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 that was adopted at the COP21 in December 2015. Above all, carbon dioxide (CO2) is a major emission source that makes up 76%* of greenhouse gases, and it is necessary to implement reliable CO2 reduction measures in business activities.
In the TDK Group, the directors responsible for environmental matters serve as the managers of the Group's environmental activities, including climate change issues, and the Sustainability Promotion Division Safety and Environment Group leads the promotion of and support for the Group's environmental activities. We make decisions on important contents for management of the Group's environmental activities based on deliberation by the management meetings 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 impact from a life cycle perspective, from the use of raw materials to the use and disposal of products.
* From the IPCC 5th Assessment Report.
Response to TCFD
In May 2019, we expressed our approval to the TCFD (Task Force on Climate-related Financial Disclosures), which makes recommendations to analyze impacts and disclose information on the impact of climate change on corporate finances. TCFD is a task force on climate change-related financial disclosures that was established in 2015 by the Financial Stability Board (FSB), an international body that aims to stabilize the financial system, and is expected to be a catalyst for promoting information disclosure within companies and organizations, and promote dialogue between financial institutions and business corporations.
TDK believes that assessing the risks to and opportunities for your business due to climate change and appropriately disclosing information will become essential for the coexistence of future corporate growth and sustainable society and will take actions successively.
Reduction of CO2 emissions at manufacturing sites Energy-derived CO2 emissions at manufacturing sites have been recognized as a major environmental burden at TDK from the past, and we continue to promote reduction activities.
Reduction of CO2 emissions from logistics activities At TDK, we are working to reduce CO2 emissions from logistics activities for the purpose of contributing to global warming countermeasures, improving transportation efficiency, and reducing transportation costs. In Japan, a committee to improve energy conservation in distribution was set up in FY2006, when the revised Energy Conservation Act was enacted, and energy reduction activities related to logistics are carried out.
Expansion of contributions to reduction of CO2 emissions from products TDK has been conducting product assessments from 1997 where we assess the environmental impact of the product over its entire life cycle. In the mechanism we adopt, only products approved by this product assessment are commercialized and distributed into the market. The excellent environment-considerate 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. In addition to disclosing information about the products certified as excellent environment-considerate products on our website, we have also been promoting the creation and dissemination of products that contribute to reducing environmental impact.
In addition to these usual activities, we focused on the reduction of CO2 emissions achieved by products and know-how. From FY2011, we have been developing calculation standards to quantify them as environmental contributions, and in FY2015, we established guidelines for assessing the contribution of products that summarize these results. We are promoting activities to reduce CO2 emissions from products through operation using product assessment.
Indicators and Goals
We have set the indicators and goals used when assessing and managing climate-related risks and opportunities in line with the concept of "reducing CO2 emissions intensity by half by 2035 from a life cycle perspective," which was stated in the TDK Environmental Vision 2035.
Please see here for specific details.
Fiscal 2019 Goals and Achievements / Evaluations and Future Activities
Fiscal 2019 Goals
Achievements
To improve energy-derived CO2 emissions intensity in manufacturing sites by 1.8% from the previous year
Improved by 5.4% from the previous year
To reduce CO2 emissions from logistics activities by 3.0% from FY2014
Reduced by 11.1% from 2014
To improve product CO2 emissions intensity by 2.7% from the previous year
Improved by 6.9% from the previous year
Breakdown of environmental load (CO2 emissions)
CO2 Emissions by Category and Scope
Scope
Outline
CO2 emission
(Category)
（t-CO2）
Scope1
Production
111,341
Scope2
Production
1,446,346
Scope3
1
Purchased goods & services
6,255,214
2
Capital goods
697,938
3
Fuel- and energy-related activities
695,845
4
Upstream transportation & distribution
274,876
5
Waste generated in operations
6,019
6
Business travel
46,890
7
Employee commuting
7,427
8
Upstream leased assets
Not a subject in terms of business
9
Downstream transportation & distribution
Not a subject in terms of business
10
Processing of sold products
Not a subject in terms of business
11
Use of sold products
6,265,954
12
End-of-life treatment of sold products
Not a subject in terms of business
13
Downstream leased assets
Not a subject in terms of business
14
Franchises
Not a subject in terms of business
15
Investment
Not a subject in terms of business
Methods of Calculating CO2 Emissions in Scope 3
Category
Outline
Calculation method
1
Purchased goods & services
Products purchased in the fiscal year concerned multiplied by the emission intensity for each purchase price. Regarding materials, the purchase price of the main constituent materials in each product (excluding semifinished products) multiplied by the emission intensity.
2
Capital goods
The price of equipment and other capital goods acquired in the fiscal year concerned multiplied by the emission intensity for each investment amount.
3
Fuel- and energy-related activities
Calculated according to emissions in the extraction, production, and transportation of purchased fuel and fuel used when purchased electricity is generated. Fuel: Each fuel purchased in the fiscal year concerned multiplied by the emission intensity. Electricity: Purchased electricity quantity multiplied by the emission intensity.
4
Upstream transportation & distribution
Calculated according to emissions involved in the procurement of purchased products and services and emissions involved in the transportation of manufactured products. Regarding purchased products and services, each of the same items as in Category 1 multiplied by the emission intensity involved in procurement. Regarding manufactured products, expenses involved in shipment multiplied by the emission intensity.
5
Waste generated in operations
Regarding waste at manufacturing sites excluding valuables, financial value of the waste multiplied by the emission intensity.
6
Business travel
Business travel expenditure is calculated by multiplying expenses involved in employee travel by the domestic employee commuting/business travel expense ratio. Emissions are then calculated by multiplying this business travel expenditure by the emission intensity taking account of the content of business travel.
7
Employee commuting
Commuting expenditure is calculated by multiplying expenses involved in employee travel by the domestic employee commuting/business travel expense ratio. Emissions are then calculated by multiplying this commuting expenditure by the emission intensity assumed from the means of commuting.
8
Upstream leased assets
Not applicable
9
Downstream transportation & distribution
Not applicable
10
Processing of sold products
Not applicable
11
Use of sold products
Electricity consumed by TDK products (components) multiplied by the lifelong operating time of set items contained in the product, conversion coefficient, and quantity of TDK products (components) sold.
12
End-of-life treatment of sold products
Not applicable
13
Downstream leased assets
Not applicable
14
Franchises
Not applicable
15
Investment
Not applicable
Evaluations and Future Activities
Reduction of CO2 emissions at manufacturing sites
The amount of CO2 emissions at manufacturing sites in FY2019 was 1,558,000 tons, a 6.7% reduction from the previous year. Emissions intensity improved by 5.4% over the previous year, and we were able to reach the goal.
In the future, we will continue promoting CO2 reduction activities that are more closely attached to production activities through Monozukuri reform that combines TDK's original pursuit of zero defects quality.
Reduction of CO2 emissions from logistics activities
The CO2 emission from logistics activities in FY2019 was 4,445 tons, a 12.8% decrease from the previous year and 11.1% from FY2014, and we were able to reach the goal.
In the future, we will continue to grasp the CO2 emissions from logistics activities in overseas sites and promote reduction activities throughout the TDK Group.
Expansion of contributions to reduction of CO2 emissions from products
The amount of CO2 reduction contributions through products in FY2019 was 2,267,000 tons, a 5.4% increase from the previous year. Emissions intensity improved by 6.9% over the previous year, and we were able to reach the goal.
In the future, we will strive to develop environment-contribution products that will contribute to reducing the environmental impact of customers and society and promote the spread of our products by appealing their value.
Fiscal 2019 Concrete Progress Report
Reduction of CO2 emissions at manufacturing sites
Changes in CO2 emissions at manufacturing sites (global)*
*The measurement and calculation method and the numerical results of FY2019 were verified by a third party.
FY2019 emission ratio by region (TDK Group total emissions)
FY2019 emission ratio by scope (TDK Group total emissions)
*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.
*TDK's CO2 emissions calculation standard
CO2 emissions is calculated by multiplying the CO2 conversion factor to the amount of electricity purchased and fuel (such as gas and oil) used at each business site.
The factors defined in the Act on Promotion of Global Warming Countermeasures are used for the CO2 conversion factor for fuel.
The latest conversion factor that was publicly known at the time of planning in the beginning of the term is used for the CO2 conversion factor for purchased power.
The published value has been certified by a third-party verification.
Reduction of CO2 emissions from logistics activities
Changes in CO2 emissions from logistics activities (Japan)*
*The FY2018 data have been revised.
*Calculated based on Japan's Energy Conservation Act.
Expansion of contributions to reduction of CO2 emissions from products
Changes in CO2 emissions from products*
*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
Concrete Activities
Reduction of CO2 emissions at manufacturing sites
The TDK Asama Techno Factory received The Energy Conservation Center, Japan Chairman's Award in the Energy Conservation Best Practice Category of the FY2019
At the Asama Techno Factory, small cross-functional groups including management engaged in continuous energy-saving activities that implement diverse ideas and require low investment such as the efficient equipment operation linked to production planning, introduction of a waste heat recovery chiller, air-conditioning optimization according to applications, and power leveling, and have achieved a 25.3% reduction in factory energy consumption (results from the end of June 2019, compared to FY2015).
These initiatives were highly commended, and they received The Energy Conservation Center, Japan Chairman's Award in the Energy Conservation Best Practice Category of the FY2019 Energy Conservation Grand Prize for excellent energy conservation equipment (sponsored by The Energy Conservation Center, Japan, supported by The Ministry of Economy, Trade and Industry). This award commends excellent energy conservation efforts implemented by business operators and in workplaces that serve as a model for others as well as excellent energy-saving products and business models for the purpose of contributing to the development of an energy-saving society with the spread of energy-saving products and promotion of awareness of energy conservation throughout Japan.
Asama Techno Factory's challenge was not carried out overnight; they have a history of engaging in energy-reduction activities, starting from a project that kicked off in 2007. As a result, they were able to halve the amount of energy used annually in the past 10 years. Management and all factory members will work together to continue tackling this challenge.
Promotion of the Introduction of Renewable Energy at Production Sites
The sites where 100% of electricity used is procured as renewable energy are as follows.
・TDK-Lambda UK Ltd.
・TDK-Lambda Ltd. (Israel)
・Headway Technologies, Inc.
・TDK Electronics (two sites)
The global renewable energy (electric power only) usage rate is 22.7%.
Reduction of CO2 emissions from logistics activities
The following initiatives are promoted to reduce CO2 emissions in the logistics stage.
- Modal shift
- Streamlining inter-factory transportation by consolidating production sites
Expansion of contributions to reduction of CO2 emissions from products
Awarded the "Partner of the Year 2019" by NEC
The TDK Group received the Partner of the Year 2019 in the two categories of "Co-creation" and "Environment" in the supplier assessment and was commended at the NEC New Year partner exchange meeting.
In the "Environment" department, the TDK Group was recognized for significantly reducing CO2 emissions of conventional products, such as by reducing approximately 40,000 tons of CO2 emissions per year from TDK-Lambda's power supply products for industrial equipment.
The calculation of CO2 emission reduction contributions of power supply products started from FY2011, and we have been continuously striving to achieve greater CO2 reductions every year. We will continue to promote larger contributions in the future by improving efficiency.
