SUSTAINABILITY ENVIRONMENT

Material issues Targets
  • Addressing climate change by reducing CO₂
    emissions
  • Creating environmentally friendly products
  • Reducing greenhouse gas emissions
  • Promoting disclosure under TCFD and other
    frameworks
  • Creating new businesses and products
    leveraging proprietary technologies
2023 Progress
  • Building an emission data management system
  • Declared our endorsement of the TCFD and implemented disclosure.

Carbon Neutral

Star Micronics has set a goal to reduce greenhouse gas emissions in a bid to address climate change. The Company plans to reduce greenhouse gas emissions by 46%, compared with 2013, by 2030 and achieve carbon neutrality by 2050 through various measures including the renewal of production bases in Japan and the introduction of renewable energy. In 2023, we put in place an emission data management system within the Group, including all consolidated subsidiaries. Operations under this system commenced in 2024.

Addressing Climate Change

Greenhouse Gas Reduction Target

CO₂ emissions (Scope 1 and 2, including non-consolidated
and major consolidated subsidiaries)(t-CO₂)
2019 2020 2021 2022 2023
15,105 9,923 11,642 12,109 11,565

Environmentally Friendly Products

In its Special Products Segment, Star Micronics offers a lineup of printers that facilitate the practice of environmentally friendly product manufacturing. The Company released TSP100IV SK, a linerless sticky label printer that supports repositionable labels in 2023. This environmentally friendly printer addresses the need for linerless sticky labels that can be peeled off and repositioned even after the label has been applied, eliminating the need for wasteful liner paper.

In its Machine Tools Segment, Star Micronics engages in thoroughgoing research not only in the planning and design processes that determine product performance, but also in the procurement of parts and the manufacturing process in order to respond optimally to environmental considerations throughout the entire life cycle of its products. To support our customers’ environmental initiatives, we have also included functions to reduce waste and power usage during processing. In addition to Star Motion Control and Step Cycle Pro, we have developed various functions that help reduce power consumption, including Eco Mode, which lowers power consumption while the machine is idling.

Use cases of TSP100IV SK
Use cases of TSP100IV SK
SD-26 equipped with ECO Mode function
SD-26 equipped with ECO Mode function

Information Disclosure Based on the TCFD Recommendations

[ Introduction ]

Formulated in February 2022, the Star Micronics Group’s Sustainability Policy is based on the concept of the Company and employees growing together and contributing to society. In putting into practice this fundamental concept, we recognize the importance of not only the economic, but also the social and environmental aspects of our business activities as we help bring about a sustainable society and enhance corporate value. As a company that operates in countries and regions throughout the world, we also recognize the critical need to address such issues as climate change. In order to meet the expectations and demands of our stakeholders, we have identified and are promoting initiatives to address climate change by reducing CO₂ emissions and create environmentally friendly products as material priority issues.

Against this backdrop, the Star Micronics Group expressed its support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in February 2023. With this in mind, we are promoting initiatives to analyze the impact of climate change on our business, together with subsequent risks and opportunities, based on a variety of scenarios. We are then reflecting our findings in business strategies.

[ Governance ]

The Group established the Sustainability Committee as a body to make decisions on important matters related to climate change. Chaired by the representative director, president and CEO, and comprised of full-time directors and executive officers, the Committee identifies material sustainability issues, including climate change, sets targets for the resolution of these issues, and promotes Group-wide initiatives. Details of decisions made by the Sustainability Committee as well as counter and related measures are disseminated to each division and Group company through the subordinate Environmental Sub-committee.

The results of activities at each division and Group company are regularly reported to the Sustainability Committee through the Environmental Sub-committee to enhance efficacy and implementation.

As a part of the oversight function, the Sustainability Committee reports regularly to the Board of Directors on the performance and progress of activities.

Environmental Management Framework

Environmental Management Framework Meeting Structure
Meeting structure Main role Composition Frequency 2023 Results
Board of Directors
  • Supervision of measures to address environmental
    issues in the execution of business operations
All Board members In principle monthly 11 times
Sustainability
Committee
  • Identify material sustainability issues
  • Identify climate change risks and opportunities
  • Put in place a climate change activity policy
  • Monitor the status of each division’s efforts to address climate change
  • Report on the status of climate change risk and
    opportunity activities to the Board of Directors
Chairperson: Representative Director,
president and CEO
Committee members: Full-time directors
and executive officers
Semi-annually
(extraordinary sessions held as required)
3 times
Environmental
Sub-committee
  • Evaluate climate change risks and opportunities
  • Formulate climate change risk and opportunity
    countermeasures
Members selected in each division Semi-annually
(extraordinary sessions held as required)
3 times
Risk Management
Committee
  • Determine policies to address emerging risks
  • Report to the Board of Directors on the Committee’s
    deliberations
Chairperson: Representative Director,
president and CEO
Committee members: Full-time directors
and executive officers
Semi-annually
(extraordinary sessions held as required)
2 times
[ Risk Management ]

Climate change risks are evaluated and managed by the Sustainability Committee. Information is also shared with the Risk Management Committee as necessary.

While climate change risks are identified by the Sustainability Committee, the Environmental Sub-committee evaluates the impact of these risks and considers countermeasures, which are then rolled out to each division and Group company.

The results of the Sustainability Committee’s deliberations are regularly reported to the Board of Directors, which advises and supervises the Sustainability Committee’s efforts.

[ Strategies ]

The Star Micronics Group adopts a medium- to long-term approach when conducting scenario analyses to identify climate change risks and opportunities. In this manner, every effort is made to properly reflect the impact of risks and opportunities in strategic plans.

In specific terms, the Group refers to scenarios* published by the International Energy Agency (IEA) and the Intergovernmental Panel on Climate Change (IPCC) aimed at achieving the objective put forward under the Paris Agreement of holding the average increase in global temperatures to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C. Accordingly, the Group is conducting two analyses, based on a 1.5°C scenario and a 4°C scenario that assumes greenhouse gas emissions at the current level, to assess the significance of the impact on business activities.

  • * Main reference scenarios
    ・ 1.5℃ scenario: IEA NZE, IPCC 1-1.9
    ・ 4℃ scenario: IPCC SSP5-8.5
Risks and Opportunities Identified
Classification Item Financial Impact Countermeasures
1.5 ˚C 4 ˚C
Transition Risk Introduction of a carbon tax Surge in commodity prices and an increase in costs fueled by higher direct and indirect expenses owing to the introduction of a carbon tax. Large Small
  • Switch to energy-saving equipment
  • Promote operating efficiency
Tighten GHG emissions
regulations
Increase in various costs (including capital expenditures and R&D expenses) in line with efforts to comply with environmental regulations Large Small
  • Switch to energy-saving equipment
Change in the energy mix Increase in energy costs commensurate with a decrease in the share of fossil energy Medium Small
  • Switch to energy-saving equipment
  • Promote operating efficiency
Customer reputation Decrease in sales due to changes in customer needs and product demand as a result of fluctuations in the weather Medium Small
  • Create environmentally friendly products
Investor reputation Increase in costs associated with the disclosure of information on efforts to address environmental and other issues Medium Small
  • Enhance corporate value through the proactive
    disclosure of ESG information
Physical risks Increase in average
temperatures
Increase in facility management, utility, and other costs associated with rising temperatures Small Medium
  • Switch to energy-saving equipment
  • Promote operating efficiency
Intensification of extreme
weather conditions
Decrease in sales and increase in restoration costs due to the shutdown of production plants and supplier damage attributable to floods and torrential rains Medium Large
  • Strengthen BCP measures
Opportunities Products and services Increase in sales owing to the market release of products that comply with regulations and upswing in demand Large Small
  • Create environmentally friendly products
Incidence of new component machining needs in line with the shift to EVs; increase in sales on the back of optimal processing machine sales Large Small
  • Create environmentally friendly products
Resource efficiency Decrease in manufacturing costs due to switch to energy-saving equipment and improved operating efficiency Medium Small
  • Switch to energy-saving equipment
  • Promote operating efficiency
Intensification of extreme
weather conditions
Increases in demand for air conditioning equipment as well as orders for machine tools from plants producing related parts resulting in higher sales Small Medium
  • Create environmentally friendly products
Increase in sales on the back of steps taken to strengthen the service structure and systems and growing reputation among customers for prompt after-sales service Medium Large
  • Strengthen the service network
[ Indicators and Targets ]

1. Indicators
The Star Micronics Group uses greenhouse gas emissions as an indicator to manage climate-related risks and opportunities.

2. Targets
The Star Micronics Group has set targets for the reduction of scope 1 and 2 GHG emissions of 46% in 2030 compared with 2013 and virtually zero emissions by fiscal 2050. To this end, the Group is promoting reductions in greenhouse gas emissions in a bid to achieve the 1.5°C scenario.
As part of this effort, Star Micronics has been promoting the selection and concentration of its global production base network and is working to improve productivity since 2013. Through these and other means, the Group is endeavoring to reduce GHG emissions.
Looking ahead, plans are in place to renew domestic production bases. The Group is committed to strengthening measures aimed at achieving reduction targets. These efforts include the use of renewable energy while striving to improve production efficiency by introducing energy-saving equipment and promoting DX.

3. Results
Results in reducing scope 1 and 2 GHG emissions are presented as follows: