Efforts of Japan Airtech <6291> towards ESG and sustainability management

1. Efforts towards ESG

In December 2022, the company set a purpose as 'Supporting the future with clean air.' Under this purpose, they have established a 'Sustainability Basic Policy' to engage in business activities utilizing clean air system technology and expertise, aiming to achieve a sustainable society and the company's continuous growth while enhancing corporate value.

Regarding the environment, they operate photovoltaic systems and energy storage facilities at various locations such as Akagi Smart Factory, Kasukake Service Center, Kaso Plant, and Koshigaya Plant to promote energy saving within the company. They plan to introduce them in the upcoming Kasukake Multipurpose Center currently under construction. In product development, they focus on researching and developing energy-saving technologies and equipment for clean air systems. They are progressing in developing equipment contributing to customers' carbon neutrality achievement across various industrial sectors. They have started calculating the carbon footprint (CFP) of products and calculated the CFP of air showers for external disclosure in April 2024.

In the medical field, they support the development of new vaccines and pharmaceuticals for infectious diseases, including those that were previously difficult to address, even after the surge in demand related to the pandemic (BSL-3 facilities). They are also supporting the development of new treatments for rare diseases, lifestyle-related diseases, cancer treatments, etc., by developing new devices and systems in the field of regenerative medicine. Additionally, they manufacture and sell products that contribute to improving hygiene levels in various fields such as food, pharmaceuticals, cosmetics, electronic materials like lithium-ion batteries, packaging materials, and more, to enhance quality and ensure safe, secure, and comfortable living environments.

* Refers to a biohazard containment unit, essential for handling pathogens, recombinant genetic experiments, and cancer cells.

For governance, they disclosed their response status to the revised Corporate Governance Report on July 31, 2024. At the time of disclosure, only one principle remains non-compliant (EXPLAIN). They are currently considering actions towards achieving management that is conscious of capital costs and stock prices. They plan to disclose future strategies and initiatives by the end of the year.

2. Efforts towards sustainability management

The company has disclosed its initiatives for the five goals of SDGs: "Zero Hunger," "Good Health and Well-being for All," "Energy for All and Cleanly," "Building the Foundation for Industry and Technological Innovation," and "Taking Concrete Steps to Address Climate Change" for the fiscal year ending in December 2023.

i) "Zero Hunger"

They have delivered products that improve hygiene levels in the food sector, such as air showers, insect-proof air curtains, and clean booths to many companies.

ii) "Good Health and Well-being for All"

Through their business, they have delivered infection control products and infectious disease research facilities in the medical field. In the regenerative medicine field, they have delivered cell culture facilities (special clean rooms), as well as manufacturing and selling safety cabinets and large clean booths for manufacturing lines required in the pharmaceutical field.

iii) "Energy for All and Cleanly"

They focus on research and development aimed at improving energy efficiency in airflow and air conditioning to enhance energy performance when customers use their products. They have also introduced solar systems to each business site and conducted heat insulation painting work.

iv) "Building the Foundation for Industry and Technological Innovation"

In the semiconductor field, we manufacture and sell products necessary for the production of high-precision electronic components, and are also progressing joint development with multiple related companies. While details are not disclosed, it seems that sales are expanding. In addition, we are contributing to technological innovation aimed at solving environmental and social issues.

v) 'Take specific measures against climate change.'

In addition to the Akagi Smart Factory, solar power generation and storage facilities have been introduced at various service centers and the Kozo factory. Furthermore, by launching the Smart Clean Room, the company contributes to the energy saving of customers' manufacturing processes and clean rooms through its products. In February 2023, the company endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and disclosed climate-related financial information in accordance with it.

(Writer: FISCO analyst Tomoichi Murase)