Reducing CO₂ in Supply Chain and Product Use

Basic stance

As a global business entity, the Nidec Group believes it is important to address climate change not just within our company, but across our entire supply chain.
Based on the GHG Protocol, an international standard for calculating CO₂ emissions, the Nidec Group calculates Scope 3 emissions (other indirect emissions, excluding Scope 1 and Scope 2) in addition to Scope 1 emissions (direct emissions) and Scope 2 emissions (indirect emissions). Scope 3 emissions account for the majority of the Nidec Group’s CO₂ emissions. To promote Scope 3 emissions reduction, Nidec set “new mid- and long-term CO₂ emissions reduction targets”. As achieving this target requires actions on our individual products, as a first step, we are calculating CO₂ emissions by product. By utilizing calculated results for product designing and development, we create environmentally friendly products, and promote CO₂ emissions reduction throughout the supply chain.

Target

In March 2024, the Nidec Group set its first target for Scope 3 emissions reduction, establishing a long-term target of achieving a net-zero of its entire supply chain by fiscal year 2050. In addition, the company has in place a mid-term target of reducing its Scope 3 emissions by 25% from the fiscal year 2022 by fiscal year 2030.
This reduction target led us to obtain the SBT certificate from SBTi (Science Based Targets initiative), an international climate change initiative, in August 2024. In addition, in our Seventh Mid-Term Environmental Conservation Plan, which was revised in October 2024, we have set a target of reducing Scope 3 emissions by 9.4% in fiscal year 2025 compared to fiscal year 2022, with the aim of achieving the mid-term target. We will work with our suppliers to reduce CO₂ emissions and reduce CO₂ emissions throughout our supply chain through resource- and energy-saving products.

The seventh mid-term environmental conservation plan

Scope 3 emissions reduction target

Achievements

In fiscal year 2024, Nidec’s Scope 3 emissions were 268,591,000 t-CO₂, compared to 329,005,000 t-CO₂ in fiscal year 2022 (Categories 1-15). In Scope 3 emissions, Category 1 (Purchased Goods and Services) at 5,133,000 t-CO₂ and Category 11 (Use of Sold Products) at 260,402,000 t-CO₂ account for a majority of the total. These combined emissions totaled to 265,535,000 t-CO₂, decreased by 19.2% compared to the baseline year, fiscal year 2022.
For Category 11, despite an increase in CO₂ emissions due to the sales increase in some products, we witnessed a transition to significantly energy-saving models especially among highly energy-consuming products. In addition, after revising our calculation method based on reality, we achieved a reduction of the 13,138,000 t-CO₂ compared to the prior fiscal year.

Please click here to view Nidec’s Scope 3-related achievements.

Actions

To promote Scope 3 emissions reductions, the Nidec Group takes action to visualize its calculation by product and potentials for the reduction. We feed back the calculated results to the development and manufacturing departments to promote the reduction of environmental load by making products smaller, lighter, and more energy-efficient, as well as considering the use of low-carbon materials.

Furthermore, we worked with our customers to calculate CO₂ emissions from the raw material procurement for our company’s fan motors and lifecycle stages (production, distribution, etc.). Utilizing actual data with other companies in the supply chain enables us to more accurately understand and reduce our CO₂ emissions.
Going forward, we will work with our customers, suppliers, and many other companies to promote CO₂ emissions actions to decarbonize the entire supply chain.