Endorsement of TCFD Recommendations and Acquisition of SBT Certification
The Shimadzu Group considers environmental problems as one of our most important management challenges. To address the problem of climate change in particular, we are engaged in reducing CO2 emissions generated from our business activities throughout the entire value chain and offer products and solutions that contribute to creating innovations in environmental and energy fields. In May 2019, we endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and have remained committed to disclosing relevant information.
As the highest deliberative body for environmental problems, the Environmental Committee, chaired by the President and attended by management-level personnel, meets twice a year to identify societal trends, determine Shimadzu’s current status, and discuss measures for solving the issues raised. Important matters relevant to Shimadzu Group environmental management are decided by the Executive Committee or Board of Directors.
Strategy for Addressing Climate Change
The Shimadzu Group has set a target of reducing medium/ long-term CO2 emissions generated from business activities by 30% (vs 2017) by FY 2030, and has been implementing a variety of measures for achieving that target. In January 2020, we obtained certification from the Science Based Targets (SBT) initiative, an international environmental group, that our reduction target is scientifically based.
Risks and Opportunities Based on Climate-Related Scenarios
The Shimadzu Group has analyzed future risks and opportunities based on two scenarios for global warming. One scenario assumes a transition to a carbon-free society that limits the temperature increase by the end of the current century to within 2°C. The other scenario assumes the temperature increase reaches 4°C.
1. Offering Solutions Based on Products and Technologies (Opportunities)
With the transition to renewable energies accelerating as the world moves toward building a carbon-free society, that transition will require technical innovations in a variety of fields. It is also expected to stimulate R&D and production activity at a wide variety of companies and public institutions involved in energy fields, such as low-cost solar power equipment with high conversion efficiency that offers excellent environmental performance, terrestrial and marine wind power equipment that is easy to maintain and withstands operation in harsh natural environments for long periods, biomass power equipment that involves low operating costs and is simple to manage, and high-quality biofuel and hydrogen fuel production plant equipment. Automotive, aircraft, and other mobility fields will also need technical breakthroughs, in terms of electrifying the motive power source, developing ultra-light and ultra-strong materials, developing higher capacity and safer lithium-ion or solid-state batteries, and so on. Meanwhile, in petroleum and coal industries, market expansion is expected to slow, due to demands from society for reducing CO2 emissions, but needs for developing carbon dioxide capture and storage (CCS) technologies are expected to increase.
The Shimadzu Group intends to contribute to a sustainable society and achieve business growth by focusing efforts on developing and supplying products, services, and technologies for solving environmental challenges, while also predicting and reassessing scenarios of how society will proceed in responding to future climate change.
2. Measures for a Carbon-Free Society (Risks and Opportunities)
As we transition to a carbon-free society, there will be needs for more thorough energy efficiency improvement measures and use of renewable energies. The Shimadzu Group is therefore implementing measures to reduce CO2 emissions generated from business activities throughout our entire value chain.
We have specified medium- and long-term targets and plans for reducing CO2 emissions from Shimadzu Group business activities, and have been implementing more thorough energy efficiency initiatives and introducing the use of renewable energies. For example, we conduct energy efficiency assessments for buildings and other facilities that consume large amounts of electricity, in an effort to identify and eliminate wasteful energy usage. These efforts have been steadily achieving results. We are also committed to increasing the percentage of renewable energies used, such as by installing solar power equipment and purchasing electricity generated exclusively from renewable energies.
The Shimadzu Group is also taking measures to reduce the power consumption of our products, reduce the use of gases, solvents, and other consumables, and minimize the use of raw materials by making the products smaller.
3. Measures for Abnormal Weather (Risks)
We are implementing measures to prepare for large storms, heavy rains, and other abnormal weather events that have been occurring with increasing frequency in various regions throughout the world. To prepare for disasters or predicted damage, we have initiated a business continuity plan (BCP) that is steadily being implemented. It includes measures for immediately establishing a disaster response task force, confirming and ensuring the safety of personnel, assessing and minimizing damage, and restoring operations as quickly as possible. The Shimadzu Group is also establishing capabilities for confirming the safety of employees, assessing damage to buildings, equipment, or information infrastructure, and diversifying risk, such as by taking out insurance policies.
We have also put in place a support system to help customers that use Shimadzu Group’s analytical and measuring instruments or medical systems to resume their business activities quickly and smoothly in the event of a disaster.
Risks Based on Climate-Change Scenarios
Opportunities Based on Climate-Change Scenarios
Indicators and Targets
- We intend to reduce CO2 emissions due to Shimadzu Group business activities 30% by 2030 (vs 2017).
- We intend to reduce CO2 emissions throughout the entire value chain, including emissions by customers and suppliers, and will implement measures to reduce the environmental impact of all products throughout their entire life cycle.