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, 20 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 2019.

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 2019 there were no instances of emergencies directly related to environmental pollution at any of our business locations.

In fiscal 2019, we have started to analyze and evaluate the impacts of climate-related risks on our future business and have prepared measures against these risks.

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

In the recommendations published by the TCFD in June 2017, in order to stabilize financial markets through a smooth transition to a low-carbon society, companies are being called on to disclose information on medium- to long-term climate related risks and their financial impact.

In December 2019, the GS Yuasa Group expressed its support for the TCFD recommendations and affirmed its participation in the TCFD Consortium.

The GS Yuasa Group recognizes that climate-related issues that may have a significant long-term impact on corporate management are important management issues, and believes that it is necessary to promote strategies for responding to such issues. For this, the Group initiated the work of examining risks and opportunities based on climate change scenarios in fiscal 2019 that took into account the information disclosure scheme proposed by TCFD. We are promoting analysis of risks and opportunities in respective scenarios taking as basis the 2℃ scenario, which assumes that a low-carbon society has been realized through the achievement of the goal*2 related to the increasing global average temperature, and the 4℃ scenario, which assumes that this goal has not been achieved and global warming has progressed.

The following table lists the risks and opportunities being currently examined as potential candidates. In particular, trends in the automotive market affecting the automotive battery business, which is our main product, 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 the future, we are committed to promoting identification of risks and opportunities using TCFD and to the development of business strategies, as well as to making concerted efforts for appropriate disclosure of information related to climate change.

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

2The goal of keeping the global average temperature increase well below 2℃ compared to the pre-Industrial Revolution levels

Risks and Opportunities Being Examined as Potential Candidates

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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 RisksShort-term 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.
Long-term 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.