Major issues related to sustainability including climate change are deliberated by a sustainability promotion committee. The sustainability promotion committee is chaired by representative director, president, and COO, and under whose control, projects related to climate change are planned, managed and promoted in cooperation with related departments and group companies. Major issues related to climate change deliberated by the sustainability promotion committee are reported in a global business promotion meeting periodically. The global business promotion meeting deliberates and supervises major risks and opportunities related to climate change, and by reporting them to board of directors as necessary, we plan to unify them with corporate management strategies.

We identify risks and opportunities that climate change poses to our business, confirm and examine our resilience against climate change. For assessment, we adopt two scenarios, 4°C and 1.5°C, based on multiple future outlooks that the Intergovernmental Panel on Climate Change (IPCC) or International Energy Agency (IEA) discloses. We qualitatively assessed the effects to our company as of 2030 assuming an outlook of the world on each scenario.

We stipulate risk management regulations, based on which, the risk management system of the entire company is prepared. The sustainability promotion committee identifies and evaluates risks related to climate change, and reports them to the global business promotion meeting periodically. The global business promotion meeting deliberates the following matters related to risk management of our group including climate change, and devises organized and proper preventive countermeasures. For risk management in group companies, the designated responsible department communicates decisions of policies for risk management and gives instruction for reevaluation of risks and redesign or enhancement of its countermeasures.

Toward the realization of carbon neutrality by 2050, to begin with, we have set up a target to “reduce 50% of CO2 emissions from factories in Japan by 2030 (compared to FY2019)” and are taking initiatives toward decarbonization. Our India plant shares approx. 90% of “CO2 emissions from all factories” in our group and we recognize the importance of its urgent reduction. Going forward, we will consider countermeasures to reduce our CO2 emissions and set up targets for the India plant and promote activities targeting decarbonization in the entire group including overseas bases. Our main products, stretch blow molding machines, are facility equipment which consume energy in our customer’s factories for operation, and we consider category 11 of scope 3 is one of the important indicators for our business. As our 1-step machines use a process that retains the preform temperature without being wasted, they have far superior energy efficiency compared to 2-step machines of some competitors. Under the 1.5°C scenario, we recognize that superior environmental performance of our machines would lead to an increase in valuation for our own technologies, i.e., it would assist our business opportunities. Going forward, we will construct evaluation models including category 11 of scope 3, and work on reduction of emissions through business activities and development of products which reduce environmental load.

The increase in CO2 emissions and energy consumption in our India plant in FY2021 is due to an increase in energy consumption from capital investment in machine tools, etc. The period of the fiscal year is as follows.
FY2021： Japan: from Oct. 2021 to Sep. 2022, India: from Jan. 2021 to Dec. 2021