ENVIRONMENTAL PERFORMANCE DATA

DATABANK ENVIRONMENTAL PERFORMANCE DATA

■Reporting Period

Fiscal 2023 (January 1 to December 31, 2023)

■Guidelines Used for Reference

Ministry of the Environment, Environmental Report Guidelines (2012 Edition)
Ministry of the Environment, Environmental Accounting Guidelines (2005 Edition)
Global Reporting Initiative (GRI), Sustainability Reporting Guidelines

■Organizational Units Covered

From 2012, the scope of coverage was extended to all consolidated subsidiaries.

Scope of Report: KOKUYO Co., Ltd., 34 consolidated subsidiaries, six non-consolidated subsidiaries and affiliates (192 locations)

2023 Results

Environmental Friendliness Efficiency Indicators

Kokuyo Group designates unique environmental friendliness efficiency indicators as indices to comprehensively evaluate financial performance and impact on the global environment.
These indicators show the extent to which products and services are being offered to society with respect to specific environmental load and correspond to the following four items.

1. CO₂ emissions
2. Final waste disposal
3. Usage of chemical substances subject to PRTR regulations
4. Water usage

Using fiscal 2000 as the baseline for each indicator, the progress status for each fiscal year can be determined.

Environmental Friendliness Efficiency Indicators

• The chemical substances have been calculated according to the volume of chemical substances designated as class 1 under the PRTR Law handled by sites (in Japan) which are required to report data under the PRTR Law.
• The actual values from April to December 2023 have been given for the volume of chemical substances handled in 2023 in response to the revision to the PRTR Law.
• CO₂ (greenhouse gas emissions) from 2019 have been calculated according to the adjusted emission factor for each power company.

JEPIX

The Japan Environmental Policy Priorities Index (JEPIX) is a method of quantifying the individual amount of different types of environmental loads, such as greenhouse gas emissions and air pollutants, as single indicators called Environmental Impact Points (EIP). The EIP is calculated by multiplying the environmental load of each environmentally harmful chemical by the integrated coefficient, which is calculated from the ratio between Japan’s environmental policy target and the actual amount of emissions (environmental friendliness factor), and then obtaining the sum total of them all.

JEPIX

(Millions [EIP])	2019	2020	2021	2022	2023
Landfill waste	50.2	39.8	33.8	48.3	82.0
Photochemical oxidants	0.2	0.1	0.1	0.1	0.1
Greenhouse gas	40.7	32.3	35.7	38.2	36.3
Air pollutants	0.1	0.1	0.1	0.1	0.0
Other	0.9	0.5	1.1	0.8	0.7

Emissions of soot and smoke (SOx and NOx)
designated by the Air Pollution Control Act

	2021	2022	2023
SOx	-	-	-
NOx	0.30	0.13	0.11

(Unit tons)

Air pollutants and photochemical oxidants for 2023 have been calculated from the actual values for chemical substances from April to December 2023 in response to the revision to the PRTR Law.

Global Warming Preventative Measures

Material Issue: Respond to the Climate Crisis

Attainment of the goal for CO₂ emissions:

The domestic consolidated subsidiaries of Kokuyo K Heart and Heartland have been calculated within the applicable scope.

• Electricity-based emission factors are calculated using the basic emission factors of the relevant electrical power companies for each given year
• Results for 2020 and later are disclosed based on a market-based approach.

	CO2 emissions (t)
2013 (Base year)	30,683
2021	24,103
2022	24,101
2023	18,741
2024 (Target year)	15,341

(Unit tons)

Scope 1 and 2 Emissions

Kokuyo, 20 consolidated subsidiaries (domestic and overseas), 10 affiliates (domestic and overseas)

CO₂ emission transitions
^*KOKUYO Co., Ltd., 20 consolidated subsidiaries, 10 affiliates

	Scope of calculation	Coefficient change	Total
2019	32,933	8,331	41,264
2020	27,892	4,851	32,743
2021	30,277	5,973	36,250
2022	32,056	6,736	38,792
2023	32,070	4,759	36,829

(Unit tons)

• Market-based (Non-Fossil Fuel Certificate applied)
• In line with the GHG Protocol’s Scope 2 Guidance, we take the market-based approach (which reflects supplier-specific emissions factors associated with our energy purchases).
• Differences due to changes in emission factors are calculated using the average emission factors of all power sources in 2000 (0.378kg-CO₂/kwh).

CO₂ Emissions (Initiatives to Reduce CO₂ under the SBTs)

	Subject to the SBT targets (emissions of consolidated subsidiaries at the time of the base year)	Not subject to the SBT targets (emissions of subsidiaries included in consolidation from the base year onward)	Not subject to the SBT targets (non-consolidated subsidiaries and affiliates)	Total
2022	37,846	-	946	38,792
2023	32,869	2,976	984	36,829

(Unit tons)

CO₂ emission by source

	CO2 emissions	Composition ratio
Plants	25,437	69.1%
Offices	6,714	18.2%
Distribution (storage, deliveries)	4,678	12.7%
Total	36,829	100%

(Unit tons)

Market-based (Non-Fossil Fuel Certificate applied)

CO₂ emission by source

	CO2 emissions	Composition ratio
Electricity	27,223	73.9%
City gas	5,103	13.9%
Gasoline	1,409	3.8%
LPG	462	1.3%
Other	2,631	7.1%
Total	36,828	100%

(Unit tons)

Market-based (Non-Fossil Fuels Certificate applied)

CO₂ emission by country

	CO2 emissions	Composition ratio
Japan	27,581	67.3%
India	4,525	11.0%
China (including Hong Kong)	4,248	10.4%
Thailand	1,984	4.8%
Vietnam	1,518	3.7%
Malaysia	1,141	2.8%
Singapore	10	0.0%
Total	41,007	100.0%

(Unit tons)

Location-based

Greenhouse gases emitted by the supply chain

Category		Applicable/ Not applicable	Reason for Non-applicability	Scope 3 Emissions	As Percentage of Total	As Percentage of Total Emissions
Category 1	Purchased products / services	Applicable	-	1,011,674	78.7%	76.5%
Category 2	Capital goods	Applicable	-	28,701	2.2%	2.2%
Category 3	Fuel not included in Scope 1 or 2 and energy-related activities	Applicable	-	6,340	0.5%	0.5%
Category 4	Shipping and delivery (upstream)	Applicable	-	41,293	3.2%	3.1%
Category 5	Waste materials generated by businesses	Applicable	-	4,208	0.3%	0.3%
Category 6	Business trips	Applicable	-	1,242	0.1%	0.1%
Category 7	Commuting by workers	Applicable	-	3,272	0.3%	0.2%
Category 8	Leased assets (upstream)	Not applicable	Included in Scope 1 / 2	-	0.0%	0.0%
Category 9	Shipping and delivery (downstream)	Applicable	-	5	0.0%	0.0%
Category 10	Processing of sold products	Not applicable	Kokuyo is a manufacturer of completed products and does not deal with intermediate products	-	0.0%	0.0%
Category 11	Use of sold products	Applicable	-	79,250	6.2%	6.0%
Category 12	Discarding of sold products	Applicable	-	109,111	8.5%	8.2%
Category 13	Leased assets (downstream)	Applicable	-	284	0.0%	0.0%
Category 14	Franchises	Applicable	-	382	0.0%	0.0%
Category 15	Investments	Not applicable	No investments	-	0.0%	0.0%
Total	-	-	-	1,285,762	-	-

Greenhouse gases emitted by the supply chain
(by scope) (Tons of CO₂)

2023	Emissions by scope	Ratio
Scope 1	7,649	0.6%
Scope 2	29,221	2.2%
Scope 3	1,285,763	97.2%
Total	1,322,633	-

(Unit Tons of CO₂)

Greenhouse gases emitted by the supply chain
(for Scope 3)

Resource Saving and Recycling

Waste Materials: Recycling and Final Disposal Amounts

	Waste generated	Recycling amount	Recycling ratio
2019	23,446	22,591	96.4%
2020	19,785	19,107	96.6%
2021	21,933	21,357	97.4%
2022	20,124	19,300	95.9%
2023	22,472	21,074	93.8%

(Unit tons)

Waste Materials by Activity

	Waste generated	Composition ratio
Plants	11,913	53.0%
Distribution	9,493	42.2%
Offices	1,066	4.7%
Total	22,472	99.9%

(Unit tons)

Waste material types (Recycling rate in brackets)

	Waste generated	Recycling amount	Recycling ratio
Paper	11,943	11,876	99.4%
Metals	4,058	4,021	99.1%
Plastic	3,440	3,113	90.5%
Other	3,030	2,063	68.2%
Total	22,471	21,073	93.8%

(Unit tons)

Plastic waste generation (in Japan)

Year	Final disposal amount	Business offices	Construction sites	Total
2019	289	3,413	406	4,108
2020	248	2,759	223	3,229
2021	254	3,146	369	3,769
2022	391	2,615	529	3,535
2023	343	2,456	693	3,492

(Unit tons)

Emissions by Country

	Waste generated	Waste generated composition ratio
Japan	18,336	81.6%
China	2,187	9.7%
Vietnam	968	4.3%
India	545	2.4%
Thailand	257	1.1%
Malaysia	180	0.8%
Singapore	1	0.0%
Total	22,472	100.0%

Hazardous Waste Generation

	2021	2022	2023
Waste generated	70	56	80

(Unit tons)

• Kokuyo Group defines and manages specially controlled industrial waste (as defined in Act on Waste Management and Public Cleansin) as hazardous waste.
• Kokuyo Group covers Kokuyo Co., Ltd. and 20 consolidated subsidiaries and 10 affiliates.

Water Resources

Water used, water recycled, water discharged

	Water used	Water recycled	Water discharged
2019	276	5	192
2020	235	5	151
2021	240	5	153
2022	271	5	177
2023	298	5	213

(Unit 1,000㎥)

• Water recycled: Water recycled in factories
• Water discharged: Wastewater discharged into public water bodies or sewers
• The volume of water used and discharged increased in 2022 because the Indian subsidiary was included in that year.

Water usage by location

	Water usage	Composition ratio
Plants	244	81.8%
Distribution	28	9.3%
Offices	26	8.8%
Total	298	99.9%

(Unit 1,000㎥)

Water usage by country

	Water usage	Water usage composition ratio
Japan	161,716	54.3%
India	62,241	20.9%
China	35,013	11.8%
Thailand	18,829	6.3%
Malaysia	11,745	3.9%
Vietnam	7,976	2.7%
Singapore	97	0.0%
Total	297,617	100.0%

Hazardous Waste Generation

	2021	2022	2023
Public water areas	42	40	40
Grandwater	111	138	173
Total	153	178	213

(Unit 1,000㎥)

Chemical Substances Subject to PRTR Law

• We made the calculations for the specific class 1 designated chemical substances and the class 1 designated chemical substances under the PRTR Law which was revised in 2021 (came into effect on April 1, 2023). Therefore, the calculation period for the actual values for 2023 of the applicable substances is from April 1 to December 31, 2023.
• The volume of PRTR Law Class I Designated Chemical Substances that were used, handled, released, transferred, disposed, recycled, and consumed by the business establishments (in Japan) subject to notification under the PRTR Law.
• For the calculation methods, see the Ministry of the Environment/Ministry of Economy, Trade and Industry’s PRTR Release Estimation Methods Manual, version 5.0 (March 2023).
• “Volume treated” refers to those PRTR designated substances that were treated on site by incineration, neutralization, breaking down, reactive process, etc.
• “Volume consumed” refers to the volume of substances that were removed from the site by the removal of the products containing or accompanying them or that were modified for disposal by means of chemical reaction with other substances.

Environmental Load Material Flow

Input items

Output Items

Other items

Environmental Accounting

Breakdown of economic effects

Sites with ISO 14001 Certification

Seventy-three sites, or 38% of the total 192 sites have received ISO 14001 certification.