Azbil Corporation
Climate Impact & Sustainability Data (2007, 2023-04 to 2024-03)
Reporting Period: 2007
Environmental Metrics
Total Carbon Emissions:19,602 tCO2e/year
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:1,416 tons/year
Carbon Intensity:Not disclosed
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Reduced CO2 emissions by 2.5% compared to fiscal 2006; total volume: 19,602 tons
- 70% reduction in dichloromethane use at Shonan factory (from 15 tons in 2006 to 4.5 tons in 2007)
- Discontinued cell cleaning process and introduced new wastewater treatment facilities
- Reduced total amount of purchased copier-use paper by 2.1% compared to fiscal 2006; total volume: 52.0 million sheets
- Prepared for introduction of CMS structure by CMS project team from fiscal 2008
- Eco-product rate: 88%
- LCA implementation rate: 30%
- Green procurement rate: 67%
- Number of YEP registered companies: 64
Social Achievements
- Kimmon Manufacturing Co., Ltd. was converted into a wholly owned subsidiary
- More than 5,000 visitors toured the Fujisawa Technology Center, a model factory for energy conservation
- Expanded overseas operating bases in Asia and the Middle East
- Advanced the “Kimmon-Yamatake Jump-Up Plan” to strengthen business foundation and underlying quality
- Expanded business domains in lifestyle disease prevention and nursing care
- Introduced a new remuneration system for regular employees
- Expanded system for reemploying retired personnel; post-retirement reemployment rate exceeds 70%
- Enacted a program to encourage greater involvement among female employees
Governance Achievements
- Appointed Hajime Ikeda and retained Eugene Lee as outside directors
- Strengthened corporate governance by soliciting outside opinions
- Increased ordinary dividends for five consecutive years
- Implemented internal regulatory reporting system based on the Financial Instruments and Exchange Law
- Formulated Basic Policies concerning the control of the Company to enhance enterprise value and protect shareholder interests
- Launched a “Voice of Conscience” hotline for internal reporting and counseling
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- By fiscal 2012, reduce Group CO2 emissions 6.2% compared to the level at the end of fiscal 2006
- By fiscal 2009, completely discontinue use of dichloromethane
- By fiscal 2012, reduce total amount of purchased copier-use paper by 30% compared to fiscal 2006
- By fiscal 2011, create and establish Groupwide CMS management systems
- By fiscal 2011, increase LCA implementation rate to 100% (for new products)
Short-term Goals:
- Reduce CO2 emissions by 3.1% compared to fiscal 2006 by fiscal 2008
- Completely discontinue use of dichloromethane at Shonan factory by fiscal 2008
Environmental Challenges
- Increasing uncertainties in business conditions (rising raw material and crude oil prices, declining capital investment, strengthened yen, weakened dollar)
- Declining prices, surging raw material prices, and weak phase in cyclical demand in the Life Automation business
- Moderate construction investment, particularly in China, depressing sales in the Building Automation business
- Murky sentiment about capital investment in Japan affecting the Advanced Automation business
- Budget constraints in local government social-welfare services and amendments to the Nursing Care Insurance Law affecting the Life Automation business
Mitigation Strategies
- Strengthened business foundations and solid profit structure
- Cost reductions and measures for enhancing profits in the Life Automation business
- Enhanced sales structure and capabilities in the field of production equipment for high-performance materials in the Advanced Automation business
- Expanding overseas operating bases and focusing resources on growth in businesses in China and elsewhere in Asia in the Advanced Automation business
- Improving operating efficiencies and expanding into new business domains in the Life Automation business
- Implementing the “Kimmon-Yamatake Jump-Up Plan” to strengthen Kimmon’s business foundation and improve profitability
Supply Chain Management
Supplier Audits: 64 companies registered for Yamatake Eco Program (YEP)
Responsible Procurement
- Yamatake Eco Program (YEP) to support environmental activities of suppliers
- Revised green procurement practices and chemical substance management mechanisms
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Development of energy-efficient products and services
Reporting Standards
Frameworks Used: GRI, Ministry of the Environment's Environmental Report Guidelines 2007
Certifications: ISO 14001
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Actival™ Motorized Two-Way Valve
- FloWing™ VFR control valve
- Fluorescent Light Stabilizer with Dimming Capabilities
Awards & Recognition
- Special prize at the 6th Japan Environmental Management Awards
- Silver at the Second Superior ESCO Business Awards
- Special prize at the Third Superior ESCO Business Awards
Reporting Period: 2023-04 to 2024-03
Environmental Metrics
Total Carbon Emissions:885.9 thousand metric tons of CO2e
Scope 1 Emissions:4,246 tCO2e
Scope 2 Emissions:15,716 tCO2e
Scope 3 Emissions:885.9 thousand tCO2e
Renewable Energy Share:39.1%
Total Energy Consumption:40,227 MWh
Water Consumption:127.48 thousand m3
Waste Generated:2,913 tons
Carbon Intensity:Not disclosed
ESG Focus Areas
- Climate Change
- Environmental Preservation
- Resource Recycling
- Innovation
- Supply Chain
- Social Responsibility
- Health and Well-being Management
- Human Rights
- Corporate Governance
- Compliance
Environmental Achievements
- Effective reduction of CO2 at customers’ sites: 2.84 million metric tons of CO2/year in FY2023
- Achieved 39.1% renewable energy share in FY2023
- 67% of new products met azbil Group’s own sustainability standards in FY2023
- 100% of new products designed to meet azbil Group’s own sustainability standards in FY2023
Social Achievements
- Launched various work-life balance schemes including hybrid work, maternity leave for spouse, childcare leave, and more.
- Improved employee satisfaction (57% expressed satisfaction with working at azbil Group companies in FY2023)
- Increased percentage of female managers to 6.8% in FY2023
Governance Achievements
- Transitioned to a three-committee board structure in 2022
- Established a comprehensive major risk management system
Climate Goals & Targets
Long-term Goals:
- Net-zero emissions by 2050
Medium-term Goals:
- Effective reduction of CO2 at customers’ sites: 3.40 million metric tons of CO2/year by 2030
- 55% reduction in GHG emissions from business activities by 2030
- 33% reduction in GHG emissions across the entire supply chain by 2030
- Increase the number of skilled professionals for supporting sustainable services to 1,800 by 2030
- Design all new products to be 100% recyclable by 2030
- Achieve resilience to changes in the business environment at 8,000 business sites by 2030
- Provide environments that support stress-free and diverse work styles to 6 million people by 2030
Short-term Goals:
- Double women’s advancement points by 2024 (versus 2017)
- Double training opportunity points by 2024 (versus 2012)
Environmental Challenges
- Reducing CO2 emissions across the entire supply chain
- Maintaining high levels of employee satisfaction
- Further increasing the percentage of female managers
Mitigation Strategies
- Revised educational materials on decarbonization and distributed them to business partners
- Implemented human rights due diligence across the supply chain
- Continued work-style reforms and employee well-being initiatives
- Promoting diversity and inclusion initiatives
Supply Chain Management
Supplier Audits: 556 key business partners covered by azbil Group’s SDG initiatives in FY2023
Responsible Procurement
- Azbil Group Basic Policy on Procurement
- Sustainable Procurement Guidelines for the azbil Group
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Development of energy-efficient products and services
Reporting Standards
Frameworks Used: TCFD
Certifications: ISO 14001, ISO 45001
Third-party Assurance: Third-party verification for CO2 emissions (scopes 1, 2, 3), water withdrawal, and industrial waste volumes
UN Sustainable Development Goals
- Goal 7
- Goal 13
- Goal 6
- Goal 14
- Goal 8
- Goal 4
- Goal 5
- Goal 9
- Goal 12
- Goal 15
- Goal 16
Initiatives are aligned with various UN SDGs as detailed in the report
Sustainable Products & Innovation
- Eco-friendly products and services designed to contribute to solving global environmental problems
Awards & Recognition
- Not disclosed