
Sustainability | EnvironmentClimate Change Initiatives
- Background of Goals
- Response to TCFD
- Fiscal 2020 Goals and Achievements / Evaluations and Future Activities
- Fiscal 2020 Concrete Progress Report
- Concrete Activities
Background of Goals
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% (from the IPCC 5th Assessment Report). 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.
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.
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.
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.
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.
Believing that assessing the business risks to and opportunities
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.
In this section, in accordance with the TCFD framework, we
disclose TDK’s initiatives to tackle the problem of climate
change.
Governance
◆Supervision of climate-related risks by environmental officer
At TDK, the environmental officer carries out a management review more than once a year of the state of progress in environment-related matters, including climate change, as well as plans and risks. The results of the management review and matters requiring management decisions are deliberated in the Executive Committee Meeting and, if necessary, the Board of Directors.
◆Assessment of risks relating to climate change and role of management in administration
《Positioning 》
Regarding risks relating to the environment, including climate
change, TDK has clarified the responsibilities of the
environmental officer, who is appointed by the chief executive
officer.
In addition, to fortify the risk management setup, TDK has
established committees directly under the Executive Committee
Meeting. Of them, the ERM (Enterprise Risk Management) Committee
has been set up with the aim of ensuring a companywide response to
factors impeding the achievement of business targets and business
operations, including climate change. The ERM Committee discusses
important matters among environmental risks, including climate
change. The chair of the ERM Committee is a corporate officer
appointed by the CEO.
《Responsibilities》
Regarding a company’s social responsibility, TDK recognizes that
coexistence with the global environment is an important issue in
management and has established the post of environmental officer.
Appointed by the CEO, the environmental officer takes
responsibility for environmental management in general, including
climate change. In addition, the head of the Safety and
Environment Group of the Sustainability Promotion HQ, which has
been established under the environmental officer, is given
responsibility for implementing environmental management,
including climate change.
In the TDK Group, all business groups, departments, sites,
manufacturing subsidiaries, and head office functions come
together in unison to work toward realizing the goals of the TDK
Environmental Vision 2035 (operate under an environmental load
within natural circulation and halve the life-cycle CO2
emission basic-unit by 2035).
Among environmental risks, including climate change, important
matters are reported through the ERM Committee to the Executive
Committee Meeting and the Board of Directors.
《Content of responsibilities》
The Safety and Environment Group of the Sustainability Promotion HQ sets Group-wide targets for environmental matters, including climate change, and identifies environment-related risks for the Group. The ERM Committee identifies Group-wide risks in accordance with risk management regulations and handles problems relating to climate change as one aspect of Group-wide risks.
《Monitoring》
The achievements of environmental activities, including activities relating to climate change, are reported in the management report, and more than once a year the environmental officer carries out a management review, discussing and deciding important matters in the promotion of environmental activities, such as the compilation of reports and medium- to long-term targets for key KPIs and energy-saving investment. In addition, matters in this management review that are deemed to exert an important impact on management, such as visions and large-scale investment, are discussed in the Executive Committee Meeting and, if necessary, the Board of Directors.
Strategy
In the Medium-Term Plan “Value Creation 2023” that started in
fiscal 2021, TDK advocates the basic policy of accelerating
digital transformation (DX) and energy transformation (EX) in
order to enhance customer experience and consumer experience (2CX)
and create value for a sustainable society. As well as setting the
TDK Group’s Materiality as management issues that should be
tackled to realize the Medium-Term Plan, we have positioned EX
(contributing to energy and environmental solutions by minimizing
waste heat and noise with electronic devices) as a business domain
on which TDK focuses for both social value creation and corporate
growth and are addressing it as one aspect of our business
strategy.
Specifically, we are promoting the effective use of energy and the
expanded use of renewable energy toward the realization of net
zero CO2 emissions in 2050. Furthermore, we are
striving to provide products and solutions for creating clean
energy to realize a zero-carbon society and to supply products and
solutions for bringing about an efficient energy society through
the storage, conversion, and control of energy.
In analyzing business risks and opportunities due to
climate-change-related problems and considering strategy, TDK has
adopted two scenarios as premises for climate change—the
International Energy Agency’s Beyond 2°C Scenario (B2DS) and
Current Policies Scenario (CPS)—and begun trial scenario analysis.
Risk Management
Important risks for management are assessed in the ERM (Enterprise
Risk Management) Committee as a part of comprehensive risks.
Regarding risks deemed by the assessment to require Group-wide
efforts, the ERM Committee checks the progress of countermeasures
approved by the Executive Committee Meeting and, after completion
of the countermeasures, obtains the approval of the Executive
Committee Meeting.
At present, we are imagining climate-change risks based on various
information sources and scenario analysis test results and, in
consideration of the scale of impact on business, identifying
risks thought to be important. Regarding national and regional
water risks also, we are conducting surveys and adopting
countermeasures in areas with particularly high risks of drought
or flooding.
Transitional Risks (Examples)
- Extra expenses for responding to customer demands to introduce renewable energy and loss of chance to receive orders due to delayed response
- Extra expenses, production shutdown, or loss of chance to receive orders due to the introduction of carbon taxes and tightening of environmental laws and regulations around the world
Physical Risks (Example)
- Occurrence of equipment and production restoration expenses resulting from unexpected flooding due to increased size of typhoons or sudden torrential rain
Metrics and Targets
We have set the indicators and goals used when assessing and managing climate-related risks 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.
Fiscal 2020 Goals and Achievements / Evaluations and Future Activities
Fiscal 2020 Goals | Achievements |
---|---|
Reduction of CO2 emissions at manufacturing sites
Improve CO2 emissions basic-unit from energy use by 1.8% compared with the previous FY |
Worsened by 4.6% compared with the previous FY |
Reduction of CO2 emissions from logistics
activities
Reduce the amount of CO2 emissions in logistics by 3.0% of FY 2014 |
Reduced by 1.5% compared with FY2014 |
Expansion of contributions to reduction of CO2
emissions from products
Improve product-based CO2 reduction contributions basic-unit by 2.7% compared with the previous FY |
Improved by 7.1% compared with the previous FY |
CO2 Emissions by Category and Scope
Scope | Outline | CO2 emission | |
---|---|---|---|
(Category) | (t-CO2) | ||
Scope1 | Production | 136,021 | |
Scope2 | Production | 1,631,989 | |
Scope3 | 1 | Purchased goods & services | 6,501,648 |
2 | Capital goods | 1,102,326 | |
3 | Fuel- and energy-related activities | 764,632 | |
4 | Upstream transportation & distribution | 323,464 | |
5 | Waste generated in operations | 5,803 | |
6 | Business travel | 19,357 | |
7 | Employee commuting | 7,271 | |
8 | Upstream leased assets | Not subject to calculation | |
9 | Downstream transportation & distribution | Not subject to calculation | |
10 | Processing of sold products | Not subject to calculation | |
11 | Use of sold products | 9,898,070 | |
12 | End-of-life treatment of sold products | Not subject to calculation | |
13 | Downstream leased assets | Not subject to calculation | |
14 | Franchises | Not subject to calculation | |
15 | Investment | Not subject to calculation |
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 subject to calculation |
9 | Downstream transportation & distribution | Not subject to calculation |
10 | Processing of sold products | Not subject to calculation |
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 subject to calculation |
13 | Downstream leased assets | Not subject to calculation |
14 | Franchises | Not subject to calculation |
15 | Investment | Not subject to calculation |
Evaluations and Future Activities
Reduction of CO2 emissions at manufacturing
sites
Partly due to the impact of an increase of new sites, CO2
emissions at production sites in fiscal 2020 amounted to 1.768
million tons, up 13.5% over the previous fiscal year. Going
forward, we will promote reduction efforts rooted in production
activities across the entire Group based on a policy, as advocated
in TDK’s materiality, of realizing the effective use of energy and
the expanded use of renewable energy toward the achievement of net
zero CO2 emissions by 2050.
Reduction of CO2 emissions from logistics
activities
As a result of increased product transportation due to a rise in
production volume, CO2 emissions in logistics in fiscal
2020 amounted to 4,924 tons, up 18.0% over the previous year. This
represented a decline of 1.5% from the fiscal 2014 level, which
meant that we did not achieve our target. Going forward, the
entire TDK Group will endeavor to promote reduction activities. We
have begun efforts at overseas sites to reduce CO2
emissions in logistics, and we are studying a mechanism to gauge
emissions so as to properly reflect them in reduction activities.
Expansion of contributions to reduction on CO2
emissions from products
Product-based CO2 reduction contributions in fiscal
2020 amounted to 2.633 million tons, up 16.2% over the previous
fiscal year. The CO2 emission basic-unit improved by
7.1% year-on-year, so we were able to 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 2020 Concrete Progress Report
Reduction of CO2 emissions at manufacturing sites
- *Basic-unit data have been amended to take account of the increase in the number of sites due to M&As.
- *The measurement and calculation method and the numerical results for fiscal 2019 and beyond have undergone third- party verification.
- * 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
- *The FY2019 data have been revised.
- *Calculated based on Japan's Energy Conservation Act.
Expansion of contributions to reduction of 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
Installation of photovoltaic power generation systems at sites in Japan and overseas
In fiscal 2020 TDK newly installed photovoltaic power generation systems to provide some of the electricity consumed at five sites. The operation of these systems is expected to reduce CO2 emissions by the equivalent of 1,750 tons per year.
*TDK Philippine factory (10 kilowatt-peak [kWp]): from April
2020
*Johor Bahru Factory of the TDK Electronics Group in Malaysia
(511.7 kWp): from September 2020
*Asama Techno Factory in Japan (450 kWp): from December 2020
*Malaga Factory of the TDK Electronics Group in Spain (57 kWp):
from December 2020
*Kalyani Factory of the TDK Electronics Group in India (1,000
kWp): from March 2021
Asama Techno Factory in Japan
TEG’s Malaga Factory in Spain
The photovoltaic power generation systems were planned on the initiative of the factories concerned and installed either in the factory grounds or on rooftops. The electricity thus generated is consumed on-site. The largest system generates enough electricity to cover 6% of the factory’s demand.
Photovoltaic power generation for car park outdoor lighting
The car park outdoor lighting was switched to a type powered by solar energy.
*TDK-Lambda Malaysia factory: 12 units; 10,541 kWh/year
*TDK Philippine factory: 13 units; 11,232 kWh/year
We can contribute to reducing the environmental load not only directly in the production process but throughout the entire lifecycle of products by promoting the expanded use of renewable energy.
Going forward, senior management and factory members will come together and seek to reduce the environmental load by promoting both the efficient use of energy and the expanded use of renewable energy.
Promoting the introduction of renewable energy
The following site procures 100% of its consumed electricity from renewable energy sources:
*TDK-Lambda UK Ltd. (Devon, United Kingdom)
*TDK-Lambda Ltd. (Karmiel, Israel)
*Headway Technologies, Inc. (CA, USA)
*TDK Museum (Akita, Japan)
*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 CROATIA d.o.o. (Kutina, Croatia)
*TDK Foil Iceland ehf. (Akureyri, Iceland)
*TDK Electronics do Brasil Ltda. (Gravataí, Brasil)
*Tronics MEMS, Inc. (TX, USA)
*TDK (Zhuhai FTZ) Co., Ltd. (Zhuhai, China)
*TDK (Zhuhai) Co., Ltd. (Hongqi, China)
The following site procures 100% of its purchased electricity from renewable energy sources:
*TDK Foil Italy S.p.A. (Milan, Italy)
Of the electricity used by TDK worldwide, the ratio of renewable energy used is 23.9% (as of March 31, 2021).
The following initiatives are promoted to reduce CO2
emissions in the logistics stage.
・Modal shift
・Streamlining inter-factory transportation by consolidating
production sites
Power capacitors for offshore wind power generation plants
The power capacitors used in HVDC*1 power transmission systems for offshore wind power generation plants, which enable efficient long-distance transmission from remote places, have reduced energy loss compared with HVAC (high-voltage alternating current) power transmission systems. In fiscal 2020 the power capacitors used in HVDC power transmission systems contributed toward reducing CO2 emissions by 2,360 tons.*2
Power Capacitor for HVDC
(Weight : 130~140kg)
Power capacitors are used to smoothen electricity in offshore substations like the one in the center of the photo.
- *1 HVDC, which stands for high-voltage direct current, is a technology for transmitting power from the generating plant to electricity infrastructure not by alternating current but by high-voltage direct current of 200–500 kilovolts.
- *2 Estimated from the power capacitor contribution ratio of the entire HVDC system contribution.