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 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 and Environment 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.

CO₂ emissions from energy use at manufacturing sites have been recognized as a major environmental load at TDK for a long time, 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 logistics was established in fiscal 2007, when the revised Energy Conservation Act was enacted, and energy reduction activities related to logistics have been carried out.

TDK has been conducting product assessments since 1997, in which we assess the environmental impact of a 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-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 have been disclosing information about the products certified as excellent environment-conscious products on our website and promoting the creation and dissemination of products that contribute to reducing the environmental load.
In addition to these activities, expanding the reduction of CO₂ emissions through products (product contributions) is one of the core initiatives within the TDK Environmental Vision 2035 and 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.
In fiscal 2022 TDK’s sustainability activities, including the reduction of CO₂ emissions by its products, were highly acclaimed and commended by customers. Going forward, TDK will continue to establish calculation rules and endeavor to disseminate them throughout the Group.

Fiscal 2022 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
In fiscal 2022 CO₂ emissions decreased by 3.8% from the previous year to 1.701 million 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 from logistics activities
As a result of increased product transportation due to a rise in production volume, CO₂ emissions in logistics in fiscal 2022 amounted to 5,460 tons, up 6.7% over the previous year. This represented a decline of 9.2% from the fiscal 2015 level, meaning 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 of CO₂ emissions by products
The contribution to CO₂ reduction by products in fiscal 2022 amounted to 2.969 million tons. The intensity decreased by 12.3% from the previous year, meaning that our target was not achieved. 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 2022 Progress

Reduction of CO₂ emissions at manufacturing sites

• *Intensity data have been revised to take account of the increase in the number of sites due to mergers and acquisitions.
• *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.
• *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.

• *Corrected data for fiscal 2021.
• *Calculated based on Japan's Energy Conservation Act.

Expansion of contributions to reduction of CO₂ emissions by 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."

Initiatives

Installation of photovoltaic power generation systems at sites in Japan and overseas

In fiscal 2022 TDK’s site in Deutschlandsberg, Austria, introduced a photovoltaic power generation system to cover part of its electricity consumption. As a result of the operation of this system, it is expected that CO₂ emissions will be reduced by the equivalent of 124 tons a year.

・TDK Electronics GmbH & Co. OG (Deutschlandsberg, Austria) (500kWp) From August 2021

The photovoltaic power generation facility at Deutschlandsberg is part of a pilot project testing whether the use of sustainable energy contributing to the saving of resources has further potential. Financial assistance is received from the European Regional Development Fund (ERDF).

For detailed information about the IGJ/ERDF program, see https://www.efre.gv.at/.

Installation of off-site solar farm

The TDK Group’s largest photovoltaic power generation facility began operating in India in April 2021. The generated solar power is supplied to the Nashik Factory via a dedicated line and, as a power requirement from a renewable energy source, covers about 50% of the factory’s power consumption. As a result, the factory’s CO₂ emissions are cut by about 8,200 tons.

・Nashik Factory, TDK India Private Limited
　100,000 m² solar farm

Promotion of Renewable Energy Installation (As of March 31, 2022)

The following 21 sites procure 100% of their power consumption from renewable energy:

・TDK Head Office (Tokyo, Japan)
・TDK Museum (Akita, Japan)
・TDK-Lambda Nagaoka Technical Center (Niigata, Japan)
・TDK-Lambda UK Ltd. (Devon, United Kingdom)
・TDK-Lambda Ltd. (Karmiel, Israel)
・TDK-Lambda (China) Electronics Co., Ltd. (Wuxi, China)
・Headway Technologies, Inc. (CA, USA)
・SAE Components (ChangAn) Ltd. (Dongguan, China)
・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)
・TDK Electronics do Brasil Ltda. (Gravataí, Brasil)
・Tronics Microsystem SA (Crolles, France)
・Tronics MEMS, Inc. (TX, USA)
・TDK (Zhuhai FTZ) Co., Ltd. (Zhuhai, China)
・TDK (Zhuhai) Co., Ltd. (Hongqi, China)

The following sites have procurement contracts for renewable energy covering at least 80% (but less than 100%) of their power consumption:

・Dongguan Amperex Technology Limited (Dongguan, China)
・Dongguan NVT Technology Co., Ltd. (Dongguan, China)

The following site procures 100% of its purchased power from renewable energy:

・TDK Foil Italy S.p.A. (Milan, Italy)

The ratio of renewable energy used in power consumption in the whole world is 30%.

TDK is promoting the following efforts to reduce CO₂ emissions in the logistics stage:

• Modal shift
• Increased efficiency in inter-factory transportation through the concentrated location of manufacturing sites
• Shortening of freight transportation distances by direct shipment

The environmental contribution of multilayer ceramic capacitors (MLCCs) is calculated from the lighter weight of single products for in-vehicle applications. Since fiscal 2020 the Ceramic Capacitors BG has been expanding the production of products for in-vehicle applications, such as the C series and the CGA series, and it addresses the monthly management of environmental contributions as a theme in its environmental management program. In fiscal 2022 product contributions amounted to a reduction of the equivalent of 4,014 tons of CO₂. Going forward, backed by increased sales for EVs and further compactness, product contributions are expected to continue expanding.

Participation in Initiatives and Associations

In promoting efforts to resolve climate change issues, we participate in industry associations and initiatives that are consistent with the vision and direction of the TDK Group. In participating in industry associations and initiatives, the TDK Group deliberates in the Executive Committee and reports to the Board of Directors as necessary. We also ensure that our environmental strategy is consistent with their activities, and take necessary action if there is any inconsistency.