Climate Change Data

JTEKT Corporation

Climate Impact & Sustainability Data (2015-04 to 2016-03, 2020, 2021-04 to 2022-03)

Reporting Period: 2015-04 to 2016-03

Environmental Metrics

Total Carbon Emissions:8,141,000 t-CO2e/year
Scope 1 Emissions:115,000 t-CO2e/year
Scope 2 Emissions:649,000 t-CO2e/year
Scope 3 Emissions:7,377,000 t-CO2e/year

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Improved CO2 emissions basic unit by 5.0% compared with FY 2012 (global)
  • Reduced grease usage by roughly 50% in EPS reduction gear
  • Reduced leakage and downsized solenoid valve by 47% and 27% respectively
  • Achieved lightest weight in the history of TORSEN
  • Reduced material consumption by applying a friction weld technique
  • Extended mold life by applying a new coating (5 times longer)
  • Reduced industrial liquid waste by 80% at Hanazono Plant
  • Reduced annual consumption of packaging and packing material by 12t

Social Achievements

  • Established “bad news first” rule for reporting compliance violations within 24 hours
  • Launched problem-solving training
  • Conducted customer satisfaction surveys
  • Opened Tokyo showroom, JTEKT ROOM Ginza
  • Increased company awareness from 18.0% in 2014 to 21.6% in 2015
  • Improved paid leave consumption rate to 65.6%
  • Reduced number of employees taking time off for mental health reasons, especially in their 40s
  • Improved satisfaction level of employees who completed special health guidance program from 70% to 88%

Governance Achievements

  • Appointed two independent directors outside the company in June 2015
  • Implemented immediate notification rules for compliance violations
  • Established three consultation desks specializing in different fields of problems (corporate ethics, anti-monopoly, harassment)

Climate Goals & Targets

Long-term Goals:
  • Minimize CO2 emitted from plants during production by 2050 (Environmental Challenge 2050)
Medium-term Goals:
  • Contribute to CO2 reduction through products equivalent to or greater than current CO2 emissions of the entire JTEKT group by 2020
Short-term Goals:
  • Reduce CO2 emissions basic unit to 145.2 t/100 million yen by 2020
  • Reduce direct landfill waste to less than 1% of emissions by 2020

Environmental Challenges

  • Violation of the Anti-Monopoly Act in 2011
  • Delayed response to compliance-related incidents
  • High-risk issues such as countermeasures against large-scale earthquakes
  • Increasing number of pedestrian accidents
  • High stress levels in some workplaces
  • High percentage of employees with BMI 25 or higher
  • High percentage of smokers
Mitigation Strategies
  • Strengthened compliance framework and raised awareness among employees
  • Implemented immediate notification rules for compliance violations
  • Enhanced risk countermeasures, including countermeasures against large-scale earthquakes and plans to nurture next-generation business managers
  • Special support activities for companies with frequent accidents
  • Mental health training for managers
  • Stress checks and counseling
  • Workplace improvement activities based on stress check results
  • Special health guidance and Smart Life Stay program
  • Quit Smoking Challenge and anti-smoking education

Supply Chain Management

Responsible Procurement
  • Green Purchasing guidelines
  • CSR Activity Item Guidelines for business partners

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4, ISO26000

Certifications: ISO9001, TS16949, JIS Q 9100, JISHA OSHMS Standards Certification

Sustainable Products & Innovation

  • Low-friction reduction gear using new grease
  • Double-lapped structure of solenoid valve
  • TORSEN type Csm
  • New design anti-creep ball bearing
  • New ceramic ball bearing for motors

Awards & Recognition

  • JAPANESE SOCIETY OF TRIBOLOGISTS Technology Award
  • Toyota Motor Corporation Project Award
  • Aichi Prefectural Grand Prize for Invention

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:681 thousand tons-CO2e
Renewable Energy Share:2.27 MW (JTEKT parent), 17.5 MW (entire Group)
Total Energy Consumption:14,572,499 GJ
Water Consumption:4,814 thousand m3
Waste Generated:123 thousand tons
Carbon Intensity:129.4 tCO2e/billion yen (FY2020)

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Governance
  • Circular Economy
  • Social Responsibility

Environmental Achievements

  • Installed 3,151 kW of photovoltaic power generation systems, reducing annual CO2 emissions by 1,340 tons.
  • Improved thermal efficiency and reduced CO2 emissions by 50% in high-precision casting process.

Social Achievements

  • Obtained “Kurumin” certification for supporting childcare.
  • Launched J-PAS power assist suit to reduce worker burden.
  • Donated masks to over 100 locations including medical institutions.

Governance Achievements

  • Established Carbon Neutral Strategy Office and DX Promotion Office.
  • Implemented a senior management system.
  • Appointed two independent outside directors.

Climate Goals & Targets

Long-term Goals:
  • Net zero CO2 emissions by 2050.
Medium-term Goals:
  • Achieve carbon neutrality for the entire JTEKT Group by 2040.
  • Achieve carbon neutrality for all products (including suppliers) by 2050.
  • Increase the number of women in administrative positions to 40 or more by March 2023.
Short-term Goals:
  • Achieve 80% break-even point ratio by FY2023.
  • Achieve ¥100 billion in business profit by FY2023.

Environmental Challenges

  • COVID-19 pandemic impact on revenue and profits.
  • Intensified market competition.
  • Need for a true merger of Koyo Seiko and Toyoda Machine Works.
  • Lack of integration between operational processes and mentalities of merged entities.
Mitigation Strategies
  • Implemented various measures to boost earnings, including cost reduction and restructuring.
  • Formulated Vision 2030 and a medium- to long-term business plan.
  • Relocated headquarters to Kariya to strengthen cooperation with Toyota Group.
  • Launched “Let’s Be a Real Family” campaign to improve internal communication.

Supply Chain Management

Responsible Procurement
  • CSR Activity Items Guidelines for suppliers
  • Fair and transparent business transactions

Climate-Related Risks & Opportunities

Opportunities
  • Development of hydrogen-resistant bearings and fuel cell products
  • Contribution to renewable energy generation (offshore wind power)

Reporting Standards

Frameworks Used: IIRC, Japan’s Corporate Governance Code, GRI Standards, Japan’s Ministry of the Environment “Environmental Reporting Guidelines (2018 edition)”, ISO 26000

Third-party Assurance: SGS Japan Inc.

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 9 (Industry, Innovation and Infrastructure)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

JTEKT's initiatives contribute to these goals through renewable energy adoption, sustainable product development, waste reduction, and CO2 emission reduction.

Sustainable Products & Innovation

  • Hydrogen-resistant bearings
  • Products for fuel cell electric vehicles
  • Lithium-ion capacitors
  • J-PAS power assist suit

Awards & Recognition

  • Minister of Economy, Trade and Industry’s Prize for Excellence in Energy-Saving Equipment and Systems
  • Agency for Natural Resources and Energy Commissioner’s Award (Small Group Activity Field)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:223.2 thousand tCO2e/year

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Governance
  • Supply Chain Management
  • Human Rights
  • Occupational Safety and Health
  • Community Investment

Environmental Achievements

  • Reduced CO2 emissions by 37.6% compared to fiscal 2013 (to 223.2 thousand t-CO2 in FY2021)
  • Achieved 100% recycling rate (unconsolidated) since November 2012
  • Advanced target date for achieving Scope 1 and 2 carbon neutrality from 2040 to 2035

Social Achievements

  • Increased number of women in administrative positions by 15% from the previous fiscal year
  • Certified as a 2022 Health & Productivity Management Outstanding Organization
  • Issued JTEKT Supplier Sustainability Guidelines in 2022

Governance Achievements

  • Unified all business brands under the single JTEKT brand on April 1, 2022
  • Established new Carbon Neutral Strategy and DX Promotion offices in August 2021
  • Improved breakeven sales ratio to 85.4% in fiscal 2021 (from 92.0% when the president was appointed)

Climate Goals & Targets

Long-term Goals:
  • Achieve Scope 3 carbon neutrality by 2050
Medium-term Goals:
  • Achieve carbon neutrality by 2035
  • Achieve ROE of 10% and ROA of 5%
Short-term Goals:
  • Achieve a break-even point ratio of 80% by fiscal 2023 (versus fiscal 2019 revenue ratio)
  • Achieve business profit of ¥100 billion by fiscal 2023

Environmental Challenges

  • COVID-19 pandemic
  • Semiconductor shortages
  • Tight logistics conditions
  • Soaring resource prices
  • Supply chain disruptions
  • Decreasing number of new employees hired since fiscal 2020
Mitigation Strategies
  • Improved operating structure
  • Lowered fixed to variable costs
  • Consolidated sites in Europe
  • Brand unification
  • Cost reduction efforts
  • Structural reforms
  • Investment in next-generation products and new businesses
  • Development of alternative sourcing strategies

Supply Chain Management

Responsible Procurement
  • JTEKT Supplier Sustainability Guidelines

Climate-Related Risks & Opportunities

Physical Risks
  • Large-scale natural disasters
Transition Risks
  • Rising costs in production processes due to higher prices for fossil fuels, carbon and other taxes, and responding to new CO2 emissions regulations
Opportunities
  • Increased demand for energy-efficient products (automotive parts, bearings, machine tools, storage battery related equipment, hydrogen-related components)

Reporting Standards

Frameworks Used: IFRS, Japan’s Corporate Governance Code, GRI Standards, Japan’s Ministry of the Environment “Environmental Reporting Guidelines (2018 edition)”,, ISO 26000

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 2 (Zero Hunger)
  • Goal 9 (Industry, Innovation and Infrastructure)

Initiatives related to renewable energy, food production (crickets), and industrial robot development

Sustainable Products & Innovation

  • High heat-resistant Lithium-ion Capacitor
  • Steer-by-wire system
  • Gears
  • Bearings for electric vehicle motors
  • Bearings for wind turbines

Awards & Recognition

  • ESG Finance Award Japan Special Prize
  • CDP2021 Supplier Engagement Leader
  • 56th Minister of Economy, Trade and Industry Award for Promoting the Machine Industry (GS200H Gear Skiving Center)