Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Efficiency
• Biodiversity
• Circular Economy
• Human Rights
• Workforce Diversity
• Corporate Governance

Environmental Achievements

• Reduced greenhouse gas emissions during production to 440,000 tons, exceeding the target of 460,000 tons.
• Increased contribution to CO2 emissions reductions in society through products to 41.78 million tons, exceeding the target.
• Reduced the ratio of waste sent to landfill to 1.8%, although temporarily higher due to COVID-19 impacts on sludge recycling.
• Increased water recycling rate from 16.6% to 18.4%.

Social Achievements

• Increased ratio of female hired to 22%
• Increased ratio of female managers to 2.5%
• Increased number of female employees in supervisory positions to 268.
• Provided human rights education to 20,701 employees.
• Reduced average monthly overtime work hours to 18.90 h/month.
• Increased average number of paid vacation days acquired annually to 17.3 days.

Governance Achievements

• Established the Nomination and Remuneration Committee with a majority of Outside Officers.
• Implemented a three-way audit system involving Audit & Supervisory Board Members, internal auditing divisions, and accounting auditors.
• Conducted an effectiveness evaluation of the Board of Directors using a third-party survey.

Climate Goals & Targets

Environmental Challenges

• Increased CO2 emissions in some divisions due to strong semiconductor sales.
• Temporary suspension of sludge recycling at overseas semiconductor factories due to COVID-19.
• Supply chain disruptions due to COVID-19.
• Compliance challenges at overseas subsidiaries.
• Supply chain risks, particularly reliance on single suppliers.
• Information security risks, especially at overseas subsidiaries.
• Quality risks, as evidenced by product defects.

Mitigation Strategies

• Ongoing production-related technological development.
• Switch to energy-saving equipment.
• Switch from high-potency GHGs to lower-potency ones.
• Resumption of sludge reprocessing activities.
• Focus on reducing water consumption through recycling and installing recycling equipment.
• CSR procurement guidelines and self-assessment for business partners.
• Strengthening compliance activities at overseas subsidiaries.
• Multi-sourcing of purchased parts and materials.
• Improved information security measures and training.
• Corrective measures for product defects.

Supply Chain Management

Supplier Audits: 673 major partners (top 80% of subsidiaries’ suppliers) participated in a self-assessment of CSR efforts in 2020.

Responsible Procurement

• Fuji Electric CSR Procurement Guidelines
• Self-assessment of CSR procurement by business partners
• Collaboration with business partners to improve CSR performance.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Disasters
• Sea level rise

Transition Risks

• Increased costs associated with decarbonization
• Loss of sales opportunities due to delay in adopting CO2 reduction technology
• Stricter regulations on fossil fuels
• Shifts in the energy mix

Opportunities

• Increased demand for energy-saving products and environmentally friendly products
• Increased demand from RE100 customers
• Increased demand due to development of production processes that do not use greenhouse gases

Reporting Standards

Frameworks Used: TCFD

Certifications: CDP A List Company (two consecutive years)

Sustainable Products & Innovation

• Clean biomass power generation systems
• Energy-saving equipment
• IGBTs

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Protection
• Sustainable Development Goals (SDGs)

Environmental Achievements

• Revised Fiscal 2030 Goals to establish new metrics for greenhouse gas emissions throughout the supply chain (Scope 1+2+3).
• Scope 1, 2, and Scope 3 (1-8,11) targets approved as 1.5˚C targets by the SBTi (Science Based Targets initiative).

Social Achievements

• Not disclosed

Governance Achievements

• Established the SDGs Promotion Committee and Climate Control Working Group to address climate change impacts.
• Endorsement of TCFD recommendations in June 2020.
• Disclosure on “Risks and Opportunities” (2°C/4°C target base) in June 2021.
• Disclosure on same “Risks and Opportunities” (1.5°C/4°C target) and “Adaptation Measures” in March 2022.

Climate Goals & Targets

Environmental Challenges

• Procurement difficulties and cost increases due to climate change impacts on suppliers.
• Cost increases associated with decarbonization of production facilities.
• Loss of opportunities due to lack of 100% usage of renewable energy during production.
• Decrease in demand for thermal power generation (potential risk).
• Delays in technology development to meet decarbonization requirements.
• Delays in procurement of parts due to extreme weather events.
• Cost increases due to wind and flood damage.
• Delays in outdoor construction and service work due to extreme weather.

Mitigation Strategies

• Promotion of parts standardization and unification.
• Expanded use of recycled materials in products.
• Promotion of “local production for local consumption” (inventory reduction, logistics cost reduction, tax saving).
• Increased demand for renewable energy and energy-saving products (opportunity).
• Increased demand for renewal and services of thermal power generation due to changes in fuel types for thermal power generation and the spread of CCS and CCUS (opportunity).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Promotion of parts standardization and unification.
• Expanded use of recycled materials in products.

Climate-Related Risks & Opportunities

Physical Risks

• Wind and flood damage
• Extreme weather events impacting outdoor construction and service work
• Disruption of logistics network

Transition Risks

• Procurement difficulties and cost increases due to climate change impacts on suppliers.
• Cost increases associated with decarbonization of production facilities.
• Delays in technology development to meet decarbonization requirements.
• Delays in procurement of parts.
• Decrease in demand for thermal power generation.

Opportunities

• Increased demand for renewable energy and energy-saving products.
• Increased demand for renewal and services of thermal power generation due to changes in fuel types for thermal power generation and the spread of CCS and CCUS.

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-saving products
• Renewable energy technologies

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Recycling-oriented society
• Society in harmony with nature

Environmental Achievements

• Obtained SBT validation in 2022
• Certified as an “A List Company” by CDP for 5 consecutive years (as of 2023)
• Reduced GHG emissions throughout the supply chain (progress towards 46% reduction from FY2019)
• Reduced GHG emissions in production (progress towards 46% reduction from FY2019)
• Contributed to reducing society’s CO2 emissions through products (progress towards 59M tons per year reduction)

Social Achievements

• CSR procurement self-assessment conducted annually, covering over 80% of annual purchases
• CSR on-site audits conducted for business partners, in tandem with a third-party certification institution

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increased demand for renewable energy products and concerns over short supply
• Request for products produced with renewable energy
• Customer requirements for data on CO2 emitted from products (CFP)
• Need to visualize CO2 emissions while using products
• Establishment of international standards on reduction amounts
• EU Ecodesign Directive (Digital product passport)
• Global Biodiversity Framework (TNFD)
• Transition from 3R to CE (Circular Economy)
• The Plastic Resource Circulation Act

Mitigation Strategies

• Expand procurement of renewable energy (long-term contracts)
• Visualize CO2 emissions while using products, provide other environment-related product information
• Respond to the move to stipulate the reduction amount in IEC standards
• Calculate CFP for each product
• Support DPP
• Switch to environmentally friendly products
• Formulate evaluation criteria
• Support biodiversity
• Environmental investment, expenses - Introduce energy-saving devices/equipment - Introduce own solar power systems - Purchase renewable energy etc.
• Promoting introduction of own solar power systems, extraction of energy-saving effects when replacing equipment, and expansion of renewable energy purchasing

Supply Chain Management

Supplier Audits: 17 suppliers in FY2024

Responsible Procurement

• CSR Procurement Guidelines
• CSR on-site audits

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD, CDP

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Renewable energy products, power electronics systems, and power semiconductors
• Energy-saving vending machines

Awards & Recognition

• Not disclosed