Special Feature 2021 - Integrated Report 2021
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.
Contributing to decarbonization through products
As global trends toward decarbonization are accelerating in response to intensifying climate change, Nidec, as a global business operator, is committed to the development and supply of products that will contribute to decarbonization. Specifically, focusing on products for automobiles, which are said to account for over 10% of CO2 emissions around the world, we have decided to set as a KPI the sales volume of products that reflect the global automobile electrification trend by converting it into the volume of CO2 emissions reduced.
While our contribution to decarbonization through our products has been recognized to some extent by our investors and other stakeholders, we are aware that the numerical data to support it is insufficient. In November 2020, we disclosed a reduction in CO2 emissions due to the introduction of the E-Axle EV traction motor system. We will identify a further reduction in CO2 emissions due to the introduction of electric power steering (EPS) motors, and further work to make visible our contribution to decarbonization through many other products.
Specific product example: Provision of high-efficiency, energy-saving motors
The key to reducing CO2 emissions from automobiles is to reduce the load on the engine and improve fuel efficiency. From this perspective, many car manufacturers around the world are increasingly adopting electric power steerings (EPS). The Nidec Group supplies EPS motors expected to improve fuel economy by about 5% compared to hydraulic motors.
The Group also offers electric oil pump motors to enable the idling stop function, and many other products that will lead to the reduction of emissions of CO2 and other air pollutants.
For other products, please see below.
Product-based Environmental Contribution
Reducing CO2 emitted in business activities
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
Manage waste and hazardous waste
As increasing waste has been a global social problem in recent years, Nidec is working to establish a business system to help realize the effective reuse of raw materials. We have been making efforts not only to eliminate waste in manufacturing processes, but also to minimize the use of containers and packaging materials. Besides these, we are making continuous efforts to promote the recycling of waste by encouraging thorough sorting.
The Nidec Group pays sufficient attention to the use and storage of chemical substances at its business sites to prevent leakage thereof, while striving to reduce the use and emissions of chemical substances as far as possible as part of the initiative to improve and innovate production processes. The Group also utilizes its information systems and analysis techniques to satisfy international regulations concerning hazardous chemical substances contained in products.
It will be our policy to work for the careful management of waste and hazardous waste to respond to rising social demand, and to avoid undermining our corporate value due to delay in action.
In FY2020, due to efforts to improve the recycling rate and reduce the use of paper, the volume of final waste disposal at our production sites decreased by around 7% from the FY2019 level. Non-production sites achieved a reduction of around 40% mainly due to an increase in the number of work-from-home employees as a result of the spread of COVID-19 infection.
Monitoring and disclosure of releases and transfers of chemical substances
In accordance with the PRTR system* based on Japanese law, the Nidec Group monitors and discloses the amounts of released and transferred chemical substances that are designated under the system and used at the Nidec Group’s sites in Japan. The Group voluntarily monitors the release and transfer of chemical substances that are not subject to the PRTR system.
* Pollutant Release and Transfer Register
Handle water risks
Water is the most important resource and is indispensable for people’s lives and industries. It is said that excluding seawater, icebergs and glaciers, only around 1% of water resources on the Earth are actually utilizable. Nidec recog-nizes the significant impact that depletion of water resources may have on its business continuation, such as shortening of operation hours or suspension of operations at plants, and has implemented initiatives to minimize the environmental load (conservation of water resources) at each stage of the intake, use and discharge of water. We are also engaged in water risk management through such measures as identifying risks in water intake and discharge for the continuation of business activities, and determining the impact of our water intake/discharge on peripheral areas and the water source areas.
Recycling of water
As demonstrated by Nidec Copal (Zhejiang) Co., Ltd., where reused/recycled water exceeded 50% of total water use in FY2020, active efforts have been made to promote reuse and recycling of water at some of our business sites. However, looking at all the business sites covered in the Sixth Medium-term Environmental Conservation Plan,* the water reuse/recycling rate in FY2020 remained as low as 2.9%. We will make further improvement efforts by introducing the practices of business sites where water reuse/recycling is actively promoted to other sites.
The total amount of water discharge at our production sites in FY2020 decreased by around 11% from the FY2019 level mainly due to the lower plant operation rate as a result of the spread of COVID-19 infection. Non-production sites achieved a reduction of around 5% due to an increase in the number of work-from-home employees. We will continue our efforts for further improvement.
For details of the Sixth Medium-term Environmental Conservation Plan, please see below.
Sixth Medium-term Environmental Conservation Plan: Overview