Advantest Corporation
Climate Impact & Sustainability Data (2022, 2023-04 to 2024-03)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:3058.78 thousand tCO2e/year
Scope 1 Emissions:3.45 thousand tCO2e/year
Scope 2 Emissions:17.02 thousand tCO2e/year
Scope 3 Emissions:3038.31 thousand tCO2e/year
Renewable Energy Share:63%
Total Energy Consumption:111305 MWh/year
Water Consumption:242129 m3/year
Waste Generated:1352 tons/year
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Reduced CO2 emissions (Scope 1+2 market-based) by 37.1% from FY2018 to FY2022 (from 33.45 to 17.02 thousand t-CO2e)
- Increased renewable energy share to 63% in FY2022
Social Achievements
- Increased female employee ratio to 21.2% in FY2022
- Maintained low occupational accident frequency rate (0.5 in FY2022)
Governance Achievements
- Established a Nomination and Compensation Committee
- Implemented a performance-based compensation system
Climate Goals & Targets
Environmental Challenges
- Scope 3 emissions remain significant
- Maintaining a balance between business growth and environmental sustainability
Mitigation Strategies
- Implementing various initiatives to reduce Scope 3 emissions
- Investing in R&D for environmentally friendly products and technologies
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI, TCFD
Third-party Assurance: Ernst & Young ShinNihon LLC
Reporting Period: 2023-04 to 2024-03
Environmental Metrics
Total Carbon Emissions:16.6 kt CO2e (Scope 1+2)
Renewable Energy Share:65%
Water Consumption:279,740 m3/year
ESG Focus Areas
- Climate Change
- Diversity & Inclusion
- Governance
- Human Rights
- Supply Chain Sustainability
Environmental Achievements
- Reduced GHG emissions by 53% (vs. FY2018) in Scope 1+2
- Increased renewable energy sourcing rate to 65% (vs. FY2018)
Social Achievements
- 100% return-to-work rate after maternity leave (Japan)
- 34% of male employees in Japan exercised childcare leave
- Ranked #1 in TechInsights customer satisfaction survey for the fifth consecutive year
Governance Achievements
- Separation of Group CEO and Chairman of the Board
- Increased Board diversity with non-Japanese and female directors
- Improved executive compensation system with increased stock compensation and restricted stock for outside directors
Climate Goals & Targets
Long-term Goals:
- Net-zero GHG emissions in Scopes 1+2 by 2050
Medium-term Goals:
- Achieve zero LTIR by 2026
- Increase ratio of female managers to 17% by 2030
- Maintain and improve ESG ratings
Short-term Goals:
- Reduce GHG emissions by 65% (vs. FY2018) by 2030
- Increase renewable energy coverage rate to 80% by 2026
- Reduce production period by 20% (vs. FY2020)
Environmental Challenges
- Significant demand fluctuations in the semiconductor industry
- Market share losses due to delays in product delivery
- Difficulty procuring parts and timely product delivery
- Weaker profitability due to competition and price pressure
- Impacts of global economic and political factors
- Stricter environmental regulations
- Shortage of highly specialized human capital
- Loss of credibility due to compliance violations
- Business continuity impacts due to IT failures
Mitigation Strategies
- Expansion into adjacent markets
- Outsourcing production and supplier diversification
- Strengthening services and recurring businesses
- Improved communication with customers and internally
- Reducing dependence on specific suppliers
- Understanding customer needs and providing high-value solutions
- BCP plans and supplier compliance checks
- Geographic diversification of production and suppliers
- Monitoring environmental legislation and adopting alternative technologies
- Recruitment plans, improved work environments, employee retention systems, and training
- Strengthening internal processes, compliance education, and product quality reviews
- Strengthening cyber-attack detection, information security training, and quick response systems
Supply Chain Management
Supplier Audits: 85% of suppliers by transaction value
Responsible Procurement
- RBA Code of Conduct
- Conflict mineral investigation
- EcoVadis assessment
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI, SASB
Certifications: ISO