Environment

The Hagiwara Electric Group strives to conserve the environment through its business activities, aiming to create an affluent society in which nature and people coexist. We also contribute to the realization of a sustainable society by developing and providing technologies that balance the environment and economy.

To promote environmental management across the entire group, the Hagiwara Electric Group is strengthening group management through a systematic and effective management system in compliance with ISO 14001.
Under the policies and significant themes set by the Sustainability Promotion Committee, we promote environmental initiatives by integrating specific efforts into relevant departments of each group company and into the framework of the Environmental Management System (EMS).

Multiple sites have acquired ISO14001 certification and are actively promoting EMS initiatives, focusing on our environmental management system.

Toward the realization of a society in which people and nature coexist, the Hagiwara Electric Group has set three priority themes of climate change, biodiversity and resource circulation, and work to preserve and improve the sustainable global environment.

In July 2022, we at Hagiwara Electric Group established our Sustainability Committee, which is chaired by our Representative Director, President Executive Officer, in order to cross-sectionally promote sustainability management among all companies of our group. As subordinate organizations of the Sustainability Committee, we have established various committees that promote and manage internal control, risk management, the SDGs, and ESG, and have been moving forward with strengthening group management through systematic and effective management systems.

Our Sustainability Promotion Committee (which meets quarterly) is chaired by Executive Officer for Corporate Strategy. This committee formulates policies regarding sustainability (which include environmental issues related to addressing climate change and promoting carbon neutrality), discusses and decides upon measures regarding important issues, and monitors the progress of such measures. Based on the policies and important measures of the Sustainability Promotion Committee, and centering on our Environmental Promotion Working Group, we deploy concrete initiatives regarding environmental issues targeting the relevant departments of group companies and the structures of environmental management systems, and we work to promote activities in this regard.

The chairperson of the Sustainability Promotion Committee reports to the Sustainability Committee on the status of major activities and important matters relating to the promotion of sustainability, and receives instructions from the Sustainability Committee. Then, based on examination and judgement by the Sustainability Committee, important matters are discussed and decided upon at management meetings and meetings of the Board of Directors. Thus, our operating system is designed to ensure appropriate supervision and guidance by the Board of Directors.

The Hagiwara Electric Group has conducted a quantitative scenario analysis based on a 2 degrees scenario that concerns the period up to 2050. We comprehensively analyzed the short, medium, and long-term risks and business opportunities of the Hagiwara Electric Group related to climate change, and identified the following key risks and opportunities.

We set matters that we believe will have a large impact on our businesses and corporate activities as “important matters,” and extracted these. As a result, in the area of transition risks, we extracted matters such as the effects of the introduction of carbon taxes and other changes to various laws and regulations on costs, and unaddressed risks related to information-disclosure needs. Furthermore, in the area of physical risks, we extracted matters such as supply-chain disruptions caused by the intensification of abnormal weather, and risks regarding declines in sales caused by the effects of a rise in average temperatures and so on.

Going forward, based on that analysis, we will identify risks and opportunities that apply to a 1.5 degrees scenario, reevaluate their degree of impact, consider various countermeasures, and then incorporate them into our management strategy.

Centering on the Sustainability Promotion Committee, we at Hagiwara Electric Holdings specify and analyze risks and opportunities related to climate change. We sort out the risks through scenario analysis in which we refer to external scenarios and so on of the Intergovernmental Panel on Climate Change (IPCC) and International Energy Agency (IEA). Then, we move forward with appropriately addressing such risks based on identifying levels of impact regarding businesses and specifying risks that are of particularly high importance in light of industry trends.

The chairperson of the Sustainability Promotion Committee participates in our Risk Management Committee (which meeting quarterly), and thus we have a structure in which perspectives on climate-related problems are reflected in the company-wide risks and business risks of our group. This chairperson regularly and appropriately gives reports to, and holds discussions with, the Sustainability Committee, which carries out integrated management, and management meetings and meetings of the Board of Directors, which provide supervision and guidance, and as such, the Board of Directors recognizes the company-wide risks of our group.

We will strengthen processes for managing climate-related risks, and strengthen structures for integrating climate-related risk management and the comprehensive risk management of our group, and we will work to apply such structures to management strategies regarding climate-related risks.

We calculated Scope 1 and Scope 2 (for FY2020 onward) and Scope 3 (for FY2021 onward) in order to achieve our medium-to-long-term greenhouse gas (GHG) emission reduction targets. On the basis of those results, we had set a reduction target for FY2027 for Scope 1 and Scope 2 (25% reduction from the reference year) and had launched specific initiatives in order to achieve those targets. However, we achieved the target by FY2023 ahead of schedule. Accordingly, as a new reduction target, we have revised our goal to achieve a reduction of 50% or more compared to the reference year by 2030. To achieve our new targets, we are fundamentally committed to essential and meaningful reduction activities based on self-initiated efforts. Additionally, for Scope 3, we have begun reviewing our calculation logic to improve accuracy and ensure that our activities are appropriately reflected.

The Hagiwara Electric Group gets third-party verification done by the Japan Management Association for the purpose of ensuring the reliability of the calculation data.

We had set a target of 25% reduction from the reference year for Scope 1 and Scope 2 by FY2027. However, we achieved the target by FY2023 ahead of schedule. Accordingly, as a new reduction target, we have revised our goal to achieve a reduction of 50% or more compared to the reference year by 2030. To achieve our new targets, we will be fundamentally committed to essential and meaningful reduction activities based on self-initiated efforts.

The Hagiwara Electric Group has been planning and launching activities aimed at reducing CO₂ emissions since FY2022.

The business activities of the Hagiwara Electric Group have minimal direct impact on the natural environment. However, we recognize that the products and services we handle may have indirect effects on water resources, such as water consumption during production and usage stages.
As a first step, we are monitoring water usage within the scope of our direct operations. Based on the level of impact, we also acknowledge the need to engage with suppliers and will continue our efforts accordingly.

In evaluating water security-related risks and opportunities, we organize and assess them by collecting and utilizing external information, including expert opinions. These evaluations are reviewed by the Sustainability Promotion Committee and then submitted to the Sustainability Committee and the Board of Directors for approval by management. We recognize that identified risks and opportunities are not fixed, and therefore, we review them at least once a year through the governance structure and process described above.

Toward the realization of a society in which people and nature coexist, the Hagiwara Electric Group engages in activities that minimize the use of limited resources, promote reuse, and contribute to the realization of sustainable resource circulation.

At the Miyoshi Distribution Center, we are engaged in recycling packaging materials. For product packaging at the time of shipment, we are working to reduce plastic waste by reusing surplus plastic wrapping materials from incoming shipments.

With the aim of contributing to resource circulation, we are engaged in the Ecocap Activities, which involves collecting plastic bottle caps purchased by employees.
The collected plastic bottle caps are donated to the NPO Eco-Cap Movement Association, where they are utilized as recycled plastic materials to promote recycling and reduce CO₂ emissions. This initiative also contributes to supporting medical care in developing countries and promoting employment opportunities for people with disabilities and the elderly through the recycling process.

At our manufacturing and distribution sites, we reduce power consumption by switching to LED lighting. We also actively introduce renewable energy at these sites, and work to reduce both energy consumption and GHG emissions.

At Hagiwara Engineering, an electric vehicle (EV) commuting service has been introduced for employees seconded from group companies.
We not only ensure commuting options for employees on solo assignments who are unable to bring their personal vehicles, but also contribute to reducing GHG emissions as a company. Furthermore, the power supply ports used for EV charging are available not only for the vehicles of dispatched employees, but also for customers who visit us in EVs. We aim to reduce the environmental impact not only of our company but also of all companies involved.
Electric vehicles also play an important role from the perspective of business continuity planning (BCP), as they can be used as "running storage batteries" and as an emergency power source in the event of a disaster.

In Electronic Devices Business, which primarily handles in-vehicle devices, we contribute to reducing the power consumption of finished products through the sale of energy-efficient devices. As hybrid and electric vehicles become increasingly widespread, we also support the automotive industry's shift toward greater fuel efficiency by ensuring a stable supply of device products such as power semiconductors and microcomputers used in these vehicles. Through these efforts, we help reduce environmental impact.
In Technology Solutions Business, we offer IT equipment and services that enhance production efficiency. Through these offerings, we help improve energy efficiency at manufacturing sites and contribute to reducing environmental impact.

In office supplies, we give priority to environment-friendly products (such as pens made from recycled plastics). We also handle novelties used in our business activities that are made of rice resin, bamboo, recycled marine plastics, and other environment-friendly products.