E/Environment
Actions to Achieve Carbon Neutrality
Realize a carbon-free society
Nidec announces that it will achieve carbon neutrality in fiscal 2040 as a major pillar of its new medium-term strategic goal Vision 2025 and materiality initiatives, with the aim of contributing to the realization of a carbon-free society. This is our new, higher-level environmental target established based on the SMART2030* environmental target set in 2018, in view of the accelerating moves of the international community toward decarbonization.
To achieve this target, we will first aim to substantially reduce the CO2 that Nidec emits directly through its business activities at present (Scope 1), and CO2 that is emitted in the production stage of heat or energy used in business activities (Scope 2), by making our businesses more energy efficient and proactively introducing renewable energies. After building a solid foundation for renewable energy oriented CO2 emissions reduction, we will promote a shift to energy-saving, low-carbon fuels and employ carbon offset investments and other measures, thereby achieving carbon neutrality in our business activities in fiscal 2040.
For CO2 emitted in the supply chain (Scope 3), we will decide a reduction plan by fiscal 2025.
*SMART2030:
A project for the realization of a carbon-free society formulated in 2018.
<Qualitative target> Identifying the Group's business risks and opportunities caused by climate change, and implementing countermeasures and disclosure
<Quantitative target> Reduce total greenhouse gas emissions (Scope1,2) by 30% from FY2017 by 2030
Reducing CO2 emitted in business activities
Basic stance
In addition to contributing to decarbonization through products, we will also be committed to reducing CO2 emissions in business activities. As the Nidec Group’s energy use is expected to continue to increase due to the expansion of its production scale, including M&As, we must establish a system whereby CO2 emissions can be reduced despite an increase in the total amount of energy use. Since electricity from thermal power generation accounts for over 80% of the total consolidated energy consumption of the Nidec Group, we have decided to achieve a dynamic shift to renewable energy as our goal for the moment and set a KPI for it.
The Nidec Group is currently working to achieve carbon neutrality in fiscal 2040. However, the Group has so far introduced equipment to improve the energy efficiency of its business operations and renewable energy facilities only within a range that would not incur any cost increase, on the ground of drastic changes in the market environment. As a result, the ratio of renewable energies in the Nidec Group as a whole remains less than 10%. We will therefore make further efforts to reduce CO2 emissions in our business activities.
Specific action example: Use of renewable energy
Some of our operation sites have installed solar panels on their buildings to provide a small percentage of the electric power they use. In recent years, around 20% of our sites in Japan and Asia have begun to purchase renewable energy electricity directly from electric power companies to cover 100% of their electricity usage, or purchase Green Power Certificates for 10 to 100% of their electricity usage. We will expand our renewable energy use in all possible forms.
For other actions, please see below.
Climate Change Mitigation Measures
Priority measures to achieve the goal
Energy-efficient operations
- ･LED lighting for new facilities
- ･Energy-saving air conditioning
- ･AI-backed manufacturing processes
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NIDEC INSTRUMENTS CORPORATION employees check the |
NIDEC POWERTRAIN SYSTEMS (VIETNAM) CO., LTD.’s air conditioning |
Renewable electricity
- ･Purchase renewable electricity directly from power suppliers
- ･Purchase certified renewable electricity using a Green Power Certification System
- ･Generate renewable electricity using solar panels, etc.
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Solar panels installed on the roof Nidec Motor (Zhejiang) Corporation’s building |
Nidec Research and Development Center, Japan |
The number of business sites covered
During fiscal 2021, the plan covered 86 business sites, or 53.5% (on a sales basis) of all the sites of the Nidec Group.
The number of business sites covered
| FY2019 | FY2020 | FY2021 | |
|---|---|---|---|
| Non-production sites | 12 | 13 | 13 |
| Production sites | 69 | 75 | 73 |
