SMC Corporation
Climate Impact & Sustainability Data (2021-04 to 2022-03)
Reporting Period: 2021-04 to 2022-03
Environmental Metrics
Total Carbon Emissions:198,000 t-CO₂/year (FY2021)
Water Consumption:680,000 m3/year
Waste Generated:4,416 tons/year
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Reduced CO₂ emission per unit of production by 11.9% compared to the 7th Term (FY2017–2019) average.
- Reduced waste discharged per unit of production by 2.2% compared to the 7th Term (FY2017–2019) average.
Social Achievements
- Maintained an employment rate of people with disabilities higher than the legally required rate.
- Achieved approximately 70% of entitled annual paid leave taken each fiscal year.
- Kept employee turnover rate within three years under 10%.
Governance Achievements
- Established a Sustainability Committee as an advisory committee to the Board of Directors to strengthen its supervisory function.
- Established an Eco-Factory Promotion Office to collect environmental data and plan measures.
Climate Goals & Targets
Long-term Goals:
- Carbon neutral by FY2050
Medium-term Goals:
- Reduce GHG emissions by 48% by FY2030 (SMC Group Scope 1 + 2 vs FY2021).
Environmental Challenges
- Risk of not wanting to become friends or do business with “honors students” (employees).
- Risk of failure by doing more than what employees are capable of.
- Potential loss of “honors students” status due to new technology or competition.
Mitigation Strategies
- More frequent discussion at the Board of Directors on laying a strong foundation for the future.
- Becoming an even more globally respected company.
Supply Chain Management
Responsible Procurement
- Green procurement
- Responsible sourcing of minerals
- Efforts against Conflict Mineral Issues
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: ISO 26000, GHG Protocol, TCFD
Certifications: ISO 14001
Sustainable Products & Innovation
- Compact, lightweight, air-saving, and energy-saving products