We report efforts and achievements for the environmental load in FY2022 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.
We report the result of compliance and monitoring at each site in FY2022.
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.
In FY2022, the amount of GHGs emitted by the entire group decreased by 63,000 t-CO2e compared to FY2021. Specifically, the domestic sites reduced their emissions from 195,000 t-CO2e in FY2021 to 168,000 t-CO2e, and overseas sites reduced theirs from 264,000 t-CO2e in FY2021 to 228,000 t-CO2e (see G1).
The amount of energy used by the entire group was 252,000 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 FY2022 was 123,212 MWh.
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.
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.
As the impact on society of climate-related physical risks, such as frequent storms and floods is increasing, the role of companies in achieving a carbon-free society is becoming more important.
We consider that strengthening the implementation of climate adaptation measures is one of the most important business challenges.
To tackle the global issue of climate change, we thoroughly promote planning and working on energy efficiency & conservation, energy creation, and the utilization of renewable energy through manufacturing based on the decarbonization concept to achieve carbon neutrality by 2050. We have set a reduction target of absolute GHG emissions based on the SBT.
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 expanding information disclosure in line with the TCFD.
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.
The Committee deliberates on setting materialities sharing of issues, and measures to resolve issues, and reports to 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.
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 to 6 billion; Major=JPY 6 billion or more
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 18 sites in Japan and 8 sites outside Japan.
We assessed physical impacts at the baseline (current), and at the middle and end of this century.
Regarding climate-related risks, we assign Executive Vice President 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 social analysis, interviews with customers and suppliers, and ESG engagement with investors as tools for identifying climate-related risks. The impact of these risks has been assessed in relation to their financial impact and management strategy.
The Taiyo Yuden Group has set targets for GHG emissions; a 42% reduction by FY2030 compared to FY2020 to achieve carbon neutrality by 2050. In order to achieve these targets, we will steadily promote efforts to reduce GHG emissions through measures such as the use of renewable energy and the improvement of production efficiency. As part of our measures, we will convert 100% of the electricity used at our R&D center to renewable energy in FY2024.
Please refer to "GHG, Energy".
In 2022, for the first time, the Taiyo Yuden Group was selected by CDP *, an international environmental non-profit organization, to be included in the highest rank A List as a company with excellent climate change measures, strategies, and information disclosure.
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.
The amount of waste generated in FY2022 by the entire group decreased to 26,300 tons from 28,900 tons in FY2021(see G1).
The waste (including valuables) mainly consists of waste plastic, waste oil, and sludge (see G2).
The domestic final disposal volume increased to 56 tons from 54 tons in FY2021. The waste recycling rate reached 99.5% (see G3).
The overseas final disposal volume decreased to 2,000 tons from 2,300 tons in FY2021 (see G4).
We will continue working to reduce waste volumes, boost in-house recycling rates, and recycle waste into resources at our overseas sites.
Definition of waste: general waste, industrial waste, and items having resale value.
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, 42% 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 17% of all the reels are recycled reels.
The entire Group's water usage fell from 4,027,000 m3 in FY2021 to 3,609,000 m3 in FY2022. Specifically, sites in Japan reduced their usage to 1,400,000 m3 from 1,615,000 m3 in FY2021, while sites outside Japan reduced theirs to 2,412,000 m3 from 2,209,000 m3 in FY2021 (see G5).
The quantity of water intake was 3,283,000 m3 from municipal water supplies (or other water supply facilities), and 326,000 m3 from freshwater and underground water.
The quantity of water recycled was 556,000 m3.
In some part of the production process for electronic components, solvents are used to clean the production equipment, and the solvents are properly disposed of as waste liquid after use for cleaning. By reviewing the production method and reducing the amount of solvent used for cleaning, we reduced the amount of waste liquid generated.
We reduced waste liquid by 384 tons per year.
In the process of manufacturing electronic components, water is used in various steps. By collecting and treating the equipment cooling water and reusing it in the manufacturing process, we reduced the water used.
We reduced water use by 11,331 tons per year.