Environment

Environmental Management
We at Hirata establish environmental policies and promote environmental activities in line with those policies.
We will contribute to protecting the global environment by reducing the environmental load in all aspects ofour business activities, products, and services.

Status of Business Activities and Environmental Impact
Environmental impact in FY2021 was as follows.

Particulars of Our Environmental Policy

InputsEnergy Usage(Crude oil equivalent)1 4,169 kl

Hirata Corporation contributes to protecting the global environment by reducing the environmental load in all
aspects of our business activities, products, and services in order to achieve a sustainable society.
1. We lower the environmental load of our products byconsidering each phase of a product’s lifecycle throughout
our supply chain, from raw material sourcing to design,
production, transportation, use of the product, and its
disposal after use.
• Making products that save more energy when in use• Designing and manufacturing products to be recyclable at
disposal• Reducing the amounts of harmful materials used in our
products and using substitutes
2. We abide by environmental laws, treaties, requirements,and voluntary standards set as needed. We also develop
coordination and cooperative relations with relevant
government agencies and contribute to local communities.

Hirata Corporation Business Activities• Gasoline• Kerosene• Light oil• LP gas• Electricity

3. We strive to improve productivity and conserve theenvironment throughout all our business activities andproduction processes, including sales, design, manufacturing,
installation, and after-sales service.
• Reducing energy usage and emissions of greenhouse gases• Reducing waste and promoting recycling• Reducing harmful materials and using substitute articles• Preventing environmental problems and pollution• Preserving biological diversity

Design and Development

CO2 Emissions2
• CO2

3 kl
17 kl
55 kl
63 t
15,924 MWh

Waste• Industrial waste
456 t• General waste
25 t• Valuable resources 883 t

Production• Processing• Coating• Assembly• Groundwater 28,503 m3• Clean water
6,862 m3

Chemical Substances(PRTR substances)

5. We review our EMS regularly to enhance environmental
performance while striving for continuous improvement.

• Toluene
2.7 t• 1,2,4-Trimethylbenzene
0.5 t• Xylene
0.3 t• Other
0.5 tChemical Substances• PRTR Substances

Environmental Management
Promotion Framework
Having put in place an Environmental Management
System (EMS) promotion framework led by top
management and environmental management
managers, we obtained international standard ISO
14001 certification at our Kumamoto, Kanto, and Kansai
region production bases.

1. Energy usage calculated using method based on Energy Conservation Law
2. CO2 emissions associated with power consumption calculated based on basic emission factors from electric power companies(Note) Hirata Corporation non-consolidated data

Environmental management managers
Secretariat:
Quality Control Department

ISO monitoring team

Environmental Goals○: Achieved

ISO Committee: Head of Quality Control Department,
Business Unit general managers, divisional heads

No.

Item

Personnel responsible for ISO management

Environmental Accounting
1

The environmental preservation costs for FY2021 were as follows.
Item
Major Activities
Cost for preventing pollution • Maintenance of septic tanks
Global environmental• Installing energy-saving equipment
protection cost
Cost of resource recycling
Upstream and downstream costs
Administration cost
Research & development costSocial activity cost

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Hirata Integrated Report 2022

• Leakage control construction• Disposal of general and industrial waste• Investigation of chemical substances contained in products• Maintenance of environmental management system• Environmental measurement• Environmental education• Waste generation reduction tests• Environmental preservation and improvement• Donations to environmental protection groups
Total

Investment–

Cost
16,381

14,921

101,386–

45,417

–

6,596

–

30,604

–

30

–

6,973

14,921

207,3872
Effective
use ofresources
3△: Nearly achieved

Goals

FY2021 Accomplishments

Reducing
energyusage

By the end of FY2023, we will have
reduced the amount of energy used by 3%
or more compared with that of FY2020
when measured based on the actual
production amounts.

Reducing
CO2
emissions: Underachieved

Evaluation

FY2022 Plans

Energy usage decreased by 1.9% incomparison with actual production
Reduced due to the installation of energysaving equipment such as high-efficiency
air conditioners and the increase inproduction output.

◯

To promote the reductionof energy consumption by
the introduction of energysaving equipment such as
electric forklifts.

By the end of FY2023, we will have
reduced the amount of CO2 emissions
by 3% or more compared with that of
FY2020 when measured based on theactual production amounts (reducing CO2
emissions by reduction of energy usage)

CO2 emissions increased by 3.8% incomparison with actual production
Increased due to the effect of thegreenhouse gas emission factor of electric
power companies being more than the
reduction from energy consumption.

△

To strive to reduce CO2
emissions by reducing
energy consumption.

Reducing
water
usage

By the end of FY2023, we will have
reduced the amount of water used by 3%
or more compared with that of FY2020
when measured based on the actual
production amounts.

Water usage decreased by 18% incomparison with actual production
Reduction due to a review of the settingsof the water circulation system at the
Kumamoto Plant and the increase inproduction output.

◯

To work to reduce water
usage by reviewing
equipment that uses water.

Reductionof industrial
waste
generation

By the end of FY2023, we will have
reduced the amount of industrial waste
generated by 3% or more compared withthat of FY2020 when measured based on
the actual production amounts.

Industrial waste generation decreased by
11% in comparison with actual production
Reduced due to a review of packaging
materials and the increase in production
output.

◯To work to reduce theamount of industrial waste
generated by reviewing
packaging and othermeasures.

Preventionof global
warming(Unit: Thousands of yen)

Businessarea cost

4.0 t

Top management
Chair of ISO Committee

6,376 t-CO2

Procurement

Water Resources

4. We increase environmental awareness by implementing
education and publicity programs.

Outputs

Hirata Integrated Report 2022

33

Environment

Response to Climate Change
Using the adoption of the Paris Agreement in 2015 as an opportunity, the Company—its stated mission insummary being to “contribute to the development of society”—revised its environmental policy in 2016 amid
the rapidly growing global interest relating to climate change. We are aiming to achieve both the developmentof society through the proliferation of products that contribute to reducing CO2 emissions and environmental
impact, and the resolution of environmental issues such as climate change.
In November 2022, the Company announced its endorsement of the final report of the Task Force on
Climate-related Financial Disclosure (TCFD). In addition to identifying, analyzing, and evaluating the risks andopportunities that climate change poses to management, we
are working to enhance the quality and quantity of information
disclosure that contributes to engagement (constructive dialogue)
with all stakeholders, including shareholders and investors.

Developmentof energysaving
products

Products thatsave moreenergyDemandto savemanpower

At a Board of Directors’ meeting held in October 2022,

The Committee will also be subject to regular oversight bya resolution was passed to establish a Sustainability

the Board of Directors.

Promotion Committee, and full-scale operations are

The Board of Directors gives consideration to climate-scheduled to begin in April 2023. The Sustainability

related issues when reviewing medium-term management

Promotion Committee will submit proposals, reports,

plans and making investment decisions.

and provide information on matters related to ESG

Note: Please refer to page 31 for details of the sustainability promotion
framework.

Carbon priceScope 1, 2

Scarceresources
Raw material
cost
Cost of plastic

Risk Management
The Sustainability Promotion Committee identifies,

Details of opportunity

impact of each risk.

assesses, and manages risks related to climate change.

Going forward, we will report the results of risk

In scenario analyses, the Committee extracts theassessments in scenario analyses to the department inrelevant parameters to identify risks and conducts

charge of risk management and link them with company-

assessments on a regular basis. The Committee also

wide risk management.

Energy cost

Details of risks

Large

Small

Small

Small

Degree of impact
1.5 °C
4°C
scenario scenario

Increase in manufacturing costs due
to introduction of carbon taxes in each
Medium Small
country, emissions trading, and bordercarbon adjustment measures
Increased procurement costs due torestrictions placed on raw materials
Small Smalland purchases due to emission
regulations
Increased costs for materials containing
plastic due to regulatory restrictions
Medium Small
placed on their use and requirementsthat recycled plastic be used

Countermeasures• Expand local production for local consumption business models, suchas local manufacturing and sales of parts and repair parts that havealready started in some regions, and consolidation of production bases.
• Introduction of eco-friendly electrification products, design anddevelopment of products for which lightness and longevity have beentaken into account, etc.

• Development of products for automated warehouses, automated guided
vehicles, etc.

Countermeasures• Setting of carbon emission reduction targets such as carbon neutral
declarations• Ascertaining of Scope structure for carbon emissions, building amonitoring system, etc.
• Renewal of aging robots, etc., promoting the reuse and recycling ofequipment and parts through remodeling and repair services, etc.
• In addition to reviewing excessive packaging in product packaging,
reducing the amount of plastic used by switching to recycled paper andreturnable boxes, etc.

Electricity
costElectricity costs are increasing due
to decarbonization of the Company’splants and offices as well as
popularization of renewable energy• Promotion of energy saving by installation of LED lighting, etc.
• Examining installation of in-house power generation equipment (solar
power generation equipment) and the utilization of leasing services
Medium Medium • Introduction of optimal operation by means of Energy Management
System from buildings and plants where already being installed orconsidered, gradual expansion to locations places where not yet
introduced

Airconditioningcost

Due to rising temperatures, operating
rate of air conditioning in plants, etc.
rises, and thus air-conditioning costs
increase

Small

Distribution
cost

Distribution cost rises due to shift toEVs for large vehicles• Consolidate production bases and expand initiatives with customers(OEMs) for joint transportation in some businesses to streamline interMedium Medium
factory transportation• Examine expanding distribution by multidrop (milk run) shipments ofgoods to suppliers in the region, etc.

Restoration/
operatingcosts

Increasing costs from expenses forrestoring equipment following theeffects of abnormal weather, etc.

Smallmanages risks by quantitatively evaluating the financial

Strategies (Scenario Analysis Overviews)

Degree of impact
1.5 °C
4°C
scenario scenario

In accordance with energy-saving
policies and rising temperatures,electrification and automation atcustomer factories will advance,
demand for products that raise
productivity and improve energysaving performance in factories and at
facilities will increase
In accordance with declining laborproductivity due to rising temperatures,
demand for labor saving and efficiency
improvement at production sites will
increase

Risk
Main
MiddleCategory
Category
Transition risks

Governancemanagement, including responses to climate change.

Opportunities
Main
MiddleCategory
Category

Small• Operational improvements, including ventilation reviews, measuresagainst air leaks, and measures to shade external air-conditioning units• Installation of energy-saving air-conditioning equipment, etc.

Physical risk

• Scenario Analysis Overviews
Through scenario analyses, the Group ascertained thenecessary to respond to risks such as plant shutdowns
and supply chain disruptions.

changes in the Group and its customers’ industries inPhysical cost

Large

• Implementation of risk reduction through multiple purchasing• Advance arrangements in line with business content so that a certain
level of production activity can be carried out even if supply is interrupted,
appropriate inventory management and thorough operation, etc.

2030 and 2050—under the 1.5°C/4°C scenarios, based• Scenario Analysis Resultson scientific information such as from the International

Based on the previous section’s vision of future society

Energy Agency (IEA)—and analyzed climate change risks

with a 1.5°C rise, the Group recognizes that whileand opportunities. In all of the scenarios used in thesebusiness opportunities will increase due to increased

analyses, we confirmed that resilient management isdemand for energy-saving products, the impact of physicalCurbing global warming by reducing CO2 emissions isterm goals while referring to the greenhouse gas reduction

possible in the businesses targeted for analysis.

risks will increase at 4°C.

becoming an essential activity for realizing a sustainabletarget announced by the Japanese government in April

society. To fulfill its responsibility, the Hirata Group

2021. In the years to come, we will carefully examine

Indicators and Targets

Under the 1.5°C scenario, a major change in policy

Based on the results of these analyses, the Group will

toward decarbonization is assumed. In addition to thesequentially verify initiatives for maximizing opportunities

is promoting measures to reduce CO2 emissions

the indicators that are important to the Group from theintroduction of a carbon tax, soaring raw material andwhile addressing recognized risks, starting with thosein its business activities. As a goal for reducing therisk and opportunity items in the scenario analyses, whileenergy costs will require a shift to a more decarbonizedwith the highest feasibility, and promote reflecting andenvironmental impact of our business activities, we arecontinuing to monitor CO2 emissions (Scope 1, 2, 3).

business model. In contrast, in the 4°C scenario, theintegrating those initiatives into management strategies.

also considering more in-depth global, medium- to long-impact of physical risks will increase, and it will be

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Hirata Integrated Report 2022

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35

Environment

Environmental Load Reduction
Changes in Energy Consumption/CO2 Emissions

Approach to Resource Recycling

The Company is working to rationalize its energy use

conditioners, and due the increase in production output.

based on the Act on the Rational Use of Energy (Energy

In terms of environmental targets concerning CO2

Efficiency Act). In fiscal 2020, operations started in the

To help in the realization of a sustainable society, we areused in product manufacturing and the provision ofworking to create products that show we have given

products that can be recycled at the time of disposal. We

emissions, for which we also deem fiscal 2020 as theconsideration to resource recycling at each stage of theare also working to reduce the packaging materials, reduce

new headquarters factory area in the Kumamoto Plant,base year, we adopted a 3% reduction in CO2 emissions

life cycle (the procurement of materials and parts, design,waste in production activities, and promote recycling forso both energy consumption and energy consumption

per unit of production by fiscal 2023. Despite having

production, and disposal after use). Through eco-friendly

some equipment imported from overseas suppliers.

per unit of output increased significantly. In terms of

been able to achieve a reduction in energy consumption,

design, we are promoting the reduction of raw materials

environmental targets, having set fiscal 2020 as theCO2 emissions per unit of production increased by 4%base year, we adopted a 3% reduction in our energy

in fiscal 2021 due to an increase in the electric power

consumption per unit of output by fiscal 2023. In fiscal

company CO2 emissions factor (basic emissions factor).

Hirata Corporation
Materials

2021, energy consumption per unit of output was reduced

In the years to come, we will contribute to the reduction

Natural resources

by 2% compared with fiscal 2020 following the installationof CO2 emissions by installing and updating energy-savingof energy-saving equipment, such as the renewal of air

equipment as well as by reducing our energy consumption.

Reducing use of natural
resources by addressing
each stage in life cycle

Energy usage

CO2 emissions
0.07370.05990.06200.07230.116

0.0613

4,013

4,169

Raw materials

6,848

0.111

6,376

274

Fuel consumption (kl)*

3,775

121

2018

2019

5,995

5,299

2,834

434

Efforts to Reduce Industrial Waste Outputs

4,068
6,163

4,014

3,812

2020

1,105

155

201
2021

(FY)

Electricity usage (MWh)*

Energy usage per unit of output (kJ/million yen)
* Calculated using the fuel and electricity conversion factors from the Act on the
Rational Use of Energy

2017

685
2018

CO2 emissions (t-CO2): Fuel

Recycling

Landﬁlldisposal

2,955

3,313

The industrial waste generated by the Company mainly

294
2019

After use

Recycling
5,798

7,006

381

499
2020

2021

(FY)

CO2 emissions (t-CO2): Electricity

Industrial waste outputs

comprises wood chips, waste plastics, and waste oil. Used

0.967

to package deliveries to the Company, wood chips and675

waste plastics are disposed of as waste after unpacking.

167

For this reason, we are working to reduce the amountCO2 emissions per basic unit (t-CO2/million yen)152

packaging methods for some equipment imported from

486
141

13

456
24

125

3
98

142

118
93

83

339
216

2017

an initiative to reduce water usage in fiscal 2021, we

0.791

381

115

Efforts to Conserve Water Resources

water usage and monitoring factory wastewater. As

0.893
0.790

490
17

of waste generated by reviewing and simplifying the* Based on power usage, CO2 emissions are calculated using basic emission
factors published by electric power companies

0.847
18

overseas suppliers.

To conserve water resources, the Company is reducing

Finished products

Improvement in recycling
rate in cooperation with
waste disposal companies

0.084

3,587

3,748

Assembly
Waste

8,111

4,182

2017

Products

0.118
0.107

Designing of productsthat facilitate recycling

Processing

Supplier

Water usage
115.6

109.1

112.8

2021

Waste plastic output (t)Waste oil output (t)Output of other waste materials (t)

(FY)

74.5

Kumamoto Plant and were thereby able to further reduce

8,244

61.3

the amount used. We conduct analyses of the wastewater

To respond to chemical substance-related laws and8,592

regulations in Japan and overseas, including the European

8,550

71,420legal requirements and voluntary management standards.

6,862

54,83645,782

2017

2020

Wood offcut waste output (t)Managing Chemical Substances

9,282

from all our plants every year to confirm that it satisfies

2019

197

Amount of industrial waste target substance output per ¥100 million of actual
production (t/¥100 million)

reviewed the settings of the cooling water circulation
system to reduce the amount of cooling water used at the

2018

229

197

2018

Groundwater usage (m3)2019

31,9862020

28,5032021(FY)

Clean water usage (m3)Amount of water usage per ¥100 million of actual production (m3/¥100 million)

contained in our products.
The chemical substances used in-house are evaluated

RoHS Directive1 and the REACH Regulations2, we will

before use and, based on the evaluation results, we

strengthen the management of the chemical substances

undertake management necessary to comply with laws

contained in our products.
We ask our suppliers to submit information throughchemSHERPA3 and cooperate with our surveys of thechemical substances contained in our products. We will

and regulations.
1. Regulations on chemical substances in EU
2. Chemical substance management regulations in EU
3. Format for providing data on chemical substances contained in products in
a supply chain

continue to work on managing the chemical substances

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37