Background and significance of materiality initiatives
Global initiatives towards decarbonization are accelerating and responding to the sustainability of the global environment has become an urgent task that the world must unite to address. As a Group that operates in 27 countries and regions around the world, we recognize that an inconsistent supply of energy, water, and other natural resources is a risk to our business foundation, and we consider it an extremely important mission to reduce the impact of our business activities on the global environment.
In addition to promoting initiatives to reduce our global environmental impact toward the new environmental targets announced in May 2022 (reduction of CO2 emissions, water consumption, and waste), we will analyze and enhance disclosure of climate change risks and opportunities based on TCFD recommendations, and reflect them in our management strategies to increase our corporate value over the medium and long term.
Sanwa Group’s opportunities to create value and the risks to be addressed
Opportunities
- Reducing costs through such means as energy savings, water conservation, and waste reduction
- Mitigating the impact of a future carbon tax and emissions trading costs
- Improving our reputation by avoiding environmental risks
- Boosting productivity by updating production sites and improving construction methods
Risks
- Rising raw material prices, energy costs, and emissions reduction increasing transition costs
- Eliminating specific materials and products due to tightening standards
- Sullied reliability due to delayed environmental action
- Supply chain disruptions due to extreme weather conditions
- Increased risks of occupational accidents at production and installation sites due to rising surface temperatures
Targets (KPI) /Achievements and progress in fiscal 2022/Future challenges
| ESG Materiality | Targets (KPI) | Achievements and progress in fiscal 2022 | Future challenges |
|---|---|---|---|
| Initiatives for a decarbonized society | Reduction of CO2 emissions (Scope 1+2): Reduced by 10% compared to FY2019(FY2024) Reduced by 30% compared to FY2019(FY2030) |
Reduce by 6.6% compared to FY2019 |
|
| Water resources conservation | Reduction of water usage intensity (at factories and offices): Reduce by 10% compared to FY2020 (FY2030) |
Reduce by 6.3% compared to FY2020 |
|
| Waste Reduction | Reduction of waste intensity (at factories and offices): Reduce by 10% compared to FY2020 (FY2030) |
Reduce by 26.1% compared to FY2020 |
|