Sustainability | EnvironmentClimate Change Initiatives

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.

Fiscal 2020 Goals and Achievements / Evaluations and Future Activities

CO₂ Emissions by Category and Scope

Methods of Calculating CO₂ Emissions in Scope 3

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.

• *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.