ESG/CSR
Prevention of global warming
Global Warming
Prevention of global warming
Meiko recognizes the greenhouse gas issue as a major threat to our irreplaceable Earth. In order to strengthen our efforts, we aim to become carbon neutral by 2050 by reducing energy-related CO₂ emissions through energy-saving measures such as improving productivity and upgrading to highly efficient equipment, and we are also promoting the introduction of renewable energy.
Starting in fiscal 2023, we will be introducing solar power generation at our Fukushima Plant, Ishinomaki Plant, and Tendo Plant through self-consumption solar power generation facilities and the PPA (Power Purchase Agreement) method.
We will continue to examine all possibilities, such as energy-saving measures, changing electricity contracts to include energy generation, and utilizing non-fossil fuel certificates, while rolling out similar initiatives at our overseas factories.
Response to TCFD
Governance
To enhance our corporate value from a sustainability perspective, our Group is strengthening our sustainability structure, and Representative Director and President Yuichiro Naya has final responsibility for management decisions regarding sustainability issues. Recognizing that addressing sustainability issues is an important element of our management strategy, our Group formulated the "Basic Sustainability Policy" at the Board of Directors meeting on October 25, 2021. Accordingly, we established the Sustainability Promotion Council, a body directly reporting to the Representative Director and President, chaired by the relevant Director and Executive Officer. It determines sustainability-related policies, manages progress toward goals, and deliberates on measures. Specifically, we work with relevant departments to implement measures to reduce environmental impact, such as addressing climate change, reducing waste, and strengthening human capital. This body will appropriately evaluate and report specific achievements to the Board of Directors and will also publicly disclose the details of our efforts.strategy
In order to correctly recognize the risks and opportunities related to climate change, we evaluate the impact on our business strategies, conduct scenario analysis to utilize this in formulating business strategies, and identify significant business risks and opportunities based on changes in the business environment due to climate change and their impacts, and will proceed with medium- to long-term responses. Specifically, we view risks such as the occurrence of costs associated with carbon offsets, increased costs due to the shift to fossil fuels, increased R&D investment to improve energy-saving performance, and a decline in corporate value and a decrease in orders due to delays in climate change countermeasures as opportunities, and are working to establish new construction methods and technologies that reduce the environmental burden, develop products with low environmental impact, expand EV-compatible products, respond to growth markets, and establish a global procurement network.Risk and opportunity analysis
The TCFD recommendations require companies to explain the feasibility of business continuity in a decarbonized society based on financial information. While transition risks are primarily considered in the 1.5°C scenario, which moves us toward a decarbonized society, physical risks are considered more important in the 4°C scenario, where global warming continues and temperatures rise. However, even if we move toward a decarbonized society like the 1.5°C scenario, it is possible that physical risks at the 4°C scenario level could arise. Therefore, in a business environment that aims for a decarbonized society at the 1.5°C scenario level, we also considered responses to physical risks at the 4°C scenario level.
*Financial impact is assessed on a three-point scale: large, medium, or small, taking into account the magnitude of the impact on related financial indicators. The time frame over which risks and opportunities will materialize is listed on a three-point scale: short-term (less than 3 years), medium-term (3 to 6 years), and long-term (6 years or more).
Risks and opportunities associated with the "transition" to a low-carbon economy
| Types and aspects | Business impact | Manifestation until period |
evaluation | Opportunities and Responses |
|---|---|---|---|---|
| Policy and regulations | 1) Risk of incurring costs associated with CO2 offsets | Mid- to long-term | Large |
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| 2) Waste regulations are being introduced in each country, resulting in compliance costs | short term | Large | ||
| 3) Increased costs due to fossil fuel conversion | Mid- to long-term | Large | ||
| 4) Because the overseas ratio is high, it is due to socialist countries Sudden increase in regulations |
Mid- to long-term | Large | ||
| technology | 1) The need for energy-saving measures is increasing, and competition for energy-saving performance is intensifying. As a result, the burden of Investments costs such as R&D is increasing, and existing products are being replaced with low-carbon technologies. | Mid- to long-term | Large |
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| 2) Intensifying competition to acquire knowledge, technology, engineers, manufacturing facilities, etc. related to decarbonization and low-emission technologies and products | short term | Medium | ||
| market | 1) Shortage of supply of semiconductor substrates due to the increasing electrification and digitalization of automobiles and all other products | Mid- to long-term | Large |
|
| 2) Decrease in orders from existing manufacturers due to market entry by manufacturers from other industries | Mid- to long-term | Large | ||
| 3) Increased costs due to rising prices of environmentally-friendly materials | mid-term | Large | ||
| 4) Decrease in orders (decrease in demand) due to lack of environmental response capabilities | short term | Large | ||
| reputation | 1) Low-carbon and environmentally friendly businesses will become a requirement for Investments | Mid- to long-term | Large |
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| 2) If climate change countermeasures fall behind, the decline in corporate value, the decline in orders, and the impact on management and recruitment will become more serious. | Mid- to long-term | Large |
"Physical" risks and opportunities from climate change
| Types and aspects | Business impact | Manifestation until period |
evaluation | Opportunities and Responses |
|---|---|---|---|---|
| acute | 1) Increased risk of factory shutdowns, asset damage, and employee commute difficulties due to intensifying disasters (increased wind and flood damage) | Mid- to long-term | Small |
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| 2) Supply chain disruptions due to increased wind and flood damage | Mid- to long-term | Large | ||
| Chronic | 3) Increased energy costs and material management costs due to rising temperatures | Mid- to long-term | Large |
The "assessment" evaluates the strategic and financial impact of the Company on two axes: frequency of occurrence (three levels) and importance (five levels), and then classifies the results into five levels. Of the five levels, the highest levels, Class 4 and Class 5, are recognized as significant risks and opportunities and are labeled "large."
| risk | Financial impact (Upper limit) |
Calculation method | countermeasure |
|---|---|---|---|
| Introduction of a carbon tax | 6.5 billion yen | To assess the impact of carbon prices, we calculated the prices in the NZE scenario assumed for Japan, China, and Vietnam based on the IEA WEO2023. CO2 emissions (Scope 1, 2) are based on projected figures for fiscal 2030 (calculated at 145 yen to the dollar as the base for the second half of fiscal 2024). |
We will promote energy-saving measures such as improving productivity and upgrading to high-efficiency equipment to reduce energy consumption, as well as promote the introduction of renewable energy sources, thereby promoting the reduction of CO2 emissions, which are subject to the carbon tax. |
| Flood and typhoon damage | 2.7 billion yen | We have conducted an assessment of nine domestic and overseas production bases based on publicly available hazard information and past local information. As a result of the assessment, we have determined that, although the probability is extremely low, operations at six bases may be affected, and have calculated the impact on profits due to the suspension of operations. | We have already taken preventative measures at each site to address risks, such as raising the floor level and changing the location of equipment. In addition, we have put in place a business continuity plan (BCP) to promote the establishment of a smooth alternative production system in the event of a financial impact, and are taking measures to minimize the financial impact. |
Risk Management
Within the Group, company-wide risk management is carried out by the Risk and Compliance Committee, but the Sustainability Promotion Meeting conducts more detailed discussions and shares information on identifying sustainability-related risks and narrowing down the risks that should be prioritized. Priority risks are narrowed down based on the impact on the Group, the impact of the Group's activities on the environment and society, and the likelihood of occurrence. To address these risks, we have set medium-term targets, as described in "Indicators and Targets," and progress is reported and monitored by the Board of Directors, as well as disclosed on our website.
Indicators and Goals
We aim to reduce domestic CO2 emissions intensity by 50% in fiscal 2030 (compared to fiscal 2021), reduce electricity intensity by 2.5% per year, reduce fuel intensity by 2.0% per year, and achieve carbon neutrality by 2050. We will promote further energy-saving measures and introduce self-consumption solar power generation, with the goal of achieving this. In addition, as 80% of Scope 3 emissions are Category 1, we will promote the collection of primary data from business partners and work to advance decarbonization throughout the entire value chain.
| Environmental Initiatives | Initiatives and goals | Base year | 2024 | Target value | ||
|---|---|---|---|---|---|---|
|
global warming prevent |
・Carbon neutral by 2025 ・Promoting energy conservation (unit consumption: electricity reduced by 2.5%/year, fuel reduced by 2.0%/year) ・Introduction of self-consumption solar power generation Domestic ・Reduce domestic CO2 emissions per unit by 50% in fiscal 2030 (compared to fiscal 2021) |
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| Scope1 | Total amount | 41,171t-CO2 | -13% | - | ||
| Basic unit | 0.27 (/million yen) | -36% | Fiscal 2030 domestic intensity 50% reduction |
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| Scope2 | Total amount | 467,942t-CO2 | -16% | - | ||
| Basic unit | 3.09 (/million yen) | -38% | Fiscal 2030 domestic intensity 50% reduction |
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Water resources Utilization |
- Promote reuse and reduce water usage per unit by 10% in fiscal 2030 (compared to fiscal 2021) | |||||
| Water intake | Total amount | 11,065Mℓ | -3% | - | ||
| Basic unit | 0.073 (/million yen) | -29% | FY2030 intensity 10% reduction |