Initiatives to address issues related to the global environment
The Sumitomo Electric Group has positioned issues related to global warming and climate change, such as “the increasing seriousness of global warming,”“ the depletion of natural resources,” and“ the frequent occurrence and extensive damage from disasters,” as one of its most important management issues..Currently, the Group is intensifying our efforts to achieve carbon neutrality by 2050, with the aim of “reducing greenhouse gas emissions to the level required by the Paris Agreement*1 by 2030.” In addition, the Sustainability Promotion Committee, which was newly established in January this year and is under the direct control of the president, has made the “environment” one of its key themes, and will continue to further promote initiatives to address issues related to the global environment.
*1 Paris Climate Agreement: Aims to limit the rise in global average temperature to well below 2℃ above pre-industrial levels, and to pursue efforts to limit the increase to 1.5℃
*2 Under the Sustainability Promotion Committee, we have established the CSR Promotion Committee, which is in charge of promoting company-wide CSR activities and issuing the CSR Report, and the Integrated Reporting Council, which is in charge of refining up the value creation process, identifying the social issues that the Group focuses on, and issuing the Integrated Report.
Setting greenhouse gas reduction targets
The Group has positioned issues related to the global environment as one of our most important management issues, and has been working to solve these issues by reducing the impact on the environment through the promotion of the“ Action ECO-22V” Campaign*4 by offering eco-friendly products and services, based on the “Environmental Policy*3.”
As part of this effort, we have set our greenhouse gas reduction targets for 2030 and 2050, and published them in May 2021. Going forward, we will continue to promote initiatives aimed at achieving our goals.
*3 Our Group's“Environmental Policy”
*4 “Action ECO-22V” Campaign: We are promoting activities to reduce the environmental impact with the aim of realizing a recycling oriented society in a five-year plan starting in fiscal 2018.
*5 The Group’s greenhouse gas reduction targeted companies include unlisted Group companies as well as the following companies. Sumitomo Riko Co., Ltd., Nissin Electric Co., Ltd. (both include group companies)
Setting greenhouse gas reduction targets*5
|2030 Target||By 2030, we aim to achieve our greenhouse gas reduction targets at the level required by the Paris Climate Agreement.
・Scope1+2(direct emissions of greenhouse gases by our Company itself and indirect emissions from the use of electricity, heat and steam supplied by other companies): To reduce by 30% by FY2030 from FY2018 levels.
・Scope3(indirect emissions other than Scope1 and Scope2): To reduce by 15% by FY2030, based on FY2018 levels.
|2050 Target||We are aiming to achieve carbon neutrality (virtually zero CO₂ emissions) by 2050.|
Initiatives to reduce greenhouse gas emissions
In order to achieve our goal of reducing CO₂ and other greenhouse gases, from the perspective of minimizing our impact on the global environment, we have divided our activities into three categories: “energy saving” by improving productivity and introducing new technologies, “energy creation” by creating green energy through solar power generation and other means, and“ energy purchase” by procuring electricity from renewable sources. We will develop activities with specific targets in each of the three categories.
First, with regard to “energy conservation, ”we will implement measures that make the most of our technological capabilities, such as the effective use of thermal energy, through the combined efforts of our manufacturing, research, and production engineering departments.
Next, with regard to “energy creation” and “energy purchase, ”we will specifically examine concepts for achieving net-zero emissions at our manufacturing sites by combining in-house power generation, such as solar power, in conjunction with the purchase of green electricity. In addition, by combining our Company's redox flow batteries, we will also consider ways to make contributions to local communities by supplying power to surrounding areas in times of disaster.
As for other environmental initiatives, we will continue to promote initiatives such as “the promotion of resource conservation and recycling,” “the reduction of substances that impose a burden on the environment,” and “the preservation of biodiversity” in order to give back to the earth and society. Furthermore, similar to our water treatment business, where we use Poreflon microfiltration membrane modules to treat sewage, we will promote initiatives to pass on the benefits of the earth’s limited resources to future generations through our Company's technologies and products.
Through these types of initiatives, we aim to realize an “eco-friendly society,” a “safe and secure society,” and a “comfortable and growth-oriented society” in the three fields of Mobility, Energy, and Communications, as described in our current mid-term management plan, VISION 2022.
Acquisition of “SBTi” Initiative Verification for Greenhouse Gas Reduction Targets
and Endorsement of TCFD Recommendation
Regarding our greenhouse gas emission reduction target for 2030, it has been accredited by the “SBTi (Science Based Targets initiative)*6,” an international initiative, as it meets the required level.
In order to further contribute to the creation of a sustainable and eco-friendly society, we also expressed our support for the purpose of the recommendations of the “Task Force on Climate-related Financial Disclosures (TCFD)*7” in May 2021, which analyzes the risks and opportunities posed by climate change to business and recommends the disclosure of such information.
Using the acquisition of the SBTi initiative Verification and the endorsement of the purpose of the TCFD recommendations as an opportunity, the Group will continue to promote efforts to solve global environmental issues such as global warming and climate change, including measures to achieve carbon neutrality by 2050, and will disclose information on climate change.
*6 SBTi (Science Based Targets initiative): A joint initiative jointly administered by four organizations: CDP (an international NGO that was formerly the Carbon Disclosure Project), UNGC (United Nations Global Compact), WRI (World Resources Institute), and WWF (World Wide Fund for Nature). It grants "scientifically backed target" certification to any greenhouse gas reduction target that complies with the Paris Climate Agreement (which aims to limit global temperature rise to well below 2℃ above pre-industrial levels and 1.5℃ above pre-industrial levels).
*7 TCFD: A task Force established by the Financial Stability Board (FSB) at the request of the G20 (Leaders' Meeting on Finance and the Global Economy), (Task Force on Climate-related Financial Disclosures). It views climate change as both a “risk” and an “opportunity,” and calls on government agencies, financial institutions, and corporations to support its proposal to disclose the impact of rising temperatures caused by greenhouse gases on corporate finances.