Daido Steel Co., Ltd. · TSE:5471
Daido Steel — ESG Presentation (December 2023)
38 slides from Daido Steel's sustainability presentation, Dec 19, 2023
Slide 1: ESG Briefing: Daido Steel Way Sustainable Management 2030
December 19, 2023 ESG Briefing Daido Steel Co., Ltd. Daido Steel Way Sustainable Management 2030 Daido Steel's Approach to ESG Management
Slide 2: Daido Sustainable Management 2030 "Beyond the Special"
Daido Sustainable Management 2030 “Beyond the Special” We are promoting management reform that further enhances our corporate value, and brings us closer to making the following visions for 2030 reality. Pursue high-performance specialty steel and contribute to “realizing a green society” ■Boost ear
Slide 3: Value Creation Process 2030
Value Creation Process 2030 Pursue high-performance specialty steel and contribute to “realizing a green society” in 2030 Boost earning power ESG management promotion Specialty • [E] Environment steel measures ＋ Parts for High- including reducing CO2 emissions automobiles performance and industrial
Slide 4: Materiality (FY2023)
Materiality (FY2023) Materiality (3 key material issues) 16 specific measures to solve materiality (business • Initiatives to address climate change activities) • Transition to a circular economy 1. Preservation of the • Technological innovation for energy transition global environment （product • Im
Slide 5: Sustainability Promotion Structure 2023
Sustainability Promotion Structure 2023 Manage/supervise Board of Directors Business Transfer execution authority CO2 Reduction Promotion execution Committee President and Environment Committee CEO R&D Committee Technology Investment Sustainability Committee Management Executive Committee Production
Slide 6: The Environment
The Environment ◼ Measures to prevent global warming ◼ A Circular Economy
Slide 7: Daido Carbon Neutral Challenge
Measures to prevent global warming Daido Carbon Neutral Challenge Toward 2030 Reduce CO2 emissions by 50% compared to FY2013 Toward 2050 Aim to achieve carbon neutrality in line with the development of decarbonization technologies and infrastructure 7
Slide 8: Domestic CO2 Emissions Status (2021)
Measures to prevent Domestic CO2 Emissions Status (2021) global warming [Million tons of CO2/year] Approx. 3% of global CO2 emissions : Industrial Sector : Transportation : Services sector 1200 sector 1,064 : Household sector : Energy sector : Others *1 1000 800 600 Approx. 15% 400 of CO2 emissions
Slide 9: Changes in Daido Steel's CO2 Emissions
Measures to prevent global warming Changes in Daido Steel's CO2 Emissions 2,000 CO2 emission intensity 2013 - 2023 CO2 emissions, 1000 tons of CO2 per year CO2 emissions: a reduction of 2.6% per year CO2 emissions intensity, CO2 in tons, per CO2 intensity: a reduction of 2.4% per year 0.800 1,500 0.
Slide 10: Carbon Neutral Products
Measures to prevent Carbon Neutral Products global warming We contribute to the realization of a green society by developing a variety of innovative products that lead to energy conversion. <Providing products that respond to the mobility revolution> (Unit: tons per year） FY 2022 FY 2026 Plan Classi
Slide 11: Carbon Neutrality Attainment Solutions
Measures to prevent global warming Carbon Neutrality Attainment Solutions We help our customers achieve CO2 reduction by delivering products that incorporate innovative energy-saving technologies based on our engineering design and steelmaking technical know-how. <Providing technologies that contrib
Slide 12: Carbon Neutrality Attainment Solutions
Measures to prevent global warming Carbon Neutrality Attainment Solutions Steelmaking equipment Heat treatment equipment Electric arc furnace with rotating drives, operating at our Chita Plant (STARQ®) Premium STC® furnace, operating at our Hoshizaki Plant A highly thermal-radiating material A highl
Slide 13: Carbon Neutral STC Furnace (Under Development)
Carbon Neutral STC Furnace (Under Development) Measures to prevent global warming Exhaust heat recovery (Atmosphere exhaust gas) CO2 CO2 electrolyzer Main body (heating chamber) Hydrogen burner Solid lines = Combustion system Broken lines = Atmosphere system Mid-term FY 2026： We aim to develop STC-f
Slide 14: Daido Green Steel's Approach
Measures to prevent global warming Daido Green Steel’s Approach Demand from users for the supply of Green Steel is increasing, even for electric arc furnace steel manufacturers like Daido Steel, despite the fact that we are already emitting about 1/4 of the amount of CO2 emitted by blast furnace ste
Slide 15: Transition to a Circular Economy
Circular Economy Transition to a Circular Economy The electric arc furnace process is the ultimate recycling process for creating new steel from scrap iron. (The ratio of recycled stock to the total amount of raw materials is 90%.) ■Our recycling status (Our actual results in FY 2022) 90% of the raw
Slide 16: Participation in Various Initiatives
Measures to prevent Participation in Various Initiatives global warming Status of our participation in Social Evaluation Scores various initiatives TCFD The GX League CDP Endorsement in Nov. 2021 Endorsement of the Basic Concept in Mar. 2022 scores 2022 Climate change: [B] Water security] [B] Disclo
Slide 17: Society
Society ◼ Respect for Human Rights ◼ Human Capital Management ◼ Social Contribution Initiatives 17
Slide 18: Respect for Human Rights
Respect for human Respect for Human Rights rights ◼ We established the Daido Steel Group Human Rights Policy in February 2023, and formulated priority issues for our Human Rights Policy. ◼ In July 2023, we signed the United Nations Global Compact (UNGC) and joined the Global Compact Network Japan (G
Slide 19: Human Capital Management: Conduct guidelines and human resources development strategy
Human capital management Human Capital Management: Conduct guidelines and human resources development strategy We established our “Five Conduct Guidelines" in 2016 for our employees who create and implement the Daido Steel Group's management philosophy and who will make the Company's visions for 203
Slide 20: Human Capital Management: Promotion of diversity
Human capital management Human Capital Management: Promotion of diversity ◼ We launched our diversity promotion project in 2014. It focused on initiatives to facilitate job satisfaction and revitalize the workplace with an emphasis on promoting the encouragement of active roles for women at the work
Slide 21: Human Capital Management: Human resource development and education
Human capital management Human Capital Management: Human resource development and education ◼ Our education program is usually life-long. During their employment each year, our employees receive education through mandatory training to acquire the knowledge and skills they will require for their curr
Slide 22: Human Capital Management: Human resource development and education
Human capital management Human Capital Management: Human resource development and education ◼ We offer an ESG education program through our proprietary online e-Learning system, Star-D, for all of our employees who participate in the program in their spare time. Created content can be used by Daido
Slide 23: Human Capital Management: Work style reforms
Human capital management Human Capital Management: Work style reforms ◼ Improving work efficiency by improving the working environment: Achieving a better work-life balance by making it easier to perform the work ◼ Improving productivity through the use of IT tools: Promoting man-hour reduction by i
Slide 24: Human Capital Management: Elimination of occupational accidents
Human capital management Human Capital Management: Elimination of occupational accidents ◼ Safety and health are the foundation of happiness and the backbone of corporate management. (Goal: Zero serious accidents) ◼ The number of occupational accidents has increased in recent years. The following tr
Slide 25: Human Capital Management: Promotion of health and productivity management
Human capital management Human Capital Management: Promotion of health and productivity management Based on the recognition that "health is the foundation of happiness" and "our people are the Company’s most valuable asset", as is stated in our Health Management Declaration, we have formulated strat
Slide 26: Social Contribution Initiatives: Supply Chain Management
Social Contribution Social Contribution Initiatives: Initiatives Supply Chain Management ◼ Daido Steel's "Daido Steel Procurement Policy" was established in February 2021 to set forth our basic approach and stance on the social responsibilities to be fulfilled by the Company. ◼ We launched the DSP (
Slide 27: Environmental Preservation Activities (Biodiversity Initiatives)
Social Contribution Environmental Preservation Activities Initiatives (Biodiversity Initiatives) ◼ Kutcharo Natural Forest Daido is a company-owned forest (green area: approx. 3,730,000 m2) on the shores of Lake Kutcharo in Hamatombetsu-cho, Hokkaido. In cooperation with a local NPO, the Lake Kutcha
Slide 28: Mecenat Activities (Art and Cultural Activity Support)
Social Contribution Mecenat Activities Initiatives (Art and Cultural Activity Support) ◼ We have been sponsoring the "Master Music Performers Series", a music concert held four times a year, since 1991. This music event was originally started in 1987 under the plan and sponsorship of Chubu Nippon Br
Slide 29: Community Contribution Activities: Activities at each plant
Social Contribution Community Contribution Activities: Initiatives Activities at each plant ◼ Each of our plants interacts closely with the local government in which it is located and with residents in its neighborhood. In addition to events to deepen friendship such as local festivals and cherry bl
Slide 30: Corporate Governance
Corporate Governance ◼ Strengthen corporate governance ◼ Risk management
Slide 31: Our Approach to Strengthening Corporate Governance
Strengthening corporate governance Our Approach to Strengthening Corporate Governance ◼ We recognize that corporate governance is one of the most important management issues. We strive to improve management efficiency, ensure appropriate and speedy decision-making, and ensure transparency in managem
Slide 32: Board of Directors, Audit & Supervisory Committee, Nominating and Remuneration Committee
Strengthening corporate governance Board of Directors, Audit & Supervisory Committee, Nominating and Remuneration Committee ◼ The Board of Directors meets once a month, in principle. (13 meetings were held in FY 2022) ◼ The Audit & Supervisory Committee also meets once a month in principle (13 meeti
Slide 33: Toward the Target of Achieving a PBR of 1x
Strengthening corporate governance Toward the Target of Mid-term management FY 2022 results FY 2023 plan Achieving a PBR of 1x plan Operating Income ≧400 470 470 (100 million yen) [Major Achievements toward fulfilling the 2023 ROE 8.0％ 10.4％ 8.4％ Mid-Term Management Plan] ◼ Expanded sales of high-va
Slide 34: Reduction of Cross-Shareholdings
Strengthening corporate governance Reduction of Cross-Shareholdings ◼ Each year, we examine the purpose and appropriateness of holding individual cross-shareholdings at the Board of Directors. ◼ We reduced the ratio of cross-shareholdings (including deemed shareholdings) of our net assets to 24.3%,
Slide 35: Stakeholder Communication
Stakeholder Communication Strengthening corporate governance ◼ In July 2022, we reorganized our public relations department and installed the Corporate Communication Section in the Corporate Planning Department, as a new unit that oversees both public relations and investor relations activities. ◼ T
Slide 36: Risk Management System
Risk management Risk Management System ◼ We have established a Corporate Risk Management (CRM) Committee, chaired by the President, which serves as an advisory organ to the Board of Directors and supervises risk management activities performed by the Company. It oversees the status of operation of i
Slide 37: Quality Management
Risk management Quality Management ◼ We have developed a new President's Quality Policy and updated our key measures and guidelines for quality. ◼ We launched the Corporate Quality Management (CQM) Department to strengthen quality governance in Nov. 2023, in response to the existing business environ
Slide 38: End
End >fr DAIDO STEEL CO, LID.