Measures for Addressing Climate Change

TCFD Measures for Addressing Climate Change

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 offering 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.

TCFD

Governance

Shimadzu Group measures for climate-related risks and opportunities and for solving management challenges are deliberated by the Environmental Committee (convenes twice annually), which is the highest deliberative body for environmental problems. The Shimadzu President chairs the Environmental Committee and coordinates initiatives and other issues involving climate-related risks and opportunities.
The content of deliberations by the Environmental Committee is reported to the Executive Committee and reported to and discussed by the Board of Directors. The Board of Directors ensures appropriate monitoring/ supervision capabilities are provided. Important matters relevant to Shimadzu Group environmental management are deliberated and decided by the Board of Directors.

Risk Management

The Global Environmental Management Department is the main body that identifies individual climate change risks that could affect Shimadzu Group businesses, strategies, or finances. Risks are assessed based on climate change scenarios published by the International Energy Agency (IEA) to determine the level and timing of impacts and to identify risks with high importance for Shimadzu Group. Risks that require a response or corresponding countermeasures are deliberated and confirmed by the Environmental Committee.
Such identified important climate change risks are reported to the Risk Management and Corporate Ethics Board (chaired by the Shimadzu President), which convenes every six months and deliberates the risks along with other company-wide risks. As a result, the risks are reported to the Executive Committee and reported to and discussed by the Board of Directors.
Important issues and measures decided by the Risk Management and Corporate Ethics Board are coordinated by the director in charge of risk management and are deployed in a top-down manner to other respective departments and Group companies, primarily by departments specifically responsible for the respective risks or special committees in charge of company-wide risk management issues.
Based on the above systems and processes, the corporate administrative organizations manage climate change risks to ensure they are identified, assessed, and appropriately addressed at the workplace level.

Strategy

1. Identify Climate-Change Risks and Opportunities

When identifying climate-related risks/opportunities that could affect Shimadzu Group businesses, strategies, or finances, identify and organize the driving factors of climate change expected to have a large impact on Shimadzu businesses in each of two global scenarios, one where carbon reduction efforts result in a 1.5°C temperature increase and the other where current global warming trends increase temperatures by 4°C.

Starting with the climate change drivers indicated above, the main risks and opportunities related to climate change were identified and evaluated in terms of timing and impact level based on the International Energy Agency (IEA) climate change scenarios and other factors. The results are summarized in the “Main Risks/Opportunities for Shimadzu Businesses” table on the next page.

Main Risks/Opportunities for Shimadzu Businesses

 

2. Impacts on Businesses, Strategies, and Finances

Results from analyzing the impacts on Shimadzu businesses, strategies, an d finances for a carbon-free scenario (1.5°C hotter) and the current scenario (4°C hotter) are summarized below.

Impacts on Shimadzu Businesses, Strategies, and Finances

Shimadzu efforts to reduce CO2 emissions from business activities by actively promoting energy efficiency and energy reuse have resulted in CO2 emissions of 18,321 tons in FY 2021. In addition, due to the products and services being supplied to a wide variety of industries, such as pharmaceuticals, healthcare, environmental, energy, semiconductors, and materials, the collective scope of customer industries is particularly broad. Consequently, we think it is very unlikely that a contraction in any particular industry would cause a significant impact on Shimadzu finances.
In terms of opportunities resulting from climate change, a wide variety of opportunities are expected to emerge in various industries and fields for both 1.5°C or 4°C hotter scenarios. Assuming measures to achieve a 1.5°C hotter world will reduce overall risks for society, Shimadzu also is engaged in business practices intended to achieve a target 1.5°C temperature increase. Specifically, Shimadzu designs all products to be environmentally friendly, such as by making them more energy efficient, and continues to increase the percentage of Eco-Products Plus products that offer particularly high environmental performance. We also continue to supply and invest in developing products that contribute to mitigating or accommodating climate change.
Overall, we think we can maintain business, strategy, and financial resilience with respect to climate change by responding to climate change and implementing measures in accordance with the transition plan indicated on the next page to appropriately identify climate change opportunities and achieve sustained growth.

 

3. Transition Plan for Achieving a Carbon-Free Society

Policies, Plans, and Other Requirements for Measures in Respective Shimadzu Group Business Fields to Build a Carbon-Free Society

Indicators and Targets

1. Reducing CO2 Emissions

The Shimadzu Group intends to reduce CO2 emissions from business activities to net-zero (carbon neutral) by 2050.

FY 2050 Targets

  • Reduce CO2 emissions from business activities to net-zero.
  • I ncrease the percentage of renewable energy use to 100%.

FY 2040 Target

  • Reduce CO2 emissions from business activities by at least 90% (vs FY 2017).

FY 2030 Targets

  • Reduce CO2 emissions from business activities by at least 85% (vs FY 2017).
  • Reduce CO2 emissions from customers using the products sold by the Shimadzu Group by at least 30% (vs FY 2020).

 

2. Development of Certified Environmentally Friendly Products and Promoting their Widespread Use

The Shimadzu Group is committed to improving the environmental friendliness of products in an effort to minimize our impact on the global environment. Shimadzu has specified a target of generating 30% of net product sales from “Eco-Products Plus” products by FY 2030, which are products certified to offer significantly higher environmental performance than previous models. Promoting sales of products with superior environmental performance is viewed as an opportunity for the Shimadzu Group to promote carbon neutrality by offering products that help customers reduce CO2 emissions.

Shimadzu Joins the RE100 Global Environmental Initiative