Goals and Achievements
Gunze's CO₂ emissions reduction targets
| Category | FY2030 |
|---|---|
| CO₂ emissions reduction in Scope 1 and 2 |
35% or more reduction compared to FY2013 |
Climate Change Response
Policy and Basic Approach
As a key initiative in sustainable management, “Responding to Climate Change” involves promoting company-wide efforts to reduce environmental impact through
decarbonization, aiming to achieve both social and economic value. We target a reduction of at least 35% in total Scope 1+2 CO₂ emissions by 2030 (compared to 2013
baseline). To achieve this, we will focus on energy conservation, energy generation, and renewable energy utilization. Furthermore, we will closely monitor
technological trends in energy innovation and actively explore the introduction of new technologies to reduce the environmental impact of our business activities.
We will also proactively develop environmentally conscious products, contributing to the decarbonization of society as a whole.
Climate Change Initiatives and Information Disclosure (TCFD)
In October 2021, the Gunze Group expressed support for the recommendations put forward by the Financial Stability Board (FSB)’s Task Force on Climate-related Financial
Disclosures (TCFD).
TCFD requires disclosure of the frameworks for examining climate change, indicators, and targets for evaluating the medium- and long-term impact of climate change on
corporate value and for identifying risks and opportunities from climate change, and the way in which these examinations are reflected in corporate management.
(1) Governance Governance relating to climate change is part of our sustainability promotion structure.
Roles of committees and organizations in sustainability promotion
| Committees and organizations | Roles |
|---|---|
| Board of Directors | Monitors the progress of measures to address sustainability issues, including issues pertaining to the environment, particularly climate change, as well as human capital and other topics as discussed and decided during business execution |
| Executive Committee | Discusses and makes decisions on important business administration and execution matters related to Group-wide sustainability, such as environmental issues centered on climate change, as well as human capital and other topics |
|
Sustainability Committee (As a general rule convened once per quarter) |
Discusses and makes decisions on basic and response policies as they pertain to sustainability |
|
Risk Management Committee (As a general rule convened once per quarter) |
Discusses occurrence of risk events related to sustainability, measures taken or to be taken, and risk prevention |
| Main Departments in Charge | Promote initiatives to address sustainability issues and identify risks and opportunities (Environmental Impact Strategy Promotion Office: environmental issues with a focus on climate change; Personnel & General Affairs Department: human capital of the Gunze Group, etc.) |
(2) Risk management
Major risks related to climate change are based on the sustainability promotion structure.
Important issues are reported from the Sustainability Committee and Risk Management Committee to the Corporate Officers’ Meeting and then to the Board of
Directors, thereby integrating and managing Group-wide risks.
(3) Strategy
We selected the plastic films field and apparel business (innerwear) as the Gunze Group’s main businesses for scenario analysis, and we identified short- to
long-term risks, studied countermeasures, and for these, extracted considerations and opportunities.
This time, we conducted analysis in response to the 1.5°C target since this has become the global target.
Specifically, we have formulated two scenarios that reference reports issued by governments and international organizations.
These include the decarbonization scenarios (1.5°C scenario) such as the NZE2050*1 presented in the IEA World Energy Outlook and the warming
progression scenarios (4 ℃ scenario) based on the IPCC AR5 RCP8.5 scenario*2.
The two scenarios are analyzed based on transition risks toward a decarbonized economy and physical risks associated with the progression of global warming.
The Gunze Group will continue to revise its scenario analysis to improve its strategies.
(4) Indicators and targets
Based on the Basic Policy for Plastic Resource Circulation established in 2019, we are actively promoting the 3Rs + Renewable*3 while also developing
new resource recycling technologies and expanding their application to apparel and all other business segments to further enhance our efforts.
As a key initiative for the Gunze Group, we are also strongly promoting the Circular Factory Plan, which aims to recycle resources in the plastic films
field.
In the Plastic Film Company, the Zero Waste Project also completed a system at the core Moriyama Plant to recycle all product types of different shapes,
reducing plastic waste by 70% in FY2024.
Moving forward, we aim to achieve zero waste plastic early on, promoting the establishment of an internal recycling scheme to our overseas plants.
We are also actively developing products that respond to the risks and opportunities gained through scenario analysis.
In the plastic films field, GEOPLAS®, which was launched last year, has steadily broadened its market presence.
In the apparel field, Asedoron, designed to withstand extreme heat and mild winters, shipped over two million units overall (as of July 2025), growing into a
product supported by customers year-round.
Through these initiatives, in the FY2024 CDP*4 Questionnaire’s climate change field, we were certified with a B score, demonstrating that we are
aware of our own environmental risks and impacts and are taking action.
The CDP Questionnaire drew responses and information disclosures from 24,800 companies worldwide and more than 2,100 companies in Japan.
The B score that we received is the third highest on an 8-point scale.
*1 NZE2050 (Net Zero Emissions by 2050): One of the scenarios presented in the IEA’s World Energy Outlook 2020. It is a 1.5°C scenario that surpasses the
target of the Paris Agreement and aims for zero CO₂ emissions by 2050.
*2 RCP8.5 scenario: A scenario in Figure SPM6 of the summary for government policymakers of Synthesis Report (SYR) of the IPCC Fifth Assessment Report
(AR5), which forecasts a temperature increase of 2.6°C to 4.8°C by 2100.
*3 The 3Rs + Renewable: The 3Rs include Reduce (using fewer resources for production and reducing waste), Reuse (using products and parts repeatedly), and
Recycle (effectively using waste as raw materials or energy sources), and this policy adds a fourth R with Renewable.
*4 CDP: A non-profit organization that operates a global system to facilitate environmental information disclosures by companies and municipalities in
response to requests from global institutional investors concerned about environmental issues such as climate change.
Responding to Climate Change related Risks and Opportunities
| Risk items | Risks | Period | Degree of financial impact | Plastic films field | Innerwear field | Responding to Risks and Opportunities | |
|---|---|---|---|---|---|---|---|
| Transition risk （1.5℃） |
Coal prices | Emissions trading and carbon taxes introduced in many countries, increasing operating costs | Medium to long term | Large | ○ | ○ |
Risk response: Reduce the financial impact of carbon taxes by increasing investment in renewable energy and shift- ing to low-carbon energy sources |
| Plastics regulations in various countries | Raw material prices increased due to stricter regulations prompting the introduction of bio-materials and recycled materials | Medium to long term | Large | ○ | ○ |
Risk response: Establish technologies that break down and reuse waste plastic and provide products that meet customer needs |
|
| Changes in energy mix (electricity prices) | Higher ratio of renewable energy to electric power has driven up electric- ity prices | Medium to long term | Small | ○ | ○ |
Risk response: Use of equipment with low power consumption; promote the installation of self-consumption solar power generation |
|
| Price shifts in key commodities | Manufacturing costs for crude oil-de- rived synthetic fibers has increased | Medium to long term | Large | ○ |
Risk response: Promote a shift from petroleum-derived to green materials |
||
| Changes in customer behavior | More consumers are making purchasing decisions in line with their environmental impact | Medium to long term | Medium | ○ |
Risk response: Increase sales of environ- mentally responsible products for ethical consumption |
||
| Physical risks （4℃） |
Abnormal weather | Lower sales due to business activity suspensions and supply chain disruptions caused by wind and flood damage | Short to medium term | Medium | ○ | ○ |
Risk response: Enhance supply chain disaster prevention at manufacturing sites and in logistics to strengthen business continuity capabilities |
|
Rising temperatures (volume of cotton cultivation) |
Cotton prices up due to rising temperatures | Medium to long term | Medium | ○ |
Risk response: Develop bio-materials and Risk response: Develop biomaterials and recycled materials |
||
| Rising temperatures | － | Medium to long term | Medium | ○ | ○ |
Opportunity: Products that address rising temperatures. Strengthened sales (shrink films, innerwear) |
|
- Time period: Short term 1-2 years, Medium term 3-5 years, Long term 6-10 years
- Financial impact in 2050:Small = less than 100 million yen, Medium = 100 million yen to 1 billion yen, Large = 1 billion yen or more
CO₂ Reduction and Future Initiatives
(1) Scope 1, 2 results
In FY2024, we exceeded our goal of a 28% or more reduction compared to FY2013 with total emissions of 108,316 t-CO₂ (93.8% compared to the previous
year) and a 37.2% reduction compared to FY2013.
As a basic policy, we are promoting energy saving and introducing renewable energy on a wider basis.
In FY2024, in addition to reductions resulting from the closure of some business sites, we promoted energy-saving activities utilizing Energy Management
Systems (EMS), bought back the environmental value of internal FIT solar power facilities in Fukushima, Utsunomiya, and Konan, and introduced solar
power facilities at newly established offices and plants (Konan and Ayabe).
We will continue to promote policies to improve renewable energy usage, including the expansion of solar power facilities to overseas business sites and
the introduction of next-gen solar power facilities.
(2) Scope 3 results
Our FY2024 emissions totaled 393,953 t-CO₂ (up approx. 0.8% from the previous year).
Scope 3 includes CO₂ emissions across the supply chain other than Scope 1 and 2, and is impacted by increases or decreases in raw material procurement
and sales across all businesses.
While there were reductions in raw material procurement and sales in the apparel business for this fiscal year, there were increases in the functional
solutions and medical businesses, which were the main factors behind a minor increase in Scope 3 emissions.
In V30-2 (FY2025-FY2027), we will further promote the expansion of resource recycling (the 3Rs + Renewable) across the Group and focus on Reduce
(minimizing resource use) and Recycle (advanced resource circulation), which both lead to significant reductions.
In doing so, we will work to establish a business foundation that minimizes the impact on Scope 3 as our business expands.
Going forward, we will monitor the impact of Scope 3 at our overseas business sites.
CO₂ emissions (Scope 1, 2 ,3)
| FY2024 | Compared to FY2023 | Compared to FY2013 | ||||
|---|---|---|---|---|---|---|
|
Emission volume （t-CO₂） |
Reduction volume （t-CO₂） |
Reduction rate (%) |
Reduction volume （t-CO₂） |
Reduction rate (%) |
||
| Achievements | Scope1+2 | 108,316 | 7,201 | 6.2% | 64,193 | 37.2% |
| Scope1 | 31,051 | 3,681 | 10.6% | 21,262 | 40.6% | |
| Scope2 | 77,265 | 3,520 | 4.4% | 42,931 | 35.7% | |
| Scope3 | 393,953 | -3,097 | -0.8% | － | － | |
- Scope 1 and 2 are calculated for all Gunze Group business sites in Japan and overseas (Scope 2 calculation is based on market criteria)
- Scope 3 is calculated for all Gunze Group business sites in Japan.
Initiatives
The Gunze Group’s Environmental Technologies and Initiatives
Responding to climate change (saving energy, creating energy, and using renewable energy)
・ 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)
Introducing the Konan Plant’s ZEB* Office Building (Konan City, Aichi Prefecture)
(Engineering Plastics Business)
Reflecting our desire and ideas to create comfort for customers and a fulfilling and comfortable work environment for employ- ees, a new office building was
completed to serve as the face of the plant in February 2023.
The former office was a historic building completed in 1959. In light of the issues that continued to emerge as a result of age, there was an urgent need to secure
and expand space to accommodate the expanding scale of business and the variety of products handled. To expand the production area, we therefore decided to
consolidate the conference rooms and offices in the plant building and reconstruct the office building. In addition to consolidation, our goal was to also create a
facility that was stylish, comfortable, and environmentally friendly.
A fusion of the past and present with an exterior that showcases the features of Gunze’s historical buildings, the architectural design also incorporates such
accents as dimmable lighting and wood grain to create comfortable, pleasant spaces. In addition to improving convenience and comfort, there was a focus on
renovating the dining hall. Ingenious efforts were made to make dining a relaxing and enjoyable experience, including offering a variety of seating styles and menus
produced in collaboration with famous restaurants. Moreover, the layout was designed to enable its double use for casual meetings and other functions, which help
improve communication among employees. In terms of environmental friendliness, we also incorporated a variety of energy-saving measures and were thus able to obtain
ZEB certification.
By having a new office that incorporates various design features and measures, we devised a way to boost employee motivation.
We hope that our customers will understand Gunze’s corporate stance, and that the implementation of environmentally responsible management will lead to the
sustainable growth of business.
*ZEB: Net Zero Energy Building
A building design that aims to reduce the balance of primary energy consumed by the building to zero. Having achieved a 102% reduction in standard primary energy
consumption (energy saving 53%, energy creation 49%), the new office building at the Konan Plant was awarded the highest ZEB certification rating.
The Konan Plant’s ZEB office building
Producing comfortable and pleasant spaces
Reduce CO₂ Emissions through the Use of Renewable Energy
In addition to reducing the environmental impact of its operations, Gunze is vigorously working to reduce CO₂ emissions by expanding the use of renewable
energy. The renewable energy currently being used is solar power generation. At our sites in Motomiya City, Fukushima, Konan City, Aichi, and Shimotsuke City,
Tochigi, the company has installed solar power generation systems that use the FIT*1 to generate "environmental value" = non-fossil certificates with
tracking*2, which we then buy back and use to decarbonize our own operations. In addition, at the Circular Factory in Moriyama City, Shiga
Prefecture, scheduled for completion in 2023, solar panels have been installed on the entire roof of the building, and the electricity generated will be used as
part of the plant's power supply. As a result of these facilities and other measures, the current percentage of renewable energy used by our company is
approximately 5% in terms of domestic Scope 1 and 2.
In addition, to further improve this weight, the company plans to introduce solar power generation equipment at the new plant under construction in Konan City,
Aichi, and the new plant in Ayabe City, Kyoto. We will also continue to consider introducing new technologies for solar panels (such as making them lighter) at
other sites where it is difficult to install them.
*1 FIT： The acronym for Feed-in Tariff for Renewable Energy.
Under this system, electricity companies purchase electricity generated from renewable energy sources (solar, wind, hydro, geothermal, biomass, etc.) at a fixed
price set by the government for a certain period of time.
*2 Non-fossil certificates with tracking： The value of electricity produced from renewable energy sources is securitized.
The certificates are given a unique number that allows them to be tracked as they are traded and used, preventing double counting.
Fukushima Solar Power Station
Collaboration with external parties
We believe that solving climate change issues requires collaboration with our customers, business partners, and local communities.
We engage in ongoing dialogue with diverse stakeholders and are working toward achieving carbon neutrality.
Furthermore, the Gunze Group promotes climate change countermeasures in partnership with stakeholders, actively supports these activities, and aims to realize a better
society.
Carbon Negative Products Designed to Contribute to Both CO₂ Reductions and Sales
Our joint industry-academia project with the Center for Urban Research, Kyushu University, has shown that the amount of CO₂ absorbed and fixed in the landscaping
and greening business exceeds the amount of CO₂ emitted during the production of BODY WILD “3D-MADE Boxers” and “Cutoff™ Boxers” products sold as part of the
apparel business. As a result, these products received CARE Certification* from the Japan Institute of Metrology and Sustainability, an independent
organization, thereby allowing us to commercialize these as carbon negative products that help improve the environment.
* CARE Certification
CARE Certification is the world’s first initiative to use a visual format as a means of indicating whether products and services appropriately consider the
labor and natural environments during their production processes. CARE Certification includes both human rights and environmental frameworks, where Gunze has
acquired CARE Certification under the environmental framework.
ESG Finance
Guided by our founding principle of “Starving for harmonious coexistence with all stakeholders surrounding the company through a people-oriented approach and a
commitment to quality,” we have always valued contributing to society with a strong sense of sustainability.
In our new mid-term management plan, “VISION 2030 stage1,” we have established “Environmentally Conscious Management” as one of our core strategies. We will further
strengthen company-wide initiatives to reduce environmental impact through our business activities.
In advancing these initiatives, we will actively utilize ESG Finance *¹ for necessary funding and enhance the transparency of our activities through reporting and
other measures.
*¹ ESG Finance
A financing method where funds are exclusively allocated to investments that contribute to solving environmental (E), social (S), and governance (G) issues.
Green Finance Framework
We plan to invest ¥12 billion in environmental initiatives by 2030. To implement green finance for these purposes, we have established the following Green Finance
Framework *².
Regarding third-party evaluation of compliance with green bond loan principles and guidelines, we have received an evaluation from Japan Credit Rating Agency, Ltd.
(hereinafter, JCR) and obtained “Green1 (F)”, the highest rating in the “JCR Green Finance Framework Evaluation”.
Furthermore, at the time of obtaining this evaluation, the “Circular Factory Project *³” under this framework was the first initiative in Japan to obtain an
evaluation for its entire resource recycling factory initiative.
Nomura Securities Co., Ltd. was selected as the structuring agent to support green finance through advising on the formulation of the framework and obtaining
third-party assessments.
*² Green Finance Framework
This document outlines our policies regarding:
(1) the use of funds raised through green finance;
(2) the project evaluation and selection process;
(3) the management of funds raised; and
(4) reporting, based on the Green Bond/Loan Principles/Guidelines.
*³ Circular Factory Project
A factory project to achieve resource circulation without generating waste by developing products suitable for recycling in the plastic film business, establishing
re-materialization technology, and reusing waste plastics.
- Please refer to the following for our Green Finance Framework.
- Green Finance Framework (Japanese Only) (PDF:1.4MB)
- Please refer to the following for JCR's assessment.
- JCR Evaluation (Japanese Only)(PDF:1.9MB)
Green General Syndicated Loan
To secure the necessary funds for projects such as the construction of a circular factory, we have concluded a Green General Syndicated Loan*⁴ agreement in
accordance with the Green Finance Framework, with Mitsubishi UFJ Bank, Ltd. acting as the arranger.
*⁴ Green General Syndicated Loan
A loan provided by a syndicate of financial institutions, including new financial institutions, based on a single agreement. The use of the funds raised is limited
to investments that contribute to solving environmental issues.
Green General Syndicated Loan Overview
| Contract Date | September 30, 2022 |
|---|---|
| Arranger/Agent | Mitsubishi UFJ Bank, Ltd. |
| Lenders (in alphabetical order) |
Oita Bank Shiga Bank National Credit Union Federation Tsukuba Bank Nanto Bank |
| Total Amount | 4.5 billion yen |
| Loan Term | October 5, 2022 to October 5, 2026 (4 years) |
| Use of Funds |
Circular Factory Project (Moriyama Plant): Construction of a building certified with CASBEE *⁵ A Installation of new lines with improved energy efficiency Green Building: Construction of an office building at the Konan Plant certified with BELS *⁶ 5 stars and ZEB *⁷ |
*⁵ CASBEE (Comprehensive Assessment System for Building Environmental Efficiency)
A methodology for comprehensively evaluating and grading building quality, encompassing environmental considerations such as energy conservation and the use of
materials with low environmental impact, as well as factors like indoor comfort and landscape considerations. Buildings are ranked on a five-tier scale. The Housing
and Building SDGs Promotion Center, a general incorporated foundation, operates the “CASBEE Evaluation Certification System,” a third-party certification
program.
*⁶ BELS (Building Energy Efficiency Labeling System)
One of the third-party certification systems based on the “Guidelines for Labeling the Energy Efficiency Performance of Buildings (Guidelines for Labeling the
Energy Consumption Performance of Buildings)” established by the Ministry of Land, Infrastructure, Transport and Tourism. The system is operated by the Japan
Housing Performance Evaluation and Labeling Association. It objectively evaluates energy efficiency performance and displays it using a five-tier star rating
system.
*⁷ ZEB (Net Zero Energy Building)
A building designed to achieve a comfortable indoor environment while aiming for a net-zero balance of primary energy consumed by the building. This is accomplished
through energy generation using renewable energy sources and energy conservation achieved by utilizing highly insulated structures, sensors, and other technologies.