■Daiki Axis ＜4245＞ Company Overview
4. ESG management
The company group carries out management with ESG in mind. We aim to build a solid corporate foundation, contribute to creating a sustainable environment and society through both “business activities” and “corporate activities,” and improve people's quality of life (QOL). In the environment (E), we are engaged in water-related infrastructure business, biodiesel fuel business, small wind power generation related business, and electricity sales business related to solar power generation, and have obtained certification for international standards for environmental management systems. In society (S), we promote diversification of human resources and the activities of female employees, work style reforms, and support the advancement of people with disabilities into society. The Sustainability Committee was established in 2023/8. They aim not only to pursue profits, but also to maintain social systems that include maintenance and preservation of the natural environment, contributions to the region, and active investment in human resources, and aim to improve corporate value over the medium to long term. Furthermore, it has an active stance on information disclosure, and in addition to issuing the company's first integrated report 2023, we will enhance responses to non-financial information disclosure such as climate-related financial information disclosure task force (TCFD) recommendations and the uniqueness of human capital in order to enhance non-financial information disclosure and promote dialogue with stakeholders in the future. Regarding governance (G), it is a company with an Audit and Supervisory Committee, and a nomination and remuneration committee has been established to strengthen corporate governance. Independent outside directors make up half of the board of directors.
Regarding the SDGs, it is involved in 12 out of 17, and 7 important issues (materiality) have been identified. These are “efforts aimed at adapting to and mitigating climate change,” “protecting Japan's rich water environment,” “creating a beautiful water environment around the world,” “contributing to sustainable city development and living environments,” “building a rewarding work environment,” “respecting stakeholders,” and “establishing effective corporate governance.”
In 2023/8, a syndication “positive impact finance” agreement was signed between Iyo Bank, Ltd. and Mitsubishi UFJ Bank, Ltd. The composition amount will be 8 billion yen. “Positive impact finance” is a loan that comprehensively analyzes and evaluates the impact (positive impact and negative impact) of corporate activities on the environment, society, and economy based on the positive impact finance principles and implementation guidelines formulated by the United Nations Environment Programme and Finance Initiative (UNEPFI), and aims to continuously support such activities. It is classified as sustainable finance, and there is an interest rate reduction effect that evaluates SDGs and decarbonization. When the agreement was concluded, it was evaluated mainly on the company's business and important issues (materiality) as activities that have an impact on achieving SDGs goals based on the “Positive Impact Finance Framework” jointly formulated by the Bank of Mitsubishi UFJ and Mitsubishi UFJ Research & Consulting Co., Ltd. The evaluation was evaluated by a third party by the Japan Credit Rating Agency, Inc. as conforming to the “Positive Impact Finance Principles” of the United Nations Environment Program/Finance Initiative.
5. Group companies
The company group consists of the same company, 18 consolidated subsidiaries (10 domestic companies, 8 overseas companies*), 2 unconsolidated subsidiaries (1 domestic company, 1 overseas company), and 2 affiliated companies (2 overseas companies). The main group companies are 3 domestic companies in the “environmental equipment related business”, 9 overseas companies (including 1 joint venture), 3 domestic companies in the “housing equipment related business”, 2 domestic companies in the “renewable energy-related business”, and 1 overseas company (of which 1 joint venture).
*Includes a Bangladeshi subsidiary established in January 2024.
Two M&A projects were carried out in 2023/2. Adore Systems (Hiroshima-shi, Hiroshima-ken) is developing businesses related to the design and construction of air conditioning equipment, mainly in the Sanyo region, starting with Hiroshima Prefecture. Medea Co., Ltd. (Saitama-shi, Saitama-ken) engages in the electrical engineering business focusing on the design, construction, and maintenance of photovoltaic power generation equipment, and electricity sales business at solar power plants owned by the company. In the photovoltaic power generation related business, Sanei Eco Home Co., Ltd., which designs, constructs, and maintains solar power generation equipment, was acquired in 2021. Subsequently, the same subsidiary was absorbed and merged with Daiki Axis Sustainable Power Co., Ltd. (DASP). Through intra-group collaboration with Medea, which operates a similar business, we have established a system to respond more quickly to requests from large power consumers, and it is now possible to make appropriate proposals according to customer needs.
(Written by FISCO Visiting Analyst Ikuo Shibata)