Addressing Climate Change

The Glory Group considers climate change as an urgent issue to be addressed and promotes environmental management through initiatives including reduction of greenhouse gas emissions to contribute to sustainable society.

Basic Approach to Climate Change

Glory’s Environmental Policies address global warming and set forth a long-term goal to achieve carbon neutrality by 2050.

Specifically, we will work to bring our greenhouse gas emissions closer to zero and achieve carbon neutrality in our supply chains, in support of the 2050 goals agreed upon in the United Nations Framework Convention on Climate Change (Paris Agreement).

Information Disclosure Based on TCFD Recommendations

TCFD logo

Since November 2021, the Glory group has been supporting the Task Force on Climate-related Financial Disclosures (TCFD). We are committed to disclosing information regarding risks and opportunities that climate change presents to our business.


Towards carbon neutrality and sustainable society, we promote sound management practices to reduce the environmental burden in every aspect of our business activities. To ensure sound decision-making and supervision for our business execution, we have put in place the following procedure.

Climate-related issues are first dealt by the Environmental Management Committee, chaired by the executive officer who is delegated the authority and responsibility by the President for environmental management. The Environmental Management Committee deliberates upon climate-related matters, of which material issues are reported to and approved by the Sustainability Committee chaired by the President.

Finally, these issues are reported to the Board of Directors and this process is stipulated in the Sustainability Committee regulations.


Below is the list of our climate-related risks and opportunities with key drivers and possible impacts on our business over medium- to long-term.

Going forward, we will conduct analysis and evaluation throughout our value chain based on the multiple scenarios including B2DS (Beyond 2℃ Scenario).

The impact of climate-related risks and opportunities on the Company's business and the Company's responses are assumed as follows.

Risks & Opportunities Key Drivers Business Impacts Financial
Transition Risks Government Policy & Regulations Increase in social demand for reduction of greenhouse gas emissions
  • Increased capital investment for energy conservation and renewable energy
  • To execute medium- to long-term environmental plans
  • To invest in energy-saving facilities and renewable energy according to the plan
  • To improve renewable energy ratio
Introduction of carbon tax & emissions trading
  • Increased business costs
Broadening and increased complexity of laws and regulations
  • Increased costs associated with compliance with applicable laws and regulations
  • To develop technologies and products that comply with laws and regulations
  • To facilitate dedicated staff to monitor the trends of laws and regulations in the countries we operate
Market & Technology Growing market demand for energy-saving products and services
  • Increased costs for research and development to maintain market competitiveness
  • Decreased sales due to delays in the development of environmentally friendly products
  • To develop technologies and products based on market and industry trends
Reputation Growing demand from stakeholders for decarbonization
  • Deterioration of investors' decisions due to insufficient decarbonization efforts and information disclosure
  • Increased costs to meet the demanding ESG disclosure standards
  • To execute medium- to long-term environmental plans and promote fair and proactive disclosure of ESG initiatives
Physical Risks Acute Intensification of natural disasters
  • Suspended operations at our production sites prone to the damage from typhoons, floods, etc.
  • Increased costs for repair and replacement of damaged equipment
  • Increased costs for countermeasures and insurance premiums
  • Interrupted parts procurement due to suppliers being unable to operate
  • To evaluate water risks at production sites and formulate business continuity plans (BCPs)
  • To diversify risks such as raw material suppliers, supply systems, and transportation routes
Chronic Sea level rise
  • Suspended operations at low-altitude production and distribution sites
Average temperature rise
  • Increased operating costs due to greater load on air conditioning equipment
  • Decreased work efficiency of employees
  • To implement energy-saving measures and energy-efficient air conditioning equipment
  • To improve renewable energy ratio
Opportunities Products & Services Growing demand for environmentally friendly products
  • Increased sales in response to the growing demand for environmentally friendly products
  • To develop environmentally friendly products

*Financial impact ; Large=1 billion yen or more, Medium=100 million yen or more and less than 1 billion yen, Small=less than 100 million yen.

Risk management

The Risk Management Committee, chaired by the President, extracts and reviews potential risks in all areas including climate change and identifies material issues.

To address these risks, we apply an environmental management system and follow the PDCA cycle in alignment with Glory’s business activities.

Identified risks and opportunities are reviewed in the Environmental Management Committee.

Metrics & Targets

The Glory Group uses CO2 emissions as the key metrics for climate-related risks and opportunities and has set “FY2050 Environmental Sustainability Goals”, aiming for net-zero CO2 emissions by FY2050. These goals are aligned with Glory’s environmental policies and the idea of carbon neutral society. Casting back from the FY2050 Environmental Sustainability Goals, we have set FY2030 Environmental Sustainability Goals as a milestone to reduce CO2 emissions by 50% compared to FY2013.

To monitor the KPIs, we have formulated the Medium-Term Environmental Plan with specific targets to be achieved within the three years covered in the plan. CO2 emissions in fiscal 2022, the second year of the "2023 Medium-Term Environmental Plan," were 10,717 tons, a 32.7% reduction from fiscal 2013.

Going forward, we will start examining the ways to reduce Scope 3 emissions in the supply chain.

Aiming for carbon neutrality in FY2050, we will continue our initiatives, such as planned update to energy-efficient equipment at manufacturing sites, and increase the use of renewable energy through solar power generation and renewable energy procurement (purchase with Renewable Energy Certificate).

Long target

Initiatives to reduce and control CO2 emissions

We monitor our CO2 emissions regularly and disclose the figures over time for;

Scope 1 - Direct emissions from our business activities

Scope 2 - Indirect emissions from purchased electricity

Scope 3 - All other indirect emissions from upstream and downstream activities in supply chains

Reduce Scope 1 and 2 emissions (Domestic & Overseas)

We have established 3-year action plans and annual goals to reduce CO2 emissions. Our initiatives include installation of electricity usage monitoring system, LED lighting, and human detection sensors. We have also installed solar power system on the rooftop of the Head Office buildings for the use of renewable energy.

Annual CO2 Emissions

CO2 Emissions

*ISO14001 certified sites (Glory and its domestic and overseas consolidated subsidiaries)

In fiscal 2022, CO2 emissions from our domestic sites decreased by 32.7% compared to fiscal 2013. The usage at our offices decreased as a result of teleworking measure to prevent the spread of COVID-19.

Control Scope 3 emissions (Domestic)

We calculate our CO2 emissions created by our supply chains to understand the current status and to reduce the environmental impact of our business activities. In Scope 3, we categorize these emissions to visualize the trend to control the CO2 emissions created outside our business activities.

CO2 emission Scope 3

Scope 3
Category 1: Purchased goods and services
Category 2: Capital goods
Category 3: Fuel and energy-related activities not included in Scope 1 or 2
Category 4: Upstream transportation and distribution
Category 5: Waste generated in operations
Category 6: Business travel
Category 7: Employee commuting
Category 8: Upstream leased assets
Category 11: Use of sold products
Category 12: End-of-life treatment of sold products

*Category 9, 10, 13, 14 and 15 are not applicable to our business.

Category 1 (Purchased products and services) and Category 11 (Use of our products) are the main target for CO2 reduction, as they account for approximately 88% of the Scope 3 emissions.

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