Environmental
Reduction of GHG emissions to address climate change
We will take actions to measure our CO₂ emissions and formulate and implement strategies to demonstrate the reduction effects, in order to continuously grow our business value while reducing and controlling CO₂ emissions, which are one of the causes of climate change risks.
[Reduction Target]
The amount of CO₂ emissions (Scope 1 + Scope 2) from business activities must be reduced to 50% of 2020 levels by 2030.
Between 2020 and 2024, we established new logistics facilities and relocated our headquarters to support business expansion. The commencement of operations at the Ibaraki Chuol Satellite Center in 2021, the Inagawa Distribution Center in 2022, and the relocation of our headquarters in 2024 have led to an increase in electricity consumption and a rise in CO₂ emissions (location-based).
However, since 2022, we have maintained low emissions even amid business expansion by switching to renewable energy plans, purchasing non-fossil fuel certificates, and implementing energy-saving measures. We have currently achieved our initial target of a 50% reduction compared to 2020 levels on a market-based basis. Furthermore, for the Mito Distribution Center, scheduled to begin operations in 2028, we have signed an on-site PPA agreement to generate solar power on the premises. While anticipating increases in electricity consumption and CO₂ emissions due to future business expansion, and given that the reduction benefits from solar power generation are currently only projected values, we are maintaining our current reduction targets.
Scope: MonotaRO Co., Ltd. (Japan), which accounts for 95% or more of the Group’s total revenue
However, since 2022, we have maintained low emissions even amid business expansion by switching to renewable energy plans, purchasing non-fossil fuel certificates, and implementing energy-saving measures. We have currently achieved our initial target of a 50% reduction compared to 2020 levels on a market-based basis. Furthermore, for the Mito Distribution Center, scheduled to begin operations in 2028, we have signed an on-site PPA agreement to generate solar power on the premises. While anticipating increases in electricity consumption and CO₂ emissions due to future business expansion, and given that the reduction benefits from solar power generation are currently only projected values, we are maintaining our current reduction targets.
Scope: MonotaRO Co., Ltd. (Japan), which accounts for 95% or more of the Group’s total revenue
Target major Distribution Centers (as of Mar.2026)
- - Ibaraki Prefecture, Kasama Distribution Center (Kasama DC)
- - Ibaraki Prefecture, Ibaraki Chuo Satellite Center (Ibaraki Chuo SC)
- - Hyogo Prefecture, Inagawa Distribution Center (Inagawa DC)
- - Osaka Headquarters (Osaka Prefecture) and other domestic office locations
・Energy saving
Our company has been designated as a “specified operator” under the Energy Conservation Law and is implementing various energy-saving measures at our facilities.
- Heat-insulating paint was applied to the roof
- Heat-insulating paint was applied to the roof
Heat-insulating paint was applied to the roof of the Kasama DC (2020), and Ibaraki Central SC (2023). This lowered the temperature of areas prone to high temperatures which lead to reduced use of electricity for air conditioning purposes and a better work environment for employees.
*The image compares the roof area of the truck berths of the Ibaraki Central SC before painting and the Kasama DC after painting in July 2021.
- - Reducing lighting brightness
The Inagawa DC utilizes a large number of Auto guided vehicle Robot (AGV) in product storage areas, etc. and human access is restricted for safety reasons in areas where robots carrying shelves come and go. The lighting brightness in this area was equivalent to that of the area where people work. However, the robot area where no people are regularly working is large, and reducing lighting brightness will lead to major energy savings (less electricity consumption).
The Company achieved energy-efficient logistics operations by using LED lighting systems with sensors that enable illumination control via tablets and reduce excess power usage. This system can be used to set lighting brightness and hours of use, acquire hourly usage history data, and set lighting according to individual schedule and group. Prior to implementation, we measured brightness at multiple locations to confirm the impact on safety and workability.
- - Optimized in-house warehouse compressor pressure used for automatic material handling and box sealing equipment, etc. (reduced electricity consumption)
- - As a measure to reduce environmental impact through improving transportation efficiency, we launched the “container round use” initiative at our logistics bases in January 2024.
Actual CO₂ Emissions from Business Operations
（t-CO₂） |
||||||
| Scope | 2020 | 2021 | 2022 | 2023 | 2024 |
|
Scope1 |
10 |
2 |
15 |
32 |
3 | |
Scope2 |
Market-base | 2,687 |
3,919 |
3,817 |
718 |
1,165 |
| Location-base | 3,107 * |
4,042 * |
6,086 * |
7,015 |
7,232 | |
Total |
Market-base | 2,697 |
3,921 |
3,832 |
750 |
1,168 |
| Location-base | 3,117 * |
4,044 * |
6,101 * |
7,047 |
7,235 | |
Note: CO₂ emissions results have been granted third-party assurance by the Assurance Association for Non-Financial Information (AANFI). Figures marked with an asterisk (*) — representing Scope 2 location-based emissions from 2020 to 2022 — are reference values verified internally.
・Implementation of renewable energy
As of April 2024: Commenced use of solar power supplied by the building owner.
The plan involves installing solar panels on the rooftop. This marks our first initiative to adopt an "on-site PPA model" at a company-owned logistics facility.
- - Kasama DC and Ibaraki Central SC
- - Inagawa DC
As of April 2024: Commenced use of solar power supplied by the building owner.
- - Headquarters (Osaka)
- - Mito DC (Planned)
The plan involves installing solar panels on the rooftop. This marks our first initiative to adopt an "on-site PPA model" at a company-owned logistics facility.
・Business Scenarios for Climate Change.
- - Developing senario addressing business risks and opportunities.
Building a Circular Resource Model through Waste Reduction and Recycling
We aim to realize a resource-circulating business model by reducing waste generated from our operations and promoting the recycling of discharged materials, ensuring the effective utilization of valuable resources.
- Measuring Waste Generation & Promoting Recycling
In 2022, we began calculating the volume of discarded materials generated by our operations, followed by the establishment of formal definitions for "Unnecessary Materials," "Waste," and "Recycling rates" in 2023. By promoting the rigorous sorting of business-related waste at all logistics hubs and offices, we are actively reducing total waste volume and disposal costs through the recovery of valuable resources (*).
Furthermore, to maximize the utility of products no longer suitable for sale—such as those with damaged packaging or those nearing their expiration dates—we repurpose them for internal use (e.g., as copy paper) or donate them to CSR initiatives and local social welfare councils.
- Minimizing Waste at the Source
We have enhanced our demand forecasting accuracy to minimize inventory surpluses that lead to expired or obsolete products. Additionally, we strive to prevent product disposal by maximizing sales opportunities through our "Clearance Sales."
To prevent packaging damage, we are also implementing proactive measures in collaboration with our suppliers, reviewing operational workflows, and optimizing inventory placement and stacking methods.
- Measuring Waste Generation & Promoting Recycling
In 2022, we began calculating the volume of discarded materials generated by our operations, followed by the establishment of formal definitions for "Unnecessary Materials," "Waste," and "Recycling rates" in 2023. By promoting the rigorous sorting of business-related waste at all logistics hubs and offices, we are actively reducing total waste volume and disposal costs through the recovery of valuable resources (*).
Furthermore, to maximize the utility of products no longer suitable for sale—such as those with damaged packaging or those nearing their expiration dates—we repurpose them for internal use (e.g., as copy paper) or donate them to CSR initiatives and local social welfare councils.
- Minimizing Waste at the Source
We have enhanced our demand forecasting accuracy to minimize inventory surpluses that lead to expired or obsolete products. Additionally, we strive to prevent product disposal by maximizing sales opportunities through our "Clearance Sales."
To prevent packaging damage, we are also implementing proactive measures in collaboration with our suppliers, reviewing operational workflows, and optimizing inventory placement and stacking methods.
Resource Circulation: Waste Emissions and Recycling Rate
Classification |
2023 |
2024 |
||
| Waste Emissions (t) | 1,289 |
1,214 | ||
| General Business Waste Amount (t) | 261 |
235 | ||
| Industrial Waste Amount (t) | 1,028 |
979 | ||
| Final Disposal Amount of Industrial Waste (Incineration/Landfill) (t) | 623 |
489 | ||
| Amount of Valuable Materials (t) | 3,771 |
4,084 | ||
| Total Amount of Valuable Materials and Recycled Materials (t) | 4,176 |
4,575 | ||
| Total Amount of Unnecessary Materials (t) | 5,060 |
5,298 | ||
| Recycling Rate (%) | 82.5% |
86.4% | ||
* Unnecessary Materials=Valuable Materials+Waste
* The calculation data is based on MonotaRO Co., Ltd. (Japan), which accounts for about 95% of our group's sales.
* The calculation data is based on MonotaRO Co., Ltd. (Japan), which accounts for about 95% of our group's sales.
Development and promotion of environmentally friendly products
Support for our customers' SDGs initiatives. Providing products and services that facilitate their efforts, we create MonotaRO's strength for the next generation. By making it easier for the customers to be more environmentally conscious with materials procurement, MonotaRO contributes to the development of the whole environmentally conscious industrial society.
[Ecology Product Page]
By making it easier for the customers to be more environmentally conscious with materials procurement, MonotaRO contributes to the development of the whole environmentally conscious industrial society.
Ecology Product Page: https://www.monotaro.com/topic/sdgs/
| Environmentally Friendly from Production to Disposal | Carbon Neutral | Restriction of Hazardous Substances | ||
| Eco Mark | Green Procurement | Biomass Plastics | Biomass Mark | RoHS |
| 51,106 items | 448,453 items | 193 items | 1,848 items | 6,113,439 items |
| Waste Reduction and Recycling | Ecosystem Protection | |||
| Green Mark | R Mark | Biodegradable Plastics | FSC(R) | PEFC |
| 10,147 items | 18,611 items | 98 items | 736 items | 16 items |
How to Search for Products with Certification Marks
You can filter for products with specific certifications on our e-commerce site (monotaro.com) or via the "MonotaRO ONE SOURCE Lite" procurement management solution. To do so, go to the "Narrow down your search" section on the left side of the search results page, select "Ecology Products" , and then choose the desired certification mark.
Sale of environmentally friendly private brand ("MonotaRO" brand) products
- Plain A-flute Cardboard Boxes : This product uses recycled cardboard waste from our warehouses.
- Medium-Density Fiberboard Using Palm Oil Waste : This board uses PALM LOOP®, a recycled wood board technology developed by Panasonic Housing Solutions Co., Ltd. PALM LOOP® uses oil palm waste as a resource to reduce waste and greenhouse gas emissions, and to prevent deforestation. This helps to promote a circular economy that reduces environmental impact while also contributing to local job creation. We will continue to promote product development. (Note: PALM LOOP® is a registered trademark of Panasonic Holdings Corporation.)
・ Investigating information on products manufactured by OEM manufacturers.
・ Interviews and questionnaires implementation and analysis conducted with customers regarding procurement of environment-conscious products.
You can filter for products with specific certifications on our e-commerce site (monotaro.com) or via the "MonotaRO ONE SOURCE Lite" procurement management solution. To do so, go to the "Narrow down your search" section on the left side of the search results page, select "Ecology Products" , and then choose the desired certification mark.
Sale of environmentally friendly private brand ("MonotaRO" brand) products
- Plain A-flute Cardboard Boxes : This product uses recycled cardboard waste from our warehouses.
- Medium-Density Fiberboard Using Palm Oil Waste : This board uses PALM LOOP®, a recycled wood board technology developed by Panasonic Housing Solutions Co., Ltd. PALM LOOP® uses oil palm waste as a resource to reduce waste and greenhouse gas emissions, and to prevent deforestation. This helps to promote a circular economy that reduces environmental impact while also contributing to local job creation. We will continue to promote product development. (Note: PALM LOOP® is a registered trademark of Panasonic Holdings Corporation.)
・ Investigating information on products manufactured by OEM manufacturers.
・ Interviews and questionnaires implementation and analysis conducted with customers regarding procurement of environment-conscious products.
3R (Recycle, Repair, Reuse) Services in Our Business
In addition to the initiatives led by our Sustainability Working Group, we provide services through our core business operations that support customers in promoting the 3Rs and reducing their environmental impact.
| Examples of 3R Services for Customers | |
• Battery recycling service and sale of recycled items
• Rentals
|
• Repair and calibration
• Other services
|
Disclosure based on TCFD
1. Introduction
As emissions of CO₂ and other greenhouse gases drive climate change (global warming), there is growing concern that increases in natural disasters, extreme weather events, and loss of biodiversity will have serious impacts on the lives and economic activities of people and other living organisms on Earth. Furthermore, international initiatives to reduce greenhouse gas emissions in order to mitigate climate change are expanding, and this transition itself may also affect corporate activities and the broader economy.
In light of these circumstances, in March 2022 we made disclosures, in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), on the risks and opportunities that climate change presents for the Company. We will continue to strengthen our initiatives to reduce greenhouse gas emissions and respond to climate change, and seek to contribute to the realization of a sustainable society through our business.
In light of these circumstances, in March 2022 we made disclosures, in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), on the risks and opportunities that climate change presents for the Company. We will continue to strengthen our initiatives to reduce greenhouse gas emissions and respond to climate change, and seek to contribute to the realization of a sustainable society through our business.
2. Governance
In order to promote measures to address sustainability issues, including CO₂ emission reductions, we have established the Sustainability Committee consisting of the President and CEO and other members, and Task Forces (TFs) under the Sustainability Committee to address each important issue.
The Sustainability Committee reports regularly to the Board of Directors, the organization overseeing the management, and the committee also receives reports from each TF and discusses issues with them.
For each TF, the head of the department related to each important issue is appointed as its head, and practical leaders are appointed in each TF to promote actual initiatives.
Please refer to "Sustainability Committee"
The Sustainability Committee reports regularly to the Board of Directors, the organization overseeing the management, and the committee also receives reports from each TF and discusses issues with them.
For each TF, the head of the department related to each important issue is appointed as its head, and practical leaders are appointed in each TF to promote actual initiatives.
Please refer to "Sustainability Committee"
3. Strategy
We have examined the impact on our business and finances in the “below 2°C scenario”, in which the global average temperature increase at the end of the 21st century is limited to less than 2°C above that in pre-industrial age, and the “4°C scenario”, in which the increase is 4°C or more.
In the below 2°C scenario, it is assumed that more aggressive measures such as the introduction of a carbon tax and drastic tightening of recycling regulations will be taken because it will be difficult to achieve greenhouse gas emission reductions with measures that are merely an extension of the current methods. As a result, the scenario assumes that the price of raw materials and energy related to greenhouse gas emissions will increase rapidly, while renewable energy will become more widespread.
On the other hand, the 4°C scenario assumes that there will be no significant tightening of regulations to restrain greenhouse gas emissions. Therefore, while the popularization of renewable energy and other related measures will be limited, greenhouse gas emissions will not be sufficiently restrained and damage caused by typhoons, floods, and other abnormal weather will increase.
Although MonotaRO has subsidiaries overseas, the Company itself accounts for more than 95% of its sales. Therefore, at this time, we have examined strategies primarily on the basis of MonotaRO Co., Ltd. alone (in Japan).
Physical Risk
(* Assumes risk around 2050)
[Summary]
Risk Assessment |
Strategy |
|
| Chronic risk |
||
| Acute risk |
[Description]
Chronic risk: increase in costs for labor environment improvement measures and management costs for staffing.
As of 2022, we are receiving and shipping products to our customers with the help of more than 2,000 staff members at our distribution facilities. With the rise in average temperatures and the increase in the number of extremely hot days, the cost of labor environment improvement measures, especially in distribution warehouses, is expected to rise as well as the cost of staff management due to increased absenteeism.
Chronic risk: increase in costs for labor environment improvement measures and management costs for staffing.
As of 2022, we are receiving and shipping products to our customers with the help of more than 2,000 staff members at our distribution facilities. With the rise in average temperatures and the increase in the number of extremely hot days, the cost of labor environment improvement measures, especially in distribution warehouses, is expected to rise as well as the cost of staff management due to increased absenteeism.
- - From 2020 to 2022, the actual cost ratio to sales for hourly-waged workers in our distribution warehouses was between 2.81% and 3.12%. Based on this ratio, if, for example, an additional 10% of staff were to be allocated for increased absenteeism, expenses would increase by 0.28~0.31% of sales.
The Company will strive to reduce the risks associated with rising temperatures by automating its logistics operations while preventing the deterioration of the working environment caused by rising temperatures.
Acute risk: suspension of operations at distribution centers due to wind and flood damage.
In the event of an increase in typhoons and other wind and flood damage due to climate change, there is a risk of shutdown of logistics centers and delays in the receipt and delivery of products. However, we have reduced this risk since our main distribution centers are not currently located in areas at risk of flooding.
The Company will seek to reduce risks by sharing knowledge of wind and flood damage and the ensuing facility response while dispersing logistics bases to the Kansai and Kanto regions.
In the event of an increase in typhoons and other wind and flood damage due to climate change, there is a risk of shutdown of logistics centers and delays in the receipt and delivery of products. However, we have reduced this risk since our main distribution centers are not currently located in areas at risk of flooding.
The Company will seek to reduce risks by sharing knowledge of wind and flood damage and the ensuing facility response while dispersing logistics bases to the Kansai and Kanto regions.
Transition risk
(* Assumes risk in 2030)
[Summary]
Risk Assessment |
Strategy |
|
| Policy | ||
| Technology | ||
| Market | ||
| Reputation |
[Description]
- ・Carbon Pricing Mainly in the below 2°C scenario, carbon-pricing schemes such as carbon taxes are expected to be introduced, and there is a risk of incurring additional costs due to carbon-pricing if the Company does not sufficiently advance the conversion of electricity procurement to non-fossil energy sources.
- - The actual ratio of electricity costs to sales for the period from 2020 to 2022 was 0.09~0.15%. If the carbon-pricing system is introduced, the cost may increase by more than 30% in relation to the above electricity costs (the carbon price used in the estimation is 130 USD / t-CO2, the figure that the International Energy Agency (IEA) estimates will be current in 2030, and 1 USD = 150 yen).
The Company will closely monitor customer demand trends and replace product lineups and inventories in response to demand and build a system to limit the risk caused by customers’ avoidance of fossil fuel-derived products.
At the same time, we will promote efforts to decarbonize, while recognizing the possibility that the delays in our decarbonization efforts could lead to customer disengagement and loss of trust from long-term investors.
Opportunity
[Summary]
Opportunity |
Strategy |
|
| Products and services | ||
| Market | ||
| Resources efficiency |
||
| Energy sources |
[Description]
We will properly consider customer demand, develop environmentally conscious products, and supply disaster prevention and disaster recovery products in a timely manner.
We will properly consider customer demand, develop environmentally conscious products, and supply disaster prevention and disaster recovery products in a timely manner.
We will also promote efficient use of resources by utilizing the Order Management System (OMS) to provide optimal transportation (shipping) instructions based on calculations of distances between demand points and bases and costs.
The Company identifies and organizes risks related to climate change through scenario analysis and discussions among management while drawing on the knowledge of outside experts, and reports them to the Board of Directors.
4. Risk management
The Company has appointed an executive officer in charge of risk and established the Risk Management Office to monitor the status of company-wide risk management and provide necessary support.
With regard to risks related to climate change, the status of risk identification and countermeasures are monitored through the sharing of reports to the Sustainability Committee with the Risk Management Office and the Audit Committee.
Please refer to "Risk management"
Please refer to "Risk management"
5. Indicators and Targets
Indicators
Please refer to the CO₂ emissions survey.
Target
Through the following initiatives, we are working toward our target of reducing CO₂ emissions from our business operations (Scope 1 + Scope 2) by 50% by 2030, compared to 2020 levels.
As of March 2023, we have switched to substantially renewable energy sources for electricity used at our own properties, Kasama DC and Ibaraki Central SC, through the purchase of non-fossil certificates with tracking information.
We are also considering switching electricity used at Inagawa DC, which we lease as a tenant, to substantially renewable energy through the purchase of non-fossil certificates.
For logistics facilities that we will operate as our own properties in the future, we will examine actions to procure electricity from renewable energy sources, including consideration of our own solar-power generation system.
COP26 (Glasgow Climate Accord) confirmed the need to reduce global CO₂ emissions to "45% below 2010 levels by 2030" and "virtually zero by around 2050" in order to limit the increase in global average temperature to "+1.5°C" at the end of the 21st century. Wanting to participate in achieving this global goal, we recognize that we must not only reduce CO₂ emissions in Scope 1 and 2 but also in Scope 3 (CO₂ emissions upstream and downstream in the value chain). Our Scope 3 emissions are mainly from the use of electric power equipment products we sell, such as factory fans, and from the manufacturing of the products we sell. In order to set targets for CO₂ emission reductions in these areas, we are considering the development of practical CO₂ emission measurement modeling and disclosure methods.
Links to other initiatives
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( As of Dec. 26 2025 )