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. We reviewed our Mid-Term Plan on the Environment in FY 2020 and changed the CO2 emissions target for business sites in Japan from the previous target for emissions per unit of sales to a target for reduction in total CO2 emissions. We are working to achieve a target of a 10% reduction in total CO2 emissions (compared to FY 2018) in FY 2021.

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, and in August 2020 submitted a voluntary declaration to the CDP*. 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 further energy-saving activities in our manufacturing processes and business sites, and study the active 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 value 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 has reduced the previous annual GHG emissions of 121 t (FY 2019 result) to zero.

Fluorocarbon Collection

Since FY1995, we have collected fluorocarbons when performing repairs and disposal operations. 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 69.4 tons (cumulative as of March 2020).

■ Collected quantity of fluorocarbon

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.

Use of Natural Energy at Business Sites

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 2019 was 144,342 kWh.

Fukuchiyama Plant Training Center (Fukuchiyama City, Kyoto Prefecture)

Now Using 100% Renewable Energy at Our Major Facilities in the Kansai Region

In January 2021, we switched over to renewable energy sources for the electricity used in five major facilities in the Kansai region (our Head Office, the Fukuchiyama Plant, the Kobe R&D Center, the Osaka Office, and Neyagawa Business Center). With this change, it is expected that some 40% (9,942,000 kWh as of 2019) of the electricity used in all of our consolidated group facilities (both in Japan and abroad) will have been changed over to renewable energy, and we will be able to cut our annual CO2 emissions (SCOPE 1 + 2) by 23%.*1 It should be noted that the electricity from renewable energy sources that ESPEC uses is electricity to which is added the renewable energy value (Non-fossil fuel certificate with tracking*2) of a renewable energy power plant.

  • ※1:Including the Kariya Test Center that was fully switched over in January 2020.
  • ※2:This indicates an achievement of substantial renewable energy supply by notifying of the source of non-fossil-based value, by combining a renewable energy-designated non-fossil fuel certificate that adds (tracks), to the supplied electricity, attribute information, such as the power plant location and the power supply type from which it is derived.

Providing Laboratory Testing Services Using 100% Green Energy

From January 2020, we switched all electrical power used at the Kariya Test Center (Kariya City, Aichi Prefecture) to green energy produced by biomass power generation utilizing the Renewable Energy Certificate system*. This is evaluated as utilizing renewable energy for 1.7 million kWh of electricity use per year, and is expected to reduce annual CO2 emissions by 768 t. By providing laboratory testing services using 100% green energy at our Kariya Test Center, we help to reduce GHG emissions in our customers’ value chains.

* This is a mechanism for transactions in the form of a “Renewable Energy Certificate.” The certificate issuer (Japan Natural Energy Company Limited) certifies the environmental value of electricity generated from natural sources and obtains the approval of a third-party agency (Japan Quality Assurance Organization).

Kariya Test Center (Kariya City, Aichi Prefecture)

Changes in the Amounts of Energy Used (Consolidated*1)

Please scroll horizontally to look at table below.

(Fiscal year) 2015 2016 2017 2018 2019
Gasoline 513㎘ 596㎘ 565㎘ 646㎘ 615㎘
Kerosene - - - - -
Diesel fuel 10㎘ 6㎘ 32㎘ 30㎘ 26㎘
LPG 7t 3t 3t 2t 1t
City gas 83,000 Nm³ 111,000 N³ 129,000 Nm³ 126,000 Nm³ 132,000 Nm³
Natural gas 88,000 Nm³ 105,000 Nm³ 117,000 Nm³ 103,000 Nm³ 157,000 Nm³
Electricity 20,742,000 kWh 22,060,000 kWh 22,502,000 kWh 23,786,000 kWh 24,838,000 kWh
Amount of the above obtained from renewable energy
(including in-house solar power generation and Renewable Energy Certificate power)		 80,000 kWh 105,000 kWh 89,000 kWh 106,000 kWh 694,000 kWh

Changes in Breakdown of Electricity Use (Consolidated※1）

Please scroll horizontally to look at table below.

(Units: 1,000s kWh)

(Fiscal year) 2015 2016 2017 2018 2019
Purchased electrical power Power not from Renewable Energy Certificate 20,662 21,955 22,413 23,680 24,144
Renewable Energy Certificate (biomass) - - - - 590
Private power generation Solar power generation 86 111 94 112 111
Power used 20,742 22,060 22,502 23,786 24,838
Amount of the above obtained from renewable energy
(including in-house solar power generation and Renewable Energy Certificate power)		 80 105 89 106 694
  • *1 Calculation range covers consolidated companies as of March 31, 2020. Calculation at 3 companies in the Japan group (ESPEC Test System Corporation, ESPEC Kyushu Corporation, and ESPEC MIC Corporation) started in FY 2016, so these companies are not included in the FY 2015 total.
  • *2 The settlement period of overseas consolidated companies was an irregular period of 15 months in FY 2018, so the figures per unit of sales (reference value) for FY 2018 are calculated for sales assuming a settlement period of 12 months at overseas consolidated companies.