Data

ESG Goals

ESG Goals (Fiscal 2023-2026)
We integrated the past medium-term ESG plan and the medium-term management plan in fiscal 2023 and set the important
themes to work on from the perspective of ESG and goal values as the ESG goals.

Results of the Medium-Term ESG Plan (Fiscal 2020-2022)
Field

Theme
Greenhouse gas emissions
reduction*150%
Maintained the target level through the stable operation of
biomass boilers◦Environment

Serious product accidents: 0
Product safety and quality improvement education
execution rate: 100%
Product audit implementation cover rate: 100%Rate of acquisition of the agreement on the CSR
procurement standards at home and abroad: 100%
Serious violations of the Anti-Monopoly Act andSubcontract Act: 0One case respectively in FY 2020 and FY 2021, and 0cases in FY 2022
100％
100％
Japan: 98% Progressed in the suppliers of the newconsolidated subsidiaries
Global: Preparations for the trial survey to suppliers completed
0 (continued)

Greenhouse gas emissions reduction

××

◦×

◦◦
×
◦
◦
×

Amount of carbon storage by the wood industrial materials business(MDF and insulation board)

1,100,000 t-CO2/yearProcure wood in a biodiversity friendly way

Lauan usage rate in flooring substrates

50% reduction(Compared to fiscal 2022)

Appropriate management and reduction ofchemical substances

Release/transfer amount of the substances subject to the PRTR law

70% reduction(Compared to fiscal 2022)

Promotion of effective use of water resources

Water resource input (Group production bases in Japan andoverseas)

4% reduction(Compared to fiscal 2022)

Reduction of the use of plastics derived fromfossil fuels

Reduction of the use of plastic containers and packaging

4% reduction(Compared to fiscal 2022)

Strengthen environmental risk management

Number of environmental accidents and violations at home andabroad (Those with administrative guidance and penal charge)

0Enhancement of the quality control structure

Number of accidents caused by design in the new product developed
Manufacturing and product audit implementation cover rate
Product safety and quality improvement education execution rate

0100％
100％

Promotion of CSR procurement

The rate of the CSR survey implementation in Japan and overseas

100％

Ensuring fair competition and transactions

Serious violations of the Anti-Monopoly Act and Subcontract Act
Planning and holding of the enlightenment activities by division andjob type

020 times/year

Total diversity index 3rd Stage*23％
70％
60pt

96％

▲

Reinforcing human resources development

100％◦Job separation rate within three years
Young employees’ career plan training attendance rate
Attendance rate for the prioritized market enhancement program
Management skill training attendance rate

Within 15%
100％
50％
80％

Enhancement of the occupational safety andhealth

Serious disaster
Plant mutual safety diagnosis execution rate

0100％

Human rights promotion activities

Human rights enlightenment training attendance rateSupervisor harassment training attendance rate

100％
100％

Social contribution activities by cooperatingwith local communities

Holding of the event planned by cooperating with local communities(Each group production bases)

1 times/yearG

Enhancement of the governance system

Female executive ratio (Director)
Degree of penetration of the group corporate philosophy*4

10% or more
60 pt or more

Improvement of a dialog with stakeholders

Establishment of the index for the engagement with customers andbusiness partners and the method, and setting of the goal

Implementation in fiscal
2023

Number of sessions on our IR site

200% (As compared tofiscal 2022)

Serious compliance violations
Compliance consciousness degree*50+5 pt (As compared tofiscal 2022)

0 (continued)
Although diagnosis by visiting the plants was suspended,online information sharing by the safety supervisor wasenhanced

A total of 62 events held in 18 bases among 20 bases athome and abroad▲

Group corporate philosophy penetration program80％
Enhancement of the governance execution rate: 100%
Newly established and operating the collection of cases of*4*1
Degree of penetration of the group corporate philosophy : practicing philosophy and the good case awards programsystem+10 pt (As compared to fiscal 2018)+5 pt (As compared to fiscal 2018)
System BCP 3-year proactive measure completion rate：
100%
100%
Promotion of risk management Procurement BCP 3-year proactive measure completion Grasping and evaluation of risks completed, andresponses have been continuing
rate：100%▲

Serious compliance violations: 00 (continued)
Compliance consciousness degree*5: +5 pt (As compared+3.1 pt (As compared to fiscal 2020)
to fiscal 2020)

×◦

◦
×

*1: Set as the non-financial management goals in the medium-term management plan
*2: Our own indices in which diversity-related items, such as the female manager ratio, were indexed. Total Diversity Index 3rd Stage is used in and after fiscal 2023 and items related to the method of calculation are reviewed
and reset*3: Our own index based on the survey using the employees’ sense of satisfaction and pleasant workplaces as evaluation axes
*4: Our own indices in which employees’ understanding, sharing, and practice of the group corporate philosophy were indexed*5: Own indices to measure employees’ compliance consciousness degree from the perspectives of legal compliance, a sense of ethics, structure, and corporate culture

Strict compliance

DataGovernanceTotal work time reduction rate
Rate of taking annual paid leave
Employee satisfaction*3×◦▲

S
SocialSocialPromotion of workstyle reform

Job separation rate within three years: Within 15%
15.4％
Young employees’ career plan training attendance rate: 100% 100％
Attendance rate for the prioritized market enhancement
42％
program: 50%
Management staff training program attendance rate: 70% 55.8％

Status of achievement… ◦Achieved × Not achieved ▲ The impact of postponement and suspension due to the restricted activities in the COVID-19 crisis

69Expansion of the amount of carbon storage byusing timber▲◦▲

Reinforcing human resources
development

Strict complianceJapan: 50% or more
Overseas: 40% or more

80％
20 pt
25％

◦××

Holding of the event planned by cooperating with local
communities: Once a year
(Each group production bases)

Renewable energy utilization ratio

The rate of receiving health promotion allowance
Health score (Exercise, rest, and nutrition)
Presenteeism loss rate

Total work time reduction rate: 3% (As compared to fiscal
3.5% reduction (As compared to fiscal 2019)
2019)
61.4％
Rate of taking annual paid leave: 70%-0.8 pt (As compared to fiscal 2020)
Employee satisfaction*3: +5 pt (As compared to fiscal 2020)

Social contribution activities
by cooperating with local
communities

Total greenhouse gas emissions in Japan and overseas(Scope3)

Promotion of health management

Promotion of workstyle reform

Human rights enlightenment training attendance rate:
100%
Supervisor harassment training execution rate: 100%10% reduction (Ascompared to fiscal 2022)
6% reduction (Ascompared to fiscal 2022)

Promotion of diversity◦

Human rights promotion
activities

Total greenhouse gas emissions in Japan and overseas (Scope1+2)

Promotion of the use of renewable energy◦

Promotion of diversity*1

Serious disaster: 0
Plant mutual safety diagnosis execution rate: 100%15% reduction(Compared to fiscal 2022)+30 pt (As compared tofiscal 2022)
The ratio of female employees hired (New graduate nationwide course) 50％
The female full-time employee ratio
20％
The percentage of male employees taking childcare leave
50％
The female manager ratio
2％long-term care seminar attendance rate
90%/year
Diversity training attendance rate (Managers)
100％
The degree of attainment of the employment rate of persons with100％
disabilities
Personnel composition by age (Difference by generation)
Within the difference of
10 pt+30 pt (As compared to fiscal 2019)
Total diversity index*2: +20 pt (As compared to fiscal 2019) Achieved the goal as taking childcare leave among maleemployees progressed

Enhancement of theoccupational safety and health

E

Reduction of the final waste landfilling treatment amount (production
departments in Japan and overseas)

Foundation Supporting Value Creation

0 (continued)
Maintained 0 cases by operating and continuously
improving the environmental management system

Promotion of recycle and conversion of waste
into valuables

Goal (Fiscal 2026)

GovernanceFair transactions

Number of environmental accidents and violations: 0(Those with administrative guidance or penal charge)

Theme

Strategy for Value Creation

51%
Utilization of domestic timber for flooring substrates: 45% Achieved the goal by promoting the switch from lauan
wood

Field

Environment

Procure wood in a biodiversity
friendly way

Promotion of effective use ofwater resources

Enhancement of the quality
control structure*1G◦

Appropriate management
and reduction of chemicalsubstances

Promotion of recycle andconversion of waste into
valuables

Strengthen environmental riskmanagement

S

Renewable energy utilization ratio: 50% or more

Status ofAchievement

36% reduction (As compared to fiscal 2014)
Achieved the goal by renewing to energy-saving facilities
and the reduction measures, such as production
rationalization

Amount of carbon fixation by the wood industrial materials 1,044,000 t-CO2/year
business
Although it increased compared to fiscal 2019 through the(MDF and insulation board)
increase in production of MDF production, the goal could
1,100,000 t-CO2/year
not be achieved
5.8%
Final disposal rate (ratio of volume disposed of in landfill
Although it improved by 1.8 points compared to fiscal
outside the company): 5% or below
2019 by promoting the material use of waste, the goal
could not be achieved
4% reduction (As compared to fiscal 2019)
Water resource input: 3% reduction (As compared to fiscalAchieved the goal by improving the production processes,2019)such as the loss in using water when starting production(Group production bases in Japan)
processes each time
59% reduction (As compared to fiscal 2019)
Release/transfer amount of the substances subject to the Although reduction of methylene chloride progressed as thePRTR law: 70% reduction (As compared to fiscal 2019)
establishment of technology for the product specification
change completed, the goal could not be achieved

Promotion of carbon fixation

E

Total greenhouse gas emissions in Japan
Fiscal 2022: 26% reduction (As compared to fiscal 2014)

ResultsDaiken Group's Value Creation

Promotion of the use ofrenewable energy

Goals70