Environment
Approach on Environment
Environmental Principle
Punch Industry is committed to the realization of a sustainable society by taking care of the irreplaceable global environment through all business activities in our group and our supply chain.
Action Guidelines
Environmental issues and other sustainability-related issues are now a challenge that must be addressed by the entire world. We recognize that addressing environmental issues in particular is a serious matter that affects not only the company but also the existence of the entire planet, and will strive to realize our Environmental Principle in accordance with the following action guidelines.
- 1. Establishment of environmental management system
- We will establish an organization and management system to practice environmentally friendly business activities, and continuously maintain and improve it.
- 2. Compliance
- We comply with laws, regulations and ordinances concerning the environment, and strictly adhere to agreements with customers. Furthermore, we will strive to protect the environment by preventing pollution to the greatest extent possible in accordance with voluntary standards we have established.
- 3. Responding to climate change risks
- To reduce the risk of climate change due to global warming, we will strive to reduce greenhouse gas emissions through energy conservation, utilization of renewable energy, etc.
- 4. Reduction of environmental impact
- In order to reduce the environmental impact of our business activities and contribute to the formation of a recycling-oriented society, we will strive to conserve resources, reduce waste, recycle resources, and make effective use of resources.
- 5. Green Procurement
- We engage in "green procurement" practices and maintain strong commitment to eco-friendly product designs and product development (non-use of environmental chemical substances).
- 6. Dissemination and Disclosure
- This environmental guideline is communicated to our group and supply chain to raise environmental awareness and to actively disclose information to our stakeholders.
October 18, 2022 Revised
Consideration for the Global Environment
We are committed to reducing CO2 emissions and waste generation and promoting reuse and recycling in all our business activities, providing environmentally sound products and services, and helping to build a society that values the global environment.
CO2 Reduction Indicators and Targets
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| Indicators (KPIs) | Targets | Actual results |
|---|---|---|
| GHG emissions (Scope 1 and 2) | Non-consolidated basis:30% reduction from fiscal 2018 levels by 2030 Group-wide:carbon neutrality by 2050 *Results in fiscal 2018
Non-consolidated:7,871tCO2e
Group-wide:39,401tCO2e |
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| Indicators (KPIs) | Actual results |
|---|---|
| GHG emissions (Scope 3) |
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*
Scope 3 covers Categories 1 to 7 for non-consolidated basis.
Categories 8, 11, 13, 14, and 15 are excluded because there are no emissions related to Punch group's business activities.
Categories 9, 10, and 12 are not calculated due to the difficulty in collecting the necessary data.
Categories 8, 11, 13, 14, and 15 are excluded because there are no emissions related to Punch group's business activities.
Categories 9, 10, and 12 are not calculated due to the difficulty in collecting the necessary data.
Risks and Opportunities Related to Climate Change
We have identified the risks and opportunities that climate change is expected to pose to the Group's business activities and have assessed their potential financial impact. We will continue to assess and implement measures to mitigate these risks and capitalize on related business opportunities.
Transition risks
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| Category | Risks/opportunities | Impact on business activities | Time frame*1 | Impact assessment*2 |
|---|---|---|---|---|
| Policy & regulatory | Introduction of carbon taxes and emissions trading | Increased costs due to carbon taxes and emissions trading | Short-term | Medium |
| Energy-saving and emissions-related environmental regulations | Operational restrictions due to emission regulations, etc. | Medium-term | Medium | |
| Technology | Decline in competitiveness related to transition to low-carbon products |
Decline in competitiveness of existing technologies and products Increased procurement and development costs for low-carbon materials Failure to procure and develop low-carbon materials Rising prices of low-carbon, high-efficiency machinery |
Short-term | Medium |
| Markets | Customer attrition due to higher product prices associated with rising raw material and production costs | Customer attrition due to higher prices for climate-change-responsive technologies and products | Medium-term | Large |
| Increased costs associated with decarbonizing transportation methods | Customer attrition due to rising fuel prices and increasing transportation costs from the introduction of fuel-efficient vehicles | Medium-term | Medium | |
| Exclusion from supply chains (upstream and downstream) due to delays in climate action | Suspension of transactions due to non-compliance with transaction selection criteria | Short-term | Large | |
| Reputation | Damage to corporate value due to delayed climate action or insufficient information disclosure | Decline in reputation among stakeholders | Short-term | Medium |
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*1Defined as "short-term" if expected to occur within 5 years, "medium-term" if 5 to 10 years, and "long-term" if 10 to 30 years.
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*2"Small" is defined as having an impact of 100 million yen or less on profits, "medium" as having an impact of 100-200 million yen, and "large" as having an impact of 200 million yen or more.
Physical risks
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| Category | Risks/opportunities | Impact on business activities | Time frame*1 | Impact assessment*2 |
|---|---|---|---|---|
| Acute | Impact on company operations (including employee safety) from intensified storms or flood damage | Suspension of business due to damage to production site, Operational disruption due to damage to non-production site | Short-term | Large |
| Impact on supply chains from intensified storms or flood damage | Suspension of production and logistics | Medium-term | Large | |
| Chronic | Relocation and reassessment of bases and supply chains due to rising sea levels | Increased costs associated with reviewing and relocating bases and supply chain | Long-term | Large |
| Increased energy use due to rising temperatures | Increased costs due to higher energy consumption, Increased costs for installing air conditioning systems | Short-term | Small | |
| Impact on employee health due to rising temperatures | Business suspension due to widespread employee illness | Long-term | Medium |
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*1Defined as "short-term" if expected to occur within 5 years, "medium-term" if 5 to 10 years, and "long-term" if 10 to 30 years.
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*2"Small" is defined as having an impact of 100 million yen or less on profits, "medium" as having an impact of 100-200 million yen, and "large" as having an impact of 200 million yen or more.
Opportunities
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| Category | Risks/opportunities | Impact on business activities | Time frame*1 | Impact assessment*2 |
|---|---|---|---|---|
| Resource efficiency | Utilization of subsidies and support policies for renewable and low-emission energy use | Benefits from tax incentives and subsidies | Short-term | Small |
| Reduced operating costs through high-efficiency equipment | Expanded sales opportunities and profits through reduced manufacturing costs | Short-term | Medium | |
| Reduced transportation costs through logistics efficiency and modal shift | Expanded sales opportunities and profits through reduced logistics costs | Medium-term | Medium | |
| Energy sources | Reduced operating costs through use of low-cost energy | Expanded sales opportunities and profits due to lower production costs | Short-term | Small |
| Utilization of subsidies and support policies for low-emission energy use | Benefiting from tax incentives and subsidies | Medium-term | Small | |
| Products/services | Provision of environment- and climate-responsive products and services | Increased demand for products that help customers reduce production processes, energy use, and CO2 emissions | Short-term | Small |
| Capturing demand for components in decarbonization-related products | Increased demand for semiconductors and electronic components due to EV adoption | Short-term | Medium | |
| Markets | New business opportunities through products aligned with the circular economy | Entry into new businesses and markets | Medium-term | Medium |
| Resilience | Differentiation by enhanced resilience of the company and its supply chains | Business continuity through disaster-resilient factories and logistics bases | Medium-term | Large |
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*1Defined as "short-term" if expected to occur within 5 years, "medium-term" if 5 to 10 years, and "long-term" if 10 to 30 years.
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*2"Small" is defined as having an impact of 100 million yen or less on profits, "medium" as having an impact of 100-200 million yen, and "large" as having an impact of 200 million yen or more.
Waste Reduction
| Indicators (KPIs) | Amount of waste generated (kg / thousand yen) |
|---|---|
| Targets | 30% reduction from fiscal 2018 levels by 2030 (non-consolidated basis) |
| Actual results | Fiscal Year 2024: 26.6% reduction from fiscal year 2018, Fiscal Year 2023: 17.5% reduction from fiscal year 2018 |
*
Evaluation indicators, targets, and results are based on the situation on a non-consolidated basis.
Eco-Friendly Mark
Punch Industry has established its own eco-friendly mark as a means of informing customers that products meet the RoHS Directive and other environmental laws and regulations. The mark is used in our product catalogs.
