Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced electricity consumption by 15.7% from the previous fiscal year.
• Switched to city gas in the headquarters area, reducing kerosene use by 49% and LPG by 79%.
• Achieved almost 100% waste recycling.
• Reduced PRTR chemical substance usage in proportion to production level.

Social Achievements

• 100% of female employees who used childcare leave returned to work.
• Opened a nursery for employees' children.
• Established a helpdesk to support employees receiving treatment while working.
• Achieved zero work-related fatalities for more than 3 years.

Governance Achievements

• Transitioned to a company with an Audit and Supervisory Committee.
• Established a Nomination and Remuneration Committee with a majority of Independent Outside Directors.
• Established a global whistleblowing system.
• Acquired ISO 27001 certification for information security management.

Climate Goals & Targets

Environmental Challenges

• Emergence of competitive products utilizing new technologies.
• Shrinking labor force population.
• Stricter environmental regulations.
• Difficulty in hiring competent people.
• Potential for incorrect or delayed management decisions.
• Supply chain disruptions (due to COVID-19 and parts shortages).

Mitigation Strategies

• Developing competitive products and enhancing services.
• Establishing multiple production sites.
• Developing energy-saving and energy-efficient products.
• Establishing a governance system with separated roles and responsibilities.
• Implementing a business continuity plan (BCP).
• Establishing an Emergency Countermeasures Working Group and Disaster Response Team to address supply chain issues.

Supply Chain Management

Responsible Procurement

• CSR Procurement Policy
• Supplier Code of Conduct
• Declaration of Partnership Building
• Compliance with Act against Delay in Payment of Subcontract Proceeds
• Conflict Minerals policy
• Reduction and Elimination of Harmful Substances

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of natural disasters

Transition Risks

• Increase in costs due to carbon tax
• Increase in costs due to rise in raw material prices
• Decrease in demand for some products due to market shifts

Opportunities

• Increased demand for energy-saving and robotization products
• Increased demand due to shift to EVs/FCVs

Reporting Standards

Frameworks Used: GRI Standards, Environmental Reporting Guidelines (Ministry of the Environment), ISO 26000, TCFD recommendations

Certifications: ISO 14001 (2015 version), ISO 27001

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 13 (Climate action)

FANUC's initiatives contribute to these goals through energy-efficient products, automation technologies, and climate change mitigation efforts.

Sustainable Products & Innovation

• Energy-efficient CNCs, servos, lasers, robots, and Robomachines

Awards & Recognition

• Various awards for energy-saving products and robots
• Intellectual Property Achievement Award
• Derwent Top 100 Global Innovators

Environmental Metrics

ESG Focus Areas

• Responsibility to Supply
• Customer-Oriented Advanced Technologies
• Climate Change
• High Level of Reliability and Safety of Products
• Development of and Engagement with Human Resources

Environmental Achievements

• Achieved a 7.4% increase in power consumption from the previous fiscal year’s level, achieving the FY2023 target of limiting the increase to 13.5%
• Switched to city gas in the Headquarters area.
• Reduced waste liquid through various measures including oil-water separators, reuse of cutting fluid, and use of release agents with less waste liquid.
• Reduced PRTR chemical substance usage through various measures including use of cutting fluid without N,N-dicyclohexylamine and lead-free solder.
• Reduced GHG emissions from business activities (Scope 1, 2) by 18.5% compared to the base year (FY2020).
• Reduced emissions due to the use of sold products for Scope 3 (Category 11) by 8.1% compared to the base year (FY2020).

Social Achievements

• 100% of female employees who used childcare leave returned to work.
• Opened a nursery for employees’ children.
• Increased number of male employees taking childcare leave every year since 2019.
• Achieved zero work-related fatalities for more than 3 years.
• Annual vacations taken at a rate of 86% in FY2023, achieving the target of 80%.

Governance Achievements

• Transitioned to a Company with an Audit and Supervisory Committee in 2021.
• Established the Nomination and Remuneration Committee, majority of which comprises Independent Outside Directors.
• Introduced executive pay linked to sustainability in June 2024.
• Established a global whistleblowing system.

Climate Goals & Targets

Environmental Challenges

• Decreases in the workforce and skilled engineers in the manufacturing industry.
• Supply chain disruptions due to the impact of COVID-19 and increased demand.
• Climate change risks, including increased costs due to carbon tax and raw material price increases, and decreased demand for some products.
• Potential increase in recovery costs due to natural disasters.

Mitigation Strategies

• Developing user-friendly products and automation systems.
• Establishing an Emergency Countermeasures Working Group and Disaster Response Team to manage supply chain risks.
• Conducting scenario analysis to identify climate change risks and opportunities and implementing risk management strategies.
• Promoting business continuity plans (BCP).

Supply Chain Management

Supplier Audits: Annual SAQ (Self Assessment Questionnaire) for top 80% of suppliers

Responsible Procurement

• CSR Procurement Policy
• Supplier Code of Conduct
• Declaration of Partnership Building
• Conflict Minerals policy
• RoHS Directive and REACH Regulation compliance

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of natural disasters

Transition Risks

• Increase in costs due to carbon tax
• Increase in costs due to the rise in raw material prices
• Decrease in demand for a part of FANUC products due to consumer behavior change and shift to EV/FCV

Opportunities

• Increase in demands for FANUC products due to energy-saving and robotization
• Increase in demands for FANUC products due to the shift to EV/FCV

Reporting Standards

Frameworks Used: GRI Standards, Environmental Reporting Guidelines, ISO 26000, SDGs, SASB Standards, TCFD recommendations

Certifications: ISO 14001, ISO 45001, ISO 27001, SBT initiative

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 13 (Climate action)

FANUC's initiatives contribute to these goals through energy-efficient products, automation technologies, and climate change mitigation efforts.

Sustainable Products & Innovation

• Energy-efficient servo motors
• Power supply regeneration system
• α i-D series SERVO system
• Lightweight collaborative robots (CRX)

Awards & Recognition

• Nikkan Kogyo Shimbun Top 10 New Products Award
• Japan Society for Precision Engineering Technology Award
• Okochi Award
• Nikkei Superior Products and Services Awards
• GOOD DESIGN AWARD
• Industrial Machinery Design Award IDEA
• Japan Society of Polymer Processing Aoki Katashi Innovation Award
• Intellectual Property Achievement Award
• Derwent Top 100 Global Innovators