Combatting Climate Change

Relation to SDGs

Combatting Climate Change in Our 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 preservation business operated by ESPEC MIC. For this reason, we reviewed our Mid-Term Plan on the Environment in FY 2021 and further raised the CO2 emissions reduction target. In FY 2021, we are working to achieve a target of an 80% reduction (SCOPE 1+2) in CO2 emissions (compared to the FY 2018 level) at our offices in Japan.

Program Overview

Greenhouse gas (GHG) emissions are identified and calculated for the emissions resulting from our business activities (SCOPE 1, SCOPE 2) and indirect emissions accompanying our business activities (SCOPE 3). Starting from FY 2019, we strengthened our program for expanding the range of GHG emissions calculation and improving the calculation accuracy, In August 2020, we voluntarily responded to a CDP* climate change survey for the first time, and received a grade of “B.” In response to the international Science Based Targets (SBT) initiative, in May 2020 we committed to setting science-based GHG reduction targets within two years that can limit global warming to less than 2°C. In the future, we will carry out activities for further energy savings in our manufacturing processes and at our offices, and will actively proceed with the introduction of renewable energy. We will also work for further energy savings in our products, encourage suppliers to set reduction targets, and carry out activities for reducing GHG emissions throughout the supply chain.

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

■Greenhouse gas emissions and ratios in the supply chain (consolidated)

Please scroll horizontally to look at table below.

* SCOPE 2 utilizes a market base.

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. This reduces to zero the approximately 275 t of annual GHG emissions (FY 2020 shipping base).

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 73 tons (cumulative as of March 2021).

■ Collected quantity of fluorocarbon (Non consolidated)

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.

Active introduction of renewable energy at our offices in Japan

ESPEC is actively introducing renewable energy. By the end of FY 2020, we had switched to renewable energy for 54% of the total power used at our offices in Japan. We are working towards a target of using 98% or more renewable energy for the power used (kWh) at the Group locations in Japan by the end of FY 2021. 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 2020 was 99,000 kWh.

Fukuchiyama Plant Training Center (Fukuchiyama City, Kyoto Prefecture)

Providing Japan’s First Laboratory Testing Services Powered by 100% Green Electricity

In April 2021, we switched over to 100% renewable energy sources for the electricity used in 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

Initiatives in Which We Are Taking Part

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

In December 2021, we expressed 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.

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

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) 2016 2017 2018 2019 2020
Gasoline 596㎘ 565㎘ 646㎘ 615㎘ 519㎘
Kerosene - - - - -
Diesel fuel 6㎘ 32㎘ 30㎘ 26㎘ 39㎘
LPG 3t 3t 2t 1t 1t
City gas 111,000 N³ 129,000 Nm³ 126,000 Nm³ 132,000 Nm³ 127,000 Nm³
Natural gas 105,000 Nm³ 117,000 Nm³ 103,000 Nm³ 157,000 Nm³ 166,000 Nm³
Electricity 22,060,000 kWh 22,502,000 kWh 23,786,000 kWh 24,792,000 kWh 23,112,000 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)
105,000 kWh 89,000 kWh 106,000 kWh 694,000 kWh 4,374,000 kWh

Changes in Breakdown of Electricity Use (Consolidated)

Please scroll horizontally to look at table below.

(Units:1,000kWh)

(Fiscal year) 2016 2017 2018 2019 2020
Purchased electrical power Power not from Renewable Energy Certificate 21,955 22,413 23,680 24,587 23,020
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
Private power generation Solar power generation 111 94 112 111 99
Power used 22,060 22,502 23,786 24,792 23,112
Amount of the above obtained from renewable energy
(including in-house solar power generation, Renewable Energy Certificate power, and the Renewable Energy Power Menu)
105 89 106 694 4,374