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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*4of 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 FY2018, Nabtesco Corporation was selected for inclusion in the Climate A List, the highest rating from the CDP, and was selected as one of the CDP's Supplier Engagement leaders. In addition, we will also start to support the Task Force on Climate-related Financial Disclosures (TCFD)*5reported in 2017 to the Financial Stability Board (FSB)*6
Furthermore, the Nabtesco Group has been participating in various activities with organizations related to environmental conservation including the study group on environmental management in the United Nations Global Compact Network Japan. Through our collaboration and dialogue with these initiatives, we are actively advancing our activities to meet the challenges of climate change and we will continue to strive to take related action.

  • *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.
  • *5 Established in December 2015 by FSB. The TCFD recommends that companies analyze the risks and opportunities associated with climate change and reflect the results in their financial information.
  • *6 A body consisting of central banks in major countries, financial regulatory authorities and other principal institutions. The FSB acts as a facilitator of cooperation among authorities that take measures against vulnerabilities in and stabilize financial systems.
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 emissions 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 FY2018, 51.3% 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

2018 Targets and Results

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The Amount of CO2 Emissions [in Japan]

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The Amount of CO2 Emissions [Global]

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CO2 Emissions per Unit of Sales [Global] (Amount of CO2 emissions/sales)

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Scope 3 Emissions

Due to the increased production volume and transient increase in emissions caused by moving to the newly built building (one building) at our Gifu plant (Gifu Prefecture), our domestic CO2 emissions exceeded the target significantly in FY2018.

The following shows our main energy-saving activities in FY2018. We utilized cutting-edge environmental technology at our Gifu plant, achieving a 50% reduction in conventional CO2 emissions for the completion of a new building. In addition, to further improve energy efficiency, we renovated processing facilities by using inverters and replaced air conditioning facilities and lighting equipment with high-efficiency models.

While our global emissions from both domestic and overseas sites remained mostly unchanged, the CO2 emissions relative to sales from our global production activities exceeded the target by 5%.

The Nabtesco Group has been engaging in energy-saving activities by improving the efficiency of production and air conditioning facilities and by making use of energy monitoring systems, with the aim of achieving our long-term targets. 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 FY2018
Item FY2018 Targets FY2018 Results Performance Status
Total CO2 emissions
[In Japan]*1 *2 *3 *4
49,154 57,610 17% above target Not Achieved
Per unit of sales
[Global] *1 *3 *5 *6
0.227 0.238 5% 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 2018.
  • *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 and Japanese and overseas consolidated subsidiaries (25 companies and 41 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 FY2016 FY2017 FY2018
Direct emissions (Scope 1)*7 *8 7,259 8,686 8,781
Indirect emissions through the use of electricity and others (Scope 2)*7 *8 50,865 61,538 61,395
Emissions from the supply chain (Scope 3)*9 885,494 871,463 979,097
  • * 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 75.9%, followed by “Upstream transportation and distribution” (category 4) at 17.4%.

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 Nabtesco Corporation, and Japanese and overseas consolidated subsidiaries (25 companies and 41 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 (FY2018)
Category Emissions (t-CO2) Rate (%) Remarks
FY2018
1 Purchased goods and services 742,656 75.9% Precision of the CO2 emissions calculation was improved by revising the classification of purchased goods
2 Capital goods 35,185 3.6% 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 3,559 0.4%  
4 Upstream transportation and distribution 170,787 17.4%  
5 Waste generated in operations 945 0.1%  
6 Business travel 3,569 0.4%  
7 Employee commuting 1,563 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 19,881 2.0% CO2 emissions were reduced by expanding the sales of energy-saving automatic doors
12 End-of life treatment of sold products 952 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 979,097 100.0%  
Scope 3 Emissions

The Scope 3 calculations for FY2018 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, 2018
Corporate Communications Department, environment & safety Department, 1, 2

Reduction in Energy Consumption

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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. 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.

To raise awareness of energy conservation, we established the energy conservation activity commendation program in September 2012. In FY2018, Nabtesco Automotive Corporation, Nabtesco Power Control Company, Toyo Jidoki Co., Ltd., and Nabtesco Marine Control Systems Company received awards in this commendation 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 (Mie Prefecture) and the Kobe Plant (Hyogo Prefecture) in 2016, at the Gifu Plant and a precision reduction gear plant of a Group company in China in 2017, and Toyo Jidoki Co., Ltd. (Yamaguchi Prefecture) and Nabtesco Service Co., ltd. (Kanagawa Prefecture) in 2018.

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
Solar panels at Toyo Jidoki Co., Ltd. Solar panels at Toyo Jidoki Co., Ltd.
Corporate Communications Department, environment & safety Department, 1, 2

Mitigation of Environmental Impact Caused by Products and Services

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Nabtesco’s eco label and Certificate

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 FY2018, we certified the following product manufactured by Toyo Jidoki Co., Ltd. This DDS3 interlocking-type track filling attachment unit reduces the installation space required by 50% compared to the previous models and increases the production capacity. The Nabtesco Group will continue to make its best efforts to contribute to solving climate change by further developing its motion control technology for moving precisely and stopping objects.

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 FY2018
Product name Evaluation criteria
Downsizing and
weight reduction
Higher efficiency and less energy loss Longer life Non-use of
hazardous substances
DDS3 interlocking-type track filling attachment unit 50% reduction of installation space Doubled production capacity 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 FY2018, to diminish the risks of climate change, we implemented some measures, for example we replaced air conditioning facilities with the models that are expected to increase energy efficiency as the rising average temperature accelerates their use, and repaired some damage caused by typhoons. The expenses for these activities were approximately 123 million yen.

Furthermore, in FY2018 we spent about 10.2 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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Participation in the United Nations Global Compact Study Group on Environmental Management

The Nabtesco Group has been participating in various organizational activit...

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...

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
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2018 Targets and Results

Due to the increased production volume and transient increase in emissions ...

Striving for Harmony with Global Environment
Combating Climate Change
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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
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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
Conservation of Water Resources

Conservation of Water Resources

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

Striving for Harmony with Global Environment
Conservation of Water Resources
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Water Use and Water Discharge Management in Japan

The Nabtesco Group uses groundwater mainly to cool test stands and melt sno...

Striving for Harmony with Global Environment
Conservation of Water Resources

Addressing water risks

In FY2014, water-related risks in the areas where the Nabtesco Group’s seve...

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

Activities to Reduce Landfill Waste The Nabtesco Group is foster...

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

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

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 ...