It is a top of the page.

A Japanese page is here.
Japanese

Environment

Action on Climate Change

Basic Policy

The effects of extreme weather and climate change are intensifying and becoming more serious, and global solutions are required to mitigate climate change. Duskin is committed to contributing to solutions to help build a sustainable society through our environmental management initiatives and measures to achieve a low-carbon society.

Governance

We established the CSR Committee, which consist of the Outside Directors, the Operating Officers, and the Standing Audit & Supervisory Board Members. This committee, serving as an advisory body to the Board of Directors, studies and deliberates the basic policies and key issues associated with climate change. We also established the Quality Assurance & Environment Committee, which determines environmental policies and guidelines for the entire company, and the Environmental Liaison Committee, which manages the progress of environmental policies, as sub-organizations under the CSR Committee. This structure helps the Board of Directors to identify and monitor actual risks and opportunities, and to enhance climate change-related governance.

Strategy

Duskin positions the risks and opportunities associated with climate change as critical management issues. In order to advance information disclosure based on the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), we classify and study climate-related risks as risk associated with the transition to a low-carbon economy and risk associated with the physical impacts of climate change, in line with the TCFD classifications.

Medium- to Long-Term Environmental Target

Duskin focuses on reducing greenhouse gases, with a goal of reducing CO2 emissions at least 26% compared with FY2013 by 2030 as laid out in our long-term environmental vision.

Action on Climate Change

Indicators and Targets

To fulfill our responsibilities as a Japanese company, Duskin is implementing energy-saving activities throughout the entire franchise chain. In terms of Scope 3, we are working to reduce CO2 emissions with a target that is equal to or greater than the target stated by the government. At the same time, in terms of energy consumption within Scope 1 and Scope 2, we set and manage standard consumption rates (target values) every fiscal year based on the actual performance of each shops, offices and plants in steadily working to reduce the CO2 emissions that are a cause of global warming.

CO2 emission (t-CO2)

2013
(reference year)
2016 2017 2018 2019 Compared with 2013
Scope 1* 35,603 34,484 34,324 33,473 33,061 -7.1%
Scope 2* 32,471 27,655 31,092 29,856 27,780 -14.5%
Scope 3 498,991 456,019 395,197 373,619 394,036 -21.0%
Total 567,068 518,159 460,614 436,949 454,877 -19.8%
  • *Duskin Group and franchised plants

Risk Management

We conducted a provisional climate change risk assessment, using a qualitative approach to evaluate financial implications that could significantly affect our businesses. Through carefully reviewing the results, we have identified the key drivers that could have a major impact on our business continuity.

Climate change related risks

Category External environmental changes Key drivers Impact on business Financial impact
Transition
risks
Policy, legal regulations
  • ●Stronger GHG (greenhouse gas) emission regulations
  • ●Higher carbon tax rates
  • ●Higher tax costs
  • ●Higher cost of product and service
Technologies
  • ●Progress in energysaving technologies among competitors
  • ●Delayed development of next-generation products (developed through manufacturer tie-ups)
  • ●Lower profits
Markets and reputation
  • ●Higher market sensitivity to climate change
  • ●Divestment (investment withdrawal) from companies that do not reduce GHG emissions
  • ●Higher GHG emission reduction initiative costs
  • ●Higher capital control and adjustment costs
Physical
risks
Acute
  • ●Higher average temperatures
  • ●Larger typhoons
  • ●Higher typhoons frequency
  • ●Higher flooding frequency at plants, shops and offices; higher power outage frequency
  • ●Procurement and logistics channel disruptions
  • ●Increased number of employees standing by at home due to disasters
  • ●Higher recovery costs
  • ●Lower sales until recovery
Chronic
  • ●Higher sea levels
  • ●New rainfall patterns
  • ●Higher average temperatures
  • ●Lower farm product (wheat, coffee, etc.) yields
  • ●Higher raw material costs
  • ●Higher cost of sales

Climate change related opportunities

Category External environmental changes Key drivers Impact on business Financial impact
Opportu-
nities
Resource efficiency
  • ●More common use of next-generation automobiles
  • ●Lower storage battery prices
  • ●Lower total cost of vehicle maintenance
  • ●Lower expenses
Energy sources
  • ●More common use of renewable energy device and technology
  • ●Lower electricity costs
  • ●Lower product and service costs
Markets
  • ●New consumer preferences
  • ●Greater demand for environmentally responsible products
  • ●Greater demand for circular economy (recycling-oriented economy) products and services
  • ●Higher profits

Future Initiatives: Scenario analysis

Duskin is reviewing these key drivers based on at least two scenarios for physical impacts and socioeconomic transition risks arising from climate change in the world from 2030 to 2050. We will quantitatively assess the potential financial impact on our businesses and develop the measures to address them.

Adopted Scenarios

  • ● IPCC RCP 8.5 Scenario: Global average temperature rise of at least 4℃ from pre-industrial levels
  • ● IPCC SR 1.5 Scenario: Global average temperature rise kept below 1.5℃
TCFD
Duskin is in accord with the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) established by the Financial Stability Board (FSB) and aims to contribute to a sustainable society by analyzing the risks and opportunities related to climate change and disclosing information proactively.

Basic Policy

Based on our Environmental Philosophy, established in 1998, Duskin has defined our Environmental Policy as "striving to achieve the joint objective of engaging in sound business activities and environmental conservation to provide products and services that are safe, reliable, and environmentally friendly throughout each phase of their lifespan, from production to after-use."

We engage in business activities that reduce negative impacts on the environment whenever possible as part of designing, development and selection of products and services; plant operation; distribution, sales and promotional activities; and offices, facilities and equipment.

Environmental Management System (EMS)

Duskin's Direct Selling Group and Production & Logistics Group are putting environmental management initiatives into action in line with ISO 14001. Its approach is based on the concept Plan-Do-Check-Act (PDCA).

Based on our EMS, we conduct ongoing inspections every year and renewal inspections every three years. During FY2019, Duskin Group complied with environmental regulations.

Initial environmental training sessions are conducted as part of an educational program for our new employees. By raising environmental awareness, we strive to develop employees who work to conserve the environment throughout all their business activities.

Endeavors for a Recycling-Oriented Society

Duskin established a system for renting cleaning tools in Japan. As reflected in this rental system, Duskin operates its business based on the idea of repeated use, shared use, reduction of waste and disposal. To contribute to the creation of a recycling-oriented society, we will make effective use of limited resources while at the same time engaging in the 4Rs (Refuse, Reduce, Reuse and Recycle) throughout the entire product life cycle.

Mister Donut: Reducing food loss, electricity consumption and chlorofluorocarbon emissions

Because we are making use of Earth's resources, we have continuously engaged in endeavors to save them. This year in particular, which marks our 50th anniversary, Mister Donut will further evolve our approach to environmental conservation.

  • ● Free plastic bags service terminated as of April 1, 2020.
  • ● Recycling unsold donuts at certain shops into animal feed; turning methane produced after decomposing and fermenting the donuts, into biogas for use as electric energy
  • ● Used frying oil recycled 100% into fuel for boilers at our laundry plants where mops and mats are washed and reprocessed
  • ● A portion of raw materials provided to food banks
  • ● Reusable ceramic and glass tableware provided since 1974 for customers dining in-store Excluding certain shops
  • ● Emissions reduced by monitoring and managing air conditioners and freezers that use chlorofluorocarbons through thoroughgoing periodic inspections
  • ● Original equipment performance maintained through systematic cleaning and maintenance at each shop. Energy management implemented and reduced the consumption of electric power

Direct Selling Group: Reuse of mop and mat products

All used items are collected from customers, and 97% of the collected items are processed in the laundry plants and reused. The remaining 3% unusable items are utilized as fuels. All products are repeatedly used until their usable life ends. Dust and dirt on mops and mats are also recycled into materials for cement.

Duskin's Reuse and Recycling System
Duskin's Reuse and Recycling System

Material Balance

Input and output of resources in business activities (FY2019)

Material Balance refers to the input of energy and resources used in business activities, and the output of substances produced through the activities. Duskin focuses on grasping the overall environmental loads in the lifecycle of our rental products as well as in other business activities.

Dust Control Business

Dust Control Business

Mister Donut Business

Mister Donut Business

Conservation and Effective Use of Water Resources

Water intake volume
Water intake volume

Water shortage is aggregating on a global scale. It also presents the risk of negative impacts on the business continuity, so reducing water use and reusing water is important. Although Japan is not yet faced with chronic water shortage, we see this is not unrelated with Duskin Group.

At Duskin, a Founder's quote of "Return what we borrow from nature to its original state" has been passed down since our founding, and serves as our basic philosophy for conserving water resources.

Water Use Reduction Initiatives

Wastewater volume
Wastewater volume

Duskin plants use large amounts of water in the laundry process for mops and mats. Therefore, we apply standards for the volume of water used during the laundry process as a reference value for our plants and strive to manage and reduce water intake volumes.