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Sorry, you need to enable Javascript to visit this website. CLOSEMENU KYOEI STEEL LTD. Sustainability Response to Sustainability Issues Sustainability policy・Materiality Sustainability policy・Materiality サブ-ナビゲーション About Us Business & Products Sustainability Response to Sustainability Issues Top Message 現在位置:Sustainability policy・Materiality Value Creation of Kyoei Steel ESGs of Kyoei Steel Investor Relations Company Information News Contact Us Privacy Policy Site Policy Sustainability policy・Materiality Sustainability policy Challenges for the future   In accordance with the Group Management Philosophy, we aim to be an essential company that contributes to social progress and harmony with the global environment, while continuing to move forward through resource circulation business to contribute to realizing a sustainable society. Given that our aim is to become an Essential Company that contributes to both social progress and harmony with the global environment, having sustainable management is absolutely essential. So that we can put our Sustainability Policy into practice, under the supervision of the Board of Directors we need to identify management issues, risks, and opportunities in light of both the Group’s business situation and the external business environment, and formulate responses to these. Issues identified as of particular importance are incorporated into our medium-term business plan NeXuS 2023 launched in FY2022, as materialities, and we have established specific initiatives and KPIs. In order to achieve these KPIs, the Company established a company-wide management structure, each business operations division handled their issues through discussions in each committee and subcommittee, and we accelerated initiatives. Materialities are reviewed when necessary, with business risks and opportunities impacting the Group discussed and reviewed annually by the Corporate Risk Management Committee. 拡大 Positioning of the Sustainability Policy Governance system related to sustainability issues Management process related to sustainability issues Sustainability issues ▲ Risks　　● Opportunities Climate change ▲ Increased capital investment to comply with stricter greenhouse gas emission regulations. ▲ Increased costs due to the introduction of carbon pricing. ▲ Suspension of operations due to abnormal weather conditions caused by climate change etc. ▲ Suspension of operations due to natural disasters. ● Formation of new product markets through reputation gained by further contribution to resource circulation business. ● Increased demand and sales opportunities for products with low CO emissions (steel production using EAFs, green steel, and carbon footprint-labeled products). ● Increased demand and sales opportunities as a national resilience product against natural disasters. ● Increased demand for discrete products such as threaded rebars and assembled products for precast concrete, because labor savings on construction sites are required due to rising average temperatures. Steepening population decline in Japanese society ▲ Workforce population decline resulting in an increasingly serious shortage of personnel. ▲ Shrinking domestic demand for steel. ▲ Discontinuity in operating techniques and skills. ● Increased opportunities to secure qualified personnel as workforce mobility rises due to decline in the working population. ● More opportunities to review human resource development methods and draw out the innate capabilities of our employees. ● Increased demand for discrete products such as threaded rebars and assembled products for precast concrete, which lead to manpower saving in on-site construction is increasing due to steepening demographic decline in society. Constraints on procurement of raw materials and secondary materials ▲ Increased costs due to advancing greenflation. ▲ Tighter supply and demand and reduced quality in raw materials (steel scrap) due to blast furnace manufacturers shifting to EAFs. ▲ Depletion of resources for secondary materials (electrodes, ferroalloys, etc.), price hikes, increasing sourcing difficulty, and decline in quality grade. ▲ Insufficient supply of water resources. ● Increase in steel scrap supply due to improving sorting technology for low-grade steel scrap. ● Strengthened competitiveness by improving technologies for utilizing low-grade steel scrap. Energy problems ▲ Increased difficulty in obtaining energy resources (LNG and other low CO emission fuels) are becoming more difficult to obtain, with higher prices. ▲ Increase in electricity costs due to take-up of renewable energy. ● Strengthened competitiveness by improving operational technologies in order to save energy and reduce environmental impact. Changes in Japanese and overseas markets ▲ Decreases in sale prices and shipment volumes due to excess domestic supply capacity. ▲ Decrease in sales price and shipment volume due to market contraction caused by Japanese population decline. ▲ Raw material price hikes and earnings deterioration due to country risks. ● Reevaluation of the value of local production for local consumption businesses through economic bloc formation. ● Reevaluation of the value of local production for local consumption businesses due to changes in society’s values. ● Capturing of growth markets through global expansion. Acceleration of a move to digital technologies, etc. ▲ Information leaks and system failures due to cyber-attacks and system abuse. ▲ Loss of sales opportunities due to inability to respond to technological innovations. ● Productivity improvement through the use of digital and AI technologies. Materiality (material issues) We have identified materialities that our Group should address using repeated evaluation and analysis of issues identified on the basis of the level of importance from stakeholders’ perspectives. The six materialities are incorporated into our medium-term business plan, and we are working to achieve the ideal state of our Group through our business activities. 拡大 Our approach to materialities Materialities KPI in NeXuS 2023 Concrete measures For a comfortable and safe society We will contribute to global environmental conservation and support the global infrastructure by recycling resources after they have finished their roles in people’s lives. ●Net sales: ¥290 billion ●Operating income: ¥18 billion ●Shipment volume: 4.0 million tonnes (domestic: 1.7 million tonnes; overseas: 2.3 million tonnes) ●[Domestic steelmaking] Sales promotion of value-added products and capital investment to respond to aging, save labor and human resources, and improve distribution efficiency ●[Overseas steelmaking] Establishment of production/sales increase structure through large-scale investment ●[Material recycling] Improvement of treatment for difficult-to-treat waste, and increase of waste treatment capacity ●[Peripheral steel businesses] Strengthening of processed product business and new businesses Toward a beautiful global environment We will not only reduce greenhouse gases and byproducts produced by the Group, but we will contribute to realizing a society that has less impact on the environment by recycling various kinds of waste generated by society. ●Reduction of CO emissions by 50% from FY2014 by FY2031 ●Improvement of energy intensity by 1.0% per year ●No byproducts to be disposed of in landfill ●Measures to reduce CO emissions • Promotion of energy saving and fuel conversion within each division • Photovoltaic power generation and self-consumption • Planting olive trees ●Information disclosure based on TCFD recommendations ●Making effective use of slag ●Disclosure of NOx, SOx emissions ●Disclosure of purchase volume of industrial water and comprehensive wastewater volume To meet the expectations of everyone who creates value along with us We intend to contribute to society through our value chain by providing products and services that meet the varied expectations and requests of our customers and business partners, as well as by procuring raw materials and processed materials that have a low impact on the environment. ●Reform of sales operations (mission-critical system standardization) ●Development and sales of new Color Angle (Eco74) product ●Development and sales of high-strength shear reinforcement bars ●Acquisition of Ecoleaf EPD ●Research on waste treatment according to the needs of the source of emissions Toward safer and more comfortable workplaces We will create safer, more comfortable, and more appealing workplaces by eliminating occupational injuries, improving working environments, hiring diverse human resources, and adopting flexible working styles. ●No occupational injury ●Acquisition of Health and Productivity Management Organization certification ●11% of female employees in general management positions (in FY2024) ●Paid leave rate (in FY2024): 70% for managers and employees in general management positions 85% for production engineers and general office workers ●Introduction of fore furnace temperature sampling robots ●Automation control of gunning repair according to the wear amount on the refractory of the EAF ●Reduction of slinging by introducing a new automated warehouse ●Implementation of a health campaign ●Implementation of health seminars for managers and female employees ●Consideration of establishing new offices, welfare buildings and training/research facilities ●Certified as Health and Productivity Management Organization certification To contribute as a member of the community We aim to make the Group indispensable to the community by contributing through various activities, including disaster prevention. ●Total amount of donations: Approx. 0.5% of nonconsolidated net income ●Continuation of donations through regional social foundations, MESSCUD Medical Safety Fund and other organizations ●Participation in regional activities of each division and company ●Support for local events ●Joint disaster drills with local governments, etc. Toward fairer and more sincere corporate activities We aim to earn the trust of society by building an organizational structure and a highly transparent management system that quickly respond to changes in the business environment, as well as by practicing fair and sincere corporate activities. ●To be continuously listed in the new market segment (Prime Market) of the Tokyo Stock Exchange ●Functional enhancement of the board of directors: increasing the numbers of external and female directors, and disclosing the skills matrix ●Response to the revised Corporate Governance Code: strengthening the risk management system and reviewing the committee 日本語 English Contact Us Search About Us Business & Products Domestic Steel Business Overseas Steel Business Material Recycling Business Business & Products Sustainability Response to 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