Conservation of Biodiversity

The Shinko Group has the Environmental Policy to contribute to the creation of an abundant society through countermeasures for climate change, effective utilization of resources and conservation of biodiversity.
Recognizing that our business benefits from, as well as influences, biodiversity, we have established medium- to long-term environmental targets to reduce the negative impact of our business activities on biodiversity and to help realize a society in harmony with nature.

Guiding Principles for Biodiversity

In light of our dependence on and impact on biodiversity, we aim to conserve biodiversity, which is the foundation of a sustainable and prosperous society, and we have established the Guiding Principles for Biodiversity to collaborate with society in pursuing the ideal way for people to live in harmony with nature.

Guiding Principles for Biodiversity

1. Practice conservation and sustainable use of biodiversity in our business activities.
2. Contribute to creating a society that can achieve biodiversity conservation.
3. Human resource development through biodiversity conservation.

Addressing biodiversity risks

Global Risks Report 2023, published by the World Economic Forum (WEF), lists "loss of biodiversity and ecosystem collapse" as the fourth most serious global risk in the next 10 years, and "natural resource crisis" as the sixth most serious global risk. These are thus recognized as important issues on a par with climate change. Against this backdrop, the G7 2030 Nature Compact agreed upon the goal of becoming "nature positive," or "stopping and reversing biodiversity loss by 2030 to put nature on a recovery path."
In the future, carbon neutrality (net zero greenhouse gas emissions) alone will not be enough. An integrated approach that strives to realize nature positive business practices that restore and regenerate nature will be considered important.
In order to assess the impact of our business activities on biodiversity, the Shinko Group has conducted biodiversity risk assessments, including physical and reputational risks, at our domestic and overseas production sites, using the World Wildlife Fund (WWF) Biodiversity Risk Filter.
As a result of the assessment, it was confirmed that none of our production sites have levels of physical risk or reputational risk that are High or Very High.
We also consider our impact on ecosystems and are assessing water risk and water stress.
We will continue engaging in activities that aim to reduce the negative impact of business activities on the ecosystem and help to realize a society in harmony with nature.

＞ Sustainability Report2023（Response to Water Risks (page 41)）

Assessment of Biodiversity Risk at Production Sites¹ (FY2022)

¹ Production sites
Japan:
Kohoku Plant, Wakaho Plant, Takaoka Plant, Arai Plant and Kyogase Plant
Asia:
KOREA SHINKO MICROELECTRONICS CO., LTD. (KSM)
SHINKO ELECTRONICS (MALAYSIA) SDN. BHD. (SEM)
² WWF Biodiversity Risk Filter Criteria
³ WWF Risk Type "Scape Physical Risk"
⁴ WWF Risk Type "Scape Reputational Risk"

Results of Activities (FY2022)

Reporting boundary: Shinko Group in Japan

Conduct the adopt-a-forest program in Nagano Prefecture

Shinko and the labor union participate in the adopt-a-forest program promoted by Nagano Prefecture. Every year, employees and their families participate in forest maintenance work in the area around Lake Reisenji, which is owned by Iizuna Town.

In addition, starting in FY2021, we use the Nagano Prefecture Forest CO₂ Absorption Assessment Certification System to visualize (quantify) the amount of CO₂ absorption per year in the maintained forests.

⁵ Total area maintained, including area newly certified in FY2022 + previously certified area
⁶ Amount of CO₂ absorbed by trees growing in area described in 5 above in FY2022
Through these activities, we will strive to continue and contribute to biodiversity conservation activities in cooperation with local communities.

Engage in biodiversity conservation activities in the Kurita Sogo Center

Our Kurita Sogo Center, located near Nagano Station, spreads out like an oasis in an urban area.
Here, we continually conduct natural environment surveys.
In FY2022, we identified 151 species of plants, 93 species of terrestrial insects, and 24 species of aquatic organisms, many of which are native species. However, some alien species that threaten existing ecosystems have also been found. We are exterminating and monitoring them as indicator species to identify problems and make improvements. We will continue our activities to improve biodiversity at the Kurita Sogo Center.

Conduct environmental education and awareness activities to foster consciousness of biodiversity

We are striving to strengthen our biodiversity education and awareness activities so that each employee will understand the importance of biodiversity and the relationship between biodiversity and business activities.
We want each employee to be able to take action in their work and daily life, beginning with what is familiar to them.