Performance

In FY2025, the GHG emissions by the entire group decreased by 33,000 tons-CO₂e compared to FY2024.Specifically, emissions by the sites in Japan decreased from 137,000 tons-CO₂e in FY2024 to 127,000 tons-CO₂e, and those by the overseas sites decreased from 246,000 tons-CO₂e in FY2024 to 223,000 tons-CO₂e (see G1).
The amount of energy used by the entire group was 278,000 kL (crude oil equivalent).
We will continue to review production processes, with a focus on core products, to further improve production efficiency and reduce energy use.
Furthermore, we have been promoting the incorporation of renewable energy as part of our efforts to combat global warming. Renewable energy use in FY2025 was 350,950 MWh.
Recognizing the importance of reducing GHG emissions throughout the supply chain, we are also working to reduce Scope 3 emissions.

As the impact of climate change on society—such as frequent storms and floods—continues to grow, the role companies must play in achieving a decarbonized society has become increasingly important. Accordingly, under our Medium-Term Management Plan 2030, which aims for greater corporate value through both economic value and social value, we consider strengthening our response to climate change a key management issue.
To address climate change, a global challenge, we are promoting manufacturing based on the concept of decarbonization with the aim of achieving carbon neutrality by FY2050. As Medium-Term targets, we have set a target of achieving a 100% renewable energy adoption rate by FY2040 and reducing Scope 1+2 emissions by 42% by FY2030 compared with FY2020. To achieve these targets, we are thoroughly implementing energy conservation, energy generation, and renewable energy initiatives.
We have also set a target of reducing Scope 3 emissions (Categories 1 and 3) by 25% compared with FY2021 in order to strengthen initiatives across the entire supply chain and contribute to the realization of a sustainable society. We are working to strengthen collaboration with suppliers to achieve this target. In FY2024, our GHG emissions reduction targets were validated by the SBTi as Near-Term target.
We aim to contribute to the achievement of the international goals set forth in the SDGs and the Paris Agreement through collaboration with a wide range of stakeholders. We also recognize the importance of disclosing climate-related financial information. Accordingly, we have endorsed the TCFD and are expanding our disclosure in line with the TCFD recommendations.

We recognize climate change as one of the important management issues and aim to promote activities for sustainability issues through business activities throughout the company, and since FY2021, we have held the Sustainability Committee (four times a year) chaired by the President and Chief Executive Officer.
In addition, the board of directors is composed of members with a balanced mix of knowledge, experience, and expertise related to material issues, including ESG and sustainability, and has the necessary skills and competencies to ensure appropriate oversight in these areas.
If the targets are not achieved or may not be achieved, the Environmental Promotion Committee needs to investigate the cause and take corrective measures for improvement. The deliberations and decisions by the Environmental Promotion Committee are reported to the Sustainability Committee, which is its superior committee.

In order to identify climate-related risks and opportunities that affect our business, we used climate scenarios such as the IEA and the IPCC to identify them, qualitatively evaluated their characteristics, and conducted scenario analysis.

We carried out a scenario analysis on the following themes evaluated as “highly important risks and opportunities” based on the degree of impact on our business, the relevance to our business strategies, and the degree of stakeholder interest.

This data covers the 15 sites in Japan and 7 sites outside Japan.
We assessed physical impacts at the baseline (current), and at the middle and end of this century.

The Senior Operating Officer in charge of safety and the environment is designated as the person responsible for risks related to climate change. In accordance with the Group Management System, these risks are reported to and discussed by the Internal Control Committee through the Compliance Subcommittee and the Risk Management Subcommittee. We refer to the social situation analysis, interviews with customers and suppliers, and ESG-related engagement process with investors as tools to identify risks and opportunities related to climate change. The impact of these risks has been assessed in relation to their financial impact and management strategy.

To contribute to global efforts to limit the temperature increase to 1.5ºC, the Taiyo Yuden Group has set emissions targets aligned with the 1.5ºC scenario. For GHG emissions from its own business activities (Scope 1+2), the Group aims to reduce GHG emissions by 42% by FY2030 compared with FY2020 and achieve a 100% renewable energy adoption rate by FY2040. To achieve these targets, we are steadily advancing initiatives to reduce GHG emissions through measures such as improving production efficiency and using renewable energy. We have also set a target of reducing Scope 3 emissions (Categories 1 and 3), which are indirect emissions in the supply chain, by 25% by FY2030 compared with FY2021. To achieve this target, we are working to strengthen collaboration with suppliers. We will continue to plan and implement further initiatives to reduce GHG emissions, including indirect emissions in the supply chain.
Please refer to "GHG, Energy".

The GHG emission reduction targets the Taiyo Yuden Group set have been accepted as the targets based on scientific evidence and approved by the SBTi, an international initiative, as the SBT.
The approved GHG emissions reduction targets of the Taiyo Yuden Group are shown below.

To achieve the above targets, we will steadily advance initiatives to reduce GHG emissions by promoting energy saving, energy creation, and the utilization of renewable energy.

The Taiyo Yuden Group was selected by CDP^*, an international environmental nonprofit organization, as an A List company, earning the highest rating for its outstanding transparency and leadership in performance in the field of climate change for the fourth consecutive year.
The Group’s supply chain initiatives were also highly evaluated, and the Taiyo Yuden Group received the highest rating of “A” in the Supplier Engagement Assessment (SEA) for the fourth consecutive year.

The amount of waste generated in FY2025 by the entire group increased to 30,000 tons from 28,100 tons in FY2024 (see G1).
The waste(including valuables)mainly consists of waste plastic, waste oil, and sludge (see G2).
The domestic final disposal volume remained the same as in FY2024 at 0 tons. The waste recycling rate reached 100% (see G3).
The overseas final disposal volume was decreased to 1,700 tons from 2,200 tons in FY2024 (see G4).
We will continue working to reduce waste volumes, boost in-house recycling rates, and recycle waste into resources at our overseas sites.

94% of the waste generated through our business activities is recycled and reused as resources in society. However, we are also promoting efforts to reuse waste for the Taiyo Yuden Group’s own business activities.
For solvent A, which is the most frequently used solvent in our business, 43% of the amount used is recycled waste solvent.
In addition, for reels that are used in packaging electronic parts, strict quality checks are performed and 3% of all the reels are recycled reels.

The amount of water used by the entire group decreased from 4,259,000 m³ in FY2024 to 4,234,000 m³ in FY2025. Specifically, the amount of water used by the sites in Japan decreased from 1,426,000 m³ in FY2024 to 1,353,000 m³ and those by the overseas sites increased from 2,833,000 m³ in FY2024 to 2,881,000 m³ (see G5).
The quantity of water withdrawals was 3,917,000 m³ from municipal water supplies (or other water supply facilities), and 317,000 m³ from freshwater and underground water.The quantity of water recycled was 778,000 m³.

The Taiyo Yuden Group has been installing solar panels as part of our efforts to combat global warming. After establishing the group’s first power-generating site, the Hongo Photovoltaic Power Plant, in FY2013, we have gradually expanded installations at other sites as well. In FY2025, we installed solar panels at 1 site, and we currently generate electricity at 14 sites in Japan and overseas.

The Taiyo Yuden Group is expanding its use of renewable energy. In FY2025, solar power generation equipment was newly installed on the premises of the Takasaki Global Center, and 100% of the electricity used at the site was converted to renewable energy through on-site energy generation and the switch to electricity derived from renewable sources. As a result, the number of sites using 100% renewable electricity increased to three: the Takasaki Global Center, the R&D Center, and Sun Vertex headquarters.
We are also promoting the procurement of renewable energy from off-site sources. In FY2025, the Tamamura plant and NIIGATA TAIYO YUDEN began off-site corporate PPAs. Through these initiatives, we will procure additional renewable energy in a stable manner over the long term.

We are promoting initiatives in cooperation with our business partners to reduce Category 1 emissions, which account for approximately 70% of the Taiyo Yuden Group’s Scope 3 emissions. In FY2025, we held decarbonization briefings for our business partners. At these briefings, we explained the Taiyo Yuden Group’s policies, delivered messages from management, and called on our business partners to cooperate in reducing emissions.
In addition, we regularly conduct interviews on the status of their initiatives and provide support for calculating GHG emissions at our business partners.

Chemicals are used in some processes for surface treatment of electronic components, and used chemicals are properly treated as waste. By reviewing production methods and reducing the amount of chemicals used, we were able to reduce the amount of waste generated.
We reduced waste liquid by 479 tons per year.

Water is used in the process of grinding materials for production. By treating and reusing wastewater generated during the grinding process, we were able to reduce water use.
The amount of water used was reduced by 18,000 tons per year.

In FY2008, Taiyo Yuden (Philippines) began planting mangrove seedlings on Olango Island, near Mactan Island where the company is located. Mangrove trees are planted.

Since FY2007, Taiyo Yuden has participated in a forest maintenance project run by Gunma Prefecture, involving corporate volunteer work. Every year, volunteers from Taiyo Yuden have helped to maintain the "Taiyo no Mori" forest, joining with prefectural government employees to trim underbrush and thin trees.

The crayfish is included in the list of designated Invasive Alien Species because they have disruptive effects on Japan's indigenous species including aquatic organisms and plants.
Niigata Taiyo Yuden leads a biodiversity conservation activity every year in which employees and their family members exterminate crayfish. They also exterminate alien plants such as daisy fleabanes.

Taiyo Yuden Mobile Technology implements volunteer activities with its employees and their families to collect and grow oak seedlings^*2 as a countermeasure against Japanese oak wilt^*1. The seedlings grown are planted in forests affected by Japanese oak wilt and other areas.