Daifuku’s CSR initiatives have received the following external evaluations.
Daifuku has obtained the following three ratings, based on the evaluation rated loans program developed by the Development Bank of Japan (DBJ).
In February 2017, we obtained the highest rating as "a company with excellent initiatives for disaster risk reduction and business continuity management."
In July 2016, we obtained the highest rating as "a company with excellent health care initiatives for employees".
In November 2017, we obtained the highest rating as "a company with advanced environmental initiatives" again.(The first time in October 2012)
Daifuku was selected for the “2018 Health and Productivity Stock Selection”, a program jointly run by Japan’s Ministry of Economy, Trade and Industry (METI) and Tokyo Stock Exchange (TSE). The program recognizes companies listed on the TSE engaging in strategic efforts towards health and productivity of employees from a management perspective and introduces the selected enterprises. 26 enterprises in 26 industries were selected this year.
Daifuku has been recognized two consecutive years in the “Excellent Enterprise of Health and Productivity Management 2018 (White 500)”, a program jointly run by the Ministry of Economy, Trade and Industry and the Nippon Kenko Kaigi, due to the managerial perspective in the health management of our employees leading to strategic actions with health management initiatives.
For 6 years in a row, Daifuku has been selected as a constituent brand of the SNAM Sustainability Index operated by Sompo Japan Nipponkoa Asset Management (SNAM). This highlights that our ESG (environment, society and governance) initiatives are highly rated.
Daifuku is selected as one of the constituents of MSCI Japan ESG Select Leaders Index, managed by MSCI. Daifuku is certified as having an AA rating, as a company with an excellent ESG evaluation from MSCI Japan IMI Top 500 Index.
In 2016, Daifuku was awarded the Shiga Biodiversity Grand Prize in the corporate category. This award recognizes the most outstanding activity among the initiatives by enterprises and organizations within Shiga prefecture that protect and engage with biodiversity. Daifuku’s Shiga Works began the Daifuku Yui Project in 2014, with the goal of maintaining biodiversity into the future and spreading the reach of conservation both inside and outside the company. Nature tours for staff members and symposiums featuring experts were organized as part of this initiative. It was highly praised for the fact that employees and their families continuously participated in these initiatives, while creating a structure for multifaceted learning and emotional connection.
The Shiga Works received the Minister of Economy, Trade and Industry’s Kansai Bureau Chief Award for our outstanding greening performance in 2014.
This award is given to the facilities that proactively promote greening and greatly contribute to improvement of living environments in the surrounding area. With greenery covering about 40% of the grounds at the Shiga Works, we were highly rated for our efforts to maintain biodiversity, conserve the environment, and enhance the environmental awareness of our employees.
In March 2014, the Shiga Works received the Eco-Office Award from the Union of Kansai Governments. We were highly rated for promoting energy saving activities; establishing original activities, such as the Daifuku Eco-Action program, which awards points for environmental activities undertaken by employees; setting up the visitors' stage of the Daifuku Shiga Mega Solar facility; composting kitchen waste generated in our cafeterias; turning used cooking oil into biodiesel fuel; and using the fuel in our shuttle buses.
In May 2014, Daifuku received the Environmental Management Award from the Environmental Conservation Association of Shiga Prefecture. We were highly rated for the Daifuku Eco-Action environmental awareness program, the Daifuku Shiga Mega Solar facility, the Daifuku Eco-Products Certification program, efforts in recycling waste and conserving energy, and other activities to minimize environmental impact.
I have been reading Daifuku’s CSR reports from a third party perspective since 2013. I have been invited to comment regarding their disclosure of nonfinancial information online. For the disclosure of nonfinancial information on the Internet, it is necessary to take extra steps to create a well-designed structure given that the website needs to serve the purpose of communicating the essence of the information in a compact manner, while at the same time providing more detailed information for those who require it. I would now like to make some comments from this point of view.
Although each reader has varying interests, if analyzed from my own field of ESG investment in the finance industry, the essential core of nonfinancial data is composed of information regarding the value that a corporation is planning to create through its business activities. In concrete terms, this concerns the identification of social issues which the corporation is planning to solve through their business activities, in other words materiality analysis, as well as a story to achieve this goal (a value creation scenario). If this information is presented first, the reader can then be led to more detailed data depending on their levels of interest. This would create a structure that is easy for them to understand.
When we look at the information released by Daifuku from this perspective, the revision of the CSR Action Plan, to coincide with the new four-year medium-term business plan, is firstly presented in the message from the CEO that serves as an introduction. In this section, after reviewing FY 2016, 15 newly identified materialities are presented, while an explanation of each of these 15 items is developed afterwards. Care has been taken so as not to merely list a series of examples, as these explanations have a consistent format that presents the “Basic Policy” at the beginning, followed by a promotional framework and specific initiatives. As this content provides many points of entry and presents a wide variety of data and initiatives, it is clear that this report is intended to meet the various information needs of Daifuku’s multiple stakeholders. I believe this content presents an ample quantity of data that will satisfy the expectations of readers who desire detailed information.
On the other hand, if we focus on the perspective of ESG investment, in order to utilize the detailed information, I suggest that it would be more effective to create a webpage such as a portal site for the core sections, to show an overview of explanations for each item before going into the specifics. Based on materiality analysis, it would be useful for readers who seek the essential core of the value creation scenario if Daifuku could present an overview of their strategies and then develop explanations for each item, by describing what kind of value creation they will move forward with and through what kind of business model. Using this as an introduction to the detailed sections would not only clarify the border between the core section and the detailed database section in terms of format, but it would also be more effective in communicating a value creation scenario that is unique to Daifuku, with its ability to contribute to solving social issues through improving the productivity of its clients. Nevertheless, the way to deal with the different interests of stakeholders is a theme that cannot be settled entirely online and must be considered in relation to the role played by reports. I imagine that this will be decided upon during future discussions.
As my own expectation moving forward, I would like to see a more in-depth disclosure of information regarding newly identified materialities. As stated above, the 15 items that have been disclosed are effective in responding to the various interests of the stakeholders. On the other hand, to summarize them with an emphasis on the scenario they can be grouped into the aspects of: (1) Providing Value through Products and Services (including R&D), (2) A Basis for Supporting This (Compliance, Information Security, BCM, Industrial Safety and Health, Supply Chain Management), (3) Human Capital (Diversity, Supportive Working Environment, Human Resource Development), (4) The Environment (Environmental Awareness, Eco-Friendly Products, Basis for Environmental Management), and (5) Communication (Shareholders/Investors, Local Communities/Society). It can be assumed that these items have been identified at the current level of detail after a range of discussions inside the company. However, “the reason why these have been selected as materialities” is significant information, so it would be preferable for it to be disclosed proactively, rather than just stating that it was “evaluated based on our unique criteria”. In this respect, it is also an important point to disclose how Daifuku has incorporated the perspectives of its stakeholders, in addition to the relevance to Daifuku’s strategies (value creation). Once these points are clarified, it will be beneficial when considering the introduction of KPIs with a focus on their future impact.
Through information disclosure via the website, I hope that the unique characteristics of Daifuku’s CSR will attract attention from even more stakeholders.
Executive Officer, Deputy Chief Research Officer, Chief Manager, Sustainability Management Office,
Corporate Planning & Coordination Department, Development Bank of Japan Inc.