Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Established NARO Shimadzu Kyoto Laboratory for Food Innovation to analyze functionally beneficial components in food.
• Increased aftermarket sales ratio to 34% in Analytical & Measuring Instruments Business and 33% in Medical Systems Business.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Declining birthrates and aging populations increasing healthcare costs.
• Growing global warming leading to water shortages and need for renewable energy.
• Sophistication of structural materials requiring compliance with safety regulations.
• COVID-19 pandemic impacting business conditions in various sectors.
• Data integrity concerns across industries.

Mitigation Strategies

• Developing infection testing technologies and solutions.
• Supplying systems for clean energy technologies.
• Improving product energy efficiency and consumable longevity.
• Offering network-compatible LabSolutions analytical data systems for data integrity and business process reform.
• Cost and expense reduction measures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Health
• Safety and Security of Society
• Sustainable Development Goals (SDGs)
• Circular Economy
• Diversity and Inclusion
• Governance
• Supply Chain Management
• Infectious Disease Countermeasures

Environmental Achievements

• Endorsed TCFD recommendations (June 2017), obtained Science Based Targets (SBT) initiative certification (November 2019), became a signatory to the RE100 declaration (March 2021) for achieving carbon-neutrality.
• Actively engaged in measures contributing to the environment, including the 3Rs (reduce, reuse, and recycle), and measures aimed at achieving a circular economy.

Social Achievements

• Launched infectious disease countermeasure projects, including providing mobile X-ray systems, reagent kits for detecting COVID-19, and a fully automated PCR testing system.
• Actively collaborating with academia, hospitals, and healthcare institutions to create systems for fighting infectious diseases.
• Focus on health and productivity management, promoting diversity management practices, and training human resources based on respect for differences and diversity.

Governance Achievements

• Strengthened internal controls.
• Established a new DX Strategy Management Department to promote digital transformation.
• Signed the United Nations Global Compact in September 2019.

Climate Goals & Targets

Environmental Challenges

• Impact of the COVID-19 pandemic on business activities and working practices.
• Large differences in business conditions across regions, fields, and business categories.
• Achieving carbon-neutrality given the company's relatively small contribution to global emissions.

Mitigation Strategies

• Implemented infectious disease countermeasure projects.
• Optimized the business base by strengthening operations outside Japan.
• Implemented DX measures to improve efficiency and expand business opportunities.
• Developed more sophisticated sustainability management practices, including ESG measures and a “zero-carbon commitment”.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, SDGs, UN Global Compact

Certifications: Science Based Targets (SBT) initiative

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Health & Wellbeing
• Supply Chain Sustainability
• Biodiversity

Environmental Achievements

• Reduced CO2 emissions by 78.8% from FY 2017 to 10,462 t-CO2 in FY 2022. 86% of total electricity consumption in FY 2022 was from renewable sources.
• Waste recycle rate of 99.67%
• CO2 reduction contribution of new products sold during FY 2022 was 8,884 tons.

Social Achievements

• Percentage of female managers in the consolidated Shimadzu Group increased by 0.7 points (year on year) to 10.9% in FY 2022.
• Percentage of male employees taking childcare leave in non-consolidated Shimadzu Corporation improved from 22.7% in FY 2020 to 56.7% in FY 2022.
• Launched Health Checkup Challenge, increasing average health score from 84.5 to 85.7 points.

Governance Achievements

• Established Group management regulations to strengthen governance capabilities.
• Established 240 managers responsible for implementing risk management practices and reassessing business processes.
• Shimadzu Group’s CO2 emission reduction target for FY 2030 was validated by the SBT initiative.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to parts and materials procurement difficulties and the China lockdown.
• Compliance issues at subsidiaries.
• Development delays due to the COVID-19 pandemic and supply difficulties.
• Economic security and geopolitical risks.
• Inadequate assessment systems leading to employee dissatisfaction.
• Insufficient training resulting in lack of appreciation for service work ethics.

Mitigation Strategies

• Acquired Nissui Pharmaceutical (renamed Shimadzu Diagnostics Corporation) to generate synergies in healthcare.
• Established a new medium-term management plan to increase corporate value.
• Strengthened Group governance capabilities and implemented cultural reforms.
• Established three lines of defense for risk management.
• Reconsidered assessment criteria and training content.
• Established supervising/monitoring capabilities and eliminated dual roles.
• Strengthened internal reporting function.

Supply Chain Management

Supplier Audits: 100% (Percentage of orders placed by subcontractors) by FY 2025

Responsible Procurement

• CSR self-assessments by suppliers
• Collaboration with Bank of Kyoto to support supplier sustainability initiatives.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (wind and flood disasters)

Transition Risks

• Carbon pricing
• Sharp price increases for products in highly energy-intensive industries
• Decreased demand for products for fossil fuel industries
• Intensified competition in technology development

Opportunities

• Increased demand for energy-efficient products
• Increased demand for products related to clean energy, batteries, and new materials.

Reporting Standards

Frameworks Used: TCFD, SBT, UNGC, TNFD

Certifications: Eco-First Company

UN Sustainable Development Goals

• SDG 3
• SDG 6
• SDG 7
• SDG 9
• SDG 12
• SDG 13

Shimadzu's initiatives contribute to these goals through various activities related to health, clean water, renewable energy, sustainable infrastructure, responsible consumption and production, and climate action.

Sustainable Products & Innovation

• Eco-Products Plus

Awards & Recognition

• Health and Productivity Management Brand (3 consecutive years)
• White 500 Company with Superior Health Management (7 consecutive years)
• Minister of the Environment's Award for Achievement in Promoting a Recycling-Oriented Society (2021)

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Reduced CO2 emissions by 78.2% compared to FY2017 to 10,778 t-CO2, due to switching to renewable energy.
• 85% of total electricity consumption in FY2023 was from renewable energy sources.
• Achieved a 99.70% waste recycling rate for 14 consecutive years.

Social Achievements

• Increased percentage of female managers in the consolidated Shimadzu Group to 11.1% in FY2023.
• Increased percentage of male employees taking childcare leave.
• Number of employees participating in health promotion events reached 6,332.

Governance Achievements

• 100% of Group companies notified of Shimadzu Group Management Basic Regulation.
• 96% implementation of CSR self-assessment and supplier communication.
• Implemented corrective measures for fraud at Shimadzu Medical Systems Corporation.

Climate Goals & Targets

Environmental Challenges

• Worsening market conditions in China.
• Longer than expected development and approval processes in Med-Tech business.
• Low operating margins in medical systems and industrial machinery segments.
• Fraudulent practices at Shimadzu Medical Systems Corporation.

Mitigation Strategies

• Integrated sales units into the Sales & Marketing Division.
• Accelerated development and approval processes in Med-Tech by modifying strategies and bolstering human resources.
• Implementing measures to increase operating margins.
• Implemented corrective measures and recurrence prevention measures for fraud at Shimadzu Medical Systems Corporation.

Supply Chain Management

Supplier Audits: 96% of suppliers conducted CSR self-assessments.

Responsible Procurement

• CSR self-assessments
• Supplier communication

Climate-Related Risks & Opportunities

Physical Risks

• Wind and flood disasters
• Supply chain disruptions

Transition Risks

• Carbon pricing
• Sharp price increases for products in highly energy-intensive industries
• Decreased demand for products for fossil fuel industries

Opportunities

• Increased demand for energy-efficient products
• Increased demand for products related to renewable energy
• Increased demand for products used to improve battery and storage system performance
• Increased demand for products related to R&D of CO2 adsorbents
• Increased demand for products related to development, quality control, and evaluation of biomass resources
• Increased demand for material testing machines and products related to surface analysis of new materials
• Increased demand for products related to semiconductors

Reporting Standards

Frameworks Used: TCFD, SBT, RE100, UN Global Compact

Certifications: Eco-First

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)
• Goal 3 (Good health and well-being)

Shimadzu's initiatives contribute to these goals through renewable energy use, development of sustainable products, waste reduction, CO2 emission reduction, and advancements in healthcare technologies.

Sustainable Products & Innovation

• Eco-Products Plus
• Products made with flame retardant cellulose fiber-reinforced composite plastic

Awards & Recognition

• 2023 Best 10 New Products Award (Brevis GC-2050)