Method of disclosure of emissions calculation

Environmental initiatives began in FY2000 with activities to obtain and maintain ISO certification.
However, in addition to energy saving activities in the Company as a measure to address increasingly severe global warming, we have made the transition to decarbonization activities throughout the entire value chain, and changed course toward activities in accordance with the Greenhouse Gas Protocol in support of TCFD since FY2022.

Due to the nature of being a trading company, the Company’s Scope 1 and 2 emissions could be considered to be relatively low for the size of the business. We recognize that it is our social responsibility to utilize our characteristics as a distribution trading company to promote decarbonization of the entire supply chain involving suppliers and buyers.

We have introduce a SaaS-type decarbonization calculation application as a “GBP App” for ascertaining the Company’s Scope 1, Scope 2 and Scope 3 emissions by category.

This is a partially customized version of the cloud service provided by Zeroboard, Inc., and enables determination of the total volume by having key locations and group companies worldwide input data, and the visualization of progress of decarbonization using monthly and yearly comparisons.

Along with this, we also aim to strengthen activities through collaboration by providing it to the Company’s supply chain for a charge or at no charge.

Environmental Management System

The chief operating officer responsible for climate change issues is the Chief Executive Officer (CEO).
The managing body is the Executive Management Meeting, and confirms policies, directions and progress once per year. In addition, practical operation is carried out by the Environmental Committee chaired by a Director and Executive Officer. It holds meetings four times per year, making discussion of the content of policies and identifying issues with members selected from each department.

The CSR Promotion Office in the Corporate Administration H.Q. serves as the secretariat, and the GRB Dept. serves as the driver in the General Sales H.Q., with each providing specific directions on practical administration to the departments under them, and requiring them to report on progress. We have established a system for the Board of Directors to monitor the direction and whether activities are carried out appropriately once per year. In this way, the entire company works as one to address climate change issues while applying the PDCA cycle.

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Recognition of Risks and Opportunities

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As transition risk associated with climate change, we have analyzed internal and external risks and opportunities based on the IEA’s scenarios of the average temperature rising by 1.5℃ and 4.0℃.Due to a lack of resources, we are currently working hard to aggregate the financial impact of these risks and opportunities. Meanwhile, as physical risks, we similarly analyze the internal and external risks and opportunities based on the IPCC report. We anticipate the scale and frequency of natural disasters such as typhoons, floods, droughts and water shortages, and sequentially take steps to address them, such as naturally securing the lives and livelihoods of employees, securing and decentralizing electricity and data communication infrastructure, securing product purchasing supply chains, and building multiple delivery systems by decentralizing logistics sites.

Carbon Neutral Roadmap

Due to resources, FY2020 is used as the base year for determining the Company’s emissions. The figures include some currently being aggregated, but we aim to reduce the total amount by 50% by FY2030 and be effectively carbon neutral by FY2050.

Much of the Company’s Scope 1 is accounted for by gasoline consumption such as sales vehicles. We will sequentially replace existing hybrid vehicles with EVs. Furthermore, much of Scope 2 is accounted for by electricity consumption in offices and logistics facilities, and we aim to significantly reduce CO2 emissions in the medium- to long-term by switching to electricity from renewable energy and introducing energy-saving air-conditioning and lighting. Due to a lack of resources, Scope 3 is currently being aggregated, but we aim to halve these emissions by FY2030 and reduce them to net zero by FY2050.

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* Countries covered: Japan, China, South Korea,Taiwan, Thailand, Vietnam, Philippines, Singapore, Malaysia, Indonesia, India, USA, Mexico, Germany, Czech.* Calculation method: In accordance with the Greenhouse Gas Protocol, Scope 1 and Scope 2 are actual emissions, and Scope 3 is currently being aggregated centered on categories (hereinafter, “C:”) C1: Raw materials, C5: Disposal, C6 and 7: Commuting, etc., C4 and 9: Transportation, and C11: Use. However, C1: raw materials and C11: use only include original the Company-branded products, and we are considering calculation using emission factors for each product for some time. We have set KPIs to achieve these, and also manage their progress.

Initiatives

◆Major domestic sites gradually switching to electricity from renewable energy Plans for nationwide rollout starting with sites under control of Osaka Corporate H.Q.

In order to reduce the Company’s Scope 2 emissions (indirect emissions from energy), we switched the power of Buildings 1 2 and 3 of the Osaka Corporate H.Q. to “D-Green RE100” electricity from renewable energy from Osaka Gas Co., Ltd. in July 1, 2022, and did the same in the Logis Osaka (Daito-shi) on November 4.

This is expected to reduce annual emissions by 595t-CO2.This electricity satisfies the requirements of “RE100” because the electricity from renewable energy is supplied with non-fossil certification with tracking information. In this way, the Company is proceeding to switch the major sites it owns (Nagoya, Kyushu, Hiroshima, etc.) to electricity from renewable energy.

Unique Engagement (Collaboration) Initiatives
in Environmental Activities
– YAMAZEN’s WAY

It is assumed that Category 11: Use of sold products in Scope 3 accounts for much of the Company’s emissions. In order to reduce emissions in this category, which are difficult to identify and aggregate, we believe it is our responsibility as a distribution trading company to sell and promote energy-saving equipment with low environmental impact. We began the aforementioned Green Ball Project in 2008, and have endeavored to spread environmentally friendly products with supporting manufacturers, participating business partners and users. The “GBP App” mentioned above is being provided from FY2022 to companies participating in the project, and we will support determination of the total amount of emissions using the Greenhouse Gas Protocol and visualization of the contribution to reduction using the GBP Protocol.

We provide the Green Ball Project Application (GBP App), the Company’s dedicated app for visualization of internal emissions and progress management of reductions, to companies participating in the Green Ball Project at no charge, supporting the visualization of emissions and the visualization of reduction effects in the downstream supply chain. While it is a matter of course to curb and reduce emissions within the Company, in addition, we aim to produce further effects by vigorously focusing on the sale of environmentally friendly products to curb emissions in Scope 3 “Category 11: Use of sold products,” that are the greatest source of emissions as a distribution trading company.