Daido Steel Co., Ltd. · TSE:5471
Daido Steel — ESG Presentation (March 2026)
36 slides from Daido Steel's sustainability presentation, Mar 9, 2026
Slide 1: FY2025 ESG Briefing: Daido Steel's Approach to ESG Management
1 FY2025 ESG Briefing Daido Steel's Approach to ESG Management Go to Amazing Futures with Specialty Steel ! March 9, 2026
Slide 2: How this briefing fits into our current management plan
2 How this briefing fits into our current management plan The Company's vision for 2030 We introduced the “transition management approach” in our 2026 Medium-Term Management Plan, which will enable us to “pursue high-performance materials, create benefits for customers, and contribute to the realiza
Slide 3: Positioning of materiality: Impact on society, business, and finance
3 Positioning of materiality ― Impact on society, business, and finance The 2026 Medium-Term Management Plan is based on three pillars: business strategy, financial strategy, and ESG strategy While advancing our business strategies, we continue to drive initiatives addressing the six key issues (mat
Slide 4: Our Initiatives and Progress on Materiality: Global Environment
4 Our Initiatives and Progress on Materiality Preservation of the Global Environment ■The Daido Steel Group* is working collectively to reduce CO₂ emissions toward achieving carbon neutrality by 2050 (Scope 1 & 2). *Including Nippon Koshuha Steel, which became a wholly owned subsidiary of Daido Stee
Slide 5: Our Initiatives and Progress on Materiality: Responsibilities to Society
5 Our Initiatives and Progress on Materiality Responsibilities and Contribution to Society ■ Elimination of occupational accidents and promotion of health and productivity management: We are advancing initiatives for both mental and physical health in order to achieve the Health and Productivity Man
Slide 6: Our Initiatives and Progress on Materiality: Strengthening Governance
6 Our Initiatives and Progress on Materiality Strengthening Governance ■ Risk Management (Group Whistleblowing System): To ensure the organization’s self-correcting function, we strictly protect whistleblower privacy and aim for a highly reliable and effective system. ■ Ratio of Cross Shareholdings
Slide 7: External Evaluations (as of January 2026)
7 External Evaluations (the major ones; as of January 2026) CDP In January 2026, we were recognized MSCI for our efforts in climate change [A-] In 2025, we received an “A” and water security [A-] for the second on the MSCI ESG Rating. consecutive year. S&P/JPX Carbon Efficiency Index Ever since 2018
Slide 8: Participation in Initiatives (the major ones)
8 Participation in Initiatives (the major ones) Ministry of Economy, Trade and UNGC/GCNJ Industry’s 'GX League’ In July 2023, we signed the United We are participating in the ‘GX Nations Global Compact (UNGC), a League’. This was launched in global initiative proposed by the United fiscal 2023 with
Slide 9: Our Sustainability Promotion System
9 Our Sustainability Promotion System • We have established the Sustainability Committee (chaired by the President) as an advisory body to the Board of Directors, which meets monthly (approximately 20 topics per year). • In addition, we have established the ESG Management Department within the organ
Slide 10: Overview of Activities Toward KPI Achievement (Table of Contents)
10 Overview of Activities Toward KPI Achievement (Table of Contents) E: Preservation of the Global Environment 1. Daido Carbon Neutral Challenge 2. Participation in Industry-Academia-Government Initiatives toward the Realization of a Carbon-Neutral Society 3. Initiatives for Supplying Daido-brand St
Slide 11: Environment: Preservation of the Global Environment
11 Environment Preservation of the Global Environment 1. Daido Carbon Neutral Challenge 2. Participation in Industry-Academia-Government Initiatives toward the Realization of a Carbon-Neutral Society 3. Initiatives for Supplying Daido-brand Steel Products Manufactured with Non-Fossil Electricity 4.
Slide 12: Daido Carbon Neutral Challenge: Aim to achieve carbon neutrality
E: Preservation of the Global Environment 12 1. Daido Carbon Neutral Challenge Toward 2030 Reduce CO2 emissions by 50% compared with FY2013 Toward 2050 Aim to achieve carbon neutrality in line with the development of decarbonization technologies and infrastructure up to 2030 up to 2050 Scope 1 ①Expa
Slide 13: 1. Daido Carbon Neutral Challenge
E: Preservation of the Global Environment 13 1. Daido Carbon Neutral Challenge The entire Daido Steel Group is working to reduce CO2 emissions with the aim of achieving carbon neutrality by 2050. 1.60 1.42 (million tons of CO₂ per year) 1.40 Affiliated －34% －35% －50% 1.20 0.38 －30% Companies 0.99 0.
Slide 14: Our energy-saving efforts
E: Preservation of the Global Environment 14 1. Daido Carbon Neutral Challenge: Our energy-saving efforts Our company thoroughly promotes CO2 reduction through energy-saving efforts during the manufacturing process. In addition, in order to promote energy-saving investment, in August 2021 we introdu
Slide 15: Expanding the use of renewable energy
E: Preservation of the Global Environment 15 1. Daido Carbon Neutral Challenge: Expanding the use of renewable energy By using CO2-free electricity, we contribute to the reduction of our own CO2 emissions, as well as to more widespread use of renewable energy, and also to the development of electric
Slide 16: Expansion of carbon-neutral (CN) plants
E: Preservation of the Global Environment 16 1. Daido Carbon Neutral Challenge: Expansion of carbon-neutral (CN) plants Following the Chita Second Plant, which achieved carbon-neutral (CN) status in FY2025, we aim to attain CN status at the Takiharu Techno Center (including the Machinery Division) i
Slide 17: Our efforts to reduce Scope 3 CO2 emissions
1. Daido Carbon Neutral Challenge: E: Preservation of the Global Environment 17 Our efforts to reduce Scope 3 CO2 emissions In order to reduce CO2 emissions throughout the supply chain, we are working to build relationships with our suppliers to promote the calculation and disclosure of Scope 3 CO2
Slide 18: Participation in Industry-Academia-Government Initiatives toward Carbon-Neutral Society
2. Participation in Industry-Academia- E: Preservation of the Global Environment 18 Government Initiatives toward the Realization of a Carbon-Neutral Society To help achieve carbon neutrality by 2050, we participate in a variety of industry–academia–government initiatives. Through collaboration with
Slide 19: Initiatives for Supplying Daido-brand Steel Products Manufactured with Non-Fossil Electricity
3. Initiatives for Supplying Daido-brand Steel E: Preservation of the Global Environment 19 Products Manufactured with Non-Fossil Electricity We are considering the supply and promotion of a steel product manufactured using non-fossil electricity, taking into account customer needs and relevant mark
Slide 20: Expanding Our Lines of Products for the Growth Market
4. Expanding Our Lines of Products for the E: Preservation of the Global Environment 20 Growth Market; Products that Contribute to Sustainability We will contribute to reducing CO2 emissions and the transition to a circular economy by making sure that our high-performance products and technologies a
Slide 21: Materials for nuclear fusion reactors
4. Expanding Our Lines of Products that E: Preservation of the Global Environment 21 Contribute to Sustainability: Materials for nuclear fusion reactors We contribute to the expansion of low-CO₂ power generation by supplying materials for fusion power generation, an emerging next-generation technolo
Slide 22: Our Efforts to Promote Biodiversity
E: Preservation of the Global Environment 22 5. Our Efforts to Promote Biodiversity In FY2023, we established our own Biodiversity Activities Policy. As a manufacturing company, we work to understand the relationship between our business activities and biodiversity, positioning biodiversity conserva
Slide 23: Example of Biodiversity Efforts: Hamatonbetsu PROJECT
5. Example of Our Efforts to Promote E: Preservation of the Global Environment 23 Biodiversity: Hamatonbetsu PROJECT Through conservation and restoration activities in and around the company-owned Kutcharo Natural Forest Daido, we contribute to revitalizing the local community and enhancing employee
Slide 24: Social: Responsibilities and Contribution to Society
24 Social Responsibilities and Contribution to Society 6. Human Capital Strategy Framework 7. Eliminating Occupational Accidents and Promoting Health and Productivity Management 8. Promoting Diversity 9. Improving Labor Productivity 10. Enhancing Employee Engagement
Slide 25: Human Capital Strategy Framework
S: Responsibilities and Contribution to Society 25 6. Human Capital Strategy Framework It is our employees who support the execution of our business strategies—balancing profit maximization with contributions to the realization of a sustainable society. To achieve the goals set forth in the FY2026 M
Slide 26: Eliminating Occupational Accidents and Promoting Health and Productivity Management
7. Eliminating Occupational Accidents and S: Responsibilities and Contribution to Society 26 Promoting Health and Productivity Management Eliminating occupational Basic philosophy on Occupational Safety and Health: “Safety takes precedence over everything.” accidents Safety Patrols Ratio of lost-tim
Slide 27: Promoting Diversity
S: Responsibilities and Contribution to Society 27 8. Promoting Diversity We established the Diversity Promotion Plan in 2014 with a focus on advancing women’s participation in the workplace, and have since implemented various initiatives, including internal awareness and cultural reforms. We are cu
Slide 28: Improving Labor Productivity
S: Responsibilities and Contribution to Society 28 9. Improving Labor Productivity Experts Self management activities, TMP activities, Daido Monozukuri Kaikaku (DMK) In-house presentation event The 43rd Frontline Supervisors’ Meeting in Nagoya for self-management activities President’s patrol for Da
Slide 29: Enhancing Employee Engagement
S: Responsibilities and Contribution to Society 29 10. Enhancing Employee Engagement Employee engagement chart Positive response rate Target FY2026: 80% or higher Employee engagement and actual results FY2024: 78.5% FY2025: 81.2% A workplace where employees A workplace that is comfortable A workplac
Slide 30: Topic: Establishment of the Sustainability President's Award (2025)
S: Responsibilities and Contribution to Society 30 Topic: Establishment of the Sustainability President’s Award (2025) Advancing ESG Activities We have long maintained a system in which the President recognizes outstanding inventions, ideas, and improvement activities. A new award category has now b
Slide 31: Governance: Strengthening Governance
31 Governance Strengthening Governance 11. Stable Supply of High-Quality Products 12. Risk Management and Compliance 13. Strengthening Corporate Governance
Slide 32: Stable Supply of High-Quality Products
G: Strengthening Governance 32 11. Stable Supply of High-Quality Products Promoting growth strategies through IP Protection intellectual property — Brand value protection activities — We position the strategic use of intellectual property as a key We received reports that counterfeit versions of our
Slide 33: Risk Management and Compliance
G: Strengthening Governance 33 12. Risk Management and Compliance Risk management [The PDCA of risk management] The Company has created a risk map with risks organized by degree of impact and level of countermeasures. The risk map is discussed and approved by the CRM Committee, and working groups (W
Slide 34: Topic: Cybersecurity Measures — Daido-CSIRT Launched in 2025
G: Strengthening Governance 34 Topic: Cybersecurity Measures — Daido-CSIRT Launched in 2025 Cyberattacks are becoming increasingly diverse and sophisticated, with more cases exploiting vulnerabilities in supply chains. To ensure rapid and accurate response to IT security incidents and minimize damag
Slide 35: Strengthening Corporate Governance
G: Strengthening Governance 35 13. Strengthening Corporate Governance Reduction of cross-shareholdings Ratio of cross-shareholdings to net assets (including deemed shareholdings) IFRS basis FY2026 FY2030 target mid-term Number of listed stocks held Value of cross- shareholdings (100 million yen) Net
Slide 36: Daido Steel Group
36 SR DAIDO STEEL CO, LTD DAIDO STEEL GROUP 5hr DAIDO STEEL CO. LID. Beyond the Special