EXEDY Group's Sustainability Activities
The EXEDY Group has established the following action guidelines for risk management:
- Prevent occurrence of emergency situations, take preventative measures to minimize damage, make preparations in advance
- In the event of an emergency, we will respond with quick initial action, minimize damage while promptly making all necessary effort for a speedy recovery
To ensure a reliable implementation of the guidelines, we determined the necessary measures and procedures. Further, our group companies comply with the concerned regulations, procedures and processes.
Ultimate responsibility of our company’s risk management is assigned to the President & CEO, while the Executive General Manager of the Administrative Headquarters is charged with overseeing risk management and the General Affairs Department is assigned to supervise Risk Management. The Risk Management Committee may be convened whenever necessary.
The Risk Management Committee consists of the President & CEO, (Senior) Executive Managing Officers and Audit & Supervisory Board Members.
The Risk Management Committee Schedule
In FY2020, the Risk Management Committee gathered once to respond to group-wide problems and discuss recurrence prevention measures. Important matters were reported at the Board of Directors meeting.
Full-time Corporate Auditors attend the Management Meeting and the Risk Management Committee and to oversee the company’s operating performance.
Initiatives Regarding Information Security
In order to properly protect confidential information and personal information from threats such as cyber attacks, we have developed and deployed policies and regulations concerning information security. By periodically educating employees, we strive to strengthen our information security and prevent information leakage.
With the support of external experts with a deep knowledge of cyber security and internal fraud, we established a system to respond to information security incidents and advance warnings. While sharing information with external organizations, our company, including its affiliates, we work to make improvements to this environment. We also conduct regular targeted e-mail training for all employees, provide education regarding personal information protection and security, and promote thorough personal information protection and information security.
Business Continuity Management (BCM)
Although our company did not suffer any major damage during the Great East Japan Earthquake of March 2011, all employees at the Kawagoe Plant, where a lower scale 5 on the Japanese intensity scale of 7 was registered, had to be evacuated temporarily. Fortunately our plant was not damaged, however after the earthquake we implemented necessary measures, such as night-time production in accordance with automobile manufacturers' production stops and scheduled blackouts, etc. Based on the lessons learned, EXEDY, keenly aware of the importance of quick and reliable business recovery, has incorporated a strengthened BCP Crisis Management Program in its Consolidated Medium-Term Management Plan and is structuring an organization that can cope well with emergencies.
Since the Great East Japan Earthquake, we introduced BCP training in addition to the company-wide evacuation drill held every March. Through this training, in order to quickly complete the process from setting up a countermeasure headquarters to the establishment of a business recovery system, cooperation among departments is strengthened. In addition, as a regular activity, we conduct periodic training and information sharing, led by the Fire and Disaster Prevention Committees at the Headquarters in Neyagawa and Ueno Division and local fire departments.
Responding to Climate Change
EXEDY considers climate change to be one of its most important issues and is working to enhance information disclosure based on the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD).
We have also identified the following climate change risks through scenario analysis (2°C and 4°C scenarios), and are working to understand the impact of these risks on our business, formulate strategies, and disclose them.
Risks due to climate change
Due to the rapid transition to a decarbonized society, there is a risk that operating costs will increase due to the introduction of carbon regulations, etc. Not being able to respond to changes in product demand, may result in loss of sales opportunities and a decline in corporate value.
If our response to a disaster caused by abnormal weather conditions is late, there is a risk that factory operations are suspended and the product service supply may be interrupted due to disruptions in the supply chain.
Countermeasures against risks
In order to cope with the transition to a decarbonized society, we have established a committee chaired by the President and Representative Director to deliberate and promote basic policies and important matters related to the environment and climate change. We have established a system to prevent and promptly address risks by constantly checking the changing international situation and reporting and making proposals to the Board of Directors as appropriate.
Also, in order to respond to changes in product demand, we have established specialized projects within the company to create Future Products and develop products for a decarbonized society through open innovation.
We have formulated a business continuity plan (BCP) that includes our suppliers, and are working to improve our business continuity by assessing the risks of natural disasters at each of our business sites, implementing hardware and software measures, and conducting emergency drills.