As a company responsible for energy supply, BES Engineering places Environment, Social, and Governance (ESG) at the core of our management to achieve long-term corporate value enhancement. With the strong determination and flexible mindset that defines our foundational stage, we are advancing our sustainability strategy to become a company that will grow together with society for the next 100 years and beyond.
The core of our strategy is environmental contribution through our boiler technology. We are committed to preserving the global environment by inheriting and advancing our emissions reduction technologies, focusing on R&D, and tackling the challenges of new energy solutions. On the social front, we are building a fair and inclusive work environment where diverse talent can thrive, regardless of gender or nationality, and are proactively recruiting international professionals to contribute to social harmony. Underpinning all these activities is our commitment to transparent and fair governance. We conduct our business based on strict legal compliance and high ethical standards, value constructive dialogue with our stakeholders, and strengthen our risk management systems to continuously earn the trust of society.
Through these ESG initiatives, we pledge to contribute to a sustainable future for both energy and society, and to securely pass on that value to the next generation.
Energy is an indispensable foundation for our lives and industrial activities, but its supply constantly faces numerous challenges. In recent years, renewable energy technologies like offshore wind and solar power have garnered attention. While these technologies have a clean image, they also present emerging challenges: wind power faces issues of unstable wind conditions and difficult maintenance, while solar power raises concerns about its impact on natural landscapes due to the need for vast installation areas, as well as the future mass disposal and recycling of panels. In particular, we see cases where building consensus with local residents and municipalities proves difficult.
Turning to Japan's energy situation, as of 2022, thermal power generation accounted for approximately 70% of the country's electricity. The main heat sources are LNG (liquefied natural gas) and coal, with boilers generating steam from these fuels to be converted into electrical energy. For about 200 years since the Industrial Revolution, boilers have evolved from the coal-powered steam engines that drove textile machinery, continuously adapting to the needs of each era. Today, they play a crucial role in supporting society by providing a stable supply of electricity.
However, conventional boiler systems centered on fossil fuels also carry the burden of CO₂ emissions. Instead of turning away from this challenge, we are exploring ways to maximize the potential of boiler technology and contribute to a sustainable society. One such path is "Waste-to-Energy conversion." By using industrial and municipal waste, which would otherwise be incinerated or sent to landfills, as fuel for combustion in boilers, we can generate electricity and thermal energy. This is the very concept of "circular energy," simultaneously achieving waste reduction and energy creation. Although CO₂ is emitted in this process, there is a significant advantage in effectively utilizing what would have been discarded as waste, thereby curbing the consumption of fossil fuels. Furthermore, we are actively developing technologies to reduce environmental impact, such as increasing the efficiency of boilers themselves and adapting them for biomass and next-generation fuels like hydrogen and ammonia.
The UN's Sustainable Development Goals (SDGs) are universal goals for building a better future from economic, social, and environmental perspectives. As a boiler manufacturer, we are also promoting initiatives through our business activities to contribute to these goals. For example, introducing a waste-to-energy system when building a new factory contributes to multiple SDGs, including Goal 7 (Affordable and Clean Energy), Goal 9 (Industry, Innovation and Infrastructure), Goal 11 (Sustainable Cities and Communities), Goal 12 (Responsible Consumption and Production), and Goal 13 (Climate Action). In response to the issue of CO₂ emissions, in addition to efforts to reduce the emissions themselves, we aim for a comprehensive reduction of our environmental footprint through multifaceted activities such as promoting green spaces at our factories and collaborating with local communities on tree planting and seaweed bed restoration.
Looking 50 or 100 years ahead, what does a truly sustainable energy system look like? While we recognize the great potential of new energy sources, we believe it is essential to sincerely address the challenges they pose. We are convinced that our mission is to evolve and optimize the boiler technology we have cultivated over our long history to meet the needs of today and the future. Shining a light on waste as an "untapped resource" and utilizing it for energy is an extremely effective means of increasing society's overall energy efficiency and reducing its environmental burden. By shifting our perspective and embracing new technologies, corporate activities can evolve into a more sustainable form.
We will continue to contribute to the realization of a circular society and the creation of a sustainable future, working alongside our customers and society through our boiler technology.
In our approach to sustainability, rather than promoting large-scale, top-down initiatives, we aim to make a steady contribution to society by having each employee take ownership and start with what is realistically achievable. We prioritize substance over formality and are committed to contributing to a sustainable society through effective, meaningful activities.
To drive this initiative company-wide, under the leadership of our President, we have appointed a "Solution Manager (SM)" as a specialized role to oversee the formulation and execution of our company-wide ESG (Environment, Social, and Governance) policies. With an eye on our company's growth and increasing number of employees, we will deepen all employees' understanding of ESG through initial training for new hires and regular ongoing sessions. Through this, we will foster a corporate culture where each employee is conscious of and practices sustainability in their daily work.
Furthermore, our sustainability efforts extend beyond our own company. We believe it is essential to share and practice these values across our entire supply chain. Therefore, we will provide our partner companies with ESG educational materials we have created and ask them to conduct training at their respective organizations. We will request that they share records of the training dates and content to track the progress of understanding. Where possible, our SM will also visit partner companies directly to conduct training and provide advice, aiming for deeper integration and stronger collaboration.
Our business operations are not limited to Japan; we will establish a similar sustainability promotion system at our overseas locations. We will roll out the same educational framework to our international partners, including our affiliates in China, to foster their understanding. Even when faced with geographical constraints, we will leverage tools like web conferencing systems to maintain close communication and promote ESG management based on global standards. Among the elements of ESG, we place particular emphasis on the thorough respect for human rights within "S" (Social) and "G" (Governance). This includes not only creating a workplace where individuals from all backgrounds—regardless of nationality, race, gender, age, or disability—are respected and can utilize their abilities without discrimination, but also remaining mindful of vulnerable people in society throughout all our business activities. We pursue governance with "real substance," aiming for a genuine understanding and empathy for these principles among every employee, rather than stopping at superficial initiatives or formal compliance.
In promoting our sustainability activities, rather than adhering to specific formats like ISO certification, we focus on creating a system to effectively record our actual activities and their results in a substantive way and report them with transparency both internally and externally. While we will establish a basic framework, such as clarifying responsibilities and conducting annual activity reports, we will avoid falling into "management for the sake of management." Instead, we will build a lean, simple process where all employees can cooperate. We will continuously explore and evolve how to capture our daily actions as valuable records and use them for future improvements.
Together with our employees, partner companies, and all stakeholders, we will steadily advance our substantive sustainability activities step by step to contribute to the realization of a better future for society.
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