Value Creation Story

Environmental Activities

Business Overview

ESG Activities

Establishment of Environmental Management System

The KOITO Group declares in the KOITO Group Corporate Behavior Charter, our basic policy of the corporate activities, that
“guided by the theme of ʼEco-friendly Manufacturing for People and the Earth,ʼ we will proactively engage in global
environment conservation through our business activities.”
Based on this policy, KOITO has established an Environmental Policy that sets out the framework for its environmental
activities and implements that policy in the environmental management of all ﬁelds: development, design, production,
procurement, logistics and others.
Moreover, our domestic and overseas subsidiaries also have established “Environmental Policy” as well as built
environmental management systems. We are promoting environmental conservation activities throughout the KOITO Group.

The KOITO Group is building the environmental management system for the entire Group. We are aggressively acquiring
ISO 14001 and other environmental certiﬁcates primarily at our manufacturing sites. As of the end of March 2022, a totalof 24 companies out of 25 eligible for certiﬁcation have acquired environmental certiﬁcates: 12 in Japan, including KOITO
MANUFACTURING, and 12 overseas. The KOITO Group also recommends major suppliers to acquire certiﬁcates, such as
ISO 14001 and Eco-Action 21, in order to reinforce environmental management and conservation throughout the entire
supply chain.
■KOITOʼs ISO 14001 certiﬁcation in
production sites
Site
Shizuoka Plant

Environmental Policy

Koito Parts Center
Haibara Plant

KOITO MANUFACTURING CO., LTD. pursues “Eco-friendly Manufacturing for People and the Earth” in all businessactivities centered on automotive lighting by promoting environmental conservation activities;
１. To clarify our targets and measures for environmental conservation and continuously work to improve the
KOITO Groupʼs environmental performance,
2. To formulate and promote environmental improvement plans by considering environmental issues in advance inaddition to complying with environmental laws and regulations,
3. To strive to develop and establish new environmentally friendly technologies and products throughout the product life cycle,
4. To minimize the environmental impact and use of resources and energy in the manufacturing process, promote
environmental protection activities and prevent environmental problems from occurring,
5. To actively promote human resources development to achieve our environmental targets.

Sagara Plant

Year-month of
The latest
initial registration renewal dates■Environmental certiﬁcation acquired in the KOITO Group
Domestic subsidiaries

January 2000
January 2021

July 2000

ISO14001

Fujikawa Tooling Plant January 2003
Scope of Environmental Management:
KOITOʼs environmental management is applied tothe above ﬁve sites with respect to businessactivities related to the R&D, design, production,
logistics, etc. of automotive lighting equipment,
aircraft components and others. In addition,
environmental impact arising from the productlife cycle are also applied to the management.

Overseas subsidiaries
KOITO KYUSHU

North American Lighting (U.S.A.)

AoitecNorth American Lighting Mexico (Mexico)

Shizuokadenso

NAL do Brasil (Brazil)

Nissei Industries

Koito Europe (U.K.)

Fujieda Auto Lighting

Koito Czech (Czech Republic)

Shizuoka Wire Harness
KOITO ELECTRIC INDUSTRIES

Eco-Action 21
Green Management Certiﬁcate

ISO14001

FUZHOU KOITO TAYIH (China)

Shizuoka Kanagata

THAI KOITO (Thailand)

Takeda Suntech

INDONESIA KOITO (Indonesia)

Koito Transport

Ta Yih Industrial (Taiwan)
INDIA JAPAN LIGHTING (India)

Environmental Targets and Performance

Environmental
objectives

Priority efforts and performance in FY 2022
TargetResultReduction of CO 2 fromproduction

Amount of CO 2 emissions: 16%
reduction from FY 2014
(amount of CO 2 emissions
61,900 t-CO 2)

Amount of CO 2 emissions: 23%
reduction from FY 2014
(amount of CO 2 emissions
56,700 t-CO 2)

Reduction of CO 2 fromlogistics

Energy usage per unit:
1% reduction per year

2% increase from FY 2021

Waste generated per unit:
3% reduction from FY 201913% reduction from FY 2019

Development ofrecycle-oriented
society

Reduction of theamount of waste

Reduction of water
consumption

Water usage per unit:
3% reduction from FY 20199% reduction from FY 2019

Reduction ofenvironmental Reduction of VOCemissions
impactsubstances

VOC emissions:Less than the amount in
FY 2019 (299 t)
Target for FY 2022: 247 tonsor less

Measures to alleviate
climate change

Priority

Resource and water
circulation

KOITO convenes the monthly Safe and Environmental Committee chaired by the Representative Director to supervise
environmental activities of the entire Group and to discuss and make decisions on important environmental issues andenvironmental conservation measures to be implemented under environmental laws and regulations.
Subcommittees and working groups, such as the Energy and CO2 Reduction Subcommittee, Environmental Impact Substance
Reduction Working Group, and Recycle Promotion Working Group, which were established to address speciﬁc environmental issues,
are implementing speciﬁc activities.
These activities are reported to the Safe and Environmental Committee, which follows up on progress and discussing various actions.

Contribution
to low-carbon
society

Safe and Environmental Committee
Oversees environmental-related committees and decides the direction on measures regarding signiﬁcant environmental issues

Energy and CO2 Reduction Subcommittee
Environmental Impact Substance Reduction Working Group
Recycle Promotion Working Group
Plant Emissions Reduction Working Group
Water Conservation Subcommittee
Environmental Conservation Committee at each plant

38

KOITO INTEGRATED REPORT 2022

(Secretariat) Safety andEnvironment Department and
CN Promotion Group,
Production Control Department

Enrichment of environmental management

The Board of Directors

Determines, discusses, and implements
Streamlines and improves environmental
environmental conservation countermeasuresmanagement and audit systems
based on environmental laws and regulations

Hubei Koito (China)

Haibara Machine and Tools

Management andreduction ofchemical substances

Management Structure for Environmental Activities

Environmental Audit
Committee

GUANGZHOU KOITO (China)

To implement “Eco-friendly Manufacturing for People and the Earth” and promote environmental conservation activities
effectively, KOITO has set quantitative medium-term targets and short-term targets every year for various indicators. The
progress of activities is managed and the degree of achievement of targets is evaluated by the Safe and Environmental
Committee and other bodies.

Environmental Management

Environmental Conservation
Committee

Corporate Information

Promotion of thereinforcement ofconsolidated
environment activities

Reinforcement of environmental
risk management
Thorough environment
compliance

Promotion ofenvironmental efforts
collaborating with
suppliers

Promotion of aggressive
environmental activities,
improvement of environmental
performance

Identiﬁcation of potential environmental
risks and reinforcement of preventive
measures (Identiﬁcation of and responseto near miss incidents)
Conﬁrmation of management
status and promotion of
improvement through information
sharing and on-site inspections

Global disclosure ofenvironmental information
Promotion of mutual understanding
with local communities

Disclosure of consolidated
information Hosting round-tablesession with local communities

Promoting compliance,
employee education andawareness-raising activities

Reevaluation of education structure
for manager, supervisor and newly
hired employees Implementing
training for contractors working in
the premises

Reinforcementof global
Disclosure of environmental
environmental information and enhancement
activities
of communication
Reinforcement ofenvironmental education
Developmentof society inharmony
with nature

192 tons(36% reduction from FY 2019)

Promotion of activities at
Promotion of biodiversity
individual ofﬁces and regions,and nature conservation
and biodiversity conservation
activities
activities

Cooperation with local organizations
and participation in activities with them
Reinforcement of activities to prevent global
warming and effectively use resources

Main approaches from FY 2022
①Reduction of energy use and CO 2
emissions in production･Amount of CO 2 emissions in FY 2031: 50%
reduction from FY 2014
･Achieve carbon neutrality by FY 2051
②Reduction of energy use and CO 2
emissions in logistics･Energy usage per unit: 1% reduction per year
③Reduction of environmental impact substances in
the product life cycle①Development of recycle-oriented society･Reduction of amount of waste and effective
utilization of resources in production
Waste generated per unit in FY 2026:
7% reduction from FY 2019
②Minimization of water impact･Reduction of water consumption
Water usage per unit in FY 2026:
7% reduction from FY 2019
･Improvement of wastewater quality management①Reduction of environmental impact
substances in production･Amount of VOC emissions: Maintain theamount below FY 2019 (299 tons)②Thorough management of environmental
impact substances in products①Reinforcement of the worldwide
environmental management･Promotion of the reinforcement ofconsolidated management･Promotion of environmental activities
with business partners (suppliers)･Proactive disclosure of environmental
information and enrichment ofcommunication･Reinforcement of environmental education②Development of society in harmony withnature･Promotion of biodiversity and nature
conservation activities

KOITO INTEGRATED REPORT 2022 39

Value Creation Story

ESG Activities

Corporate Information

Material Balance

Environmental Education

Energy and resource inputs and emissions (outputs) of greenhouse gas (GHG) and environmental impact substancessuch as VOC (Volatile Organic Compounds) in KOITOʼs business activities are as follows.
KOITO keeps track of the material balance in its business activities to verify and evaluate activities to reduce theenvironmental load and to use the data for the establishment of future measures.

KOITO has established an education system and periodically provides environmental education to promote training forhuman resources to achieve our environmental targets as stated in the Environmental Policy and help every employee gaina deep understanding of the environment.
In addition to education for speciﬁc job ranks, such as new employees, managers and supervisors, KOITO provides special
education for internal auditors and promote our employeesʼ acquisition of ofﬁcial licenses and qualiﬁcations. Moreover,June and July of every year are designated as KOITO Environmental Months during which employees participate in local
clean-up activities and implement intensive environmental inspection to enhance the awareness of every employee.
KOITO also provides education on preventing contamination and spillage to workers on the premises of KOITO, such as
contractors, to enhance their awareness and prevent environmental accidents.

Results (FY 2022)

Inputs

Outputs

Raw materials

Products･Electricity:
107,732,000 kWh･Utility gas:
1,902,000 m3･LPG: 2,897 tons
･Heavy oil: 0 kl

Parts modiﬁcation(resin molding, coating
and deposition)

Assembly

Emissions into theatmosphere･CO2: 56,700 tons
･Chemical substances that
require notiﬁcation under the
PRTR Act: 69.9 tons

■ Safety and environmental education for the work conducted within
the premises (2021)･VOC (Volatile Organic Compounds):
192 tons

Efforts throughout Supply Chain

Emissions into waters
Product packaging
Recycling

再原料化･Resin materials: 359 tons
樹脂材：457 t

Water･Municipal water:
182,000 tons
･Industrial water:
472,000 tons

･Wastewater: 142,000 tons
(discharged amount into
the sewer and wastewater
treatment facilities)

Emissions･Thermal use and recycling
in outside the company:
4,935 tons(including waste: 2,297 tons)･PRTR Act chemical substances:
5.9 tons*PRTR Act: Act to promote identiﬁcation and management of speciﬁc
chemical substancesʼ released amount to the exterior environment.

Environmental Audits
KOITO conducts annual external environmental audits and internal environmental audits to check the operational statusof the environmental management system. Improvement proposals are prepared and implemented to respond to the
aspects identiﬁed through those audits to maintain and operate the proper management system.

●External Environmental Audits
A registered external accreditation ﬁrm checks whether the environmental management system has been properly established andoperated based on ISO 14001.

●Internal Environmental Audits
To ensure the independence of internal environmental audits, an audit team composed of internal auditors other than thedepartment being audited is organized, and audits are conducted based on ISO 14001. The internal auditors are also
conducting audits at their departments for continuous improvements and enhance environmental awareness.

KOITO INTEGRATED REPORT 2022

KOITO is committed to promote measures to reduce
environmental load based on the comprehensive perspectiveof the product life cycle to coexist with global environment
and local communities and to engage in environmental
activities through all business activities, including green
procurement of raw materials, parts and equipments.
Aiming to materialize a sustainable society, KOITO is
working to strengthen supply chain management. We holdannual procurement policy brieﬁng session and monthly
information liaison meetings for suppliers to encouragethem to acquire environmental certiﬁcations, such as ISO
14001 and Eco-Action 21, and request compliance withenvironmental laws and regulations on environmentallyhazardous substances.
In FY 2022, KOITO held a supplier meeting on May 17,
2021 and 204 suppliers attended it.

■ Education for internal environmental auditors (2019)■ Procurement policy brieﬁng session (2019)

Compliance with Environmental Laws and Regulations
KOITO conducts thorough risk management, suchas specifying the sources of environmental risks,
detecting abnormalities in the early stages throughregular measurements, and establishing emergency
response measures to minimize environmental risks
by complying with environmental laws andregulations, such as ones to prevent air pollution,water contamination and soil contamination.
Through these risk management activities,
KOITO makes sure that emissions, water quality,
noise, soil and groundwater contamination arewithin the ranges permitted under laws, regulations
and standards. In FY 2022, neither violations ofenvironmental laws and regulations nor ﬁnes werereported at the KOITO Group.
The KOITO Group is committed to compliancewith environmental laws and regulations, andcontinue to work on environmental risk
management.

■Environmental risk management to comply with environmental laws and regulations
Risk management

Risk avoidance and removal

EnergyManufacturing

Prevention of
expanding risks･Resin materials:
43,807 tons
･Organic solvent andpaints: 747 tons
･PRTR Act* chemical
substances: 244 tons

40

Business Overview

Prevention ofenvironmental
pollution

Early
detection ofabnormality

Emergency
response

Procedures
Identiﬁcation ofsources・Identiﬁcation of facilities and equipment
which may cause environmental pollution
in case of malfunction

Source management

・Scheduled inspection and repairing risk
identiﬁed facilities or equipment
・Elimination of environmental near missincidents and prevention of recurrence

Settingself-management
standards

・Setting self-management standards thatare stricter than legal regulations

Daily inspection(monitoring andmeasurement)

・Management within the self-management
standards (implement preventive measures
before the standards exceed legal regulations)

Setting emergency
response procedures・Setting the abnormality handling procedures・Setting procedures to notify nearby residents
and public agencies

Implementation oftraining to handle
abnormality

・Implementation of periodic training

KOITO INTEGRATED REPORT 2022 41

Value Creation Story

Business Overview

ESG Activities

Corporate Information

Reduction of Greenhouse Gas Emissions
In order to contribute to materialize a decarbonized society, KOITO is promoting the introduction of plant buildings andenergy-saving manufacturing facilities that emit less CO2 with the goal of achieving carbon neutrality in FY 2051.
Furthermore, we are working company-wide to reduce CO2 emissions throughout the product life cycle, promoting
productsʼ power conservation, size reduction and weight reduction from the development and design phase.

Efforts in the Production Process
To improve energy and production efﬁciency in the
production process, KOITO is reducing CO2 emissions
by improving work methods and updating facilities,
such as updating to higher-efﬁciency transformers andair conditioners, installing energy-efﬁcient facilities,
automatic power shutdown systems to kick in whenfacilities are not in use, and optimizing productionlines.
We are promoting several activities with the goal of
reducing CO2 emissions by 50% from FY 2014 by FY
2031 and achieving carbon neutrality by FY 2051.
Factories in Japan were streamlined by integratingproduction lines and conducting improvement workthat resulted in improved productivity and energy
efﬁciency. With this effort, the amount of KOITOʼs CO2
emissions in FY 2022 was 56.7 thousand tons, 23%
decrease from FY 2014.

Environmental Activities in Overseas Subsidiaries●Reducing CO2 Emissions by Introducing Renewable Energy / India Japan Lighting Private Limited (IJL/India)
IJL reduced annual CO 2 emissions by 13% through installing solar panels at the Bawal Plant and purchasing
renewable energy, including wind and solar power, at the Chennai Plant.

■Amount of CO2 emissions*
Amount of emissions(thousand tons of CO 2)
80

73.8

72.7

70.8

69.0
59.8

60

56.7

40

36.9

Wind power■ Solar panels at Bawal Plant

20
0

2014

2018

2019

2020

2021

2022

2031 (FY)(Target)Solar power

Chennai Plant■ Purchasing renewable energy at Chennai Plant●Reducing Electricity Consumption by Using LEDs / THAI KOITO COMPANY LIMITED (THAI KOITO/Thailand)*The amount of CO2 emissions are calculated by using CO2 emission factor of each electric powercompany for electricity, and using the factors based on the Act on Rationalizing Energy Use andthe Act on Promotion of Global Warming Countermeasures for city gas, LPG and heavy oil.

THAI KOITO has promoted the use of LEDs instead of metal halide lamps, which were conventionally used for on-site
passageway lighting. As a result, they have achieved to reduce annual electric power consumption of on-site passageway
lighting by 66%.

■Amount of CO2 emissions and energy usage per unit in logistics■ Plant lighting

Please refer to the Growth Strategies from P.20 toP.21 of this report.

Efforts in Logistics
The logistics of KOITO are mainly conducted by freighttrucks. A domestic subsidiary, Koito Transport, ismainly carrying out the logistics operations.
Koito Transport acquired the Green Business
Certiﬁcate in February 2004. Collaborating with
KOITO, Koito Transport aims to operateenvironmentally friendly transport business by
reducing environmental impacts focusing on reducing
the energy consumption of freight trucks, CO2
emissions, and waste emitted through the logistics
process.
In FY 2022, the amount of CO2 emissions from theentire logistics operation of KOITO was 12,300 tons
and energy per unit* was 0.157 kl per billion yen.

Amount of emissions(thousand tons of CO 2)

Amount of CO 2 emissions
Energy usage per unit*

Emissions intensity(kl per billion yen)

20

15

0.2
0.148

0.144

0.148

13.4

13.9

14.0

10

0.154

12.8

0.157

12.3

■ Metal halide lamp

●Reducing Water and Gas Consumption through Intermittent Operation of Boiler Facilities /North American Lighting Mexico (NAL Mexico/Mexico)
The four boilers at NAL Mexicoʼs production plants were operated in a manner that shifts to high combustion conditions
at high loads and to low combustion conditions at low loads, and was resulted in energy loss.

0.146

With the aim of reducing energy consumption, NAL Mexico switched the operation to intermittent operation control,in which the boiler can automatically stops according to the operating rate. They have achieved reducing annual water
0.1

consumption by 8% and annual gas consumption by 18%.
■Boiler system diagram

5■Boiler operation status (before improvement)

2018

2019

2020

2021

2022

0

2026
(FY)
(Target)No.1*Energy usage per unit: Amount of energy (kl in crude oil equivalent) consumed in logistics per unit in sales (billion yen).

No.2
Plant

No.3

No.4
Boiler room

42

KOITO INTEGRATED REPORT 2022

Operating ratio 20%

Operating ratio 40%

No.1

Low combustion

High combustion High combustion High combustion High combustion

No.2

Low combustion

Low combustion

High combustion High combustion High combustion

No.3

Low combustion

Low combustion

Low combustion

High combustion High combustion

No.4

Low combustion

Low combustion

Low combustion

Low combustion

Boiler0■ LED lighting■Boiler operation status(after improvement)

Operating ratio 60%

Operating ratio 80%

Operating ratio 100%

High combustion

After introducing a control systemthat can automatically stops the boiler

Operating ratio 20%

Operating ratio 40%

Operating ratio 60%

Operating ratio 80%

Operating ratio 100%No.1

Low combustion

Low combustion

High combustion High combustion High combustion

No.2

Non-operation

Low combustion

Low combustion

High combustion High combustion

No.3

Non-operation

Non-operation

Low combustion

Low combustion

High combustion

No.4

Non-operation

Non-operation

Non-operation

Non-operation

Low combustion

KOITO INTEGRATED REPORT 2022 43

Value Creation Story

Business Overview

ESG Activities

Corporate Information

Reduction of Environmental Impact Substances

Resource Conservation and Recycling

To reduce environmental impact substances and waste, KOITO commits in its Environmental Policy to strive to “develop
and establish new environmentally friendly technologies and products throughout the product life cycle” and “minimize
the environmental impact and use of resources and energy in the manufacturing process,” and promoting relevant
activities.
KOITO has set quantitative reduction targets for VOC emissions in the midterm priority activities. Activities are being
implemented to reduce emissions while checking progress.
We will continue to actively engage in reducing environmental impact substances by promoting “Eco-friendly
Manufacturing for People and the Earth.”Throughout our product life cycle, KOITO is actively working to effectively use raw materials, energy and otherresources, and to reduce water consumption and waste.
The KOITO Group will continue to actively promote “Eco-friendly Manufacturing for People and the Earth,” and strives
to materialize a recycle-oriented society.

Effective Use of Water Resources

Efforts in Production Processes
Some raw materials, such as paints and chemicals, as well as secondary materials used in the production processes,
contain chemical substances that have negative environmental impacts. KOITO is reducing these environmental impact
substances by reinforcing the management of the amount to use and emit, improving consumption efﬁciency, and using
alternative substances.

●Management of Chemical Substances Regulated
under the PRTR Act■Amount of released and transferred chemical substances
regulated under the PRTR Act in FY 2022

KOITO is keeping track of the amount of chemical
substances regulated under the PRTR Act handled ortransferred in the production processes while managing
them appropriately as well as reducing the amount to use
and replacing them with alternative substances.
In FY 2022, KOITO have handled six substances subject
to PRTR Act (Class 1 designated chemical substances),
including toluene and styrene. The amount of thesesubstances handled was 244.0 tons, and the amount of
atmospheric emissions and transfers as waste was 75.8
tons.

Amount of
atmosphericemissions

69.9
tons

Amount transferred
as wasteAmount handled

244.0 tons

5.9 tons

Discharge
into waters

0 tons■Amount of water consumption and water usage per unit
Amount of water
consumption(thousand tons)

Amount of water consumption

Usage per unit

Recognizing the importance of water resources in(tons per million yen)
Water usage per unit
production activities and the risks that future economic
878
900
5.0
837
growth, population growth, and climate change would have780
800
effect on water resources, KOITO has identiﬁed
4.0
672
700
654
4.12
“conservation of water resources” as one of our materiality.
3.76
600
3.58
3.41
KOITO is working on the effective use of water resources and
3.0
3.26
500
protecting water quality.
400
2.0
We have set our target for water consumption per unit of300
production*, to reduce 7% from the amount in FY 2019 (3.51200
1.0
tons per million yen) by FY 2026, and we are promoting
100
activities aimed at further reductions.
0
0.0
2018
2019
2020
2021
2022
We have worked to enhance the awareness of employees(FY)
toward water conservation and improving the efﬁciency ofwater consumption in the production processes. As a result,■Amount of wastewater and wastewater per unit
the water usage per unit in FY 2022 was 9% lower and theAmount of
Wastewater per unit
wastewateramount of water consumption was 22% lower than FY 2019.
Amount of wastewater(tons per million yen)
KOITO is also conducting water quality monitoring on the (thousand tons)
Wastewater per unit
250
2.0wastewater discharged from production sites to prevent
221
207
water pollution in rivers or other bodies of water into which
200
200
production sites wastewater is discharged.
1.5
163●Reduction of VOC (Volatile Organic Compounds)■Amount of VOC emissions and VOC emissions per unit

As a target for FY 2026, KOITO is working to maintain
Amount of
VOC emissions below 299 tons, the amount in FY 2019, a emissions (tons)
400
base year, and to further reduce emissions per unit*1.
In FY 2022, VOC emissions were reduced by 36%
307
compared to FY 2019. In addition, we have achieved 13%
300
reduction in emissions per unit compared to FY 2019.
13.6
In addition, KOITO has not used the three major
200
hazardous air pollutants*2 since we had eliminated its use
in March 2003.

Amount of emissions
Emissions per unit

299
13.9

272
12.8

Emissions per unit
(kg per million yen)
20

*Water usage per unit: The amount of water consumption (tons) per production
output (million yen)

100

220

12.1
192

10

2022

(FY)

0.97

1.00

1.0
0.92

0.79

0.75

2021

2022

50
0

12.9

142

150

2018

2019

2020

0.5

0.0

(FY)

100
*1 VOC emissions per unit: The amount of VOC emissions (kg) per production
in monetary amount (million yen)
*2 Hazardous air pollutants: Dichloromethane, trichloroethylene andtetrachloroethylene

44

KOITO INTEGRATED REPORT 2022

0

2018

2019

2020

2021

0

KOITO INTEGRATED REPORT 2022 45

Value Creation Story

Efforts in Reducing Wastes and Recycling
KOITO is working on efﬁcient recycling of materials (including waste, valuable materials and recycled materials)
discharged from all plants. After achieving zero-waste* in all plants in 2002, KOITO has been promoting waste reduction
by setting the waste generated per unit as an index for recycling, mainly of plastics, and for efﬁcient use of resources in
production.
*Zero-waste: A situation in which no waste is directly disposed of as landﬁll within the waste discharged by the plant.

●Efforts to Reduce the Amount of Waste from
Production Sites and the Waste Generated per Unit
KOITO generated 5,293 tons of waste from plants in FY
2022, among which 2,297 tons were processed aswaste*1.
KOITO is promoting activities with the aim of further
reducing waste per unit*2 by 7% from the unit in FY 2019(0.128 tons per billion yen), a base year, as a target by FY
2026.
The waste generated per unit (the amount of waste per
production output) was 0.120 tons per billion yen in FY
2022, which was 34% lower than FY 2019 due to thecontinuous efforts to reduce the loss of defective resins.
*1 Waste: Generated material that requires processing costs, and theprocessing is outsourced to disposal businesses contractors*2 Waste generated per unit: The amount of waste (tons) per production
output (million yen)■Amount of emissions and waste (per unit)
from production sites
Amount of emissions
and waste (tons)
8,000
6,000
4,000

7.314
6,934
0.138

2,949

Waste generated per unit
(tons per billion yen)Amount of emissions
Amount of waste
Waste generated per unit
6,946
0.137

3,055

0.2

2019

0.133
2,909

5,544
0.117

KOITO is working to improve the recycling rate
(reduction of heat-utilizing waste, etc.). In FY 2022, theamount recycled was 4,985 tons, maintaining a recycling
rate of over 90%.

Amid the increasingly severe impacts of climate change around the world, the Financial Stability Board established TCFD in
December 2015 in response to a request from the G20.In June 2017, TCFD issued TCFD Recommendations, which requirecompanies and others to disclose information on the risks and opportunities that climate change may have on their company
based on four themes.
In December 2021, KOITO has signed up to support the TCFD and isactively promoting activities to reduce CO 2 emissions and disclose
related information in order to materialize carbon neutrality in FY 2051.
We will continue to analyze the risks and opportunities that climatechange may pose to us and identify their impacts, and will work tofurther enhance information disclosures.
■Items Recommended for Disclosure by TCFD and KOITOʼs Compliance

5,293
0.120
0.1

2,407

Recommended Disclosures
Governance

2,297

2020

2021

2022

0

(FY)

■Amount of waste discharged at plants (FY 2022)●Promotion of recyclingb)Managementʼs role in assessing and managing
climate-related risks and opportunities

Recycling(material recycling)
4,626 tons
Heat utilization(thermal recycling)
309 tons

External Evaluation on Our Environmental Activities
KOITO evaluates its own initiatives by identifying key domestic and overseas external indicators and evaluations, andanalyzing the results. We are actively disclosing information by responding to external evaluations, including ESG(Environmental, Social and Governance) rating agencies.
In January 2022, the CDP Climate Change Report 2021, a survey of global companies on
their strategies for climate change and speciﬁc greenhouse gas emissions, was publishedby the U.K. nonproﬁt organization CDP (formerly known as the Carbon Disclosure
Project).
KOITO received a “B-(Management)” rating in recognition of its efforts to address
climate change, such as reducing CO2 emissions and setting medium- to long-term targets,
as well as its disclosures.

The KOITO Group identiﬁes materiality including “prevention of global warming”
through discussions at the Board of Directors and promotes business activities that
contribute to materialize a sustainable society.
KOITO convenes the monthly Safe and Environmental Committee chaired by the
Representative Director to supervise environmental activities of the entire Groupand to discuss and make decisions on important environmental issues andenvironmental conservation measures to be implemented under environmental
laws and regulations. Subcommittees and working groups, such as the Energy and
CO 2 Reduction Subcommittee, Environmental Impact Substance Reduction
Working Group, and Recycle Promotion Working Group, which were established toaddress speciﬁc environmental issues, are implementing speciﬁc activities.
These activities are reported to the Safe and Environmental Committee, which
follows up on progress and discussing various actions.

a)The climate-related risks and opportunities theorganization has identiﬁed over the short,medium, and long termb)The impact of climate-related risks andopportunities on the organizationʼs businesses,
strategy, and ﬁnancial planningWe will analyze and disclose the risks and opportunities that climate change may
have on KOITO in the future based on climate-related scenarios and other factors.

c)The resilience of the organizationʼs strategy, taking
into consideration different climate-related
scenarios, including a 2 C or lower scenario

Risk Managementa)The organizationʼs processes for identifying andassessing climate-related risksb)The organizationʼs processes for managing
climate-related risksc)How processes for identifying, assessing, andmanaging climate-related risks are integrated into
the organizationʼs overall risk management

Metrics and Targetsa)The metrics used by the organization to assessclimate-related risks and opportunities in line with
its strategy and risk management processb)Scope 1, Scope 2, and, if appropriate, Scope 3
greenhouse gas (GHG) emissions, and the related risksc)The targets used by the organization to manage
climate-related risks and opportunities andperformance against targets

KOITO INTEGRATED REPORT 2022

Compliance

Strateg yIn-house recycling(material recycling)
359 tons
Waste from outside
the company

46

Corporate Information

Disclosures According to the Recommendations of the Task Forceon Climate-related Financial Disclosures (TCFD)a)The boardʼs oversight of climate-related risks andopportunities
2018

ESG Activities

6,651

2,000
0

Business Overview

Departments are assigned to risk management, including the implementation of
measures to reduce and avoid risks and daily management. The Quality Assurance
Department is assigned risks associated with the safety of products, theProcurement Headquarters handles risks in the supply chain, and the Safety
Environment Department handles risks of natural disasters. As such, eachdepartment assess relevant risks and implement preventive measures. Ofﬁcers ofassigned responsible departments act as the general managers. In addition, training
on individual risks is provided to employees.
If risks become actual problems, the basic protocol is to report the incidents to
the Board of Directors, the highest decision-making entity of the businessadministration, and such problems are swiftly and properly handled under the
direction of the top administrators.
【Target for FY 2031】･CO 2 emissions (Scope 1+2): 36,900 tons (50% decrease from FY 2014)【Monitoring metrics】･Scope 1 (direct) and Scope 2 (indirect) CO 2 emissions【Result for FY 2022】･Scope 1 CO 2 emissions: 12,900 tons
･Scope 2 CO 2 emissions: 43,700 tons
We are currently in the process of calculating Scope 3 CO 2 emissions.

KOITO INTEGRATED REPORT 2022 47