Target business / Analysis theme
Performance
We report efforts and achievements for the environmental load in FY2023 indicated in the page of "Environmental Aspect in Corporate Activities."
The following report covers TAIYO YUDEN CO., LTD.: six sites, and its domestic and overseas consolidated subsidiaries.
Compliance, Monitoring
We report the result of compliance and monitoring at each site in FY2023.
GHG, Energy
There are three categories for greenhouse gases (GHG) emitted during the course of business activities: Direct emissions from use of energy (Scope 1), Indirect emissions from energy use (Scope 2) and Indirect emissions other than from energy use (Scope 3). GHG emissions cannot be easily measured, so we concentrate on energy use and reducing energy consumption.
Results of Efforts to Reduce Greenhouse Gases and Energy Consumption
In FY2023, the GHG emissions by the entire group increased by 22,000 t-CO2e compared to FY2022. Specifically, the emissions by the sites in Japan increased from 168,000 t-CO2e in FY2022 to 173,000 t-CO2e and those by the overseas sites increased from 228,000 t-CO2e in FY2022 to 245,000 t-CO2e (see G1).
The amount of energy used by the entire group was 273,000 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 in our efforts to combat global warming. The renewable energy used in FY2023 was 151,256 MWh.
G1: GHG Emissions
(calculated from total energy consumption)
Efforts on Indirect Emissions Other than from Energy Use (Scope 3)
In recent years, there has been an increasing demand from our stakeholders to disclose information on Scope3 emissions, in addition to information on Scope1 and Scope2 emissions. In order to respond to such a demand, we are striving to keep track of our Scope3 emissions. To reduce Scope3 emissions, we started engagement with our suppliers.
Efforts to Address Climate Change
In response to the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD), we are proceeding with a scenario analysis of the risks and opportunities that climate change issues pose to society and business, and consider business strategies based on the results.
Efforts to Address TCFD
As the impact of climate change on society, such as frequent storms and floods, is increasing, the role of companies in achieving a decarbonized society is becoming more important.
As we aim to improve our corporate value with a focus on both economic value and social value based on our Medium-term Management Plan 2025, we consider that strengthening the measures to respond to climate change is one of the most important business challenges.
While we promote manufacturing based on the decarbonization concept to achieve carbon neutrality in order to tackle the global issue of climate change, we have set the Medium-term target of reducing GHG emissions by 42% compared to FY2020 by FY2030 based on the SBTs and thoroughly promote energy saving, energy creation, and the utilization of renewable energy.
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 climate-related financial information disclosure, endorse the TCFD, and are enhancing information disclosure in accordance with the TCFD recommendations.
Governance
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, there are directors who have expertise and experience in ESG and sustainability on the Board of Directors.
The Environmental Promotion Committee, a sub-committee of the Sustainability Committee sets quantitative targets for climate change and monitors the status of achievement.
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.
Strategy
1 Identification of risks and opportunities
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.
Degree of financial impact: Minor=JPY 1.5 billion or less; Medium=JPY 1.5 billion to 6 billion; Major=JPY 6 billion or more
2 Setting the scenario analysis theme
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.
Transition risks
External information referred to in the analysis
- *1
- The analysis is based on the scenarios published in the "World Energy Outlook 2023", the annual report by the IEA (International Energy Agency)
Physical risks
Target business / Analysis theme
This data covers the 18 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.
External information referred to in the analysis
- *2
- We assessed physical impacts based on the climate scenarios SSP1-2.6 and SSP5-8.5 used in the IPCC AR6.
- *3
- The SSP1-2.6 and SSP5-8.5 scenarios correspond to the RCP2.6 and RCP8.5 climate scenarios used in AR5.
Opportunities
Target business / Analysis theme
Major pieces of external information referred to in the analysis
3 Scenario analysis results
Transition risks: Financial impact of introducing carbon prices on operating costs
Physical risks: Impact of intensified extreme weather disasters on sites (Floods and Storm Surges)
Risk management
Regarding climate-related risks, we assign Executive Operating Officer who is a responsible director of safety and environment, reports and deliberates these issues at the the Internal Control Committee through the Compliance Subcommittee and the Risk Management Subcommittee in accordance with the group management system. 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.
Indicators and targets
GHG emissions
The Taiyo Yuden Group has set the target of reducing GHG emissions through its business activities by 42% by FY2030 compared to FY2020, which is consistent with the 1.5℃ scenario, to contribute to the global initiatives to limit the temperature rise to 1.5℃. In order to achieve this target, we are steadily promoting the efforts to reduce GHG emissions through measures to improve production efficiency and to use renewable energy as well as to smoothly move forward with our plan by introducing the energy-saving measures and photovoltaic facilities. We plan to use electricity generated from 100% renewable energy at the two domestic sites in FY2024 and further reduce our GHG emissions.
Please refer to "GHG, Energy".
To achieve the target shown above, we will steadily promote the efforts to reduce GHG emissions through measures to promote energy-saving initiatives, introduce energy-creating facilities, and utilize renewable energy among other measures.
External Assessment of Climate Change Information Disclosure
In 2023, 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 efforts in climate change measures, strategies, and information disclosure for the second consecutive year. In addition, our engagement in our supply chain was highly evaluated and we were selected as a Supplier Engagement Leader for the second consecutive year.
- * CDP is a non-governmental organization (NGO) managed by a British charitable organization, established in 2000. It operates a global information disclosure system for investors, companies, countries, regions, and cities to manage environmental impacts including reducing their own greenhouse gas emissions, protecting water resources, and protecting forests.
Waste, Water
We strive to reduce environmental effect on biodiversity while coexisting with nature, and we use the 3Rs (reduce, reuse, recycle) to reduce waste and make effective use of water resources.
Results of Reducing Waste
The amount of waste generated in FY2023 by the entire group decreased to 25,700 tons from 26,300 tons in FY2022(see G1).
The waste(including valuables)mainly consists of waste plastic, waste oil, and sludge (see G2).
The domestic final disposal volume increased to 0 tons from 56 tons in FY2022. The waste recycling rate reached 100% (see G3).
The overseas final disposal volume was the same as FY2022 at 2,000 tons (see G4).
We will continue working to reduce waste volumes, boost in-house recycling rates, and recycle waste into resources at our overseas sites.
G1: Amount of Waste Generation
G2: Breakdown of Waste
Definition of waste: general waste, industrial waste, and items having resale value.
G3: Domestic Final Disposal Volumes and Recycling Rates
G4: Overseas Final Disposal Volumes and Recycling Rates
Resource Recycling Efforts
92% 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, 41% 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 2% of all the reels are recycled reels.
Results of Water Resource Efforts
The amount of water used by the entire group increased from 3,609,000 m3 in FY2022 to 3,764,000 m3 in FY2023. Specifically, the amount of water used by the sites in Japan increased to 1,483,000 m3 from 1,400,000 m3 in FY2022, while the amount of water used by the overseas sites increased to 2,281,000 m3 from 2,209,000 m3 in FY2022 (see G5).
The quantity of water withdrawals was 3,424,000 m3 from municipal water supplies (or other water supply facilities), and 340,000 m3 from freshwater and underground water.
The quantity of water recycled was 713,000 m3.
G5：Water Use
Environmental action case
Reducing Greenhouse Gas Emissions
Reduction of GHG emissions by introducing the cogeneration system
[TAIYO YUDEN Mobile Technology]
The cogeneration system that collects waste heat generated when power is generated using fuel with no waste and enables us to effectively use it as energy has been introduced. Steam is generated from collected waste heat and is used for air conditioning.
This has enabled us to minimize the use of the steam boiler and reduce energy loss.
GHG emissions were reduced by 2,465t-CO2e/year.
This has enabled us to minimize the use of the steam boiler and reduce energy loss.
GHG emissions were reduced by 2,465t-CO2e/year.
Cogeneration System
Reduction of GHG emissions by introducing the high-efficiency module chiller
[Tamamura Plant]
A large amount of energy is consumed in some parts of the production process to maintain the appropriate temperature and humidity for production. At the Tamamura Plant, the efficiency of the entire air-conditioning system has been improved, and the use of electricity has been reduced by introducing the module chiller and by finely controlling the air-conditioning system.
GHG emissions were reduced by 121t-CO2e/year.
GHG emissions were reduced by 121t-CO2e/year.
High-Efficiency Module Chiller
Use of renewable energy
[R&D Center / Hongo Photovoltaic Power Plant / FUKUSHIMA TAIYO YUDEN / WAKAYAMA TAIYO YUDEN / TAIYO YUDEN YUDEN Mobile Technology / Sun Vertex / Elna Shirakawa Photovoltaic Power Plant / KOREA KYONG NAM TAIYO YUDEN / TAIYO YUDEN (PHILIPPINES) / ELNA (MALAYSIA)]
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 sute, Hongo Photovoltaic Power Plant in 2013, others have been built as well, and there are currently 10 powergenerating sites in Japan and overseas.
R&D Center
Hongo Photovoltaic Power Plant
FUKUSHIMA TAIYO YUDEN
WAKAYAMA TAIYO YUDEN
TAIYO YUDEN Mobile Technology
Sun Vertex
Elna Shirakawa Photovoltaic Power Plant
KOREA KYONG NAM TAIYO YUDEN
TAIYO YUDEN （PHILIPPINES）
ELNA（MALAYSIA）
Reduction in Waste Generation
Reduction of waste by changing the surface treatment method
[TAIYO YUDEN CHEMICAL TECHNOLOGY]
In some processes where the surfaces of electronic components are treated, the chemicals used in the production process are properly disposed of as waste. The amount of waste has been reduced by verifying and reviewing the use of the chemicals necessary to improve surface characteristics.
The amount of waste was reduced by 133 t per year.
Reducing Water Use
Water saving in the plating process [TAIYO YUDEN (SARAWAK)]
In the process where electronic components are plated, water is used in a variety of processes. The amount of water used has been reduced by reviewing the production process and verifying and improving water input.
The amount of water used was reduced by 37,200 t per year.
Biodiversity action case
Mangrove Tree Planting [TAIYO YUDEN (PHILIPPINES)]
In FY2008, Taiyo Yuden (Philippines) began planting mangrove seedlings on Olango Island, near Mactan Island where the company is located. Mangrove trees are planted.
Volunteering for Forest Maintenance [TAIYO YUDEN]
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.
Extermination of alien species (red swamp crawfish) [NIIGATA TAIYO YUDEN]
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.
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.
Forest conservation volunteers (treatment for "japanese oak wilt") [TAIYO YUDEN MOBILE TECHNOLOGY]
Taiyo Yuden Mobile Technology conducts volunteer activities with its employees and their family members to collect oak saplings grown from acorns as a treatment for ”Japanese oak wilt* ". The collected oak saplings are grown in the forest park and will be planted in the forests affected by "Japanese oak wilt*".
- * "Japanese oak wilt": A disease in which various types of oak tree suddenly wither, and the damage is expanding throughout Japan.
