Sustainability Initiatives

Although the global economy showed signs of recovery due to the easing of behavioral restrictions that followed the rollout of vaccinations against COVID-19, the outlook remains uncertain due to prolonged supply chain disruptions and other factors. In addition, there are also concerns about the effects of global climate change, with natural disasters becoming more severe and more frequent in recent years. If we are to stop further deterioration, we cannot afford to halt our progress toward a carbon-free society. In addition, as society becomes more diverse, companies are now strongly expected to contribute to the realization of a society where all people are respected and can lead their lives in peace.

The TOKYO KEIKI Vision 2030 – Defining our Aspirations for 2030
At the beginning of fiscal 2021, the TOKYO KEIKI Group anticipated the society of 2030 and defined five business areas as social issues to be solved through our business: “Protect the global environment,” “Ensure a secure society and people’s health,” “Overcome the problems of the low birth rate and population aging,” “Build the future by serving as a key player in the AI/ICT revolution,” and “Advance the mobilitybased society.” Furthermore, to address these social issues, we have formulated TOKYO KEIKI Vision 2030, identifying candidates for growth drivers by comparing our current businesses and technologies to areas of business we wish to enhance. With this vision as a foundation, we aim to shift to a stage of medium- to long-term corporate value enhancement and sustainable growth by responding to rapidly changing social needs and taking the SDGs as a starting point for creating new global niche-leading businesses.

As an example of new projects currently underway, in the area of “protecting the global environment,” we are working on projects involving reducing greenhouse gas (GHG) emissions under the theme of solving environmental issues to achieve carbon neutrality. Currently, as part of our hydrogenrelated business, we provide hydraulic-drive hydrogen compressors for hydrogen filling stations, and going forward, we will pursue further research and development of hydrogenrelated equipment to broaden the scope of our business.

Another example, in the area of “Ensure a secure society and people’s health,” is our contributions to disaster preparedness through our aerospace business. The first step in this direction is the small synthetic aperture radar (SAR) satellites for which we provide microwave amplifiers. Synthetic Aperture Radar is a radar that emits microwaves onto the earth’s surface and receives the reflected waves to produce an image. Analysis of satellite image data acquired from the reaches of space is expected to be useful in responding to earthquakes, floods, and other disasters. Our microwave amplifiers are installed in the core of the satellite, and we are currently constructing a new facility at our Nasu Plant to further expand our involvement to include assembly of the satellite as a whole.

Meanwhile, in the areas of “Overcome the challenges of the low birth rate and population aging” and “Build the future by serving as a key player in the AI/ICT revolution,” our railway business is developing a new railway maintenance inspection system incorporating AI to support rail maintenance personnel, a workforce that is suffering severe labor shortages, thereby achieving further safety and efficiency in railway maintenance.

A Sustainability Promotion Framework to Create Distinctive TOKYO KEIKI Value
The key strength of the TOKYO KEIKI Group lies in the fact that it has developed by harmonizing its various businesses. Therefore, even when considering sustainability, we are working to build a framework based on the idea of reexamining what is distinctive about TOKYO KEIKI and drawing out new ideas. Corporate sustainability activities often end up being formulaic, but we will continue to conduct activities that incorporate the values, originality, and creativity distinctive to the TOKYO KEIKI Group.

The organizations that form the foundation of the Group’s sustainability activities are the Sustainability Promotion Office and the Sustainability Committee, which are designed to serve as a top-down activity framework. Policies and measures involving sustainability management are proposed by the relevant divisions, led by the Sustainability Promotion Office. These are then deliberated and decided on a committee, made up of management personnel and executive officers and chaired by mysel, before being implemented throughout the company. In fiscal 2021, one of our main activities was to identify materialities, which are important issues shared by the Group and our various stakeholders. From fiscal 2022 onwards, the divisions involved collaborate under the committee to study and promote specific measures for these materiality issues. As another example of our activities, we have decided to set our GHG reduction target in Scope 1 and 2 (direct/indirect GHG emissions by the company) for fiscal 2030 at minus 37% (relative to fiscal 2013), the target set by the government for the industrial sector. As a company on the Prime market, the things we must do for the environment are many and varied. Going forward, we will continue to work in line with the Task Force on Climate-related Financial Disclosures (TCFD) proposals and enhance our information disclosure efforts.

Based on the belief that the promotion of sustainability management requires not only strong top-down action, but also bottom-up action, in which each and every employee sees sustainability as their own responsibility and acts accordingly, we have also established the “Future Design Unit” within the Promotion Office. The mission of this unit is to facilitate proposals for improving operational efficiency at the ground level, to develop employees’ ideas for products and businesses that solve social issues to the stage where they can win the approval of top management, and to put them into practice. We hope that the Future Design Unit will serve as a hub for a variety of opinions and ideas for contributing to the environment and society, both internally and externally, and raise awareness of the ongoing improvements that have been a vital part of the company for more than 125 years, as well as its achievements in social contribution.

Meeting Stakeholder Expectations
In April 2022, TOKYO KEIKI moved to the Prime Market of the Tokyo Stock Exchange as part of a major turn toward growth and an even greater focus on solving social issues through innovative technology. We are also working to comply with the TSE’s Corporate Governance Code, which was revised in June 2021, and plan to disclose the status of human resource development and the implementation of higher governance systems in the future. We will meet the expectations of our stakeholders by ensuring high standards of governance and providing products that meet the demands of the environment and society, thereby leading to sustainable growth.
I hope that we can continue to count on your generous support.

Representative Director
President & CEO

A year and a half has passed TOKYO KEIKI Group established new organizations (the Sustainability Committee and the Sustainability Office) to serve as the foundation of its sustainability management. During that time, the climate change situation facing us has continued to worsen, with four key indicators — greenhouse gas concentrations, sea level rise, sea surface temperature rise, and ocean acidification—reaching new highs by 2021. As such, the IPCC (Intergovernmental Panel on Climate Change) prediction of a 1.5ºC increase in average global temperature relative to the pre-industrial era by 2030 is now beyond doubt. Even in the midst of these ongoing global issues, the risk of dependence on fossil fuel-derived energy has become apparent due to the international tensions triggered by Russia’s invasion of Ukraine in February of this year, making the move toward decarbonization an urgent imperative.

Given these circumstances, our Group has decided to address the “realization of an environmentally conscious society” as one of our materialities (important issues for the company and its stakeholders). Initially, we will work to reduce GHG (greenhouse gas) emissions by 37% relative to fiscal 2013, the government’s target for the industrial sector, but in the future we will strive to reduce emissions throughout our supply chain.

We have established a “Sustainability Policy” to clarify the Group’s approach to sustainable corporate activities, including the resolution of the decarbonization issues mentioned above, and have decided to communicate this approach both internally and externally. This policy, the details of which are provided in this report, represents the Group’s management philosophy for the future, and the core spirit in which it will continue its corporate activities. In addition, we have identified “materiality” issues that we must address in order to conduct future corporate and business activities in line with our sustainability policy, and by steadily resolving these issues, we will realize the future we are aiming for as a Group.

There are many things that should and must be done to improve the Group’s sustainability while contributing to society and the environment, but management and all employees will continue to work together to improve the quality of the Group’s sustainability management as we change our mindset to make these issues “things we want to do.”

Director & Executive Officer, Chief of Sustainability Promotion
Yukihiko Suzuki

At the center of our Group, the Sustainability Office plans and promotes measures involving sustainability management.
The Sustainability Committee is chaired by the President & CEO and selects Members from Internal Directors and Executive Officers. It functions as a meeting body that discusses and shares sustainability management-related policies and measures, and executes decisions without delay across the Group.
It also makes proposals on key measures and issues progress reports to the Management Conference and the Board of Directors.