Harmony with Nature (Environmental Initiatives)

Harmony with Nature (Environmental Initiatives)

  • Actions to Climate Change Issues
  • Toward a circular society
  • Appropriate Chemical Control
  • Influence on Biodiversity
  • Environmental Contribution through Business

Actions to Climate Change Issues

Response to Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)*1

Climate change issues are one of the key issues that affect business activities. In August 2020, we declared our agreement with the TCFD recommendations. To achieve sustainable growth, we will appropriately assess our climate-related risks and opportunities, clarify their impact on our business operations and necessary measures, and actively disclose such information to a wide range of stakeholders, including investors.
Furthermore, we are a member of the TCFD Consortium,*2which was established to promote the collective efforts of Japanese companies and financial institutions supporting TCFD recommendations.

*1:Task Force on climate-related Financial Disclosures: A private international organization established by the Financial Stability Board (FSB) at the request of G20 members, which recommends that businesses disclose climate-related information that has an impact on financial affairs in their annual financial reports.
*2: TCFD Consortium: https://tcfd-consortium.jp/en 

Structure in response to climate change(Governance)

The risks and opportunities of climate change surrounding us and the proposed countermeasures are discussed at the Company-wide Environment and OHS Committee. Subsequently, the president of each operation is responsible for the implementation in the Company. The director in charge of GX promotion regularly reports how the entire company plans to respond to climate change and how these plans are executed to the Board of Directors, which supervises the matter. To turn the policy into the activities in which all employees participate, the environment committee established at each plant discusses and decides on its own activities.

Risk Management

In the company-wide risk management process, we analyze a wide variety of risks surrounding management and addresses items that will seriously impact our business. The company-wide Risk Management Committee chaired by the President & CEO is held annually to confirm material risks and decide how to respond to them including how to avoid them or how to mitigate impacts in case they occur.
The risks related to climate change are also regarded as major risks. These risks and opportunities are recognized by sections responsible for each risk category, followed by the confirmation and assessment in the appropriate meeting such as the Environment Committee and each department meeting as necessary, and then the response policy is discussed and determined.

Strategy

To reduce environmental burden and make the globe a better place for the next generation, we set the Environmental Vision 2050 to strive for the harmony with nature. The response to climate change is one of our major management pillars. To strike a balance between business growth and the response to climate change, the Group will work together to innovate production technologies that enable low-carbon operations and to develop technologies contributing to a decarbonized society.
Moreover, to recognize the risks and opportunities arising from climate change properly, we assess their impact on our business strategy and conduct a scenario analysis to prepare a future business strategy. Through the scenario analysis, we try to confirm the appropriateness of our current responses while identifying prospective issues. We identify highly important business risks and opportunities, which arise from the change in business environment due to climate change and its effects, and then respond to such risks under the medium-term management plan.

Metrics and Targets

Since the adoption of the Paris Agreement in 2015, which aims to suppress the rise in the global average temperature to less than 2 degrees Celsius compared to the pre-industrial revolution level, countries around the world have accelerated their efforts to become carbon neutral. In response to this, we also set a FY2030 target for the reduction of GHG emissions to achieve our Environmental Vision 2050.

In FY2021, we established a dedicated, Company-wide promotion division and fully embarked on activities to contribute to a decarbonized society. To implement the reduction of the Group's greenhouse gas emissions in line with our business strategy, the heads of divisions in charge of equipment at operational divisions have concurrently served as members of the promotion division since FY2022. This system ensures that the reductions are inseparable from future business expansion and reforms.
We also introduced internal carbon pricing in January 2022, which we have begun operating based on the assumption of achieving decarbonization in the future. Under this system, we set carbon prices internally and visualize the carbon impact as a part of future costs when carrying out capital expenditure, etc. While the current focus is on reducing emissions at the Company, we will carry out future activities in cooperation with suppliers in order to achieve decarbonization across the entire supply chain.
Furthermore, we are considering measures not only for our own activities but also for those of our entire supply chain. In addition, looking at the electronics market, the need for energy saving is increasing along with the sophistication of data processing capacity, and this trend is expected to intensify in the future. We will continue to improve our technological capabilities to meet these needs with our products.

Climate Scenario Analysis

We identify highly important business risks and opportunities in accordance with the degree of change in business environment driven by climate change and its effect, and then respond to such risks under the Medium-Term Management Plan. For example, from the viewpoint of strengthening competitiveness of existing businesses, we are working to transition to a production and supply structure given the change in the passenger vehicle market. In addition, with a correct recognition of the risks and opportunities arising from climate change, we assess their impact on our business strategy and conduct a scenario analysis to be used for formulating a future business strategy. Through the scenario analysis we verify the appropriateness of our current responses and identify the future issues.

Measures to Supply Clean Energy

IBIDEN owns three hydroelectric power plants in the upstream section of Ibigawa River in Gifu Prefecture. Hydraulic power generation uses the potential energy of water to create clean energy without greenhouse gas emissions. To maintain and increase its power output, IBIDEN implements repair work at its three hydroelectric power plants (Higashi Yokoyama Power Plant, Hirose Power Plant, and Kawakami Power Plant) systematically by repairing water supply tunnels* and updating generators to the latest models.

* Water supply tunnels: Tunnels for providing water to power plants

Hydroelectric Facilities

IBIDEN's hydroelectric power plants satisfy the standards for the renewable energy buyback program (Feed in Tariff program). We established a facility at the Ogaki-Kita Plant for connecting our power grid to that of electric power companies. We made electricity generated by each hydroelectric power plant available for sale to local electricity users, contributing to reduced CO2 emissions.

Higashi-Yokoyama Power Plant
(Power output: 14,600kW)

To use low-carbon energy, we actively introduce large-scale gas cogeneration systems with high power generation efficiency to increase the ratio of privately generated low-carbon energy. In FY2019, we installed the latest cogeneration equipment to promote energy conservation, and worked to strengthen our BCP. These initiatives were highly appreciated by the Advanced Cogeneration and Energy Utilization Center JAPAN (ACEJ)*, and we were granted the grand prize of the Cogeneration Award by ACEJ. Moreover, we install solar power generation equipment in each plant to generate renewable energy. In the future, we aim to establish a system whereby each plant is connected to our own power grid so that privately generated electricity can be optimally supplied in accordance with demand between each plant.

*the Advanced Cogeneration and Energy Utilization Center JAPAN (ACEJ) : https://www.ace.or.jp/index.html 

Gas engine cogeneration systems
(Ogaki Central Plant)

Projects to Promote Renewable Energy

IBIDEN Engineering Co., Ltd., a member of the IBIDEN Group, has initiated projects in the field of energy solution by making optimal use of the Company's technologies to maintain equipment for hydroelectric power plants as well as manage co-generation systems. Established an integrated approach, in which its business includes design proposal, construction and maintenance, IBIDEN Engineering has a track record in many power generation business such as ranging from equipment for hydroelectric power plants and power substations to systems for solar power generation plants and small hydroelectric power plants. We will continue to promote business solutions for the energy problems.

Water floating solar power generation plant
(Certificated output:1,990 MW)

Energy Conservation

As the Group consumes a large amount of energy through its production activities--whether it is the temperature control during the manufacturing process of electronics or the electric furnaces used for ceramics--energy conservation is an important issue for us.
Having established in FY2021 a specialized body that supervises our company-wide energy saving efforts in a cross-sectional manner, we are working with the production divisions and related functional divisions in operating the energy-saving management cycle across the organization. We also monitor risk factors, such as energy cost increases, and work on improvements based on the idea that enhancing energy efficiency is linked directly to strengthening the Company's competitiveness.
For example, we promote the efficient use of energy by quickly adapting to changes in production volume in order to minimize energy loss during production and energy use during production stoppages.
In addition, we evaluate energy-saving points that need to be dealt with, such as energy use, and adoption of heat insulation construction and high-efficiency equipment, in the environmental assessment at the time of establishment or relocation of manufacturing facilities in order to ensure implementation of energy-saving designs.

Trends of GHG emissions

Energy-saving activities are conducive to reducing emissions of CO2, a greenhouse gas (GHG). We set CO2 emissions reduction targets for the medium term, aiming to reduce during the period from FY2018 to FY2030 our total emissions by 30%, and emissions per unit of sales by 50% compared to FY2017(Emission in FY2017:666,000t). So, to seek annual rate reduction of 2.3% , We consider innovations in production technology and facility improvements , expanding the use of renewable energy and initiating the use of new energy sources.
In FY2022, we were able to reduce CO2 emissions despite an increase in net sales compared to FY2017 due to an increase in orders on the back of a business expansion. The reduction was achieved significantly through introduction of renewable energy electricity at overseas bases. As a result, total emissions dropped by approximately 39% with the results for FY2017, and emissions per unit of sales also improved significantly to 44 with the results for FY2017 indexed to 100. Going forward, we will continue to make efforts to reduce CO2 emissions to balance a reduction in emissions and the expansion of busines, when examining company-wide capital investments, we use in-house carbon pricing to examine items related to decarbonization, and when actually introducing equipment, we will confirm emissions reductions. In addition, we are revitalizing our energy-saving activities by sharing excellent energy-saving activities at each base with the entire company, leading to reductions in CO2 emissions for the entire group, and by establishing an internal commendation system for energy-saving activities.

Trends of CO2emissions*1(IBIDEN Group*2)

* The scope of assurance is limited to energy-derived emissions, and does not include some IBIDEN overseas and domestic Group companies. The assurance coverage is at least 95% of the total emissions of the entire Group.

*1: With regard to the CO2 emission factor at the time of calculation, we used the factor provided by the "List of Calculation Methods/Emission Factors in the Calculation, Report and Publication System" of the Ministry of the Environment and the Ministry of Economy, Trade and Industry in Japan as well as by gas distribution companies. From FY2020, when calculating the CO2 emissions in Scope 2, we use the conversion factors (IEA Emissions Factors 2020) published by the International Energy Agency when the CO2 emission factors of electric utility companies are uncertain, in order to provide information closer to the actual state. All of the data were calculated based on various coefficients released as of July 2022.

*2: CO2 emissions indicate emissions from all production bases related to production in Japan and overseas.

Cooperation with organizations outside the group

Our company, agreeing with the primary aim of the Council on Gifu Prefectural Global Warming Countermeasures Action Plan,*1 was installed as a director of the Council, and introduces our company's efforts, exchanges opinions, and makes proposals regarding the reduction of greenhouse gas emissions and global warming countermeasures of Gifu Prefecture as a representative of the manufacturing industry of the prefecture.
Also, as an expert committee member of the Committee on Energy and Environment of the Chubu Economic Federation,*2 our company develops our scientific research and recommendation activities, as well as request-making and promotional activities concerning energy and environmental preservation, including climate change issues.
In addition, agreeing with the purpose of the Challenge Zero project launched by the Japan Business Federation (Keidanren), our company declares that it will boldly take on the challenge of promoting innovations that contribute to realizing a decarbonized society, and discloses its initiatives.*3 Our company also reports to the Carbon Disclosure Project (CDP),*4 which in cooperation with institutional investors around the world, requires companies to disclose their climate change strategies and greenhouse gas emissions.

*1: An organization established in order to formulate the Gifu Prefectural Global Warming Countermeasures Action Plan related to measures to reduce greenhouse gas emissions and to maintain and strengthen greenhouse gas absorption based on the provisions of the Act on Promotion of Global Warming Countermeasures and Gifu Prefecture's Principal Ordinance on Global Warming Prevention

*2: A wide-area comprehensive economic organization with activity areas in the Chubu Region's five prefectures--Nagano, Gifu, Shizuoka, Aichi, and Mie

*3: Challenge Zero IBIDEN CO.,LTD. Innovation examples: https://www.challenge-zero.jp/en/member/26

*4: A project in which institutional investors work together to require companies to disclose their climate change strategies and specific information on their greenhouse gas emissions.https://www.cdp.net/en  

Toward a circular society

Resource Circulating Activities

IBIDEN believes that it is an important responsibility of businesses to make effective use of the world's scarce resources and to take part in a global effort to conserve resources. We promote the so-called 3R activity, which consists of initiatives to Reduce, Reuse and Recycle the resources we consume. In doing so, we aim to improve the resources efficiency. We are currently advancing our efforts to separate and recycle industrial waste in each plant and Group Company. Since 2004, IBIDEN domestic plants have been maintaining a zero-emission* status in terms of waste.

Our approach is based on indicators to control the generation of waste. As the medium-term reduction target for the amount of waste, we aim to reduce during the period from FY2023 to FY2027 sales per unit by 5% compared to FY2022.
In FY2022, the amount of solid waste decreased due to a decrease in production in Electronics Operation and IBIDEN Hungary. The waste per unit improved to 58 with the results for FY2017 indexed to 100. We will continue to promote the proper use of resources and the reduction of waste according to fluctuations in the production volume so that we will be able to achieve our reduction target.
Please note that we have revised the method of calculating waste volumes since FY2021. More detailed data are now available on our webpage "Environmental Data".

* IBIDEN defines zero emission as a state in which no solid waste emitted from the production process is dumped directly in landfills.

Effective Utilization and Reduction of Water Resources(Water Conservation Efforts)

A large amount of water resources is used in the manufacturing process of electronic products, particularly for cleansing. Ogaki City in Gifu Prefecture, where our domestic production bases are concentrated, is rich in underground water thanks to the Ibigawa River system. However, water shortages are a serious problem in the world today. Based on the principle of so-called 3R activity--initiatives to reduce, reuse, and recycle resources--the Group carries out business activities by integrating environmental technologies into manufacturing technologies, which has reduced the amount of industrial water use. To ensure the optimum control of wastewater and effluent and the facilitation of 3R activity for water resources, relevant divisions have discussions monthly to check progress and report.

Trends in the amount of water withdrawal (IBIDEN Group)

 

We carry out risk assessment of water resources in-house by referring to data released by the World Resources Institute (WRI) and other data, as a result of the assessment, none of our bases operate in water-stressed areas where water resource risks are high.

Our approach is based on the indicators to control water withdrawal per production volume. As the medium-term reduction target for the amount of water withdrawal, we aim to reduce the water withdrawal per unit of sales by 5% compared to the FY2022 level from FY2023 to FY2027. The water withdrawal per unit in FY2022, with the results for FY2017 indexed to 100, improved to 84 as a result of such an effort to consolidate our production and promote recycling amid increasing production. We will continue with our efforts to reduce the water withdrawal per unit by bringing to reasonable levels the frequency of initial make-up of the electrolytic bath in chemical tanks and the amount of chemical injection, and reusing water treated in-house so that we will be able to achieve our reduction target.

For reference, the Company participates in the Council on the Policy of Groundwater Use in the Seino District of Gifu Prefecture to seek the preservation of water resources and the proper and reasonable use of groundwater in the Seino district together with local governments and other companies using groundwater.

Appropriate Chemical Control

Compliance with Laws and Regulations related to Substances Contained in Products and Chemical

Substances in the Manufacturing Process and Management of the Work Environment A variety of chemical substances are used in the manufacturing process in the Group. They may cause environmental pollution or pose health hazards to humans. It is a great responsibility for businesses to properly manage chemical substances to secure product safety, reduce environmental burdens, and promote occupational safety.
Regarding chemical substances, the laws and regulations of each country, including the REACH Regulations and the RoHS Directive, as well as the standards demanded by our customers, are becoming increasingly stringent. To prevent risks caused by chemical substances, we are working to properly manage chemical substances throughout the entire supply chain by identifying substances whose use should be eliminated or reduced in the Green Procurement Guidelines.

In the course of operating the Chemical Control Committee as an internal organization, we established and have made use of a system to swiftly identify and properly meet social demands related to chemical substances, as shown in the REACH system in EU, at production bases in both Japan and overseas. Also, The Company takes part in the industry-wide discussion and information-sharing on issues such as regulations regarding chemical substances by serving as a trustee for the Japan Electronics Packaging and Circuits Association and participating in its Environmental Safety Committee.

Initiatives for Laws and Regulations related to Chemical Substances

Although some chemical substances used in the ceramic business fall under the category of substances whose inclusion in products is restricted under the EU REACH Regulations, we completely replaced them with alternative substances in FY2018.
IBIDEN and its domestic Group companies are working systematically, based on the national government's basic plan, to complete the removal and disposal of Polychlorinated Biphenyl (PCB)-containing equipment and waste ahead of the deadline. While we successively replace PCB-containing equipment in accordance with the equipment replacement plan, we ensure the complete disposal of equipment that falls under PCB waste before the disposal deadline by transporting it to disposal facilities on a timely basis after appropriate storage and management based on related laws and regulations. In FY2022, we carried out disposal in accordance with the disposal plan for low-concentration PCB waste we had stored. We will continue to proceed according to the plan.

Considerations on the Health of Employees with regard to Chemical Substances

To ensure the health and safety of our employees, we provide employees who handle chemical substances with education regarding the harmfulness and proper handling of such substances before the employees are assigned to such operations. When they engage in the operations, they are provided with appropriate protective equipment and are obliged to wear it.

Approach to the Supply Chain

IBIDEN Group Green Procurement Guidelines

IBIDEN Group Green Procurement Guidelines

Cooperation throughout the entire supply chain is essential to address environmental issues including chemical control as well as to push forward with CSR. We have issued green procurement guidelines to our business partners in an effort to check the status of our business partners' measures for environmental management and chemical control, and conduct surveys* on the status of inclusion of chemical substances that may cause a significant environmental burden. The Company conducts content examinations not only on substances already designated as examination items by regulation, but also those that are likely to receive such a designation in the near future. We are also organizing a structure that will allow us to work collaboratively with suppliers to address nations' environmental regulations in a timely manner.

* Agreeing with "chemSHERPA," an information communication scheme newly developed under the leadership of the Ministry of Economy, Trade and Industry, we began conducting surveys using chemSHERPA from October 2017.

IBIDEN Group Green Procurement Guidelines

Influence on Biodiversity

Initiated from the power of water, the Group's business activities are blessed with the benefit of biodiversity such as maintaining a stable water supply. And our activities also have some impact in the area of biodiversity. Just as we need to cope with the issues of global warming due to climate change, biodiversity conservation is one of the most important tasks to tackle. Aiming to contribute to constant social advancement, in line with the values stressing "Harmony with Nature," IBIDEN will act responsibly as a global enterprise by working together with society.

Conserving Biodiversity and Concrete Approach to its Sustainable Use

Business activities of our Group are receiving the blessings of nature such as the stable supply of water resources while having an impact on biodiversity at the same time.
In consideration of this, we will contribute to conserving biodiversity in local communities and its sustainable use by practicing forest conservation activities that support stable water source and social contribution activities in collaboration with the local community mainly upstream along the Ibi River, where the IBIDEN Group originated.
In these activities, we also work together with organizations outside of the Company including local municipal governments, and we participate in the Keidanren Initiative for Biodiversity promoted by Keidanren (Japan Business Federation) and other organizations for information sharing.

Environmental Contribution through Business

Product Life Cycle Assessment

IBIDEN is promoting a design that takes into consideration safety/environmental rules and regulations, energy conservation and resource conservation from the initial stage of product development. In design reviews to examine product development/design, we have added environmentally conscious design guidelines for product and process safety, environmental regulations/safety of materials used and energy conservation consciousness reflected in the production process as examination items. We are building a system to confirm whether products developed and produced by IBIDEN are environmentally friendly. By following environmentally conscious design guidelines, we conduct information searches on chemical substances in novel materials during the technical development phase. We promote environmentally conscious design as a routine activity by linking environmentally conscious design reviews with product design reviews. If any chemical substances in chemical substance information collected and extracted at the time of examining materials fall under control substances for compliance reasons, alternative substances are examined.

Projects That Contribute to Both Disaster Prevention and Environmental Protection

In Japan, which is a mountainous country, in order to boost the protection of slopes in difficult weather and soil conditions and to ultimately prevent the loss of life in landslide disasters, practices for securing artificial slopes have undergone many changes over the years with many improvements based on the testing of various methods and technologies through trial-and-error. Currently, in addition to a disaster prevention function, an environmentally-friendly "greener" construction method is expected for artificial slopes. IBIDEN Greentec Co., Ltd., a member of the IBIDEN Group, which has continued to provide new construction methods that achieve both disaster prevention and environmental protection, such as the "Totally Green" method, will create an environment where everyone can live safely and peacefully.

Slope constructed using the GT frame®

Automotive Exhaust System Components

Our ceramics products, such as Diesel Particulate Filter (DPF), which can trap 99% or more of the black smoke emitted by diesel engines, and catalyst carrier for exhaust gas cleaning, have contributed to reducing environmental burdens.