Sustainability ESG Management: The Environment / Environmental Initiatives
Philosophy
The IKO Group recognizes that conservation of the global environment is an important issue that is vital to all humans. Therefore we are engaging in environmentally-friendly corporate activities as part of our corporate social responsibility, reducing the load on the environment, and working to realize a sustainable and prosperous global environment.
Environmental Policy
| 1 |
Countermeasures for global warming and climate change As "a technology development-based company" that contributes to society, we will continue to design and develop products and services that reduce the load on the environment throughout their lifecycle. We have a clear understanding of how our business activities impact the environment and are implementing climate change countermeasures with the aim of achieving a completely carbon neutral supply chain. |
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| 2 |
Conservation of biodiversity We have assessed the impact of our business activities on biodiversity and are promoting environmental protection activities in collaboration with each country and region with the aim of achieving a society that can coexist with nature. |
| 3 |
Contributing to a recycling-oriented society We are thoroughly implementing Reduce, Reuse, and Recycle efforts through our business activities to minimize input resources such as raw materials and water, while also minimizing waste. |
| 4 |
Reducing substances that are hazardous to the environment We are properly managing and reducing substances that are hazardous to humans and ecosystems throughout our entire supply chain. |
| 5 |
Environmental compliance We are complying with laws, ordinances, agreements, and other requirements related to environmental conservation, and are proactively cooperating with measures that have been implemented in each country and region. We also establish our own management standards as needed to further environmental conservation efforts. |
| 6 |
Improving environmental performance In addition to establishing environmental goals for achieving this policy, we organize an environmental management system and engage in continuous environmental conservation activities. We endeavor to improve the environmental performance of the IKO Group based on this review. |
| 7 |
Promoting environmental communication By making this policy clearly understood throughout the IKO Group, we will improve the awareness and knowledge of employees about the environment. We will also proactively disclose information about the environment to all stakeholders via positive communication in order to deepen mutual understanding and to maintain and strengthen trust. |
Environmental Management System
Recognizing the importance of co-existence and co-prosperity with local communities, the Group has been promoting environmental management under our Environmental Policy since 1998. In April 2023, to prepare for strengthening environmental management in the future, we revised the content of our Environmental Policy and reorganized this into seven items that clarify the objectives. In addition, by extending our organization for environmental management, which was previously limited to Nippon Thompson, to cover affiliated companies, including non-consolidated companies, so that the entire IKO Group becomes One Team. In this way, we will strengthen our system so that we can work toward resolving environmental issues based on a common understanding.
The Environmental Committee, chaired by the executive director in charge of the Production Department, handles environmental management. Held more than once semiannually, the Committee sets the Group’s annual environmental issues and monitors the progress of environmental management initiatives. The details of the Committee meetings are reported to the Board of Directors as they are held, and the Board of Directors supervises and gives advice on the details.
FY2025 Environmental Plan and Progress
The Group takes measures to fight global warming and climate change, preserve biodiversity, and develop a recycling-oriented society, among others, in accordance with its Environmental Policy. In FY2025, we achieved all targets for the fiscal year that had been set in our environmental plan.
In June 2025, the Group disclosed its TCFD report for FY2025 as part of its “adapting to climate change,” one of the challenges we are committed to meeting. In October 2024, with the acquisition of the SBTi Certification, we recalculated our Scope 3 emissions, including those during past fiscal years, using the calculation method that conforms to the standards of the GHG Protocol.
Our energy efficiency and GHG emissions were affected by production adjustments for optimized inventory. Nevertheless, we improved our emissions intensity per unit of net sales by effectively using our inventory for sales in addition to actively taking energy-saving actions and procuring renewable energy sources. As for water resource conservation, we have set a new target to reduce water use in order to facilitate the effective use of limited resources. We will remain committed to putting greater effort into our initiatives in view of medium- to long-term changes in the business environment in order to achieve our targets.
During FY2025, we incurred no fines or penalties in relation to the environment, nor did we have any cases of legal or regulatory accidents, violations, or non-conformity, and thus we incurred no costs in connection with these types of incidents.
| Challenges | FY2025 target | FY2025 result | Achievement |
|---|---|---|---|
| Environmental considerations in business activities | Reduce energy consumption per unit by at least 1.0% annually (nonconsolidated) | 1.0% reduction achieved compared to the previous fiscal year (0.35 kl/million yen) | ◎ |
| Reduce final disposal volume by 91.8% compared to FY2001/td> | Final disposal volume reduced by 97.8% | ◎ | |
| Recycling rate of 96% or higher | Recycling rate reached 96.6% | ◎ | |
| Reduce water use per unit by at least 1.0% annually (non-consolidated) | 7.7% reduction achieved compared to the previous fiscal year (3.9 m3/million yen) | ◎ | |
| Adapting to climate change | Reduce Scope 1 and 2 emissions by at least 10.5% compared to FY2023 | Scope 1 and 2 emissions reduced by 29.5% | ◎ |
| Reduce Scope 3 emissions in Category 1 by at least 6.3% compared to FY2023 | Scope 3 emissions in Category 1 reduced by 37.3% | ◎ | |
| Act and disclose information in line with the TCFD recommendations | FY2025 TCFD report disclosed | ◎ | |
| Conserving biodiversity | Complete the stage of “Evaluate our dependencies and impacts on nature” in the LEAP approach | The progress has been reported together with the above report. | ◎ |
*Assessment: ◎ Achieved; 〇 At least 80% achieved; △ Less than 80% achieved; × Worse than the previous fiscal year
Third-Party Evaluations and Certifications
As a company centered on technology development that contributes to society, as stated in our management philosophy, the Group believes that we have an important responsibility to maintain a rich global environment for future generations. We established our Environmental Policy in 1998, and in 2001, our main production centers, in the Gifu area, obtained ISO 14001 certification, the international standard for environmental management systems. In 2003, in the Kamakura area, and in 2013, IKO Thompson Vietnam Co., Ltd. also obtained this certification, and we are developing environmental initiatives based on international standards as well as complying with various regulations, such as the ELV Directive and the RoHS Directive in Europe.
| Site | Year Acquired |
|---|---|
Gifu Area
|
2001 |
| IKO Thompson Vietnam Co., Ltd. | 2013 |
ISO Environmental Management System Certificate
Certificate No.: 13ER-902
Registered company: NIPPON THOMPSON CO., LTD., Production and Engineering Department
