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Striving for Harmony with Global Environment

Combating Climate Change

Measures Against Climate Change

Based on its material CSR issues (materiality), the Nabtesco Group has been promoting Group-wide efforts to reduce greenhouse gas emissions and to enforce energy-saving activities as part of its measures against climate change. In FY2012, we introduced the energy conservation activity commendation program to further strengthen our energy-saving activities. We have set Group-wide improvement themes, including the reduction of energy consumption in equipment operations, maintenance and management and other production activities, and strive to steadily reduce greenhouse gas emissions by monitoring the status and effects of such efforts in a quantitative manner. In addition, we have introduced an energy-saving product certification system to promote the development of energy-saving products, thereby contributing to reducing greenhouse gas emissions generated by our customers’ use of our products.

In November 2016, the Paris Agreement*1, an international framework for countermeasures against climate change beyond 2020, came into effect and the 2 degrees Celsius target*2 was adopted as an international target. In response, the Nabtesco Group set a long-term target for reducing greenhouse gas emissions, which has been approved by the SBT (Science Based Targets)*3 Initiative.

The Nabtesco Group also advocates the measures taken by the CDP*4 of the United Kingdom to mitigate the impact of climate change and reduce greenhouse gas emissions. In FY2010, we began to disclose the Nabtesco Group’s climate change strategies and greenhouse gas emissions to the CDP to enhance the transparency of our own efforts. In FY2017, CDP included us in the Climate A List and the Supplier Climate A List, which list the highest-rated companies.

  • *1 An international treaty to curb climate change beyond 2020 that was adopted by multiple nations on December 12, 2015 in Paris, following the 21st Session of the Conference of Parties to the United Nations Framework Convention on Climate Change (COP 21)
  • *2 An international target set under the Paris Agreement to maintain the average global temperature rise to well below 2 degrees Celsius (°C) compared to pre-industrial levels
  • *3 A framework that encourages companies to set their medium-term targets (for five to 15 years ahead) at a level that will enable achievement of the 2°C target. Such targets are certified following a screening by the SBT initiative.
  • *4 The CDP is an international non-profit organization. It urges companies that boast the world’s top-ranked total market value to disclose their climate change strategies and greenhouse gas emissions levels. Based on the information disclosed, the CDP annually evaluates the companies and announces their scores to the public. The CDP represents 803 institutional investors with total assets of 100 trillion US dollars (as of 2017 survey), and calls on Japan’s top 500 companies in terms of market capitalization (that is, the constituents of the FTSE Japan Index) to disclose information.
Corporate Communications Department, environment & safety Department, 1, 2

Reduction Targets for Greenhouse Gas Emissions

Group’s long-term targets < Global target > Total CO2 emissions (per unit of sales) FY203030 % reduction FY205080 % reduction (Relative to FY2015) Group’s medium-term target (To be achieved by FY2020) < Global target > Total CO2 emissions (per unit of sales) 9% or more reduction (Relative to FY2015)

In FY2016, the Nabtesco Group set long-term greenhouse gas emissions targets for FY2050 with the aim of preventing global warming. Specifically, we aim to reduce (1) CO2-equivalent emissions of greenhouse gases by our Group companies in Japan and (2) CO2 emissions relative to sales (per unit of sales) from our global production activities including emissions from our overseas sites, by 30% in FY2030 and by 80% in FY2050 compared to the FY2015 levels. Moreover, the long-term target for reducing greenhouse gas emissions from Nabtesco Corporation, which is included in (1) above, has been approved by the SBT Initiative.

We have also set medium-term targets for FY2020. Specifically, we aim to reduce our total amount of CO2 emissions to a level below that of FY2015 and lower our emissions per unit of (global) sales by 9% or more, in light of the anticipated increase in production volumes and reinforcement of plants and equipment in line with our expected future operational growth.

CO2 emissions target FY2015
(base year)
FY2020 FY2030
(30% reduction)
FY2050
(80% reduction)
Total CO2 emissions [In Japan] 46,100 46,100 32,270 9,220
Per unit of sales [Global] 0.239 0.217 0.167 0.048

In addition to reducing our own emissions, we have begun to expand activities to our suppliers. Of the greenhouse gas emissions from our entire supply chain, the percentage of emissions from purchased goods and services (category 1 of Scope 3 emissions) is high, making it essential for our suppliers to take initiatives to reduce their greenhouse gas emissions. In response, we began a survey of our main suppliers (top suppliers who constitute 70% of the annual amount of purchases) to see whether they have set voluntary targets to reduce their greenhouse gas emissions. As of FY2017, 45.2% of our main suppliers have set voluntary targets to reduce their greenhouse gas emissions and begun to take initiatives to achieve the targets. We will provide support so that all of our main suppliers will set voluntary reduction targets by 2025.

Corporate Communications Department, environment & safety Department, 1, 2

2017 Targets and Results

In FY2017, the total amount of CO2 emissions from our Japanese operations far exceeded the target level. This is mainly attributed to the temporary effects of double operations of the facilities in the transfer process to the (two) plant buildings completed at the Gifu Plant (aircraft equipment business, in Japan) in order to respond to an increase in demand, in addition to an increase in production volume of precision reduction gear business.

Also, in FY2017, we carried out the following major energy-saving activities. At the (two) plant buildings completed at the Gifu Plant we can reduce CO2 emissions by 50% compared to the previous level due to the adoption of the advanced environmental technologies. In addition, we carried out facility renewal by consolidating processing procedures that were conducted by multiple facilities into a single facility to improve the production capacity and energy efficiency. We also revamped processing facilities with inverters to save energy and replaced air-conditioning equipment and lighting equipment with highly efficient versions. Moreover, another new plant building is scheduled to be completed at the Plant in FY2018. Similarly, it is possible to reduce CO2 emissions by 50%. It can be expected to contribute to reducing CO2 emissions through operations of these new facilities by taking advantage of the advanced environmental technologies in the future.

Our global emissions, which combines emissions from both Japanese and overseas sites, increased by 20% from the previous fiscal year, partly reflecting the commencement of operations of a plant in China in the precision reduction gear business as well as the rebound of the Chinese market for construction machinery in the hydraulic equipment business. In addition, our CO2 emissions per unit of sales for FY2017 exceeded the FY2017 target level by 7% on a global basis due to the above mentioned temporary factors.

The Nabtesco Group has been advancing energy-saving activities toward achieving our long-term targets through the improvement of efficiency of production equipment and air-conditioning equipment and the utilization of energy monitoring systems. Although our production capacity is expected to continue to expand in line with operational growth in the future, it is a prerequisite that new plants to be established in Japan and overseas cut their energy consumption by 40% or more relative to that of existing plants. It is our plan to leverage energy-saving technologies to be developed at these new plants for use at our existing plants, thus achieving the reduction of CO2 emissions across the Group.

Targets and Results of FY2017
Item FY2017 Targets FY2017 Results Performance Status
Total CO2 emissions
[In Japan]*1 *2 *3 *4
49,154 55,647 13% above target Not Achieved
Per unit of sales
[Global] *1 *3 *5 *6
0.232 0.249 7% above target Not Achieved
  • *1 The calculation policy and standards comply with the Act on the Regional Use of Energy and the Act on the Promotion of Global Warming Countermeasures, and are aligned with the internal Guidelines on the Management of Environmental Information.
  • *2 The management of the results for the total CO2 emissions is based on the number derived from the  internal management index. The CO2 conversion factors used to calculate actual results are the FY2008 factors, except the factor for electricity, for which the default value of 0.555 kg-CO2/ kWh is used.
  • *3 The calculation period covers January to December 2017.
  • *4 The calculation scope includes Nabtesco Corporation and domestic Group Companies (9 companies and 25 sites), which are listed at “Scope of Environment and Other Data,”.
  • *5 The CO2 conversion index published by the Ministry of the Environment for each industry is used as the actual emission factor.
  • *6 The calculation scope includes Nabtesco Corporation, domestic Group companies (9 companies and 25 sites), and overseas Group companies (13 companies and 13 sites), which are listed at “Scope of Environment and Other Data,” .
The Amount of CO2 Emissions
[in Japan]
The Amount of CO2 Emissions [in Japan]
The Amount of CO2 Emissions
[Global]
The Amount of CO2 Emissions [Global]
  • * The figure for the Nabtesco Group in FY2015 was calculated with the scope of the survey being the 12 months from January to December 2015.
CO2 Emissions per Unit of Sales [Global] (Amount of CO2 emissions/sales)
CO2 Emissions per Unit of Sales [Global] (Amount of CO2 emissions/sales)
  • * The figure for the Nabtesco Group in FY2015 was calculated with the scope of the survey being the 12 months from January to December 2015.

Calculation of Scope 3 Emissions

The Nabtesco Group began to calculate greenhouse gas emissions from the entire supply chain in FY2013 with a view to identifying and effectively reducing the environmental impact of our business activities as a whole. The following table shows the calculation results of past three years.

Emissions from the entire supply chain
(Unit: t-CO2)
Classification FY2015 FY2016 FY2017
Direct emissions (Scope 1)*7 *8 7,074 7,259 8,686
Indirect emissions through the use of electricity and others (Scope 2)*7 *8 47,729 50,865 61,538
Emissions from the supply chain (Scope 3)*9 826,842 885,494 871,463
  • * The figure for the Nabtesco Group in FY2015 was calculated with the scope of the survey being the 12 months from January to December 2015.

The following table shows the breakdown of our Scope 3 CO2 emissions. Of our Scope 3 CO2 emissions, “Purchased goods and services” (category 1) accounts for the largest percentage of 83.2%, followed by “Upstream transportation and distribution” (category 4) at 8.8%. Our Scope 3 CO2 emissions decreased due mainly to the improved precision of CO2 emissions calculation, resulting from the revision of classification of purchased goods.

At the Nabtesco Group, we will continue to identify and reduce greenhouse gas emissions from our entire supply chain.

In order to ensure the reliability of the calculation results, we had them verified by a third party, Lloyd’s Register Quality Assurance Limited.

  • *7 The calculation scope includes only domestic operations: Nabtesco Corporation and Group companies (9 companies and 25 sites), which are listed at “Scope of Environment and Other Data,” .
  • *8 The calculation policy and standards comply with the Act on the Regional Use of Energy and the Act on the Promotion of Global Warming Countermeasures, and are aligned with the internal Guidelines on the Management of Environmental Information.
  • *9 The calculation scope includes Nabtesco Corporation only.
Scope 3 Emissions (FY2017)
Category Emissions (t-CO2) Rate (%) Remarks
FY2017
1 Purchased goods and services 725,223 83.2% Precision of the CO2 emissions calculation was improved by revising the classification of purchased goods
2 Capital goods 45,252 5.2% Temporary increase attributed to the construction of new plant buildings at the Gifu Plant and facility expansion and reinforcement at the Tsu Plant for increasing production
3 Fuel- and energy-related activities 3,404 0.4%  
4 Upstream transportation and distribution 76,576 8.8%  
5 Waste generated in operations 881 0.1%  
6 Business travel 4,016 0.5%  
7 Employee commuting 1,499 0.2%  
8 Upstream leased assets -   N/A (No corresponding leased assets)
9 Downstream transportation and distribution -   N/A (Completed products transported on consignment are included in Category 4)
10 Processing of sold products -   N/A (Nabtesco products are completed products and not processed after being sold)
11 Use of sold products 13,499 1.5% CO2 emissions were reduced by expanding the sales of energy-saving automatic doors
12 End-of life treatment of sold products 1,113 0.1%  
13 Downstream leased assets -   N/A (No corresponding leased assets)
14 Franchises -   N/A (No corresponding franchises)
15 Investments -   N/A (No corresponding investments)
Total 871,463 100.0%  
Scope 3 Emissions

The Scope 3 calculations for FY2017 were made by the following method and for the following period and scope.

  • Calculation method: As shown in the basic guidelines on the calculation of greenhouse gas emissions from supply chains set by the Ministry of the Environment and the Ministry of Economy, Trade and Industry
  • Targeted period: January 1 to December 31, 2017
Corporate Communications Department, environment & safety Department, 1, 2

Reduction in Energy Consumption

Energy Consumption [Global]
Energy Consumption [Global]
  • * The figure for the Nabtesco Group in FY2015 was calculated with the scope of the survey being the 12 months from January to December 2015.

The Nabtesco Group strives to reduce its energy consumption, targeting an annual 2% reduction in energy consumption per sales unit. We are continuously working to conserve energy and replace existing equipment with energy-saving alternatives. We have also installed electricity meters in our energy-heavy production facilities to monitor excessive use of electricity and standby power, repair equipment, and improve operational methods.

We have also visualized our energy consumption by introducing a monitoring system, which permits us to monitor our energy consumption on a real-time basis. At the same time, by engaging in activities to raise our employees’ awareness of energy conservation, our global energy consumption per unit of sales has been in a declining trend.

To raise awareness of energy conservation, we established the energy conservation activity commendation program in September 2012. Under this program, we commend sites that have made great achievements in energy-saving activities. In FY2017, Railway Products Company (Kobe Plant) and Nabtesco Automotive Corporation (Yamagata Plant) received commendations under this program.

Corporate Communications Department, environment & safety Department, 2

Renewable Energy

The Nabtesco Group is promoting the use of renewable energy equipment at its facilities. First introduced to the Tarui Plant (Japan) in 2012, solar power generation facilities began operating at the Tsu Plant and the Kobe Plant in 2016, and at the Gifu Plant and a precision reduction gear plant of a Group company in China in 2017.

The Nabtesco Group will continue its proactive measures to promote the use of renewable energy in the future.

Solar panels at Tsu plant Solar panels at Tsu plant
Solar panels at Kobe plant Solar panels at Kobe plant
Solar panels at Gifu plant Solar panels at Gifu plant
Corporate Communications Department, environment & safety Department, 1, 2

Mitigation of Environmental Impact Caused by Products and Services

Certification System for Energy-Saving Products

Nabtesco’s eco label and CertificateNabtesco’s eco label and Certificate

This certification system was established to foster the design and the development of energy-saving products in order to promote environmental protection and the development of a sustainable society. Through this system we are contributing to the mitigation of global warming while increasing the environmental awareness of our employees.

For products that have obtained the certification, we issue certificates, approve the use of the certification mark and make announcements about the certification in our in-house magazine. For energy-saving product certifications, we internally evaluate products to be released on the market to see whether they meet more than one certification criteria and exceed existing levels in non-requisite criteria items. 

In FY2017, the following products were certified as energy-saving products. One is the ECS-800-V Eco-Engine Control System from the Marine Control Systems Company. When developing this product, the company succeeded in the significant reduction of its weight by renewing the system structure. The other product is the SF-250-35 intelligent forming machine from TS Precision Inc., which features lighter weight and much lower power consumption than previous models.

Certification Criteria
Downsizing and
weight reduction
  Higher efficiency and
less energy use
By 15% or more compared
with previous models
  By 15% or more compared
with previous models
Longer life   Non-use of hazardous
substances
By 20% or longer compared
with previous models
  Not contained
Certified Product in FY2017
Product name Evaluation criteria
Downsizing and
weight reduction
Higher efficiency and less energy loss Longer life Non-use of
hazardous substances
ECS-800-V Eco-Engine Control System 57% weight reduction On par with previous models On par with previous models Not contained
SF-250-35 intelligent forming machine 11% weight reduction 23% power consumption reduction On par with previous models Not contained
Corporate Communications Department, environment & safety Department, 1, 2

Cost of Implementing Anti-Climate Change Measures

The Nabtesco Group collects important information about the environment, safety, accident prevention, health, and others, including climate change-related risks and opportunities, assesses the materiality of related issues, and discusses measures to implement for those that are deemed to be important. In FY2017, as a part of measures against climate change-related risks, we replaced air conditioners with energy efficient air conditioners, which have been increasing in response to the rising average temperature. We also carried out repair work to prevent rain leakage and performed maintenance on drain ditches as part of measures against torrential rain, which has been increasing. For these and other measures, we spent approximately 107.6 million yen in total.

Furthermore, in FY2017, we spent about 8.7 billion yen on R&D related to climate change measures, development of green products, and other initiatives.

The Nabtesco Group owns motion control technologies, which are used to control movements of a variety of equipment, including precision reduction gears for industrial robots, travel unit for excavators, aircraft flight control actuation systems, brake operating units and door operators for railroad vehicle, engine control systems for marine vessels, and automatic doors for buildings and other structures. Based on these technologies, we will pursue higher energy efficiency in a range of business fields and thereby contribute to reducing greenhouse gas emissions generated through use of the above equipment  by our customers.

Corporate Communications Department, environment & safety Department, 1, 2
Striving for Harmony with Global Environment
Environmental Management

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Environmental Education

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Combating Climate Change

Measures Against Climate Change

Based on its material CSR issues (materiality), the Nabtesco Group has been...

Striving for Harmony with Global Environment
Combating Climate Change

Reduction Targets for Greenhouse Gas Emissions

In FY2016, the Nabtesco Group set long-term greenhouse gas emissio...

Striving for Harmony with Global Environment
Combating Climate Change

2017 Targets and Results

In FY2017, the total amount of CO2 emissions from our Japanese operations f...

Striving for Harmony with Global Environment
Combating Climate Change

Reduction in Energy Consumption

Energy Consumption [Global] * The figure for the Nabtesco Group i...

Striving for Harmony with Global Environment
Combating Climate Change

Renewable Energy

The Nabtesco Group is promoting the use of renewable energy equipment at it...

Striving for Harmony with Global Environment
Combating Climate Change

Mitigation of Environmental Impact Caused by Products and Services

Certification System for Energy-Saving Products Nabtesco’s eco label a...

Striving for Harmony with Global Environment
Combating Climate Change

Cost of Implementing Anti-Climate Change Measures

The Nabtesco Group collects important information about the environment, sa...

Striving for Harmony with Global Environment
Management of Waste and Other Emissions

Waste Reduction

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Management of Waste and Other Emissions

Prevention and Reduction of Pollution

The Nabtesco Group is working to identify, reduce the use, and prevent the ...

Striving for Harmony with Global Environment
Management of Waste and Other Emissions

Conservation of Water Resources

Basic Approach to Water Use The Nabtesco Group does not require a large ...

Striving for Harmony with Global Environment
Scope of Environment and Other Data

Scope of Environment and Other Data

Scope of Environment and Other Data The scope of the calculation covers ...