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Measures to Combat Global Warming

Measures to Combat Global Warming during Business Activities

Basic Concept

Climate change resulting from global warming is expected to have a wide range of effects on the ESPEC Environmental Test Business which is our main business and on the environmental conservation business operated by ESPEC MIC. Our company recently set a long-term target for reducing greenhouse gases (GHG) by 2030. We are working for a 60% reduction in SCOPE 1+2 (in-house emissions) GHG emissions compared to FY 2019, and a 30% reduction in SCOPE 3 (indirect emissions).

Program Overview

We identify and calcurate greenhouse gas (GHG) emissions from our own business activities (SCOPE 1 and SCOPE 2) and indirect emissions from our business activities (SCOPE 3).
In the CDP*1 Climate Change Survey, the company was awarded a 'B score' for four consecutive years from FY2020, and in the Supplier Engagement Assessment in FY2023, the company received the highest rating of 'A score' and was selected as a 'Supplier Engagement Leader' for the second time. In addition, in June 2024, we were listed for the second Year in a Row as one of the top 350 performers in the Asia-Pacific Climate Leaders survey done in partnership with the Financial Times in the UK and German data provider Statista.
In July 2023, the ESPEC Group's 2030 greenhouse gas reduction targets received SBT (Science Based Targets) certification from the international SBT Initiative*2.
As one of the strategies in the Progressive Plan 2025, the company's medium-term management plan that started in FY2022, the 8th Medium-Term Environmental Plan (FY2022-2025) has been formulated to strengthen its global warming countermeasures and biodiversity conservation activities.
In the future, we will continue to carry out further energy-saving activities in our manufacturing processes and at our offices, and will actively introduce renewable energy, increase energy savings in our products, and take other action in order to reduce GHG emissions throughout the supply chain.

*1 An international Non Governmental Organization (NGO) that investigates, evaluates, and discloses information about the environmental programs of corporations and other entities

*2 An international initiative that encourages firms to set scientifically-grounded targets for reducing greenhouse gas emissions so that the goals of the Paris Agreement may be achieved. Jointly managed by CDP, which is an NGO involved in environmental information disclosure, UNGC (United Nations Global Compact), WRI (World Resources Institute), and WWF (World Wide Fund for Nature).

■FY 2022 supply chain greenhouse gas (GHG) emissions and ratios (Consolidated)

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Programs for Reducing Greenhouse Gas (GHG) Emissions in Manufacturing Processes

ESPEC has been working to reduce GHG emissions in its manufacturing processes since 1996. In FY 2019, we completed the change to non-CFC foam heat insulation in all products produced at the Fukuchiyama Plant. We also are working to reduce CFC leakage from CFC charging during manufacturing. We are using renewable energy for all electricity used at our manufacturing plants in Japan.

Fluorocarbon Collection

Since FY 1995, we have collected fluorocarbons when performing product repairs and disposal. Based on the CFC Emissions Control Law, we are registered as a Type 1 CFC collecting business at municipalities throughout the country. The collected refrigerant fluorocarbons are rendered harmless through high-temperature plasma destruction at fluorocarbon destruction facilities. The recovered quantity amounts to approximately 79 tons (cumulative as of March 2023).

■ Collected quantity of fluorocarbon (Non-consolidated)

(Units:kg)

(FY) 2019 2020 2021 2022
Collected quantity for a single fiscal year 4,523 3,668 3,208 3,695
Collected quantity for cumulative total 69,400 73,068 76,276 79,971

Initiatives in Product Transportation

We are beginning a modal shift (utilization of rail transportation) in order to prevent global warming. Starting from Osaka, we are switching from trucking to freight for long-distance transportation to destinations such as Hokkaido, Tohoku, Kyushu, and Tokyo.

Switching to renewable energy at all offices in Japan

ESPEC is actively introducing renewable energy, and completed the switch to renewable energy for power at all offices in Japan (excepting some rental properties) by the end of FY 2021. As a result, 99% or more of the power used (kWh) by the group in Japan is renewable energy. Solar power generating systems have been installed at the Fukuchiyama Plant (Training Center) and Kobe R&D Center (Testing Building). The amount of power generated at these two sites in FY 2022 was 94,000 kWh.

Fukuchiyama Plant Training Center (Fukuchiyama City, Kyoto Prefecture)

Commissioned testing services using 100% renewable energy

By April 2021, we had switched over to renewable energy sources for the electricity used at all five of our laboratories in Japan (Utsunomiya, Toyota, Kariya, Kobe, and the Battery Safety Testing Center). Providing Japan’s first laboratory testing services powered by 100% green electricity allows us to help customers reduce their CO2 emissions under SCOPE 3 Category 1 (purchased products and services). Reports for tests conducted at our testing laboratory bear the Green Power mark, indicating that the test was performed with no CO2 emissions. This mark is equivalent to the environmental label (ISO/JISQ14021) for self-declared environmental claims “Type II” established by the International Organization for Standardization (ISO).

Green Power mark

Efforts to reduce GHG emissions at suppliers

We have requested that our suppliers reduce SCOPE 1+2 emissions by 20% by FY 2025, and we are working with them to achieve the goal together through activities such as study sessions on how to reduce GHG emissions. We also created a supplier environmental contribution recognition program to recognize suppliers that have reduced their GHG emissions, and held the first award ceremony in June 2023. In recognition of these efforts, we were given the highest rating-an A score-at the FY 2022 Supplier Engagement Ratings conducted by CDP, and were selected for the first time as a Supplier Engagement Leader.

Award ceremony for suppliers’ environmental contribution

Response to the TCFD Recommendations(Information Disclosure Based on TCFD)

ESPEC has expressed its support for the proposal of the Task Force on Climate-related Financial Disclosures (TCFD)*, which aims to promote the investigation and disclosure of the financial implications of the risks and opportunities posed by climate change. We are disclosing information related to climate change based on the four themes recommended by TCFD: governance, strategy, risk management, and metrics and targets.

*Task Force on Climate-related Financial Disclosures
Established in 2015 by the Financial Stability Board (FSB).

Initiatives in Which We Are Taking Part

● Task Force on Climate-related Financial Disclosures (TCFD)

In December 2021, we expressed our support for the proposal of the Task Force on Climate-related Financial Disclosures (TCFD). We also participate in the TCFD Consortium, which consists of companies and financial institutions that support the TCFD proposal.

TCFD website

● Japan Climate Initiative (JCI)

Since January 2019, we have taken part in the Japan Climate Initiative (JCI),* which is a network of companies and local governments working to combat climate change.

  • ※Japan Climate Initiative. Established in 2018.

JIC website

Changes in the Amounts of Energy Used (Consolidated)

Please scroll horizontally to look at table below.

(Fiscal year) 2019 2020 2021 2022
Gasoline 615㎘ 519㎘ 528㎘ 555㎘
Kerosene - - - 0㎘
Diesel fuel 26㎘ 39㎘ 7㎘ 7㎘
LPG 1t 1t 0t 0t
City gas 132,000
Nm³
127,000
Nm³
110,000
Nm³
90,000
Nm³
Natural gas 157,000
Nm³
166,000
Nm³
163,000
Nm³
167,000
Nm³
Electricity 24,792,000
kWh
23,112,000
kWh
25,414,000
kWh
24,913,000
kWh
Amount of the above obtained from renewable energy
(including in-house solar power generation, Renewable Energy Certificate power, and the Renewable Energy Power Menu)
694,000
kWh
4,374,000
kWh
17,717,000
kWh
18,124,000
kWh

Changes in Breakdown of Electricity Use (Consolidated)

Please scroll horizontally to look at table below.

(Units:1,000kWh)

(Fiscal year) 2019 2020 2021 2022
Purchased electrical power 24,687 23,020 25,334 24,824
Amount of the above obtained from renewable energy
(including in-house solar power generation, Renewable Energy Certificate power, and the Renewable Energy Power Menu)
590 4,282 17,636 18,035
Private power generation
(Solar power generation)
111 99 84 94
Power used 24,792 23,112 25,414 24,913
Amount of the above obtained from renewable energy
(including in-house solar power generation, Renewable Energy Certificate power, and the Renewable Energy Power Menu)
694 4,374 17,717 18,124