JVCKENWOOD USA Corporation is promoting a shift to EVs for forklifts used in warehouses. This company uses propane forklifts, which are fueled by propane. They are relatively clean compared with gasoline and diesel vehicles, and are even compliant with strict emissions regulations in California, but it has switched 21 out of 30 forklifts to EV forklifts, out of consideration for the environment and the health of employees. This company will continue promoting the switch to EVs.

JVCKENWOOD practices Life Cycle Assessment * (LCA) as necessary in the product planning and design stages to identify and reduce environmental load throughout the lifecycle of the product. In the design process of new products and improvements to existing products, life cycle assessments are conducted in the technological divisions to analyze and grasp the CO₂ emissions throughout the entire life cycle, including production, transportation, use, recycling, and disposal. The results are managed in the databases of the product environment divisions. The results of the analysis are reported and reviewed by the relevant internal departments, and are reflected in the next year's environment-friendly design and product planning. This is tied to initiatives to reduce power consumption during product standby and use, reduce transportation energy by shrinking the volume and size of products and packaging materials, use recycled materials or biodegradable plastics for materials, and improve the replaceability and lifespan of consumable parts.

* Life Cycle Assessment (LCA): Quantitative evaluation of the environmental load throughout the lifecycle or at specific stages in the lifecycle (resource extraction, raw material production, product manufacturing, distribution, consumption, disposal, and recycling) of a product or service.

In September 2022, we concluded a loan agreement for a Sustainability Linked Loan (SLL) with a Sustainability Performance Target (SPT) based on the Group's reduction rate of CO2 emissions (Scope 1 + 2) and raised funds. The SLL loan aims to promote environmentally and socially sustainable economic activities and economic growth by setting SPTs based on the borrower's sustainability strategy and linking loan terms to the achievement of the SPTs, thereby motivating the borrower to achieve the targets.
In this loan, based on material issues, we aim to reduce the Group's CO2 emissions (Scope 1+2) by 25.2% by 2025 (compared to 2019). In 2025, Japan Credit Rating Agency, Ltd. (JCR), a third party, verified the progress of SPT reporting under its limited assurance procedure (JCR's independently established procedures in accordance with the relevant general principles, professional standards and "International standard for assurance engagements, other than audit or reviews of historical financial information (ISAE 3000)" for independent audits), and confirmed that the CO2 emission reduction rate for FY2024 had reached the target. In this verification procedure, we submitted aggregate data on CO2 emissions (Scope 1 + Scope 2) based on the Group's FY2024 energy consumption data (13 domestic and 3 overseas sites) as evidence of the progress of the SPT.

For more details, please refer to Sustainable Linked Loan Financing and Third-party limited assurance report (Japanese Only) .

In order to ensure the credibility of reports and continuously improve our environmental management, the JVCKENWOOD Group has obtained third-party assurances for environmental data. At our request, SOCOTEC Certification Japan Co., Ltd. provided third-party assurance services for FY2024 data, based on procedures that included on-site inspections of manufacturing sites.

Target data

• Scope1 GHG emissions
• Scope2 GHG emissions(Market-based approach)
• Scope3 GHG emissions(Category1,4)
• Energy consumption