initiatives under Scope2
Change	Adoption of heat pumps Electrification of forklifts	Upgrade of compressors Conversion of fluorescent lights and mercury lamps to LED
Reduce	Optimization of equipment operation hours	Optimization of equipment operation hours
Reuse	Reuse of waste heat	ー
Quit	Reduction in the number of forklifts	Elimination of processes
Fix	ー	Repair of air leaks
Stop	ー	Reduction of standby power consumption

Endorsement of TCFD Recommendation

We endorse the TCFD recommendations and discloses information related to climate change according to the recommendations.

Disclosure based on TCFD
reccomendation

External Evaluation: CDP

CDP is an international non-profit organization that supports companies and public authorities in disclosing their environmental efforts, including climate change initiatives, greenhouse gas (GHG) emissions reduction, water security, and forest conservation measures. In the 2024 CDP Climate Change assessment, we achieved a score of B, which corresponds to the Management level. 　　　　　　　
We will continue to enhance our environmental initiatives and contribute to the realization of a sustainable society.

Climate change	Water security
B	C

CDP questionnaire