Global Environmental Conservation

Environmental Compliance Management

Environmental Risk Management

Appropriate Environmental Information Disclosure

Responses to Climate Change

The GS Yuasa Group maintains an awareness of the impacts of climate change on its business activities and on society and is proactively responding to these challenges. We promote initiatives for mitigating and adapting to climate change as well as sustainable technological innovation, and have formulated a strategy considering the risks associated with the transition to a decarbonized society as well as the risk of physical damage accompanying increased severity of natural disasters and extreme weather events. Specifically, we are enhancing our delivery of products that contribute to the reduction of greenhouse gas emissions by improving our energy efficiency and promoting the utilization of renewable energy sources. We are also enhancing our disaster preparedness measures to respond to the impacts of natural disasters and extreme weather events while promoting the delivery of products and services to enable the maintenance of energy supply even in the event of a disaster. We are furthermore building a flexible and sustainable business model to accommodate the tightening of regulations and market changes, thereby ensuring business stability.

The Group will enhance its cooperation with stakeholders, including working closely with its supply chain, to actively contribute to the realization of a sustainable society through various climate change measures.

Refer here for more information on responses to climate change (disclosed information based on the TCFD framework)

Reduction of CO₂ Emissions by Promoting Group-wide Energy Management

The GS Yuasa Group believes that it is important to continuously improve the energy management system associated with its business activities and promotes the reduction of greenhouse gas emissions in order to respond to the social changes accompanying the transition to a decarbonized society (such as requests from stakeholders to reduce greenhouse gas emissions, addition of carbon prices to the use of fossil fuels, and shift from fossil fuels to renewable energy).

To that end, the Group is working on formulating specific action plans under a specialized organization dedicated to promoting group-wide energy management, including promoting energy-saving measures in each business division and installing solar power generation systems at Group factories, in order to achieve our Carbon Neutrality Declaration targeting fiscal 2050 and our long-term environmental goals (reducing CO₂ emissions by at least 30% by fiscal 2030 compared to fiscal 2018^*). We also undertake continuous procurement of renewable energy from the market to facilitate the decarbonization of the electricity used in our in-house production processes.

The Group will continuously promote the effective use of energy in its business activities and actively engage in investment toward the mitigation of climate change. Specifically, we will optimize energy consumption in operational processes, introduce equipment and technologies that utilize less energy and which are highly effective, and enhance the utilization of renewable energy. We will promote process improvements and facilities investment aimed at furthering energy saving, particularly in production processes which consume large amounts of energy. In addition, for decision-making on facilities investment, we will carry out assessments that consider the in-house costs associated with greenhouse gas emissions (internal carbon price) and promote the introduction of high-efficiency equipment, the utilization of energy-saving technologies, and the installation of solar power generation systems. Through these initiatives, we will promote the transition to low-carbon business processes and assets, thereby actively aiming to achieve our carbon neutrality targets.

The Group manages CO₂ emissions in totality and not on a basis of intensity, with the aim of reducing greenhouse gas emissions consistent with the Paris Agreement.

Collaboration with Economic Organizations on the Mitigation of Climate Change

The GS Yuasa Group participates in the GX League^*, which undertakes initiatives to transform the entire economic and societal system toward the aim of realizing a decarbonized society. The GX League is a platform spearheaded by the Japanese Ministry of Economy, Trade, and Industry (METI), for companies to collaborate with the government and academia in promoting the realization of carbon neutrality and societal transformation. Participating companies and organizations work together to enhance their competitiveness by means including the creation of new business opportunities and green markets for the transition to a decarbonized society. Through participating in the GX League, the Group is aiming to enhance its greenhouse gas emissions reduction strategy to achieve its carbon neutrality target. The Group also endorses the Task Force on Climate-related Financial Disclosures (TCFD) recommendations and indicates its business strategy toward the mitigation of climate change through an international framework to promote corporate financial disclosure on climate-related risks and opportunities.

The GS Yuasa Group will continue to cooperate with a diverse range of stakeholders, including economic organizations, and support the enhancement of policies to further expedite the transition to a decarbonized society.

GX, which stands for green transformation, refers to the transformation of the entire socioeconomic system through measures to create a decarbonized society.

Energy conservation activities for logistics

The GS Yuasa Group promotes energy conservation for freight forwarding (shipping) as one way to reduce the environmental burden during the product life cycle.

As part of coordinated efforts to save energy, we created a system to identify the quantity of goods being shipped, as well as energy consumption and CO₂ emissions during logistics. We have established a system to identify the quantity of goods being shipped, as well as energy consumption and CO₂ emissions during logistics, and are implementing energy saving measures such as reducing the quantity of items shipped between sites by integration of physical distribution bases and a modal shift from trucks to rail containers and other related systems for transportation.

In addition, the Group has been designated as certified by the Eco Rail Mark System^* for three series of batteries for automobiles and motorcycles. By getting customers to purchase certified products, we are promoting activities in which customers and companies can participate together to reduce the burden on the environment.

Our Group promotes logistics that consider the environment by active utilization of rail freight transportation.

A system of certification by the Railway Freight Association, for companies and products that make thorough use of rail transportation for minimal environmental burden.

Examples of GS Yuasa Group products with Eco Rail certification

• Refer here for data on changes in energy consumption and CO₂ emissions during transportation

Initiatives for Water Security

The Group uses a large amount of quality fresh water for applications such as dilution of electrolytes, which are storage battery materials, and cooling of storage batteries in the charging process. Since water resources are important natural resources for the continuation of business activities, we believe it is important to work on ensuring quality freshwater and reducing water consumption. Accordingly, the Group assesses water risks (flooding, drought, water stress, etc.) at production sites using the water risk assessment tools released by the World Resources Institution (WRI) as well as climate-related scenarios and the results of the Company’s own environmental impact assessments. In particular, the water intake volume at production sites determined to have high levels of water stress (three sites located in China, Turkey, and Thailand) is 737,327m³, accounting for approximately 17% of total water intake at all production sites. To effectively use limited water resources, including responses to water stress, the Group included targets for reducing water intake in production activities in all countries (15% reduction by fiscal 2025 compared to fiscal 2018) in its Mid-Term Management Plan and is implementing initiatives that are integrated with business strategies. We also respond appropriately to restrictions on water intake imposed by national and local governments.

In addition, in the production process of lead-acid batteries, water containing harmful substances (such as lead) is discharged. The Group recognizes the importance of properly treating wastewater so that such wastewater does not adversely affect the surroundings of our business sites. For this, we are committed to implementing wastewater management based on voluntary management standards that are stricter than regulatory standards, in order to ensure compliance with wastewater standards based on laws and regulations and regional agreements.

By securing water necessary for business activities and through an appropriate response to water risks such as environmental pollution around business sites due to wastewater, the Group aims to promote water security initiatives as well as realize the sustainable use of water resources. Further, we are responding to climate change-related risks based on the TCFD recommendations with respect to risks of damage due to floods (such as the shutdown of our factories due to flooding and disruptions in the supply chain).

Examples of a water risk initiative

Reduction of Water Consumption Associated with Production Activities

The Group promotes the effective use of water by taking measures at production plants such as recycling water and reducing water use.

At lead-acid battery plants, we are undertaking measures to reduce water intake including reusing cooling water, which is used in large volumes during the charging process, and recycling water that has been appropriately treated, such as rainwater and backwash water from industrial water filtration equipment. In addition, by switching the water nozzles of water-cooling devices in the outdoor units of dehumidifiers to spray nozzles at specialized battery factories, we are working to reduce the amount of cooling water used by air conditioning equipment while maintaining the necessary cooling performance.

• Refer here for data on changes in water intake by the Group
• Refer here for data on changes in amount of wastewater at our Group
• Refer here for status of violations of permits, standards, and regulations related to water quality and quantity

Designing environmentally conscious products

The GS Yuasa Group's products have some impact on the environment during every stage of the product life cycle, from procurement and manufacturing to transportation, use and disposal. In order to reduce the environmental burden throughout the product life-cycle caused by the consumption of resources and the generation of greenhouse gases and waste, the Group is committed to improving the product performance through designing that considers selection of raw materials, ease of disassembly and segregation, energy conservation, and appropriate labelling.

For an environmental assessment of product design, design departments employ design standards and then evaluate the suitability of products in design review (DR) meetings based on environmental impact assessments of every stage of the product life cycle. When environmental impact standards are not met, we review the design standards and redesign the product. We use the expertise of several departments in addition to design departments, including engineering, marketing, procurement, quality and the environment, to make sure that the results of Design for the Environment (DfE) are communicated widely, which also maximizes their effectiveness.

Environmental Assessment Items

1. Energy conservation
2. Volume reduction
3. Recyclability
4. Ease of disassembly
5. Ease of separation processing
6. Safety and environmental conservation
7. Material selection
8. Ease of maintenance
9. Energy efficiency
10. Reusability (life extension)

Flow of Environmental Assessment

Waste Management

The Group considers that promoting effective utilization of resources as well as the 3Rs (reduce: reduce waste generation; reuse; and recycle) are crucial for contributing to the realization of a recycling-oriented society. As lead-acid batteries that constitute the Group's main product use harmful substances (such as lead) as raw materials, we recognize the importance of proper disposal of waste generated in our production processes.

By promoting quality improvement activities aimed at reducing in-process defects, the Group ensures reduced waste generation (including hazardous waste). In addition, we are committed to reducing the amount of waste generated by reusing raw material loss (such as lead scrap) in the production processes. As for recycling, we are engaged in activities to improve the rate of recycling of resources. We have also established a system to ensure proper disposal of waste in accordance with laws and regulations so as to prevent improper waste disposal (including illegal dumping).

Examples of initiatives for effective use of resources

• Strict implementation of waste separation rules
• Appropriate selection of recycling companies
• Reusing raw materials loss

Examples of operations to ensure proper waste disposal

• Establishing a company-internal system to promote proper waste management
• Strict implementation of waste separation and waste storage rules
• Periodic on-site inspections of waste disposal contractors
• Nurturing personnel in charge of waste disposal practices (including implementation of regular education on waste)

Refer here for data on waste-related changes (amount of recycling, quantity of final disposal)

Recycling Plastic Resources

Since the GS Yuasa Group uses plastics for such things as product materials and packing materials, we recognize the importance of promoting initiatives for the streamlining of plastic resources, which do not easily decompose in the environment, and reducing and recycling waste plastics. The GS Yuasa Group, in the operational management of our environmental management system based on ISO 14001 certification, identifies the use and disposal of plastics as key environmental issues and promotes initiatives for recycling plastic resources.

Examples of initiatives for recycling plastic resources

Efficient use of plastic resources and utilization of alternative materials

• Reducing waste from resin parts through measures to reduce in-process defects
• Reducing the usage of product packing materials through employing high-elasticity stretch film
• Achieving long-term usage of cushioning materials used for storing semi-finished products through employing highly durable Styrofoam
• Manufacture of products using recycled resins
• Adoption of long-life pipe materials
• Raising awareness in design departments to achieve long-life products

Reusing plastic materials

• Reusing plastic scraps generated in the production process for product materials
• Reusing plastic materials used in the production process (storage bags, PP band, stretch film, air packs, foam materials, resin pallets)
• Reusing resin pallets and plastic office supplies

Recycling waste plastic

• Purchasing recyclable office supplies and simple packing supplies (printer ink, label printer cartridges, etc.)
• Thoroughly separating waste plastics (packing materials, PP band, office supplies, food packaging materials, etc.)
• Promoting material recycling for waste plastics (Eco Cap, Styrofoam, etc.)
• Utilizing thermal recycling for waste plastics

Resource Recycling of Used Product

The GS Yuasa Group believes in the importance of creating and operating a system for recycling resources from our used products to help create a recycling-oriented society. To achieve this goal, the Group is promoting initiatives for processing used products and resource recycling by using the wide area certification system.

A wide-area certification system aims to involve the manufacturers of a product in the product's recycling and disposal once it reaches the end of its useful life. These systems make possible more efficient recycling and provide feedback on product design leading to easier disposal and reuse, while ensuring that discarded goods are disposed of properly.

In January 2008, the GS Yuasa Group in Japan acquired wide-area certification from the Ministry of the Environment for industrial batteries and power supplies, and in January 2009 started accepting orders in earnest for a recycling system based on this certification. Even following the start of operations, we continue to make improvements such as expanding the scope of covered products and reviewing operational rules to create mechanisms for the reliable and proper disposal of used industrial batteries.

In the future, we will promote even more effective operation of the wide-area certification system to improve customer service as well as to recycle and properly dispose of post-use products.

Refer here for data on changes in the recycling of used products (industrial batteries and power supplies)

Identifying chemical substance emissions

Today, chemical substances used at GS Yuasa group's business sites include those subjects to reporting under the PRTR Law^*. The Group incorporates the management of hazardous substances into environmental management and regularly assesses how they have been handled to reduce environmental risk and related legal compliance.

Refer here for data on chemical substance emissions.

Preventing Atmospheric Pollution

The Group believes that to prevent any damage to the health and the living environment of local residents, it is crucial to appropriately process substances that are emitted into the atmosphere in the course of our business activities. For this, we are committed to thorough implementation of our environmental management system that conforms to international standards and which ensures that our operations are in compliance with atmospheric emission standards based on laws and regulations concerning soot and smoke, dust, volatile organic compounds, etc. as well as regional agreements. Also, by adopting appropriate measures to prevent atmospheric pollution (installation of dust collectors and maintenance and management of related equipment, etc.), we are making efforts to prevent adverse effects of atmospheric pollution in the vicinity of our business sites. Further, we regularly monitor, and adopt appropriate measures in response to, updated information on atmospheric pollution standards of national and local governments.