Climate Change Data

IDEC CORPORATION

Climate Impact & Sustainability Data (2021-04 to 2022-03, 2023)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:4,420 t-CO2e (FY2022, unconsolidated)
Scope 1 Emissions:897 t-CO2e (FY2022, consolidated)
Scope 2 Emissions:12,129 t-CO2e (FY2022, consolidated)
Total Energy Consumption:10,494 thousand kWh (FY2022, unconsolidated)
Waste Generated:237 t (FY2022, unconsolidated)

ESG Focus Areas

  • Productivity improvement
  • Safety, ANSHIN, and well-being
  • Climate change

Environmental Achievements

  • Reduced CO2 emissions by 24% from FY2020 level by FY2025 (target)
  • Increased eco-friendly products ratio to 60% of all new products (target)
  • Expanded adoption of self-consuming solar power generation

Social Achievements

  • Introduced a new personnel system in FY2023 to improve employee engagement and motivation
  • Established a Well-being Center with a fitness gym and Healthcare Center at the head office
  • Conducted LGBTQ training and management training for empowerment of women

Governance Achievements

  • Established and published the IDEC Corporate Governance Policy
  • Established a voluntary Nominating Committee with a majority of outside directors
  • Conducted an effectiveness evaluation of the Board of Directors by a third-party organization

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions by 2051
Medium-term Goals:
  • Reduce CO2 emissions by 50% from FY2020 level by FY2031
  • Achieve at least 15 female managers by FY2025
Short-term Goals:
  • Reduce CO2 emissions by 24% from FY2020 level by FY2025
  • Increase eco-friendly products ratio to 60% of all new products by FY2025
  • Reduce industrial wastes by 24% by FY2025

Environmental Challenges

  • Supply chain disruptions due to soaring energy prices and shortage of raw materials
  • Supply chain disruption and business disruption due to abnormal weather and natural disasters
  • Decline in competitiveness due to lack of response to technological innovation, environmental changes, and customer needs
Mitigation Strategies
  • Restructuring global sites and supply chains
  • Introducing new automation facilities at manufacturing sites to increase efficiency and expand production capacity
  • Developing new products based on industry needs and strengthening sales of solutions

Supply Chain Management

Responsible Procurement
  • IDEC Group CSR Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks
  • Damage to manufacturing sites and supply chain disruption caused by extreme weather events
  • Interruption of power supply caused by effects of extreme fluctuation in rainfall and weather patterns
Transition Risks
  • Increase in carbon pricing
  • Tighter obligation to report emissions
  • Changes in customer behavior or irregular changes in market trends
Opportunities
  • Increase in sales of core products driven by the spread of energy-saving equipment and manufacturing equipment
  • Increase in market share and sales through manufacturing with low environmental impact
  • Business expansion in the environmental field

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, TCFD

Certifications: ISO 14001, ISO 45001

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)

IDEC's initiatives contribute to these goals through the development and use of energy-efficient products, promotion of automation and labor-saving technologies, reduction of environmental impact, and responsible procurement practices.

Sustainable Products & Innovation

  • Eco-friendly products (e.g., LF3D series LED illumination units)
  • Safety-related products

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:11,152 t-CO2e/year (consolidated)
Scope 1 Emissions:781 t-CO2e/year
Scope 2 Emissions:10,371 t-CO2e/year
Scope 3 Emissions:871,614 t-CO2e/year
Renewable Energy Share:8.2%
Total Energy Consumption:26,824,000 kWh/year (consolidated)
Water Consumption:64,534 m3/year (consolidated)
Waste Generated:704 tons/year (consolidated)
Carbon Intensity:133 kg-CO2/million yen

ESG Focus Areas

  • Safety, ANSHIN, and well-being
  • Climate change
  • Business foundation
  • Productivity improvement

Environmental Achievements

  • Reduced CO2 emissions by 7% vs. FY2020
  • Reduced industrial wastes by 24% vs. FY2020
  • Increased renewable energy utilization ratio to 8%

Social Achievements

  • Launched a new personnel system to improve employee engagement
  • Improved engagement scores for Total Employer Attractiveness and Total Workplace Attractiveness
  • Increased the number of female managers to 12 (from 8 in FY2021)

Governance Achievements

  • Established a voluntary Nominating Committee and a Remuneration Committee
  • Increased the ratio of outside directors to 67%
  • Maintained zero serious legal violations

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050
  • Increase overseas share of core product sales to 80% or more within ten years
Medium-term Goals:
  • Achieve net sales of 85 billion yen or higher and operating income margin of 18% or higher by FY2025
  • Reduce Scope 1 and Scope 2 CO2 emissions by 50% by 2031 (vs. FY2020)
  • Achieve 18% renewable energy utilization ratio by FY2025
Short-term Goals:
  • Reduce Scope 1 and Scope 2 CO2 emissions by 24% by FY2025 (vs. FY2020)
  • Increase solution ratio to sales to 12% by FY2025
  • Increase cumulative attendees of safety & explosion protection seminars by 5% YoY

Environmental Challenges

  • Rising raw material prices and shortages of electronic components
  • Global economic uncertainty
  • Climate change
Mitigation Strategies
  • Optimized selling prices globally
  • Strengthened and expanded manufacturing facilities
  • Shifted some production operations overseas
  • Introduced automated equipment
  • Realigned global sites and restructured sales organization
  • Implemented internal carbon pricing (ICP)

Supply Chain Management

Supplier Audits: Site visits and self-assessments through questionnaires

Responsible Procurement
  • IDEC Group CSR Procurement Guidelines
  • IDEC Group Green Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks
  • Damage to Kansai region sites by earthquake
  • Climate change
Transition Risks
  • Increase in material costs
  • Changing customers’ behavior
  • Technology delays to competitors
  • Trends in carbon pricing
Opportunities
  • Expand proposals relating to solar power generation business and fine bubble solutions
  • Develop new products and services through R&D and technology innovations
  • Develop and/or enhance low-emission products and services
  • Use new technologies
  • Participate in the renewable energy program and adapt to energy-saving measures

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, Guidance for Collaborative Value Creation, TCFD

Certifications: ISO 45001, UL508A

Third-party Assurance: Not disclosed

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)

IDEC's initiatives contribute to these goals through renewable energy usage, eco-friendly product development, waste reduction, and CO2 emission reduction.

Sustainable Products & Innovation

  • Enhanced eco-friendly products (e.g., φ22 Smart RFID Reader, surface mount terminal block)

Awards & Recognition

  • Chairperson’s Prize from the Japan Industrial Safety and Health Association