Message from the Sustainability Officer

Progress of our long-term vision and new four-year business plan

In May 2024, the Daifuku Group announced our long-term vision, Driving Innovative Impact 2030, and our four-year business plan for 2027 (hereinafter referred to as the business plan). Guided by these, we are committed to contributing to the realization of a sustainable society through our business activities by setting integrated goals that take both economic and social values into account. In the business plan, we have defined the priority topics (materiality) that the Group must address in order to achieve our long-term vision, set KPIs (key performance indicators), and are managing their progress on an annual basis. In fiscal 2024, looking ahead to the future, we strengthened our product development utilizing advanced technologies and proposals for new markets and needs. At the same time, we proactively invested in facilities and human resources both within and outside of Japan to lay the foundation for sustainable growth. While progress in our ESG (environmental, social, and governance) initiatives has been generally smooth, we will not be satisfied with the status quo and will continue striving to meet the demands of society at an even higher level.

Vision and Four-Year Business Plan
Materiality
Targets and Results

Aiming for environmental management in harmony with nature

As stated in the Daifuku Environmental Vision 2050, we are committed to "realizing a world where material handling systems have zero environmental impact" by 2050, and we are striving to proactively reduce our impact on the environment. As of November 2024, all electricity used at our domestic sites has been converted to renewable energy sources, and we are actively advancing the introduction of renewable energy at our global subsidiaries. In addition, for raw material procurement activities (Scope 3), which account for the majority of our CO₂ emissions, we hold briefings for our major domestic suppliers on CO₂ emissions reduction and collect emissions data. In fiscal 2024, we began implementing sustainability performance assessments, which evaluate not only the environmental value but also the social value of newly developed products. In addition to further improving the efficiency and energy-saving capabilities of our products, we are committed to creating products and services that contribute even more to our customers and society.
In recent years, there has been a growing global sense of crisis over the loss of natural capital, including biodiversity; Daifuku, too, considers coexisting with nature to be an important theme for realizing a sustainable society. Shiga Works, which has only of the largest lot areas in Shiga Prefecture, is home to more than 1,000 native species. To protect this abundant natural environment, we are working to minimize the negative impact of our business activities on the environment though ecosystem surveys and biodiversity conservation activities. These initiatives, as well as our internal and external exchange activities, have been favorably evaluated, and in fiscal 2024, Yui no Mori of Shiga Works was certified as a conserved area by the Ministry of Environment, Government of Japan. In February 2025, we joined the TNFD (Taskforce on Nature-related Financial Disclosures) Forum and disclosed information based on the TNFD framework in May of the same year. Going forward, we intend to expand our initiatives globally while taking into consideration the relationship between the Group's business activities and natural capital identified in this analysis based on TNFD recommendations as well as nature-related risks and opportunities.

Biodiversity

Building an organization to realize further growth

The Group's strength lies in our ability to provide total solutions to our customers, from consulting to technology development, manufacturing, engineering, and after-sales service. To continue providing high added value in all processes, it is essential to recruit and cultivate personnel with highly specialized skills. In particular, expanding and strengthening human resources for technological development utilizing advanced technologies such as AI is a key factor in maintaining and strengthening our competitiveness. Since fiscal 2024, we have been collaborating with the CTO (Chief Technology Officer) to define a clear vision of the human resources that will support medium- to long-term growth and to formulate strategies for securing and cultivating this talent. In addition, in order to enhance the level of knowledge related to AI and DX (digital transformation) throughout the entire Group, we have begun training for employees in a wide variety of positions. Furthermore, we offer specialized programs for selected members to train data scientists and data engineers. During fiscal 2025, we plan to establish new satellite offices in urban areas to strengthen the recruitment of new technical personnel involved in development and design.
To continue creating innovation in a rapidly changing business environment, we are also working to establish systems that enable efficient sharing and distribution of know-how accumulated within the company. For key positions (chief management positions) in particular, we have clarified the human resource requirements for each position, and we are systematically identifying and cultivating prospective successors. In 2024, we launched the Group's Human Resources Committee, led by the CEO and Global Business Heads, to assess the status of prospective successor candidates and review future training programs. At the same time, we focus on encouraging autonomous career development so that all employees, not just those in key positions, can maximize their abilities and improve the productivity of the entire organization. Starting in fiscal 2023, we introduced an internal job posting system and an internal secondment system to accelerate talent mobility across business divisions and broaden career path options. In addition to company-wide training, we are also expanding selective training programs to provide opportunities for future leaders to develop their careers in line with their own aspirations.

To our stakeholders

One year has passed since the start of the business plan, and we are steadily progressing toward our goals. Going forward, while engaging in dialogue with all stakeholders, we will continue to strive unremittingly in the pursuit of realizing our 2027 management goals and long-term vision, Driving Innovative Impact 2030. We would like to ask for your continued guidance and support.