Environmental Performance

• Actual Results of Reduction Activities
• Actual Results of Reduction Activities
• Sales of Environmentally Conscious Products
• Reducing CO₂ Emissions
• Reducing Electricity Consumption
• Reducing Gasoline and Light Oil Consumption
• Reducing Paper Consumption
• Increasing Recycling and Reducing Waste
• Managing and Reducing Chemical Substances
• CO₂ Emissions in Scope 3

Actual Results of Reduction Activities

Targets and Results of Environmental Conservation Activities <Domestic>

Environmental aspect		Results in FY 2021	Targets in FY 2022	Results in FY 2022	Increase/ decrease rate	Self evaluation*4	Targets in FY 2023
Increase the sale of environmentally friendly products and parts		9.75 billion yen (17.3% of overall sales)	At least 18.0% of overall sales	11.92 billion yen (20.6% of overall sales)	Increase in sales by 2.17 billion yen (share increase by 3.3%)		At least 25% of overall sales
CO2 emissions*1 (Emissions intensity: CO2 emissions per 100 million yen of sales)		1275.9t (Emissions intensity: 2.21t/100 million yen)	Emissions intensity 2.20 or less	1280.8t (Emissions intensity: 2.15t/100 million yen)	Increase in emissions by 0.4% (improvement of emissions intensity by 0.06 points)		Emissions intensity 2.10 or less
Breakdown	Electricity*2	1097.1t		1102.9t	Up 0.5%
	Gasoline, light oil*3	137.1t		140.5t	Up 2.5%
	Consumption of kerosene and gas	41.7t		37.4t	Down 10.3%
Final disposal rate (through waste recycling)		1.6%	Final disposal rate of 2.0% or less	1.3%	Down 0.3points		Final disposal rate of 1.2% or less

*1

Coefficient of CO₂ emissions is in accordance with the "Ministry of the Environment: Draft Ver. 1.6 of Guidelines for Calculation Method of Greenhouse Gas Emission by Entities."

*2

Electricity means the electricity purchased from the electric company.

*3

Gasoline and light oil are used for company vehicles and do not include consumption by consignment to transportation companies.

*4

Self-evaluation standards:

Environmentally friendly products

• =Achieved targets
• =Although targets were not Achieved, share increased from previous year
• =Targets were not achieved and share decreased from previous year

CO₂ emissions and final disposal rate

• =Achieved targets
• =Although targets were not achieved, emissions reduced from previous yearprevious year
• =Targets were not achieved and emissions increased from previous year

FY2022 Domestic Subsidiary Environmental Impact

FY2022 Overseas Subsidiary Environmental Impact

*

"-" means that the data has not been collected.

*

＊Manufacturing location

Results in Fiscal 2022

We work to reduce the environmental impact associated with business activities while determining environmental goals for each fiscal year and formulating an implementation plan to achieve the goals. The Quality and Environmental Management Department is mainly committed to the introduction of energy-saving equipment such as LED lighting and fuel-efficient vehicles. Each business site also takes specific initiatives such as power-saving efforts including the turning off of lights when not in use and thorough control of the temperature of air conditioners, as well as regular patrols to check the status of waste separation and beautification and cleaning activities around the site.

CO₂ emissions in fiscal 2022 were 1,281 tons, a decrease of 659 tons, or 34%, from the fiscal 2013 level. We will continue to work on energy-saving activities as we anticipate increases in energy consumption due to the expansion of our business scale in the future. In addition, we are working on the reduction of waste through thorough sorting to promote recycling while aiming to reduce the final landfill rate. In fiscal 2022, the final landfill rate was 1.3% (a decrease of 0.3 points from the previous fiscal year) and we achieved the target of a final landfill rate of 2% or less.

We also aggregate data on environmental impact for our overseas bases and plan to set environmental targets and engage in activities to reduce environmental impact on a Group-wide basis in the future.

Target in Fiscal 2023

In fiscal 2023, we will continue to work on the reduction of CO₂ emissions, the promotion of waste recycling and the expansion of sales of environmentally friendly products and parts as main subjects. As to the reduction of CO₂ emissions for the prevention of global warming, while we aim to meet the target of keeping the per-unit emissions below 2.10 tons/100 million yen, our medium- and long-term target is to reduce CO₂ emissions by 46% from the fiscal 2013 level in fiscal 2030 as set by the Japanese Government to achieve carbon neutrality in the country.

With respect to waste, we will work to promote recycling by thoroughly sorting waste and reviewing disposal contractors and strive to achieve a final landfill rate below 1.2%.

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Actual Results of Reduction Activities

Actual Results of Reduction Activities<In Japan>

To minimize the environmental impact of the company's business activities, Techno Associe sets yearly environmental targets and formulates specific implementation plans. The Quality Assurance & Environmental Management Department plans the introduction of energy-efficient equipment such as LED lighting and fuel-efficient cars. Each base plans and carries out activities such as regular checks of turning off lights when not needed and waste sorting status. Cleanups of areas surrounding bases are also planned and carried out.

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Sales of Environmentally Conscious Products

Techno Associe strives to expand the sales of environmentally conscious products and parts (eco-merchandise) to contribute to the environment through business activities. In fiscal 2022, we worked to boost sales of eco-merchandise, i.e., merchandise and parts for products that contribute to the five defined items below, to at least 18% of the company's total sales. As a result, sales increased significantly year-on-year to 11.92 billion yen (an increase of 22.3% from the previous fiscal year), which accounted for 20.6% of net sales (an increase of 3.3 points from the previous fiscal year).

Definition of environmentally conscious products

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Reducing CO₂ Emissions

The use of electricity and gasoline by Techno Associe accounts for about 96% of the company's total CO₂ emissions. We are therefore focusing efforts on reducing their use. In fiscal 2022, setting an emissions intensity target of 2.20 t or less (per hundred million yen in sales), Techno Associe was actively involved in conserving electricity and also in cutting gasoline use.
As a result, our annual emissions were 1,281 metric tons (an increase of 0.4% year-on-year). The emissions intensity was 2.15 t/hundred million yen.

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Reducing Electricity Consumption

Techno Associe strives to save energy by turning off lights during employee break times, managing air conditioner settings, and improving operational efficiency by reducing overtime, which includes the scheduling of 'no overtime' days. In fiscal 2022, while we set a target of reducing electricity use by 2.0% from the previous fiscal year, our power consumption increased by 16 MWh year-on-year (an increase of 0.6% from the previous fiscal year) to 2,918 MWh. However, the per-unit electricity consumption was 4.91 MWh/100 million yen, decreasing by 0.12 points from the previous fiscal year.

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Reducing Gasoline and Diesel Fuel Consumption

Techno Associe nearly halved the number of commercial vehicles in its possession, which was 237 in 2009, to 111 in March 2023 by reviewing surplus vehicles, sharing company-owned vehicles, using rental cars or car-sharing, promoting the use of public transportation, and so on. However, gasoline consumption increased by 1.7% from the previous fiscal year to 60 kl.

In addition, the ratio of cars that meet the Eco Standards (Fuel Efficiency Standards for fiscal 2020) in the number of cars owned rose from 84.9% in fiscal 2019 to 97.1% in March 2023.

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Reducing Paper Consumption

While we are working to reduce the use of copy paper by using its backside and going paperless through the use of projectors at meetings, unfortunately, 35.3 tons of paper, including forms and slips, was used (an decrease of 5.9% year-on-year) in fiscal 2022 and 28.8 tons of it was copy paper (an decrease of 2.0% year-on-year).

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Increasing Recycling and Reducing Waste

Techno Associe strives to reduce the waste it generates in offices by separating paper garbage as much as possible, and in warehouses by reusing cardboard boxes for packaging and using returnable boxes. Our fiscal 2022 target for the final landfill rate was 2.0% or less. By switching to industrial waste disposal contractors capable of higher recycling rates, we were able to reduce final landfill volume to 3.1 metric tons, down by 36.6% from the previous fiscal year. The final landfill rate was 1.3%, which exceeded the target. The total amount of waste discharged was 242.0 metric tons (down 19.2% from the previous fiscal year).

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Managing and Reducing Chemical Substances

The Tsuneyoshi Office of our subsidiary Tobutsu Techno Co., Ltd. uses toluene, a substance restricted under PRTR^*, for manufacturing thread-locking adhesive to prevent screws and bolts from loosening.

In fiscal 2022, toluene emissions were 0.78 tons (an increase of 2.6% year-on-year) due to the growth of the operation.

*

PRTR: PRTR: Under Japan's PRTR (pollutant release and transfer register) system, businesses handling a certain amount of any of the 354 substances designated by the authorities are obligated to report on the amounts of these substances that are released and/or transferred.

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CO₂ Emissions in Scope 3

Techno Associe views environmental conservation efforts as a top-priority management issue. In order to realize a low-carbon society, we ascertain not only directly produced Scope 1 and 2 CO₂ emissions, but also emissions throughout the entire value chain.

Total CO₂ emissions in fiscal 2022 were 357,037 (t-CO₂).

The breakdown is as follows:
Scope 1・・・178 (t-CO₂)
Scope 2・・・1,103 (t-CO₂)
Scope 3・・・355,757 (t-CO₂)

and Techno Associe recognizes that Scope 3 has a considerable impact on CO₂ emissions, and Category 1 (purchased products and services: 97.0%), in particular, account for a large portion of emissions.

Techno Associe will continue to review the calculation methods and data extraction methods to improve accuracy.

[Notes]

As of this evaluation (FY2022 CO₂ emissions calculations), the calculation methods for Category 1 and Category 4 have been changed as detailed below.

Category 1 (purchased products and services)

Previously, purchased products were applied to one of five industry categories of the “Input-Output Table-Based Emissions Intensity”. This time, purchased products were categorized more specifically, into one of fifteen “Input-Output Table-Based Emissions Intensity” industry categories.

Category 4 (Upstream transport & delivery)

Previously, emissions during transport and delivery when we were not the transporter were calculated using the ton-kilo method (weight × distance traveled × emissions coefficient), but this calculation was inaccurate due to matters that were beyond our ability to influence. This time, we have changed to a consumption-based calculation method (value × emissions coefficient). Additionally, emissions at warehouses, which had been considered difficult to calculate, were also calculated.

Effects

The reduction in transport and delivery in Category 4 results in a significant reduction in total Scope 1, 2, and 3 emissions, with more than 90% of the emissions now coming from Category 1 purchased products and services.

Comparison of 2021 emissions using the old and new calculation methods

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