Sustainability Dialogue

Imaeda: Mr. Sasaki and I joined the company at the same time. In our younger days, we enjoyed outdoor activities together like skiing and fishing. But now, with less snow and fewer fish, I feel we can no longer take these things for granted. I believe corporate responsibility is crucial to protecting and restoring our planet’s environment, which risks further loss if we continue down this path.

Sasaki: That’s correct. Our company also formulated the Carbon-neutral Strategy 2030 in 2021 and has been advancing its initiatives. However, due to the heightened sense of crisis across society, higher-level efforts and information disclosure are now being demanded, such as compliance with the CSRD (Corporate Sustainability Reporting Directive) and the SSBJ (Sustainability Standards Board Japan) Sustainability Disclosure Standards.

Imaeda: The impacts of climate change, such as frequent extreme weather events, are undeniable. Even if there is a temporary backlash against ESG, I believe the trend will only accelerate further. Moreover, the challenges to achieving a sustainable society extend beyond the environmental sphere to include issues like labor shortages due to declining birthrates and an aging population. We are entering an era where a company’s stance on sustainability will be scrutinized as part of its corporate responsibility.

Sasaki: Recently, there’s also a demand for LCA (life cycle assessment) initiatives that comprehensively evaluate all processes from production to disposal. What are your thoughts on this approach?

Imaeda: A system for sharing environmental data, primarily within the European automotive industry, has been established, and Japan has also developed a system to connect with it. Our company must also follow suit. While our data collection framework is not yet fully developed, we will work diligently on it in cooperation with the JAPIA (Japan Auto Parts Industries Association).

Sasaki: To be honest, I feel that our work is still struggling to keep up with these societal trends, barely managing to respond to disclosure requests. We haven’t yet reached the ideal state we should be aiming for. Topics like ESG and sustainability are difficult for employees to internalize as their own concerns. Therefore, we need to carefully communicate to both internal and external stakeholders what is expected of the company, the background and purpose behind these initiatives, and the company’s specific actions.

Imaeda: Let’s clearly define the vision we aim for and communicate it to our employees.

Sasaki: Achieving carbon neutrality is extremely important for the company’s future growth and is positioned as one of the pillars supporting our business structure within TRV 2030. How is progress on the Carbon-neutral Strategy 2030 coming along?

Imaeda: We have established strategies for the four areas of products, procurement, logistics, and production through 2030. Among the goals set within these strategies—such as reducing product CO₂ emissions by 10% (through the use of low-CO₂ materials, etc.) and achieving carbon neutrality at our headquarters factory—we have now reached a stage where their attainment is foreseeable.
Additionally, regarding production CO₂, we have concluded an off-site PPA* with Chubu Electric Power Miraiz Co., Inc. to accelerate the introduction of renewable energy, aiming to achieve a 60% reduction.
However, achieving the long-term goal of group-wide carbon neutrality by 2050 has limitations if we continue along the existing path; innovative production engineering development is essential. We must accelerate the development of new methods for the three major CO₂ emission sources: painting, casting, and heat treatment. In painting, we have developed technologies like “in-mold coating” and “compact coating booths” that achieve significant energy savings and space reduction, and mass production is now within sight. I feel my role is to spearhead the creation of second and third innovative technologies, building on this initial success.

Sasaki: The necessity of considering environmentally conscious design and production engineering has not yet been fully embraced, so we must advance in that area. We must move toward a field where our own work connects with our contribution to the environment, making it something we personally care about.

Imaeda: I believe it’s essential to make each initiative tangible—to demonstrate how much CO₂ reduction or environmental risk mitigation it achieves. Our newly refreshed environmental slogan, “TRy for the future (which we can change with our thoughts and actions)” embodies our approach. We must firmly embed this mindset across the entire group, ensuring everyone works together toward the same goal. Furthermore, we must focus on activities that deliver tangible results. Given the rapidly changing environmental landscape, we need to flexibly review our strategies and KPIs. However, even as we strive for carbon neutrality, we should not resort to easily purchasing credits. Instead, we should select measures that genuinely reduce CO₂ emissions and contribute to climate change mitigation, such as promoting energy-saving activities and expanding the adoption of renewable energy.

* Off-site PPA (power purchase agreement): A system whereby electricity consumers (such as companies or municipalities) purchase power under long-term contracts from renewable energy power plants located off their own premises.

Sasaki: In 2024, our company announced a human capital management policy aimed at creating a company where every employee can feel a sense of fulfillment in their work, as part of our HR strategy for enabling everyone to thrive. We are building an organizational culture where all individuals can work vibrantly and contribute effectively. Based on this corporate culture, we support employees in autonomously taking on challenges and excelling. We are also establishing mechanisms to generate results. We are advancing various initiatives under these three pillars. Currently, we are systematically advancing each necessary task. Concurrently, under TRV 2030, we announced our commitment to advancing human capital management that enables both challenge and transformation. This aims to build a company that can “materialize results” from “challenges.” We will focus on three key priorities: “Promote health and productivity management,” “Nurture human resources capable of leading transformation,” and “Further expand opportunities to take on challenges, grow, and participate actively.”

Imaeda: Considering our company’s age structure, as the number of employees in their 50s and 60s increases, I believe measures to enable this generation to thrive and the development of human resources will be key to the company’s growth.

Sasaki: That’s correct. We will shift to a system linked to role performance, aiming to enhance motivation and growth aspirations for employees who continue to contribute actively, including those over 60. Regarding talent development, strengthening management capabilities is essential to foster a workplace culture that encourages employee challenges. We will shift the focus from “completing tasks” to “member growth” and work to elevate overall management standards. Furthermore, while various training programs have historically been centered around OJT, we will systematically reorganize the training the company requires, clearly defining the necessary skills and competencies.

Imaeda: Improving motivation, strengthening management skills, and establishing a robust training system—all are extremely important. Let’s make sure we advance these initiatives thoroughly as a company.

Sasaki: I believe promoting DX and utilizing AI will be key to future growth. What are the challenges in production engineering and manufacturing initiatives?

Imaeda: On the production floor, we’ve begun collecting real-time data via IoT sensors and introducing AI for predictive detection of equipment abnormalities and quality issues. To leverage DX and AI, we must cultivate talent with digital literacy and data analysis skills, in addition to traditional technical expertise. We will build a system where skilled workers on the floor can utilize data themselves and propose improvements. Regarding HR strategy, I believe we must set KPIs and advance activities even when quantification is more difficult than it is for environmental items. This is a very challenging situation, but I expect you to guide our employees in a positive direction with your inherent brightness and performance.

Sasaki: While design largely determines the components, production engineering ultimately enhances product quality. We have proven that “production engineering can transform manufacturing.” I look forward to your continued contributions, including innovative technological developments in environmental aspects.