Thoughts of the Director in Charge of Sustainability Promotion

Promotion of sustainability management based on our corporate philosophy

The foundation of the GS Yuasa Group’s sustainability management is in our corporate philosophy proclaiming “Innovation and Growth.” Based on this corporate philosophy, which expresses our mission to contribute to people, society, and the global environment, we aim, through our business activities, to respect “people,” build a sustainable “society” together with stakeholders, and hand down a beautiful “global environment” to the future.

To materialize our thoughts, we have formulated a new Sustainability Management Policy. In this policy, we clearly indicate the pillars of sustainable corporate management as, in addition to “Contributing to the solution of sustainability challenges,” “Maintaining steadfast business foundations” and “Dialogue with a diverse range of stakeholders.” Also, in our medium- to long-term strategic process, such as our long-term vision and Mid-Term Management Plan, we compile growth strategies for each business based on the Sustainability Management Policy. Furthermore, we have stipulated the CSR Policy and CSR Code of Conduct as action principles for employees. By promoting business activities based on these documents, we are establishing a framework for sustainability management.

Storage batteries, which are principal product, are a key device in next-generation automobiles, renewable energy generation, energy storage systems, and so on, and they are an essential factor in the realization of a decarbonized society. In response to the increasingly serious problem of climate change, storage batteries have been attracting attention in recent years, and will continue to do so, as an important technology for the diffusion of renewable energy, electric vehicles, and so forth. We are contributing through the supply of products and services to the sustainability of society, but at the same time it is a fact that the manufacture of storage batteries requires harmful substances and rare metals, as well as large amounts of energy and water. For the GS Yuasa Group, therefore, proper responses to reduction of the environmental load caused by business activities, health and safety risks in the manufacturing process, human rights risks in the supply chain, and so on are important management issues. We are promoting sustainability management in an attempt to achieve both responses to environmental and social challenges and business growth.

Vitalization of Group-wide efforts to achieve sustainability centered on the Sustainability Promotion Committee

To promote sustainability-related efforts from a medium- to long-term perspective and in a diverse manner, we have reorganized the former CSR Committee as the Sustainability Promotion Committee. I serve as the chair of this committee, which drafts objectives and plans our responses to a wide range of sustainability challenges and disseminates them throughout the Group. In addition, the committee actively endeavors to collect information of recent trends, manage sustainability-related risks, convey information to stakeholders, and build good relations with them. Furthermore, to strengthen the supervisory function of sustainability management, the committee regularly reports sustainability strategy and the state of response to major issues to the Board of Directors.

To practice sustainability management throughout the entire Group, it is essential for not only employees in some organizations but all employees to have an awareness of sustainability and to act positively. I think it is important for every employee to understand the GS Yuasa Group’s challenges and targets relating to sustainability, to constantly be aware of the environmental and social impact through their daily work, and to foster a corporate culture that encourages the proposal of measures and ideas to solve sustainability issues.

Challenge to tackle global environmental and social issues

Global sustainability issues, such as global environmental problems and the poverty gap, are one of the most important challenges faced by humankind in present-day society, and they are a factor hindering people’s sustainable life, social stability, and, moreover, corporate growth. For companies, responding to the Sustainable Development Goals (SDGs), which set targets to solve these issues to be achieved by 2030, is an urgent challenge toward the realization of a sustainable society. In our products, services, and all aspects of business activity, the GS Yuasa Group is promoting efforts to respond to the needs and expectations of stakeholders relating to the SDGs. Furthermore, in light of the target for the emission of greenhouse gases set by the Paris Agreement, an international framework for measures to counter climate change, we have proclaimed the goal of achieving carbon neutrality by fiscal 2050. Toward the achievement of this target, we are actively promoting such measures as the galvanization of energy-saving activities, the installation of solar power generation equipment at our factories, and the procurement of renewable energy from the market.

I believe that these initiatives will lead to the reduction of business risks stemming from future regulations and so on and the strengthening of competitiveness through the promotion of innovation. We see efforts for sustainability as not simply a social-contribution activity but business management per se, and we are intent on linking them to enhanced corporate value.

Sustained growth through the effective linkage of financial and non-financial activities

To realize sustained growth, it is essential for the company not only to pursue short-term profit but also to have a management strategy from a long-term standpoint. The key here, I believe, lies in organically linking financial and non-financial initiatives. As well as being in charge of the GS Yuasa Group’s sustainability promotion, I also serve as the chief financial officer (CFO). As such, I am aware that an important duty for me is to link financial indicators and non-financial indicators, assess what kind of impact non-financial activities have on financial performance, and properly analyze the risks and opportunities. For example, by forecasting future revenue and financial losses due to climate change, we will be able to formulate effective growth strategies and business risk countermeasures. In addition, in the GS Yuasa Group’s plans in response to important sustainability issues, we not only set indicators and numerical targets and manage our impact on society but also quantitatively evaluate the impact on business using financial indicators.

Furthermore, by disclosing financial information and non-financial information in an integrated manner, we are able to comprehensibly relay the value-creation process indicating our sustained growth to stakeholders. I believe that clearly showing how we combine our capital and business and supply long-term value to society is an effective means of getting investors, customers, and others to understand our future prospects and growth potential.

On the one hand, neglecting our response to environmental and social issues would invite various business risks. On the other, business that contributes to the solution of global environmental and social problems is the backbone of long-term growth. We will promote sustainable management and pursue the strengthening of our business foundations and enhancement of corporate value in the Group as a whole.