Manager, The Center for the Strategy of Emergence: ESG Research Center
The Japan Research Institute, Ltd.
I hereby submit a third-party opinion with regard to the Shindengen Group’s CSR activities and its information disclosure practices. This opinion letter is prepared based on my findings from the Shindengen Group CSR Report 2020.
After reading this year’s report, I got the impression that the Company is steadily working to create a positive impact on society through its businesses. I’d like to go over three main points.
The first point is that Shindengen is working harder than ever to integrate corporate social responsibility (CSR) and environmental, social and governance (ESG) initiatives into its corporate management. In the President’s Message at the beginning of the report, he states that the Group is advancing product strategy for sustainable growth under the 15th Medium Term Business Plan and that the Group will continue contributing to the SDGs through the promotion of ESG management and its business activities. I give credit to Shindengen for promoting CSR and ESG initiatives across the Company as a material issue for management, such as by revamping the organization of the CSR promotion framework and establishing the new CSR Promotion Office as an organization under the direct supervision of the president.
The second point I want to touch on is the progress that has been made on initiatives aimed at contributing to the SDGs. The Shindengen Group’s corporate mission is “Maximizing energy conversion efficiency for the benefit of humanity and society.” In line with this mission, the Group decided that it should focus on SDG target 7.3 (By 2030, double the global rate of improvement in energy efficiency). Moreover, this is a target that Shindengen can contribute to through the provision of its products, so we can expect the Company to have a large impact on Target 7 (Ensure access to affordable, reliable, sustainable and modern energy for all) through its operations. Shindengen’s devices that help reduce electric power consumption contribute to the improvement of energy efficiency. The Company also provides quick chargers for electric vehicles. Thus, Shindengen’s products are contributing to the realization of a decarbonized society.
The Company’s inverters for portable generators, which can provide energy during crises, help enhance resilience to natural disasters and therefore contribute to SDG 13 (Take urgent action to combat climate change and its impacts). In addition, beyond the fields of the environment and energy, a Shindengen affiliate is helping to circumvent severe complications of COVID-19 by boosting the supply of solenoids for ventilators. Going forward, I think the proposition that Shindengen’s products support the realization of a sustainable society will become more persuasive as it becomes clearer that every one of its products has a quantifiably positive impact on the environment and society and the Company continues to promote this.
The third point is that the Company is making steady progress on initiatives aimed at enhancing product quality, long an area of focus, and on establishing an environment where it is easy to work. Regarding the work environment, Shindengen has improved the percentage of paid leave taken every year, and there has been an increase in the number of people taking nursing care leave and the number of men taking childcare leave. The Company is also promoting telecommuting that takes advantage of the latest technologies. To raise awareness of these efforts among employees and increase the number of users, I think it would be effective to clearly document its policies on realizing various work styles and promote these policies internally and externally.
Finally, as I pointed out in the previous report, there is a growing trend toward setting targets for reducing CO2 emissions accompanying business activities over the medium to long term based on the Paris Agreement, an international framework for global warming countermeasures. Going forward, I look forward to Shindengen considering CO2 reduction targets for the medium and long term, specifically 2030 and 2050.
Commentary on the Third-Party Written Opinion
We thank Naoko Hase, and ESG Analyst from the Japan Research Institute, Ltd., for her valuable comments on, and suggestions for, our Group’s CSR activities.
The Group outlined its ESG initiatives in its Medium Term Business Plan. To carry out these initiatives, we unveiled our SDG Material Issues in line with our mission statement. The Group is working to contribute to the international initiatives of the Paris Agreement and the SDGs by addressing the issues identified.
Regarding the social and environmental issues we are facing, such as CO2 emission reduction and workstyle reforms aimed at enhancing productivity, we aim to promote additional measures, maintain the trust of all stakeholders, and contribute to sustainable growth with society.
CSR Promotion Office(CSR Committee Secretariat)
Shindengen Electric Manufacturing Co., Ltd.