Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy

Environmental Achievements

• Implemented approximately 570 individual energy-saving measures throughout the Murata Group (estimated reduction of 47,000 t-CO2e per year).
• GHG emission reduction targets received SBT certification.
• Installed new on-site power generation facilities using solar panels and storage batteries into four domestic plants (cumulative annual CO2 emissions reduction of 2,265 tons).

Social Achievements

• Not disclosed

Governance Achievements

• Strengthened its governance system for climate change measures. The Board of Directors has overall accountability for the management of all risks and opportunities, including climate change.
• Endorsed recommendations by the TCFD.

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions account for 76% of Murata’s total GHG emissions.
• Increase in plant building and operating costs
• Increase in material procurement costs due to strained balance between supply and demand for rare metals.
• Increase in fuel and power costs
• Loss of business opportunities due to insufficient BCP response
• Instability in power supply due to active implementation of renewable energy

Mitigation Strategies

• Communicating Murata’s goals and initiatives through interviews to more than ten suppliers.
• Providing support to suppliers to assist in reducing GHG emissions.
• Considering proposing renewable energy and energy-saving systems for which we have a track record of internal use, along with energy management systems, etc., that use Murata sensors.
• Active introduction of renewable energy for the promotion of decarbonization in the manufacturing process
• Reduction in CO2 emissions in collaboration with suppliers
• Decrease in cost burden through active use of energy conservation subsidies and preferential tax treatment
• Offsetting increased building costs by reducing running costs through energy conservation
• Active adoption of low-environmental burden building materials for constructing plants
• Efforts to reduce the amount of materials used, associated with downsizing of products
• Recycling process efforts and exploration of alternatives
• Introduction of internal carbon pricing system
• Enrichment of BCP at individual manufacturing sites
• Ensuring a backup system at key manufacturing sites

Supply Chain Management

Supplier Audits: More than ten suppliers visited and interviewed in fiscal 2022

Responsible Procurement

• Communicating Murata’s goals and initiatives through interviews to more than ten suppliers.
• Providing support to suppliers to assist in reducing GHG emissions.
• Considering proposing renewable energy and energy-saving systems

Climate-Related Risks & Opportunities

Physical Risks

• Extreme typhoons and extreme heat
• Extreme drought and landslide
• Extreme rainfall flood and sea-level rise
• Extreme precipitation, storm surge, river flood or snowmelt

Transition Risks

• Customer loss due to inability to respond to decarbonization needs
• Increase in decarbonized product needs
• Increase in plant building and operating costs
• Increase in material procurement costs
• Increase in fuel and power costs
• Introduction of carbon pricing

Opportunities

• Contribution to a decarbonized society through battery and power supply business
• Creation of new businesses related to energy conservation and renewable energy
• Environmental monitoring using modules and sensors
• Acquisition of opportunities due to the expansion of the parts market associated with the shift to EVs
• Provision of new value including software solutions
• Exploration of business opportunities in the Out-Car area
• Promotion of the development of products that can respond to the technical requirements for the upcoming 6G society
• Efforts for low power consumption and reduced loss
• Continuous development of sensing techniques and devices

Reporting Standards

Frameworks Used: TCFD, SBT

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• AI energy-saving controls
• Containerized storage batteries
• Wireless sensors

Awards & Recognition

• Excellent FM Award at the 17th Japan Facility Management Association (JFMA) Award

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate Change
• Diversity, Equity, and Inclusion
• Human Rights
• Corporate Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Promoting global job rotation, acquisition and active participation of human resources with diverse experiences, provision of diverse career paths, and promotion of women in the workplace.

Governance Achievements

• Established a Nomination Advisory Committee and Remuneration Advisory Committee to enhance objectivity and transparency and improve corporate governance.
• Adopted “Company with an Audit and Supervisory Committee” structure to reinforce the Board of Directors function and the supervisory function.

Climate Goals & Targets

Environmental Challenges

• ROIC (pre-tax basis) result of 10.0% in FY 2023 fell below the target of 20% or higher. This largely reflected the declines in the ratio of operating income to net sales and the capital turnover ratio due to a significant slowdown in demand for components in consumer markets, such as smartphones and personal computers.

Mitigation Strategies

• Promotion of initiatives for the expansion of market share for each product lineup
• Implementation of measures to enhance productivity, such as promotion of rationalization at manufacturing sites
• Thorough evaluation of economic efficiency of investments for new capital investments
• Proactive IR activities (disclosure of information and dialogue)
• Establishment of stable management structure by strengthening corporate governance
• Promotion of initiatives related to sustainability

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• “Supply Chain CSR Procurement Guideline” requires suppliers “not to deal with companies that have relationships with anti-social forces.”

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD, RE100, Science Based Targets (SBT)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed