Daido Steel Co., Ltd. · TSE:5471
Daido Steel — ESG Presentation (March 2025)
32 slides from Daido Steel's sustainability presentation, Mar 18, 2025
Slide 1: Daido Steel's Approach to ESG Management
1 FY2024 ESG Briefing Daido Steel's Approach to ESG Management “Kutcharo Nature Forest Daido”: our company-owned forest in Hokkaido March 18, 2025 （5471）
Slide 2: How this briefing fits into our current management plan
How this briefing fits into our current management plan 2 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: Sustainability Promotion System
Sustainability Promotion System 3 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 organization
Slide 4: Materiality
Materiality Red text: Today’s Topics 4 Theme Materiality Action E1 Steady implementation of the roadmap • Decarbonizing fuel and electricity E to achieve carbon neutrality in the production process • Reduction of Scope 3 CO2 emissions • Participation in CN innovative technology/infrastructure develo
Slide 5: Table of Contents
Table of Contents 5 E: Preservation of the Global Environment ① Daido Carbon Neutral Challenge ② Our Approach to Supplying Daido Green EAF Steel ③ Expanding Our Lines of Products for the Growth Market; Products that Contribute to Sustainability ④ Our Efforts to Promote Biodiversity ⑤ Daido Steel Win
Slide 6: E: Preservation of the Global Environment
6 E: Preservation of the Global Environment ① Daido Carbon Neutral Challenge ② Our Approach to Supplying Daido Green EAF Steel ③ Expanding Our Lines of Products for the Growth Market; Products that Contribute to Sustainability ④ Our Efforts to Promote Biodiversity ⑤ Daido Steel Wins the Gold Prize a
Slide 7: ① Daido Carbon Neutral Challenge
E: Preservation of the 7 ① Daido Carbon Neutral Challenge Global Environment Towards 2030 Reduce CO2 emissions by 50% compared to FY2013 Towards 2050 Aim to achieve carbon neutrality in line with the development of decarbonization technologies and infrastructure Up to 2030 Up to 2050 SCOPE 1 ①Expand
Slide 8: ① Daido Carbon Neutral Challenge
E: Preservation of the 8 ① Daido Carbon Neutral Challenge Global Environment The entire Daido Steel Group is working to reduce CO2 emissions with the aim of achieving carbon neutrality by 2050. 1.40 1.29 (million tons of CO2 per year) 1.20 －20% －27% －35% －50% Affiliated 0.25 Companies 1.04 1.00 0.95
Slide 9: Examples of our energy-saving efforts
E: Preservation of the Global Environment 9 ① Daido Carbon Neutral Challenge: Examples of 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
Slide 10: Expanding the use of CO2-free electricity
E: Preservation of the Global Environment 10 ① Daido Carbon Neutral Challenge：Expanding the use of CO2-free electricity 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 electr
Slide 11: Making the Chita Second Plant carbon neutral
E: Preservation of the Global Environment 11 ① Daido Carbon Neutral Challenge：Making the Chita Second Plant carbon neutral Starting in FY2025, we are converting the Chita Second Plant, which is a manufacturing base for our growth market products such as high-purity stainless steel for semiconductor
Slide 12: Our efforts to reduce Scope 3 CO2 emissions
E: Preservation of the Global Environment 12 ① Daido Carbon Neutral Challenge: 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 e
Slide 13: Our Approach to Supplying Daido Green EAF Steel
E: Preservation of the 13 ② Our Approach to Supplying Daido Green EAF Steel Global Environment We are considering supplying and promoting Green Steel, taking into account customer needs and market and industry regulations, as well as emphasizing the environmental value of this low CO2 emission steel
Slide 14: Expanding Our Lines of Products for the Growth Market
③ Expanding Our Lines of Products for the Growth E: Preservation of the 14 Market; Products that Contribute to Sustainability Global Environment We will contribute to reducing CO2 emissions and the transition to a circular economy by making sure that our high-performance products and technologies ar
Slide 15: Our Efforts to Promote Biodiversity
E: Preservation of the 15 ④ Our Efforts to Promote Biodiversity Global Environment We have endorsed the recommendations of the Task Force on Nature-related Financial Disclosures (TNFD) and have disclosed information on the impact of our activities on the natural environment and biodiversity (March 1
Slide 16: Daido Steel Wins the Gold Prize at the 2025 Aichi Environmental Awards
⑤ Daido Steel Wins the Gold Prize at the 2025 E: Preservation of the 16 Aichi Environmental Awards Global Environment At the 2025 Aichi Environmental Awards, we were awarded the top prize, the Gold Prize, for our contribution to the realization of a sustainable society through the development of hig
Slide 17: S: Responsibilities and Contribution to Society
17 S Responsibilities and Contribution to Society ⑥ Human Capital Management ⑦ Respect for Human Rights ⑧ Supply Chain Management ⑨ Social Contributions and Activities
Slide 18: Human Capital Management
S: Responsibilities and ⑥ Human Capital Management Contributions to Society 18 Human capital management is extremely important for achieving our Vision 2030. We have identified three human capital materiality issues in order to develop human resources that can embody our management philosophy of “pu
Slide 19: Human Capital Management
S: Responsibilities and ⑥ Human Capital Management Contributions to Society 19 In our advanced manufacturing field, important aspects of ESG management are the development and retention of human resources and the creation of a workplace environment that provides strong motivation to our employees an
Slide 20: Human Capital Management: DE&I
S: Responsibilities and ⑥ Human Capital Management Contributions to Society 20 In promoting DE&I, we are working to create a workplace that is not only comfortable to work in, but also a workplace that is worth working in. (1) Introduction of AI (Appreciative Inquiry*) We are working to improve comm
Slide 21: Respect for Human Rights
S: Responsibilities and ⑦ Respect for Human Rights Contributions to Society 21 We expanded our human rights due diligence (human rights DD), which started in fiscal 2023, into fiscal 2024, and extended it to include major Group companies １ Commitment Establishment of our human rights policy based on
Slide 22: Human rights risk map
S: Responsibilities and ⑦ Respect for Human Rights Contributions to Society 22 We have developed a human rights risk map, based on the results of an employee survey, to identify important human rights risks • We have determined degrees of severity of problems, based on our business content and areas
Slide 23: Actions on Occupational Health and Safety and Harassment
S: Responsibilities and ⑦ Respect for Human Rights Contributions to Society 23 We will continue to take action to prevent and mitigate significant human rights risks. We will also enhance our human rights grievance mechanism and continue to contribute to the realization of a society free from human
Slide 24: Supply Chain Management
S: Responsibilities and ⑧ Supply Chain Management Contributions to Society 24 In December 2024, Daido Steel renewed its Procurement Policy, and identified it as the Daido Steel Group Procurement Policy. We believe it is an important part of our contribution to the realization of a sustainable societ
Slide 25: Social Contributions and Activities
S: Responsibilities and ⑨ Social Contributions and Activities Contributions to Society 25 In December 2024, we established the Daido Steel Group Basic Policy on Social Contributions, with four guidelines for conduct. Daido Steel Group Basic Policy on Social Contributions The Daido Steel Group has mu
Slide 26: G: Strengthening Governance
26 G: Strengthening Governance ⑩Risk Management ⑪Steps toward Using Assets Effectively and Improving Capital Efficiency
Slide 27: Daido Steel Group Governance System
G: Strengthening Daido Steel Group Governance System Governance 27 We are working to improve management efficiency, ensure appropriate and speedy decision-making, and ensure management transparency as means of responding to the rapidly changing business environment. Management risks deliberated upon
Slide 28: Risk Management
G: Strengthening ⑩ Risk Management Governance 28 We have created a risk map by organizing risks by "degree of impact and level of action" for each individual risk. We have established working groups (WGs) for particularly high-risk items and are promoting cross-organizational responses. Major risks
Slide 29: Improving Capital Efficiency
⑪ Steps toward Using Assets Effectively and G: Strengthening 29 Improving Capital Efficiency Governance We are working to reduce the number of cross-shareholdings to 20% or less by the end of fiscal 2024 (e.g., a treasury stock acquisition in November 2024). We will promote management aimed at impro
Slide 30: External Evaluations (as of March 2025)
External Evaluations (the major ones; as of March 2025) 30 CDP MSCI In February 2025, we were recognized for our efforts in climate change [A-] In 2024, we received an and water security [A-]. “A” on the MSCI ESG Rating. S&P/JPX Carbon Efficiency Index Ever since 2018, we have been MSCI Japan ESG Se
Slide 31: Participation in Initiatives
Participation in Initiatives (the major ones) 31 Ministry of Economy, Trade and Industry’s ‘GX League’ UNGC/GCNJ We are participating in the ‘GX In July 2023, we signed the United League’. This was launched in Nations Global Compact (UNGC), a fiscal 2023 with the aim of global initiative proposed by
Slide 32: Daido Steel Group's Management Philosophy
32 Daido Steel Group’s Management Philosophy Pursuing the potential of materials to support our future. Our Company-owned forest in Hokkaido: