Business Activity-based Environmental Burden Reduction

Climate Change Mitigation Measures

Saving Energy and Reducing CO2 Emissions

The Nidec Group has been promoting a voluntary plan to suppress greenhouse gas emissions since FY2004, with individual business sites executing such measures as introducing high-efficiency equipment, improving the efficiency of existing equipment, and redesigning overall manufacturing processes to save energy and reduce CO2 emissions.

Some sites, on the other hand, assess the lifecycles of their major products by calculating the amount of their CO2 emissions at manufacturing, usage, and disposal phases, in their attempt to reduce emissions.
In the wake of COVID-19-caused factory operation rate decrease, and the introduction of renewable energy-derived electricity at multiple factories, the total CO2 emissions from Nidec’s production bases in FY2020 decreased approximately 11% from the FY2019 levels, while the total CO2 emissions from our non-production bases decreased approximately 31% due to an increase in the number of employees working from home as COVID-19 infections spread. We will continue our efforts on introducing renewable energy-derived electricity and other CO2 emissions reduction measures at our individual factories and offices.

When introducing energy-saving equipment to manufacturing sites in Vietnam and Thailand, we utilize the Joint Crediting Mechanism (“JCM”), a bilateral crediting system promoted by the Ministry of the Environment of Japan.

Six Nidec Group Factories in Vietnam Introduce Energy-saving Equipment to Reduce CO2 Emissions Significantly

The Nidec Group’s six factories in Vietnam (Nidec Vietnam Corporation, Nidec Sankyo Vietnam Corporation, Nidec Tosok (Vietnam) Co., Ltd., Nidec Copal (Vietnam) Co., Ltd., Nidec Copal Precision (Vietnam) Corporation, and Nidec Servo Vietnam Corporation) are introducing energy-saving equipment by utilizing the JCM system promoted by Japan’s Ministry of the Environment.

The new energy-saving equipment measures the current to constantly monitor and control the operation of the compressor inside an outdoor air conditioning unit, and use electricity efficiently. This equipment is expected to help the six factories reduce emissions by a total of approximately 4,600 tons of CO2 per year. This amount corresponds to as much as approximately 0.75% of the Nidec Group’s total CO2 emissions in FY2015.

For the next seven years, we will report to the Ministry of the Environment the amount of CO2 emissions reduced, 50% of which will be converted as Japan’s credit. Under this mechanism, the Nidec Group is expected to be able to save several tens of millions of yen of electricity costs per year, and recover its initial investment of more than 100 million yen within a year or two, thanks to the subsidy and the reduced electricity cost.


How the air conditioning system works

JCM

The JCM is intended for projects that utilize a brilliant low-carbon technology, etc. to reduce the amount of greenhouse gas emission in an emerging economy. In this mechanism, once a company’s energy-saving equipment investment plan is adopted as a JCM equipment subsidy business, part of the investment for the equipment in the plan will be subsidized, and part of the greenhouse gas emissions reduced by the investment will be recorded as Japan’s greenhouse gas reduction credit. The JCM helps companies suppress their investment costs and, at the same time, reduce the amount of their greenhouse gas emissions, and contribute to reducing them not only in the countries where they operate, but also in Japan.


Environmental performance data

Creating Renewable Energy

When constructing a new building, Nidec Corporation’s head office in Kyoto and Nidec Research and Development Center installs photovoltaic power generation equipment to use PV-generated power for outdoor lights and other purposes. Nidec Group’s production sites in China’s Zhejiang Province planned and installed such photovoltaic power generation equipment as well: In February 2015, Nidec (Zhejiang) Corporation started a full-scale photovoltaic power generation by covering the entire roofs of its first-phase construction building, machining building, and health and welfare building with photovoltaic panels. Covering a total area of approximately 12,000m2 and presumed to be generating 165,000kWh of electricity per month, the panels generate approximately 10% of the electricity that the entire factory needs.

Comprehensive Disclosure of Information on CO2 Emissions and Climate Change Management

Since FY2009, Nidec has been providing the “Carbon Disclosure Project,” a third organization that owns the world’s largest database on greenhouse gases and climate change, with information that includes not only the amount of greenhouse gas emissions but also our understanding of governance, strategy, target setting, risks, and opportunities concerning climate change management. Additionally, we understand and disclose information on the amount of Nidec’s direct and indirect greenhouse gas emissions (Scope 1 and Scope 2), as well as the amount of greenhouse gas emissions from our supply chains (Scope 3).


Greenhouse Gas Emissions in Supply Chains (in Thousand Tons)

Category FY2018 FY2019 FY2020
Upstream
(Scope3)
Purchased goods and services 2,568 2,113 2,121
Capital goods 9 20 8
Fuel-and-energy-related activities (not included in Scope 1 or 2) 57 97 96
Upstream transportation and distribution 7 6 6
Waste generated in operations 16 19 19
Business travel 9 8 8
Employee commuting 32 30 29
Upstream leased assets * * *
Downstream
(Scope3)
Downstream transportation and distribution - - -
Processing of sold products - - -
Use of sold products - - -
End of life treatment of sold products - - -
Downstream leased assets * * *
Franchises * * *
Investments * * *
Total 2,699 2,294 2,287

* Not applicable (hardly related to our business).
- Not calculated.

In principle, the sites covered in the medium-term environmental conservation plan are covered in the data.

Climate Change Adaptation Measures

It is forecast that, despite the upmost efforts to mitigate CO2 emissions, the expansion in scale of torrential rain, drought, and landslides caused by the global warming will likely be unavoidable in the long run. In an attempt to reduce those disasters’ effects to its business activities, Nidec launches various actions by its dedicated risk management section, which, among other actions, designed a group-wide BCP (business continuity plan), monitors disasters, and built anti-flooding walls around our factories in Thailand.

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