Sustainability | EnvironmentClimate Change Initiatives
- Our Approach
- Response to TCFD
- Governance
- Strategy
- Risk Management
- Metrics and Targets
- Initiatives
- Participation in Initiatives and Associations
Our Approach
Anthropogenic greenhouse gas emissions, which contribute to global warming, are on the rise, and the sense of crisis about climate change is increasing, as represented by the Paris Agreement adopted at the COP21 in December 2015. Above all, carbon dioxide (CO2) is a major emission source that makes up 76% (from the IPCC 5th Assessment Report) of greenhouse gases, so it is necessary to implement reliable CO2 reduction measures in business activities.
In the TDK Group, the environmental officer serves as the manager of the Group's environmental activities, including climate change issues, and the Safety, Environment, and Social Group of the Sustainability Promotion HQ leads the promotion of and support for the Group's environmental activities. We make decisions on important matters for management of the Group's environmental activities based on deliberation by the Executive Committee and, if necessary, the Board of Directors. The TDK Environmental Vision 2035 was established as the goals of specific activities, and we strive to reduce the environmental load from a life-cycle perspective, from the use of raw materials to the use and disposal of products.
Initiatives to Reduce Environmental Load by Life Cycle
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Supplier Engagement Initiatives <procurement>
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Supplier Environmental Award <procurement>
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Reduction of CO2 emissions at manufacturing sites <production>
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Reduction of CO2 emissions at manufacturing sites (utilization of exhaust heat using adsorbent thermal storage system) <production>
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Expansion of product contributions to reducing CO2 emissions (product contributions) <development>
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Reduction of CO2 emissions intensity in logistics <logistics>
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Optimization of stock points and promotion of direct shipping
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Excellent environment-conscious products accreditation system <use>
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Circular economy activities (recycling of PET film) <disposal>
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Circular economy activities (recycling of old work uniforms) <disposal>
At TDK, we are promoting initiatives to reduce CO2 emissions across the entire supply chain. To realize a sustainable society, it is important for TDK and our suppliers to work together on environmental activities, considering the entire lifecycle of our products. Since the fiscal 2024, we have been discussing emission reduction measures with two key suppliers, collaboratively planning and implementing actions to reduce approximately 100 tons of CO2 annually. We will continue to deepen and expand our reduction activities with suppliers, striving to further reduce CO2 emissions.
As part of our supplier engagement, TDK has been conducting the "Supplier Environmental Award" since fiscal 2022. This award was established to raise awareness of environmental activities among all suppliers by recognizing exemplary suppliers who actively disclose information about their environmental activities and promote reduction efforts. In fiscal 2024, we awarded two suppliers. In the future, we plan to expand the scope of the awards to include overseas suppliers. Additionally, we are holding webinars for suppliers.
From the standpoints of the effective use of energy and the expanded use of renewable energy, TDK is tackling the reduction of energy-related CO2 emissions at manufacturing sites.
We have introduced an adsorbent thermal storage system in cooperation with an external supplier at our Honjo Factory West Site. Using this system, exhaust heat generated in the product manufacturing process is recovered by adsorption, then stored, and subsequently transported to a clean room external air treatment unit during the production process for dissipation as heat, allowing for its re-use as a heat source for the external air treatment unit. The reduction effect for CO2 emissions at the site is estimated at 249 tons per year, equivalent to approximately 5% of the site’s total CO2 emissions.
Going forward, we will also be investigating the possibility of supplying this heat source to public facilities, hospitals, and hot springs in the vicinities of the factory, in addition to using the heat source in the production process. We will also be considering introduction of this system at our other factories in Japan, thereby actively contributing to the realization of a sustainable society by expediting the pace of our energy-saving initiatives.
Expanding the reduction of CO2 emissions through products (product contributions) is one of the core initiatives within the TDK Environmental Vision 2035 and TDK Environment, Health and Safety Action 2025. To mount potent appeals for the social contributions by TDK products as the fruits of technical initiatives, these product contributions have been calculated and disclosed since the TDK Environmental Action 2020 (the company’s previous medium- to long term plan).
Public awareness activities are also being advanced to gain understanding of the contributions of electronic components as intermediary parts, along with moves to formulate coherent industry standards for calculation methods positioned to serve as the basis for earning appropriate evaluations of product contributions performance, and the results were released in the form of guidance by industry groups.
Based on these results, TDK established the Guideline for Calculation of Product Contributions and is promoting the diffusion of global calculation work throughout the entire TDK Group by adding the calculation of product contributions to assessment requirements at the product development stage. Going forward, TDK will continue to establish calculation rules and endeavor to disseminate them throughout the Group.
In fiscal 2024, the contribution to CO2 reduction through our products increased by 23.0% compared to the previous fiscal year, reaching 5.207 million tons. Additionally, in terms of intensity, there was a 27.5% improvement compared to the previous fiscal year, significantly exceeding our target. In fiscal 2024, 65.7% of total sales were generated by products that contribute to CO2 reduction.
Regarding the reduction of CO2 emission intensity in logistics, we are advancing the following initiatives:
・Optimization of lead time
・Optimization of packaging specifications
・Consolidated packaging and optimization of MOQ (Minimum Order Quantity)
・Optimization of stock points and promotion of direct shipping
As part of TDK's CO2 reduction activities in logistics, we are promoting direct shipping from our factories to customers' stock points without passing through our own sales warehouses. By cooperating with our customers and our sales/logistics departments, we are streamlining the processes from order to delivery, reducing unnecessary movements, and thus reducing CO2 emissions in logistics.
We have introduced product assessments since 1997 to evaluate the environmental impact of products throughout their entire lifecycle. In the mechanism we adopt, only products approved by this product assessment are commercialized and distributed into the market.
The excellent environment-conscious products (ECO LOVE products) accreditation system was introduced in 2008 as a measure to continuously create products with high environment-conscious effects based on the assessment results of the product assessment. We disclose information about the products certified as excellent environment-conscious products on our website and promote the creation and dissemination of products that contribute to reducing the environmental load.
As part of our circular economy activities, we have established a recycling system for the reuse of PET film used in the manufacturing process for multilayer ceramic capacitors in cooperation with an external supplier, thereby promoting the reduction of environmental loads.
In cooperation with an external supplier, we processed old work uniforms into a textile recycling board, which we in turn upcycled into tables, chairs, and partitions used in the cafe space and workspace at the TDK Technical Center in Ichikawa City, Chiba Prefecture.
Response to TCFD
In May 2019 TDK expressed its approval of the Task Force on Climate-related Financial Disclosures (TCFD), which makes recommendations to analyze and disclose information on the impact of climate change on corporate finances. Established in 2015 by the Financial Stability Board (FSB), an international body that aims to stabilize the financial system, the TCFD makes proposals that are expected to be a catalyst for promoting information disclosure within companies and organizations, and encouraging dialogue between financial institutions and business corporations.
The TDK Environmental Vision 2035 calls for "halving the CO2 emissions intensity from a lifecycle perspective by 2035" throughout the entire value chain from procurement to disposal.
Believing that assessing the risks and opportunities to our business due to climate change and appropriately disclosing information are going to be essential for both achieving corporate growth and building a sustainable society in the future, TDK is steadily addressing these matters.
TDK’s initiatives to address the issues of climate change are disclosed below according to the TCFD framework.
Governance
Please refer to TCFD/TNFD.
Strategy
Please refer to TCFD/TNFD.
Risk Management
Please refer to TCFD/TNFD.
| Classification | Risks and opportunities | Occurrence* | Main countermeasures | |
|---|---|---|---|---|
| Transition risks | Carbon pricing / carbon-emission targets of each country | Risk | Medium/Long Term |
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| Increase of energy costs due to rise in renewable energy ratio | Risk and opportunity | Medium/Long Term |
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| Increase in price of cobalt and lithium | Risk | Short~Long Term |
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| Increase of new business chances due to expansion of EV market | Opportunity | Medium/Long Term |
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| Development of next-generation battery materials | Risk and opportunity | Long Term |
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| Increase of customer demands regarding RE100 | Risk and opportunity | Short~Long Term |
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| Physical risks | Increase of business risks due to rise in flooding | Risk | Medium/Long Term |
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*Time horizon: "Short-term" is expected to be less than 1 year, "Medium-term" between 1 and 3 years, and "Long-term" between 3 and 20 years.
Metrics and Targets
Medium to long-term goals
TDK has set the goal of "halving the life-cycle CO2 emission intensity by 2035" in the "TDK Environmental Vision 2035." Based on this vision, we have established the action items and target values in the "TDK Environment, Health and Safety Action 2025" as our basic environmental plan through 2025, and are monitoring progress.
| TDK Group’s materiality | Execution of Social and Environmental Problem Solving |
|---|---|
| TDK Environmental Vision 2035 | Halving the CO2 emissions intensity from a life-cycle perspective by 2035, compared with fiscal 2015 (Scope 1, 2, 3) |
| Action Plan in TDK Environment, Health and Safety Action 2025 |
・Improve CO2 emissions intensity by 30% by 2025, compared with fiscal 2015 (Scope 1, 2, 3) ・Achieve renewable energy target of 50% by 2030 (Scope 2) |
Goals and Achievements in Fiscal 2024
| Fiscal 2024 Goals | Achievements |
|---|---|
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Reduction of CO2 emissions at manufacturing sites |
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| Improve CO2 emission intensity from energy use by 1.8% compared with the previous fiscal year | 38.0% improvement compared to the previous fiscal year |
| Improve energy consumption intensity by 1.0% of the previous fiscal year | 2.9% improvement compared to the previous fiscal year |
| Installation rate of renewable energy electricity in fiscal 2026 : 50% (Scope 2) | In fiscal 2024, 55.2% was implemented against the target of 40% |
| Reduction of CO2 emissions through Scope 3 category-specific initiatives Promote reduction of environmental load through activity of Scope 3 |
Reduction of Logistics CO2 Emissions Logistics CO2 Emission Intensity Improved by 12.0% Compared to the Previous Year |
Evaluations and Future Activities
Reduction of CO2 emissions at manufacturing sites
In fiscal 2024 CO2 emissions decreased by 40% from the previous year to 827,000 tons due to the expanded introduction of renewable energy. Going forward, we will promote reduction efforts rooted in manufacturing activities across the entire Group based on a policy, as advocated in TDK’s materiality, of achieving the effective use of energy and the expanded use of renewable energy toward the realization of net-zero CO2 emissions by 2050.
Reduction of CO2 emissions through initiatives by Scope 3 category
In fiscal 2024, TDK began activities to reduce logistics CO2 emissions at overseas sites and has been considering systems to accurately reflect emission reductions. We will continue to promote reduction activities across the entire TDK Group.
The contribution to CO2 reduction by products in fiscal 2024 amounted to 5.207 million tons, up 23.0% over the previous fiscal year. The intensity improved by 27.5% compared with the previous fiscal year, so we were able to substantially achieve our target.
Going forward, we will strive to develop eco-friendly products that contribute toward reducing the environmental load of customers and society and to popularize such products by publicizing their value.
| Fiscal 2025 Goals |
|---|
| Reduction of CO2 emissions at manufacturing sites |
| Improve CO2 emission intensity from energy use by 1.8% compared with the previous fiscal year |
| Improve energy consumption intensity by 1.0% of the previous fiscal year |
| Installation rate of renewable energy electricity in fiscal 2026: 50% (Scope 2) |
| Reduce CO2 emissions from a life cycle perspective |
| Promote reduction of environmental load through activity of Scope 3 |
| GHG emissions (kt-CO2) | Fiscal 2024 |
|---|---|
| Total emissions | 20,373 |
| Scope 1 | 134 |
| Scope 2 | 694 |
| Scope 3 | 19,546 |
CO2 Emissions by Category and Scope
| Scope | Outline | CO2 emission | |
|---|---|---|---|
| (Category) | (t-CO2) | ||
| Scope 1 | Production | 133,616 | |
| Scope 2 | Production | 693,690 | |
| Scope 3 | Total | 19,545,785 | |
| 1 | Purchased goods & services | 8,527,986 | |
| 2 | Capital goods | 845,385 | |
| 3 | Fuel- and energy-related activities | 253,585 | |
| 4 | Upstream transportation & distribution | 211,989 | |
| 5 | Waste generated in operations | 5,910 | |
| 6 | Business travel | 57,384 | |
| 7 | Employee commuting | 9,428 | |
| 8 | Upstream leased assets | Not applicable | |
| 9 | Downstream transportation & distribution | Not applicable | |
| 10 | Processing of sold products | Not applicable | |
| 11 | Use of sold products | 9,610,960 | |
| 12 | End-of-life treatment of sold products | Not applicable | |
| 13 | Downstream leased assets | Not applicable | |
| 14 | Franchises | Not applicable | |
| 15 | Investment | 23,158 | |
| Scope1+2+3 | 20,373,091 | ||
CO2 Emission Calculation Methods by Scope and Category
| Classification | Summary | Scope of coverage | Calculation Method | |
|---|---|---|---|---|
| Scope 1 | Own direct emissions | Manufacturing Sites and Main Offices (25 domestic offices + 57 overseas offices, including 5 offices) |
Direct energy-derived CO2 emissions from corporate activities such as fuel combustion in factories. emission factor based on the Law Concerning the Promotion of the Measures to Cope with Global Warming is used for the calculation method. | |
| Scope 2 | Own indirect emissions | Manufacturing Sites and Main Offices (25 domestic offices + 57 overseas offices, including 5 offices) |
Indirect CO2 emissions associated with energy use in corporate activities, such as electric energy use, using the GHG Protocol's market-based approach. Japan uses the adjusted emission factor for each electric utility based on the Law Concerning the Promotion of the Measures to Cope with Global Warming. For other countries, emission intensities by electric utility or the latest emission intensities for each region, or the IEA Emissions Factors if these are not available. | |
| Scope 3 | Category 1 | Goods and services purchased | TDK consolidated targets | Based on the GHG Protocol, emission intensity is calculated by multiplying the purchase amount of each item purchased in the relevant fiscal year by its emission intensity. For materials, emissions intensity is calculated by multiplying the purchase amount of the main constituent materials of each product by the emissions intensity. Primary data from some suppliers are also used in the calculation. For emissions intensity, please refer to the 3EID Global Expansion Databook of Environmental Impact Intensity Data. |
| Category 2 | Capital goods | TDK consolidated targets | Based on the GHG Protocol, emission intensity per unit of value is calculated by multiplying capital goods such as equipment acquired in the relevant year by emission intensity per unit of value. For emissions intensity, please refer to the Data Book on Environmental Impact Intensity Based on the Input-Output Table (3EID Global Extension). | |
| Category 3 | Fuel and energy-related activities | Manufacturing Sites and Main Offices (25 domestic offices + 57 overseas offices, including 5 offices) |
Based on the GHG Protocol, emission intensity is calculated by multiplying purchased fuel and electricity by emission intensity. For emissions intensity, refer to IDEA and the Ministry of the Environment's Emissions Intensity Database for Calculating Greenhouse Gas Emissions of Organizations through Supply Chains. For data before FY2022, the amount of activity is based on the purchase amount. | |
| Category 4 | Transportation and distribution (upstream) | TDK consolidated targets | Based on the GHG Protocol, emissions from the procurement of purchased products and services and emissions from the transportation of manufactured products are calculated. Emissions from purchased products and services are calculated by multiplying the purchase price by the emissions intensity of procurement. Emissions from manufactured products are calculated by multiplying the amount of transportation and, in part, the transportation cost by the emission intensity. For emissions intensity of purchased products and services, refer to the data book of environmental impact intensity based on the input-output table (3EID Global Extension), and for emissions intensity of transportation of manufactured products, refer to IDEA, or transportation cost See intensity. | |
| Category 5 | Waste generated from operations | Manufacturing Sites and Main Offices (25 domestic offices + 57 overseas offices, including 5 offices) |
Based on the GHG Protocol, emission intensity is calculated by multiplying the amount of waste from manufacturing sites by the emission intensity. For emission intensity, refer to IDEA and the Ministry of the Environment's Emission Intensity Database for Calculating Greenhouse Gas Emissions of Organizations through Supply Chains. Waste transportation is accounted for in Category 1. For data before FY2022, the amount of activity is based on the cost of waste disposal. | |
| Category 6 | Business trip | TDK consolidated targets | Based on the GHG Protocol, the estimated business trip cost is multiplied by the emission intensity based on the means of transportation. For emission intensity, refer to the Data Book on Environmental Impact Intensity Based on Input-Output Tables (3EID Global Extension). | |
| Category 7 | Employee commuting | TDK consolidated targets | Based on the GHG Protocol, the estimated commuting costs are multiplied by the emission intensity based on the means of commuting. For emissions intensity, refer to the 3EID data book on emissions intensity based on the input-output table. | |
| Category 8 | Leased assets (Upstream) | Use of leased equipment is reported as Scope 1 and 2 emissions. | ||
| Category 9 | Transportation and distribution (Downstream) | Not applicable as the Company is an electronic component manufacturer. | ||
| Category 10 | Processing of sold products | Not applicable because the emissions associated with the processing of our products by our customers are small and diverse, making the estimate unreasonable. | ||
| Category 11 | Use of products sold | TDK major product lines | Based on the GHG Protocol, the calculation is made by multiplying the field of installed set products, lifetime operating hours of installed set products, and emission intensity by sales volume for the power consumption loss generated when TDK products are used. Lifetime operating hours refer to JEITA's Guidance on the Calculation of GHG Emission Reduction Contribution of Electronic Components, and emissions intensity refers to IEA Emissions Factors. | |
| Category 12 | Disposal of sold products | Not applicable as the Company is an electronic component manufacturer. | ||
| Category 13 | Leased assets (downstream) | Not applicable because there is no applicable business activity. | ||
| Category 14 | Franchise | Not applicable because there are no franchise stores. | ||
| Category 15 | Investment | Equity-method affiliates subject to TDK consolidation (Excluding companies that do not disclose emissions) |
Calculated based on the GHG Protocol by multiplying the emissions of companies in which the company has acquired shares by the shareholding ratio. | |
Reduction of CO2 Emissions at Production Sites
- *The measurement and calculation methods, as well as the numerical results for fiscal 2020 and beyond, have been verified by a third-party.
- * Scope: Emission range defined by the GHG Protocol, an international calculation standard for greenhouse gas emissions. We refer to direct emissions from facilities owned and controlled by the company as Scope 1 and emissions from the production of energy consumed at facilities owned and controlled by the company as Scope 2.
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*TDK's CO2 emissions calculation standard
- The CO2 emissions are calculated by applying CO2 conversion factors to the electricity and fuel (such as gas and oil) consumption at each business site.
- The CO2 conversion factors for fuel use the factors specified by the "Act on Promotion of Global Warming Countermeasures" (Global Warming Countermeasures Act).
- The CO2 conversion factors for purchased electricity use the latest publicly known conversion factors at the time of planning at the beginning of the fiscal year.
- The disclosed figures are certified through third-party verification.
Trends in total energy use and intensity 
Reduction of CO2 emissions through initiatives by Scope 3 category
- *Calculated based on Japan's Energy Conservation Act.
- *The calculation method was reviewed by a third party.
- *The product contributions have been calculated based on the internal guidelines compliant with IEC's "TR62716 Guidance on Quantifying Greenhouse Gas Emission Reductions from the Baseline for Electrical and Electronic Products and Systems"; The Institute of Life Cycle Assessment, Japan's "Guidelines for Assessing the Contribution of Products to Avoided Greenhouse Gas Emissions"; and JEITA's "Guidance on Calculating GHG Emission Reductions Contribution of Electronic Components."
Related links
Initiatives
Expanded use of renewable energy
In November 2022 TDK joined the RE100 (Renewable Energy 100%).* Our aim is to increase the use of electricity derived from renewable energy at all our sites in Japan and overseas to 50% by 2025 and 100% by 2050. In July 2023, we also successfully achieved the switchover to 100% renewable energy-derived electricity at all manufacturing sites in Japan.
TDK-Lambda Corporation, a TDK Group manufacturer of switching power supplies, also successfully achieved the switchover to 100% renewable energy-derived electricity at all seven of its manufacturing sites worldwide in January 2024.
*The RE100 is a global initiative operated by a partnership between the Climate Group and CDP international environmental nongovernment organizations. It comprises companies committed to using 100% renewable electricity in their business.
Promotion of Renewable Energy Installation (As of July 1, 2024)
The following sites procure 100% of their power consumption from renewable energy:
Japan 26
・TDK Head Office (Tokyo)
・TDK Museum (Akita)
・TDK Technical Center (Chiba)
・TDK Narita Factory (Chiba)
・TDK Asama Techno Factory (Nagano)
・TDK Chikumagawa Techno Factory (Nagano)
・TDK Shizuoka Factory (Shizuoka)
・TDK Mikumagawa Factory (Oita)
・TDK/TDK Electronics Factories Inakura Factory, East Site (Akita)
・TDK / TDK Electronics Factories Inakura Plant West Site (Akita, Japan)
・TDK/TDK Electronics Factories Honjo Factory, East Site (Akita)
・TDK/TDK Electronics Factories Honjo Factory, West Site (Akita)
・TDK/TDK Electronics Factories Kitakami Factory (Iwate)
・TDK/TDK Electronics Factories Nikaho Factory, North Site (Akita)
・TDK/TDK Electronics Factories Nikaho Factory, South Site (Akita)
・TDK/TDK Electronics Factories Chokai Factory (Akita)
・TDK/TDK Electronics Factories Ouchi Factory (Akita)
・TDK/TDK Electronics Factories Iwaki Factory (Akita)
・TDK/TDK Electronics Factories Sakata Factory (Yamagata)
・TDK/TDK Electronics Factories Tsuruokanishi Factory (Yamagata)
・TDK/TDK Electronics Factories Tsuruokahigashi Factory (Yamagata)
・TDK/TDK Electronics Factories Kofu Factory (Yamanashi)
・TDK Electronics Factories lida Factory (Nagano)
・TDK-Lambda Nagaoka Technical Center (Niigata)
・TDK Precision Tool Corporation (Kanagawa)
・TDK Service Corporation Akita Sales Office (Akita, Japan)
China 6
・SAE Components (ChangAn) Ltd.(Dongguan, China)
・TDK-Lambda (China) Electronics Co., Ltd. (Wux i)
・TDK (Zhuhai FTZ) Co., Ltd. (Zhuhai)
・TDK (Zhuhai) Co., Ltd. (Hongqi)
・TDK (Xiamen) Electronics Co., Ltd. (Xiamen , China)
・TDK (Xiaogan) Co., Ltd. (Xiaogan, China)
Asia 6
・TDK (Malaysia) Sdn. Bhd Malaysia Factory (Nilai , Malaysia)
・TDK-Lambda Malaysia Sdn. Bhd.Senai Factory (Senai , Malaysia)
・TDK-Lambda Malaysia Sdn. Bhd.Kuantan Factory (Kuantan , Malaysia)
・Magnecomp Precision Technology Public Co., Ltd. KCMA plant (Wangnoi, Thailand)
・TDK Electronics (Malaysia) SDN. BHD. (Johore, Malaysia)
・TDK Philippines Corporation (Laguna, Philippine)
Americas 3
・TDK-Lambda Americas Inc. Neptune Office (NJ , USA)
・Headway Technologies, Inc. (CA, USA)
・TDK Electronics do Brasil Ltda. (Gravataí, Brasil)
Europe, Middle East, Africa 12
・TDK Electronics AG - HQ (Munich, Germany)
・TDK Electronics AG (Heidenheim, Germany)
・TDK Sensors AG & Co. KG (Berlin, Germany)
・TDK Electronics GmbH & Co OG (Deutschlandsberg, Austria)
・TDK Hungary Components Kft. (Szombathely, Hungary)
・TDK Electronic Components, S.A.U. (Malaga, Spain)
・TDK CROATIA d.o.o. (Kutina, Croatia)
・TDK Foil Iceland ehf. (Akureyri, Iceland)
・Tronics Microsystem SA (Crolles, France)
・TDK-Lambda UK Ltd. (Devon, United Kingdom)
・TDK-Lambda Ltd. (Karmiel, Israel)
・TDK-Micronas GmbH (Freiburg , Germany)
The following sites have contracts to procure 50% or more of their power consumption from renewable energy:
・SAE Magnetics (Dongguan) Ltd. (Dongguan, China)
・TDK Dalian Corporation (Dalian , China)
・TDK Electronics s.r.o. (Sumperk , Czech Rep)
The following site procures 100% of its purchased electricity from renewable energy:
・TDK Foil Italy S.p.A. (Milano, Italy)
TDK’s ratio for the use of renewable energy (electricity only) worldwide is 55.2%.(As of March 31st 2024)
Energy Conservation Activities
Each manufacturing site conducts an energy assessment in accordance with its environmental management system and identifies opportunities to reduce energy use. Depending on the opportunities identified, appropriate actions are taken at each site to reduce the amount of energy use, for example, by reviewing and improving manufacturing processes.
Furthermore, in the promotion of such initiatives, we also seek to foster an awareness of energy consumption reduction among employees through awareness-raising and environmental education programs.
Participation in Initiatives and Associations
In line with the United Nations Climate Change Conference (COP 21) Paris Agreement, which seeks to curb global warming by achieving a balance between greenhouse gas emissions and absorption sources, TDK strives to resolve climate change issues. In promoting these efforts, we participate in initiatives and associations that are consistent with our position and direction, and engage in public policy engagement through these organizations. The details of our policy engagement are regularly reported to the Executive Officer in charge of Sustainability, and we review and monitor their alignment with our own strategy. In addition, as necessary, we also deliberate with the Executive Committee and report to the Board of Directors. If these processes reveal that the organization's position or public policy engagement is not in line with our own strategy, we will work to ensure consistency. If the discrepancy is significant enough to make it difficult to maintain consistency, we will consider taking action, including the possibility of withdrawing from the organization.
TCFD
In May 2019 TDK expressed its support for the Task Force on Climate-related Financial Disclosures (TCFD*), which makes recommendations for analyzing and disclosing information on the impact of climate change on corporate finance.
- *The Task Force on Climate-related Financial Disclosures (TCFD) was founded in 2015 by the Financial Stability Board (FSB), an international body seeking to achieve the stabilization of the financial system.
CDP
TDK has received the highest rating of "A" in the "Supplier Engagement Rating" from the international non-governmental organization CDP, which addresses environmental issues such as climate change, and has been selected as a "Supplier Engagement Leader."
SBTi
TDK has obtained Science Based Targets (SBT) certification from the Science Based Targets initiative (SBTi), which is an organization that certifies greenhouse gas emission reduction targets that are scientifically aligned with the goals set by the Paris Agreement.
- SBTi Certified Targets
- * target1: TDK Corporation commits to reduce absolute scope 1 and 2 GHG emissions 42% by FY2030 from a FY2021 base year.
- * target2:TDK Corporation also commits to reduce absolute scope 3 GHG emissions from purchased goods and services and use of sold products 25% within the same timeframe.
- * target3: TDK Corporation further commits that 5% of its suppliers by spend covering purchased goods and services will have science-based targets by FY2028.
- * The target boundary includes land-related emissions and removals from bioenergy feedstocks.
RE100
In November 2022, TDK has joined the RE100* international initiative as the company works toward ensuring that 100% of the electricity used in its business activities comes from renewable energy. TDK plans to contribute to the implementation of a sustainable society, aiming to convert electricity use at all of its business facilities around the world to 100% renewable energy by 2050.
- *International initiative operated by Climate Group, an international environmental NGO, in partnership with CDP. It consists of companies committed to converting electricity use in business activities to 100% renewable energy.
Japan Electronics and Information Technology Industries Association (JEITA)
JEITA is one of the four major electrical and electronics industry organizations in Japan. Its mission is to connect all industries to solve social issues and to realize a platform that connects stakeholders with the IT/electronics industry at its core. It is engaged in four business areas: "policy advocacy," "research and statistics," "problem solving," and "market creation". In the environmental dimension, it aims to contribute to the realization of a low-carbon society on a global scale by promoting the creation of energy-saving products, devices, and IT solutions through the development of innovative technologies to address the fundamental issues of energy and global warming. In addition, to reduce the risk of environmental impact, it strengthens the management of chemical substances, promotes waste reduction and recycling, and supports initiatives that lead to the development of global business through international standardization activities.
TDK supports the activities defined by JEITA, and as the secretariat of the JEITA Environment Subcommittee and the Electronic Components Subcommittee, and as a member of the Global Warming Prevention Liaison Committee Steering Committee, has contributed to the creation of a long-term vision on climate change for the entire industry. We have also proposed that as an industry group, it is important to take action throughout the supply chain, and we have taken the initiative to establish guidelines for calculating the product contribution (reduction contribution) and started efforts to clarify the GHG reduction effects of improving the functionality and efficiency of electronic components. In addition, as the representative of electronic component companies in this steering committee, we mainly discuss the direction of activities and provide information for materials to be submitted to government ministries and agencies.
JEITA Green x Digital Consortium
JEITA has established the Green x Digital Consortium as a space for pursuing activities that promote corporate carbon neutrality and create and deploy new digital solutions leading to industrial and social transformation. We have participated in this consortium since its foundation.
