Risks and Opportunities
Due to climate change, abnormal weather events have been occurring frequently in recent years in Japan and throughout the world. In order to keep the increase in global average temperature to less than 2 ℃ above pre-industrial levels, countries party to the Paris Agreement adopted in 2015 agreed to a 2 ℃ target. Accordingly, Japan set a long-term target of reducing FY 2013 CO2 emissions by 26 % by 2030. Therefore, based on the Paris Agreement, SDGs, and other international frameworks, we are currently preparing medium and long-term environmental goals and a roadmap for achieving those goals. Furthermore, in addition to our previous measures, mainly involving environmental management, we have now renamed the special organization involved in that process the Global Environmental Management Department and have been more actively deploying environmental activities in combination with our business operations to help solve global environmental challenges. For example, we will contribute to the advancement of a sustainable society by identifying difficult customer challenges, such as developing more efficient and environmentally-friendly renewable energies or functionally engineered new materials derived from nature, and then using such challenges as a business opportunity for supplying products and technologies that help customers solve those challenges.
Shimadzu intends to expand business activities and increase corporate value by solving environmental problems as an "eco-solution provider." That will involve the following four main types of activities.
(1) Constantly improve the energy efficiency and reduce the size of all products to minimize the environmental impact of products over the course of their entire product life cycle.
(2) Strive to reduce our environmental impact by specifying medium and long-term CO2 emission reduction targets for the Shimadzu Group and develop closer partnerships with suppliers to actively increase the use of solar or other renewable energies and reduce the use of hazardous chemical substances, for example.
(3) Contribute to building a sustainable society by supplying instruments for environmental testing of water, air, soil, and so on, and products and technologies that solve challenges involved in developing new materials and alternative energies for reducing global environmental impact.
(4) Partner with community groups or educational institutions, for example, to deploy a wide range of activities, such as creating forests to protect biodiversity or conducting classes at schools or other locations to educate people about the environment. Furthermore.
Four Policies for the Shimadzu Group Environmental Management
Key Measures of Environmental Management
Strengthen Measures to Reduce Environmental Impact on a Global Basis.
- Increase Contribution Volume of Reduction in CO2 Emissions with Environmentally-Friendly Products
- Establish an Eco-Products Plus certification system and increase awareness within and outside the company.
- Propose measures for strengthening selling capabilities.
- Reduce Shimadzu Group CO2 Emissions and Specify Long-Term Global Target Value
- Improve the visibility of various environmental information within and outside Japan.
- Specify measures for reducing environmental impact and execute corresponding plan-do-check-action (PDCA) cycles.
- Specify long-term target values and prepare a roadmap for achieving those targets.
Goal for Medium to Long-Term Reductions in CO2 Emissions by the Shimadzu Group
As a medium to long-term goal for the reduction of CO2 emissions in business activities, a 30 % reduction (in comparison to 2017 levels) by 2030 has been established by the Shimadzu Group. The purpose is to take proactive measures as a responsible member of society with respect to global environmental issues, a major concern for society, with particular emphasis on global warming. Shimadzu plans to realize this goal primarily through energy saving efforts both in Japan and overseas, and the introduction of renewable energies that feature limited CO2 emissions.
Measures for Addressing Climate Change - Endorsement of TCFD Recommendation
We consider dealing with environmental problems to be one of our most important management challenges. For climate change in particular, we are involved in reducing CO2 emissions due to our business activities throughout the entire value chain and offer products and solutions that generate innovation for environmental and energy fields. We also disclose information in accordance with the “Final Report: Recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD)” published by the Financial Stability Board (FSB) in June 2017.
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 environmental management are decided by the Executive Committee or Board of Directors.
Climate Change-Related Risks/Opportunities and Strategies
|Measures for Abnormal Weather
|We are implementing measures to prepare for large typhoons, heavy rain, and other abnormal weather events that have been occurring with increasing frequency in recent years.
For example, we have initiated a business continuity plan that is steadily being implemented. It includes measures for immediately establishing a disaster response task force, minimizing damage, and restoring operations as quickly as possible in the event of a disaster. The Shimadzu Group is also establishing capabilities such as confirming the safety of employees, and checking the status of disaster damage to buildings, equipment, information infrastructure, and is diversifying risk by taking out insurances.
We have also put in place a support system to help customers that use Shimadzu Analytical & Measuring Instruments or Medical Systems products to resume their business activities quickly and smoothly in the event of a disaster.
|Measures for a Carbon-Free Society
[Risks and Opportunities]
|As we transition to a carbon-free society, there is an increasing demand to take even more measures to reduce energy consumption and adopt renewable energy to reduce CO2 emissions. The Shimadzu Group will implement measures to achieve this throughout the entire value chain.
To reduce CO2 emissions caused by business activities, we have set up medium and long-term targets and plans, and are promoting energy conservation and the introduction of renewable energy. We are also takings 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, for example, making the products smaller.
|Offering Solutions Based on Products and Technologies
|Given the global impact of future climate change, we believe that the applications and performance required for analytical instruments and other products will become even more complex and diverse.
As a comprehensive analytical instrument manufacturer, we offer the best possible solutions to customers by developing superior products and applications. For example, in the renewable energy field, we provide support for research, development, and quality control for solar or biomass power generation, and for improving the efficiency of devices such as lithium-ion batteries and fuel cells. In the materials field, we also contribute to the development, manufacture, and quality control of new materials and other items that contribute to a carbon-free society.
As part of solving challenges of society, our medium-term management plan identifies “environment/energy” and “materials” as growth fields and we are actively investing in those fields to create new business models based on the use of Shimadzu’s technologies.
In the future, we will formulate medium and long-term targets and implement measures for making environmental contributions based on Shimadzu products and technologies.
Indicators and Targets
- We intend to reduce CO2 emissions due to business activities 30 % by 2030 (vs 2017).
- We will implement measures to reduce the environmental impact of all products throughout their entire life cycle, in an effort to reduce CO2 emissions throughout the entire value chain, including emissions by customers and suppliers.
Key Accomplishments During FY 2018
Further Reducing CO2 Emissions from Overall Business Processes
In FY 2018, we reduced the world-wide CO2 emissions of the Shimadzu Group by 9 % to 44,958 t-CO2. We even improved emission intensity by 12 % to 115 t-CO2 per billion yen.
In addition to investments for saving energy, such as replacing aging air conditioner equipment and installing LED lighting, solar power equipment was installed at three locations within and outside Japan (at a plant in Kyoto, a new building in Shimane Prefecture, and a plant in Malaysia). Group companies in the UK switched to a power company that uses 100 % renewable energies. Consequently, CO2 emissions decreased despite increasing sales. We have also been installing smart meters to visualize 30 % of our power usage at locations in Japan. We plan to increase that to 70 % in FY 2019.
We specified a medium and long-term target of 30 % reduction in CO2 emissions from our business activities by 2030 (vs 2017) and we have agreed to participate in Science Based Targets (SBT), an international initiative for addressing climate change. To achieve the target, we will promote reducing energy consumption, introduce the use of renewable energies with low CO2 emission levels, and so on, within and outside Japan.
Shimadzu Group CO2 Emissions and Contribution to Reduction in CO2 Emissions