About GUNZE
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The Gunze Group is advancing efforts to reduce environmental load through its business activities. In the plastics films field, we are aiming to strengthen activities for resource recycling—including the reduction of waste plastic, conversion to environmentally friendly and recyclable raw materials, and the development of recycled products that transcend the boundaries of our business divisions— as we transform into a circular manufacturer. During the period of the Medium-term Management Plan, we will focus on environment-related investment (planning 8.6 billion yen over the three years up to fiscal 2024) and promote activities linked to sustainable management.
Gunze is working to balance both social and economic value by strengthening initiatives aimed at reducing environmental load with a focus on three major promotional items, namely, responding to climate change, realizing are source-recycling society, and promoting sustainable procurement. In responding to climate change, we will endeavor to save energy, create energy, and use renewable energy with the goal of reducing total CO2 emissions in Scope 1 and Scope 2 by at least 35% (compared to the2013 benchmark) by 2030. Moreover, we will promote environmentally responsible business operations by further considering the use of energy innovations. As a part of efforts to realize a resource-recycling society, we will reinforce efforts to recycle waste at all domestic business sites, spearheaded by the Moriyama Circular Factory™, in order to reduce waste throughout the Group. Finally, from a sustainable procurement perspective, we will promote the use of recycled, raw biomass, and other environmentally friendly materials, enhance relationships with suppliers, and work to reduce CO2 emissions from raw materials. Through these resource recycling and sustainable procurement initiatives, the Gunze Group will take positive steps toward upgrading and expanding its lineup of environmentally responsible products while reducingScope 3 emissions.
・ Reducing energy loss through the introduction of energy management systems (EMS)
・ Improving the efficiency of boilers, air conditioners, and other utility equipment
・ Saving energy through new buildings with airtight and thermal insulation (acquire ZEB and CASBEE certification)
・ Systematically installing solar power generation systems
・ Shifting to low CO2 emission fuels (from heavy oil to LPG and electrification)
The Gunze Group has taken steps to convert its Moriyama Factory, a key plant in the plastic films field, into a resource-recycling plant (a plant that recycles resources without producing waste). In the future, we will transition from a manufacturer that sells plastic films to a recycling-based circular manufacturer.
We will actively work to upgrade and expand environmentally responsible products, with the aim of increasing the use of such sustainable raw materials as recycled polyester, organic cotton, and biomass for packaging.
The Gunze Group put in place a green finance framework in fiscal 2022 with the support of Nomura Securities Co.,Ltd., the Group’s structuring agent. Based on the Green
Bond Loan Principles/Guidelines, Gunze’s green finance framework outlines the Group’s policies toward funds earmarked specifically for projects designed to improve the environment. These policies encompass details of (1) the use of funds, (2) the project evaluation and selection process, (3) management of the funds procured, and (4) reporting.
In recognition of the framework’s compliance with the subject principles and guidelines, Gunze received the highest Green1 (F) rating from Japan Credit Rating Agency, Ltd. (JCR). Representing Japan’s first overall resource-recycling initiatives at the time this rating was received, funds procured were allocated to the Circular Factory Project*1 that circulates plastic resources at the Plastic Film Company’s Moriyama Plant.
Utilizing the aforementioned framework, Gunze procured funds through a syndicated, term green loan from MUFG Bank, Ltd. in September 2022. The funds were allocated on a progressive basis up to April 2023 and used for the construction of the Group’s circular factory CASBEE*2 A-ranked building, the installation of a new production line, and the construction of the Engineering Plastics Division’s Konan Plant office, which received the BELS*3 5-star and ZEB*4 certifications.
As a procurement initiative (loan) that helps improve the environment while fulfilling the requirements of the carbon dioxide emission control subsidy (initiative to support the development of a system to promote green bonds, etc.), this project received a grant from the Green Finance Promotion Corporation, which was selected by Japan’s Ministry of the Environment.
The framework developed in this instance, covers all of the Gunze Group’s environment-related investments and enables the execution of green bonds and green loans under the framework to finance the subject investments. Moreover, we believe that the cost advantage of sustainable finance compared with conventional financing methods will improve in the future owing to growing social awareness toward sustainability and changes in the financing environment resulting from revisions to the Bank of Japan’s policies.
The Gunze Group will proactively undertake the procurement of funds utilizing this framework to ensure both social and economic benefits.
*1 Circular Factory Project: A factory project designed to realize resources recycling without generating waste in the plastic films field by developing products suitable for recycling, establishing technologies for recycling, and reusing waste plastics.
*2 CASBEE: Comprehensive Assessment System for Building Environment Efficiency. A five-level rating system that comprehensively evaluates building quality, encompassing such environmental considerations as energy conservation, the use of materials and equipment with low environmental impact, as well as indoor comfort and landscaping.
*3 BELS: Building-Housing Energy-efficiency Labeling System. Established by Japan’s Ministry of Land, Infrastructure, Transport and Tourism based on the Guidelines for Displaying Energy-Saving Performance of Buildings, this system objectively evaluates and ranks energy-saving performance by the number of stars from one to five.
*4 ZEB: Net Zero Energy Building. A building that aims to achieve a comfortable indoor environment while creating energy from renewable energy sources, and reducing the balance of primary energy consumed by the building to zero through energy conservation using a structure with improved heat insulation and sensors, etc.
In the aftermath of the enormous damage caused to the rows of ginkgo trees that line Midosuji Avenue (Osaka City) by Typhoon No. 21 in September 2018, Gunze entered into the “Agreement on Supply of Ginkgo Trees in Midosuji Avenue” with Osaka City in December 2019. The aim of the agreement is to preserve the ginkgo trees in a good condition and pass them on to future generations. In response to a request based on this agreement, in fiscal 2021 Gunze provided 14 ginkgo trees that needed replanting in the Midosuji target area (Dotonboribashi Minamizume to Namba section). This was through Gunze Green Co., Ltd., which conducts greening projects. We will continue to provide these services in the years to come.
