Environmental Management Systems

GS Yuasa operates environmental management systems that comply with international standards.

Operation of environmental management systems

At GS Yuasa Group, we are developing and using environmental management systems that comply with the ISO 14001 international standard.

At every site, we use a PDCA (Plan, Do, Check, Act) cycle as part of a systematic framework for environmental management, enabling us to make continual improvements for environmental conservation.

PDCA Cycle

image:PDCA Cycle

Organizational Structure

In the organizational structure for GS Yuasa Group's environmental management systems, the president of GS Yuasa serves as the chief executive officer responsible for environmental management, overseeing the environmental management of the entire Group working with officers in charge of environment under direct supervision. Environmental issues that affect the entire Group, such as fundamental environmental policy, are discussed and finalized at management meetings.

We are also establishing environmental management systems for domestic business sites and overseas Group companies to enable quick and efficient communication within the group. Starting in fiscal 2018, we are expanding the scope of ISO 14001 certification, the international standard for environmental management systems, from our main domestic business sites to the entire Group, thereby building a system for strategically achieving the Group's environmental goals.

ISO certification acquisition rate at domestic and overseas production sites

Overview of Organizational Structure

image:Overview of Organizational Structure

Seven domestic business sites have obtained integrated ISO 14001 certification

Among our overseas Group companies, 19 production sites have obtained ISO 14001 certification for systems currently in use

Environmental Auditing

We conduct internal environmental audits at every GS Yuasa Group business site to determine whether our environmental policy is being implemented appropriately and that environmental objectives are being met. In addition, we evaluate the environmental management system to improve performance as well as to improve the system itself. We also have an environmental certification agency conduct external environmental audits to check the conformity and effects of our environmental management systems.

Internal environmental auditing

Internal environmental auditors — with qualifications gained from training both inside and outside the company — determine the condition of the following:

  1. Compliance with environmental laws and regulations, etc. (legal compliance audit)
  2. Maintenance and management of environmental management systems (system audit)
  3. Degree of achievement of environmental objectives (performance audit)

External environmental auditing

Audits of the status of maintenance and management for environmental management systems based on ISO 14001 standards and the functioning of PDCA cycles confirmed that every business site adheres to ISO 14001 standards. We will continue working to improve these systems by evaluating environmental management from a third-party perspective and by using information on such items as areas needing improvement.

Environmental Education

The GS Yuasa Group employs different types of environmental education to maintain and improve environmental management systems. In addition, we regularly provide training to avoid exposure to environmental risk.

General Environmental Education

Employee education

In every division, we provide education to all employees to build awareness of their role in achieving the environmental policy.

Education for new recruits

New recruits are made aware of the GS Yuasa Group's basic philosophy on environmental management.

Specialized Environmental Education

Training of internal environmental auditors

At every business location, we train internal environmental auditors and provide them with education to boost their skills to continually improve our environmental management systems.

Emergency response training

In every division, we regularly provide training on responses to potential emergencies to all employees working in operations that have significant potential impact on the environment.

Environmental Compliance Management

The GS Yuasa Group regularly reviews the environmental laws and regulations that must be obeyed, and ensures, through monitoring, that operations are managed in a way that is legally compliant.

Further, business is conducted in compliance with environmental laws and regulations since we use hazardous substances, such as lead, in our products and we must obey the laws and regulations related to the operation of recycling systems for used products.

There was no litigation and there were no punitive fines or administrative fines for nonadherence to environmental laws or regulations in fiscal 2020.

Environmental Risk Management

Our GS Yuasa Group develops environmental risk management with consideration to the different needs of our stakeholders. In every business location, we work to prevent environmental pollution through operational management based on voluntary standards that are stricter than regulatory standards based on environmental laws, regional ordinances and agreements.

In operations that have significant potential impact on the environment, we implement both tangible and intangible measures to reduce the risk of pollution. The tangible measures include: increasing the visibility of operations, preventing spills and using equipment to remove noxious substances. Intangible measures include: equipment inspections, monitoring, measuring and enhancing of operational procedures.

We also hold emergency response training regularly to help mitigate damage in an emergency situation.

In fiscal 2020 there were no instances of emergencies directly related to environmental pollution at any of our business locations.

Initiatives for the Task Force on Climate-related Financial Disclosures (TCFD)*1

Since the Group recognizes that climate-related issues are one of the important management issues, in December 2019, we announced its support for the TCFD recommendations and is working on climate-related information disclosure based on the TCFD framework.

In fiscal 2020, we analyzed climate change risks and opportunities based on the below 2℃*2 and 4℃*3 scenarios. The following table lists the climate-related risks and opportunities that we are currently considering. In particular, trends in the automotive market affecting the automotive battery business, that is our principal business, are considered important in terms of both risks and opportunities. In addition, the spread of renewable energy on a global scale is being seen as a major opportunity to expand sales of storage battery systems. In light of recent international conditions, we are also considering analysis in the 1.5℃ scenario.

In fiscal 2021, we launched a project to integrate climate-related risks and opportunities into our future business plans. In this project, risks and opportunities based on climate change scenarios are analyzed for each business field, and activities aimed at reflecting our business and financial strategies and achieving timely information disclosure are conducted. The climate change scenarios utilized for analysis of fiscal 2021 adopt the 1.5℃ scenario*4 and the stated policies scenario*5 (equivalent to the 3℃ scenario) taking into account the latest international conditions. In addition, when considering such strategies, we plan to take into account the short-term (fiscal 2025), medium-term (fiscal 2030) and long-term (fiscal 2040 and fiscal 2050) timeline.

Going forward, the Group will continue to promote initiatives to address climate-related issues using TCFD and strive for appropriate information disclosure.

1An organization established by the Financial Stability Board at the request of G20 for examining climate-related information disclosure and ways in which financial institutions can respond

2A climate change scenario in case of a successful transition to a low-carbon society (assuming a temperature increase limited to less than 2℃)

3A climate change scenario in case transition to a low-carbon society is unsuccessful (assuming a temperature increase of 4℃)

4A climate change scenario when carbon neutrality is achieved in 2050 (assuming temperature rise is reduced to 1.5℃)

5A climate change scenario when all policies to achieve the currently announced global greenhouse gases mitigation targets are implemented (assuming a 3℃ temperature rise)

Climate-related risks and opportunities examined as potential candidates (fiscal 2020)

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ClassificationAreaValue Chain StageContent
OpportunitiesProducts and ServicesSalesWith the spread of renewable energy, it is expected that there will be an increase in the demand for large-scale storage batteries for power storage facilities necessary for supply stabilization. Sales are expected to increase through the development of power storage systems and product development that meet market needs.
Products and ServicesSalesThe below 2℃ and the 2℃ scenarios suggest that the market for gasoline cars will expand in the medium-term and hybrid and electric vehicles will become popular in the long-term. By launching products that meet the market needs at the right time, we expect to see an increase in market share.
Transition RisksRegulationsProcurementThe 2℃ scenario suggests that carbon taxes will be increased to meet each country’s CO2 emission reduction targets and costs of procurement of energy from fossil fuels will increase. Additional initiatives for energy conservation and use of renewable energy will become important.
MarketSalesConsidering the implications of below 2℃ and 2℃ scenarios, as well as regulatory planning conditions including for gasoline vehicles in Europe, it is expected that the gasoline vehicle market will shrink significantly in the long-term. It is necessary to transform business models to respond to market changes.
Physical RisksAcute RisksDirect Operations, ProcurementThere are concerns about suspension of operations at our company plants and disruption of the supply chain due to flood damage caused by abnormal weather. A survey to analyze and evaluate losses caused by flood damage at our company plants has been conducted from fiscal 2019.
Chronic RisksDirect OperationsSome overseas affiliated companies have concerns about the future risk of drought in a 4℃ scenario. It is necessary to adopt measures including reduction in the amount of water used and promoting water reuse to ensure sufficient water for business activities.