Special Feature 2022 - Integrated Report 2022

Three Key focuses

Nidec today finds itself better able to use its motor technology to help solve global issues on a scale never achieved before. Aligning its business growth with new market dynamics, Nidec is poised to embrace reformative changes to ensure sustainability over the next 100 years and beyond.

TOPIC 1 Achieving carbon neutrality

A complex interplay between the surging electricity demand, the increasingly volatile geopolitical and macroeconomic landscapes, and diversifying effects of climate change is causing a severe energy crisis worldwide. With countries returning to natural gas and coal-fired power to avoid further disruptions, the pace of global transition toward carbon neutrality appears to have slowed. However, the standstill will be only temporary. In our view, the crisis will give an even greater momentum, rather than a pause, to the global march toward net zero as the world’s energy order is profoundly reshaped.

We are committed to going carbon neutral by the fiscal 2040 as part of its med-term strategic targets and has been working to cut greenhouse gas emissions (GHGs) from its operations through proactive measures including the use of renewable electricity. We put equal focus on helping reduce GHGs from society as a whole by providing emission-reducing solutions, such as Battery Energy Storage Systems (BESS) and the E-Axle EV traction motor system.

TOPIC 2 Adapting to the changing nature of raw material procurement

Prices of non-ferrous metals and rare metals, which are used in many of Nidec products, are likely to hover at high levels mainly due to expanding demand, diversifying uses, and geopolitical factors in major producer countries. Despite repeated shortfalls in demand during the height of the pandemic, the prices of these critical materials are quick to climb back up and are expected to remain high as new demand arises from the ongoing global electrification for the low-carbon transition, accompanied by the expanding reach of 5G networks.

Alongside addressing the complexity of the global metal market, we also seek to phase out of particular types of raw materials used in our productsーthe mining of which might involve a grave risk of environmental disruptions, human rights abuses, or geopolitical disputes. In addition, we are working to establish a resilient supply chain by driving forward strategic semiconductor procurement and flexible capacity management, as well as expanding in-house production of important parts.

E-Axle, an EV traction motor system
E-Axle, an EV traction motor system

TOPIC 3 Driving forward miniaturization and energy efficiency of products

Decarbonization, power saving, labor saving, 5G-driven technological advances and the resulting digital data explosion are key forces underpinning a significant part of the demand growth we are witnessing today. These new market opportunities, or Five Big Waves as we call them, have emerged from new challenges posed to global sustainability. One thing they have in common is the need for more compact, more energy efficient electric motors that power the very heart of industrial infrastructure.

Nidec’s new traction motor system for electric vehicles, otherwise known as the second generation model of E-Axle, has achieved a 20% size reduction from the previous generation model. Likewise, one of our flagship household refrigerator compressors have become as much as 41% smaller and 66% lighter since their release in 2010.

Household refrigerator compressors
Household refrigerator compressors

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