In the 1970s, Shimano devised the idea of selling groupsets consisting of derailleur gears, brakes, hubs and drivetrains. This type of innovative product development – combined with a reputation for high quality, reliability and safety – has enabled the company to become a global leader in the bicycle component market with over 50% market share.

Renovating to save energy

In 2011, the factory in Sakai City was completely renovated. In conjunction with the renovation, an energy savings promotion council was established. Since then, energy (both heat and electricity) usage at the Sakai factory has been reduced by more than 40%.

A new factory (Shimonoseki) was completed in November 2016 and is intelligent and eco-friendly. It has an airtight and insulated structure, and the temperature is controlled by a passive ventilation system and ground thermal energy pumps. Lighting is exclusively from LED light bulbs and window roofs to ensure that every factory worker can work in daylight.

Workers’ safety and comfort was also at the heart of the design. Part of the premises has been landscaped with a spacious water reservoir and grass fields to create a habitat for plants and animals and create a pleasant atmosphere for employees.

­­Why it’s a good fit for the Triodos Impact Investment Funds

• Shimano was primarily selected under Triodos Investment Management’s ‘Sustainable mobility and infrastructure’ theme for inclusion in the Triodos Pioneer Impact Fund. As the largest worldwide supplier of bicycle components, it facilitates cycling, an environmentally friendly form of transport, which reduces energy use and air pollution. The company also meets at least five of the UN Sustainable Development Goals.
• When Covid-19 lockdown restrictions were eased in Europe and Asia this saw significant increase in people choosing to cycle. With social distancing in mind, cycling was encouraged as it is the most suitable, safe and sustainable way of transport. This has led to a sharp increase in cycling for travel, exercise, and leisure.
• Governments across Europe have started promoting cycling as a mode of transport for commuting to work and school as a substitute for public transport where it’s more difficult to socially distance. Additional measures to promote cycling, such as new dedicated cycling lanes and parking spaces, are now high on the agenda of many councils across Europe and around the globe, and its anticipated more will be implemented.
• Shimano has a very strong after-sales network to support cyclists on an ongoing basis. It has increased R&D spending to fulfil the expected demand for high quality bicycles, including STEPS e-bike components. The company also has specific guidelines for its suppliers encouraging them to develop products with a reduced environmental impact. The stock price of Shimano has increased sharply in Q2 2020 reflecting the increase in short-term and long-term demand for bicycles.

How Shimano aligns with the Sustainable Development Goals

• Ensure healthy lives and promote well-being for all at all ages
• Ensure access to affordable, reliable, sustainable and modern energy for all
• Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
• Make cities and human settlements inclusive, safe, resilient and sustainable
• Take urgent action to combat climate change and its impacts­­