Eco Vision 2030

Global environmental conservation is fundamental to a sustainable society, and is a key business challenge to be addressed head-on for all stakeholders.
On the premise of aiming for carbon neutrality in 2050, we have established "Eco Vision 2030," which shows the vision (or goal) of what we want to be by 2030 and the vision of what we will pursue until 2040.
For Eco Vision 2030, the impacts that our businesses and products would have on society and our company were analyzed, and 13 issues that would have a large impact were selected. Among them, the four issues that were considered to have a greater impact - "Responding to Climate Change", "Expanding Environmentally Friendly Products", "Conserving Water Resources", and "Waste Management" -were positioned as the four important issues, and numerical goals were set for them. Through the practice of Eco Vision 2030, our group will work together to contribute to the realization of global carbon neutrality and zero emissions.

4 important issues

Eco Vision 2030 issues	Our vision for 2040	The milestone to be achieved in 2030	Progress up to FY2025	Explanation
Responding to Climate Change	Implementing activities toward realization of a decarbonized society. *Achieving carbon neutrality by 2050	CO2 emissions reduction compared to FY2018: 46% for Scope 1 and 2, and 30% for Scope 3.	CO2emissions reduction compared to FY2018: 　33.2% for Scope 1 and 2 　8.5% for Scope 3	Reducing CO2 emissions to mitigate climate change is a key global issue. Many countries and companies around the globe are seeking to build carbon-neutral societies and are committed to reduce CO2 emissions throughout the supply chain. Reducing CO2 emissions is a critical issue for our group as a manufacturing company, and it is our responsibility to accomplish the goal. Setting forth the CO2 emissions reduction targets by 2030 toward the goal of attaining carbon neutrality by 2050, we will first work on Scopes 1 and 2, which we can directly control. We set targets to be consistent with the objective of "holding the temperature increase to well below 2°C above pre-industrial levels" in the Paris Agreement. We will make company-wide efforts to take proactive actions looking ahead to achieving carbon neutrality by 2050. The CO2 Management Committee which people involved from all businesses join, will manage the progress. Also, we will promote reduction in Scope 3, including the supply chain.
Expanding Environmentally Friendly Products	All products contribute to the improvement of the global environment and contribute to making sustainable society come true	Expand Niterra Green Products	Certified 13 products as Niterra Green Products Initiated design framework to enhance product environmental contribution (applying LCA from early development)	Interest in a sustainable society is growing worldwide. Our group is responsible for contributing ourselves to making sustainable society come true through our business and products. In approaching environmental issues, it is very important to be aware of the environmental impacts of the entire product life cycle, from raw material extraction to final disposal where the products complete their missions.
Conserving Water Resources	Implementing sustainable business operations in response to global water risks	Water consumption intensity: Keep below FY2018 level	Water consumption intensity compared to FY2018: 2.6% reduction	Our Group has manufacturing bases around the world, and the water demand has been increasing in each base. Global water demand trends are an important environmental issue that should be monitored closely. Water resources are unevenly distributed in the world, and some of the Group's manufacturing bases may face the drought risk in the future due to ongoing climate change. Therefore, we periodically conduct water risk assessments, to determine the current status and estimate the amount of resources required. In addition, our group is committed to protecting the environment into the future by promoting the efficient use of water as it is the essential resource.
Waste Management	Contribute to a global recycle-oriented society by promoting zero emission	Achieve over 95% effective utilization rate	Effective utilization rate: 96.0% Waste intensity compared to FY2018: 24.4% reduction	Our group uses a variety of raw materials, including ceramics and rare metals. Effective use of resources (reduce waste, reuse and recycle resources) is essential to protect the global environment. It is important to reduce the amount of resources input by improving the manufacturing process, and to reduce the landfill of wastes by promoting recycling, for stable resource management into the future. At all sites, we will keep promoting group-wide 3R activities for further enhancing effective use of resources and reduction of wastes.
		Reduce at least 1% of waste intensity compared to FY2018
		Promote 3R (reduce, reuse, recycle) activities

Other issues

Eco Vision 2030 issues	Our vision for 2040	The milestone to be achieved in 2030	Progress up to FY2025	Explanation
<Enhancement of EMS> Integration with Management	Continued efforts to address global environmental issues as a business strategy	Address global environmental issues as a business strategy	Integrated global environmental issues (CO2 reduction, environment/energy business) into 2030 Mid-Term Management Plan to align with corporate management.	Protecting the global environment is the basis for maintaining a sustainable society. Environmental issues are both management risks and business opportunities for us, and it is important to integrate environmental activities with management as a business strategy. We have established the Eco Vision 2030, which is aligned with our Long-term Management Plan, to address environmental issues as part of our business strategy.
		Executive management takes responsibility for promoting Eco Vision 2030 and achieving environmental KPIs.
<Enhancement of EMS> Globalization of EMS	The entire group is able to share environmental information, and a monitoring and supervision system has been established for all Group companies.	Enhance systems for overseas affiliates to share environmental information and monitor and supervise their activities.	Strengthened governance under Group Environmental Regulations and built incident reporting lines via environmental conferences and audits with overseas subsidiaries.	Our Group has been expanding our business globally and has had more influence on society than ever. Therefore, our responsibilities as expected by society is also increasing. Stakeholders expect us to address ESG issues on a global basis. Eco Vision 2030 is an ambitious initiative that cannot be achieved without efforts of all our employees. The goals in Eco Vision 2030 are not quite easy to achieve. But we are confident of the achievement with all the efforts concentrated of each employee on our worldwide common EMS.
<Enhancement of EMS>Analysis of Climate-Related Risks and Opportunities	Sustainable business growth by analyzing the impact of climate change on our business and incorporate them into our business strategies.	Analyze climate change risks and opportunities and incorporate them into our business strategies.	Assessed financial impact of climate change based on TCFD recommendations.	For sustainable business expansion in a carbon-neutral society, it is essential to analyze the impact of climate change on our business, determine our responses, and incorporate them into our business strategies. We have endorsed the TCFD’s recommendations, and disclose the climate-related risks and opportunities and their impacts in accordance with the framework.
<Enhancement of EMS> Through environmental compliance (Compliance with environmental laws and eradication of environmental accidents)	We have become a socially trusted company by continuing to achieve zero violations of environmental laws and regulations and zero environmental accidents.	Achieve zero violations of environmental laws and regulations and zero environmental accidents.	Reinforced prevention and recurrence-prevention mechanisms by deploying incident countermeasures company-wide and checking site-specific risks.	Ensuring thorough environmental compliance is a prerequisite for business continuity, it would not only prevent environmental accidents and maintain a safe and secure work environment, but also ensure the trust of stakeholders, including local residents and society. We have established internal regulations based on the Environmental Management System (ISO 14001) and are working on continuous improvement via the PDCA cycle. We carry out our business while ensuring that all employees understand and follow environmental laws and regulations.
<Enhancement of EMS> Greater Environmental Awareness	All employees have a high level of environmental awareness and contribute to making sustainable society come true.	All employees take environmental education programs and actively engage in environmental conservation activities.	Conducted Eco Vision training for all employee levels (executives, managers, general staff).	We focus on businesses in the environment and energy fields as stated in our Long-term Management Plan. For our business success, it is essential to improve the environmental consciousness of the entire Group, and to develop specialists who deeply understand the environmental risks that our business faces, such as responses to climate change, and connect them to business opportunities. We aim to ensure all employees deeply understand the purpose and importance of the Eco Vision 2030, by providing the learning programs on Intranet. We are committed to fostering corporate culture in which each and every one of us naturally acts in an environmentally friendly manner in our daily work.
Management of Chemical Substances	Contribute to the conservation of biodiversity through the continuous management of appropriate chemical substances.	Appropriately manage chemical substances to reduce environmental impact.	Reduced atmospheric VOC emissions by installing exhaust gas treatment systems.	Social concern about environmentally hazardous substances is increasing as their effects on the human body and on the environment become more obvious. While various regulations on chemical substances have been getting stricter over the world, our Group has been reducing the usage of chemical substances over time. Appropriate management of chemical substances is one of the social responsibilities of manufacturing companies that use chemical substances as raw materials, and is essential for the continuation of our business. Our Group works to thoroughly manage chemical substances in accordance with relevant laws and regulations, and to respond to customer requirements. We are committed to reducing the use and emission of environmentally hazardous substances and promoting substitute materials through R&D and process improvement in order to minimize the impacts on humans and the environment.
Promoting Green Procurement	Implementing environmentally friendly procurement activity to making sustainable society come true.	Achieve 100% introduction of green procurement system	Strictened chemical substance management and promoted supplier decarbonization by advancing green procurement and revising guidelines.	Our Group is striving to reduce the environmental impacts of our products throughout their lifecycle, and is promoting the products with lower environmental impacts. We have been promoting a green procurement system with our suppliers by distributing the Green Procurement Guidance, an appendix to the Sustainability Procurement Guidelines, that describe our approaches to reducing environmental impact including the management of chemical substances. As our supply chain over the world is assumed to be getting more diversified, cooperation with our suppliers will be even more essential, in order to reduce CO2 emissions throughout the supply chain and meet the stricter regulations on chemical substances. We contribute to making sustainable society come true by establishing a global procurement system and further promoting a green procurement system.
Expanding Green Logistics	Our green logistics system develop globally.	Reduce CO2 emissions by promoting green logistics and optimizing logistics efficiency.	Improved Scope 3 Category 4 CO2 calculation accuracy by refining activity data (transport volume × distance) at key overseas sites. Reduced Scope 3 Category 4 CO2 emissions by 33% vs. FY2018 by optimizing transport methods.	Increased CO2 emissions through transportation process is one of our concerns related to the business expansion in the future. Reducing CO2 emissions in logistics is an issue in reducing the environmental impact of the entire supply chain. Our group has been improving the green logistics network in Japan, but establishing global green logistics system including overseas sites would be an upcoming challenge. We aim to develop our green logistics system globally and to achieve our target of reducing CO2 emissions in logistics by expanding our case studies (efficient transportation route construction, etc.) to overseas logistics networks.
Enhancing Our Disclosure of Environmental Information	Responding to stakeholder requests and practicing communication that leads to dialogue with stakeholders.	Responding to stakeholder requests and practicing communication that leads to dialogue with stakeholders.	Advanced nature-related disclosures based on TNFD recommendations.	Now our Group gives big influences on society as our business expands. Stakeholders are showing growing interests in our Group and business. Opportunities to communicate with institutional investors are increasing. It is important for us to have stakeholders appropriately understand our business and support us for long term in the future. We will make information disclosure better both in quality and in quantity. We also enhance our transparency and accountability in response to great concerns to stakeholders, and promote communication opportunities with them.