Fuji Electric Global


ESGApproach to Disclosing Climate-related Information In Accordance with TCFD Recommendations

Fuji Electric is working to disclose climate-related financial information based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Since expressing support for the TCFD recommendations in June 2020, we established a specialized advisory team, the “Climate Control Working Group” (consisting of all business segments and general managers from all business segments, environment devision, procurement devision, and R&D divisions), under the company-wide “SDGs Promotion Committee” (consisting of executive officers) to identify the impact of climate change on Fuji Electric’s business and to take measures accordingly.


Items recommended for disclosure by the TCFD

Governance The organization’s governance in relation to climate-related risks and opportunities
Strategy The impact of climate-related risks and opportunities on the organization’s businesses, strategy and financial planning
Risk management The processes used by the organization to identify, assess and manage climate-related risks
Metrics and targets The metrics and targets used to assess and manage climate-related risks and opportunities

(Summarized by Fuji Electric based on the Recommendations of the Task Force on Climate-related Financial Disclosures (Final Report))

Timeline for Climate-related Financial Disclosures

  • June 2020: Endorsement of TCFD recommendations. In addition, disclosure on “Governance” in the disclosure requirements.
  • June 2021: Disclosure on “Risks and Opportunities” (2°C/4°C target base) in the “Strategy” disclosure requirements.
  • March 2022: Disclosure on same “Risks and Opportunities” (1.5°C/4°C target) and “Adaptation Measures.”


Disclosed in June 2020

  • Fuji Electric positions global environmental protection initiatives as a priority issue for management.
  • We established the SDGs Promotion Committee, a company-wide committee composed of managers (Executive Officers) from our various business, sales and corporate departments, to discuss issues and evaluate measures concerning the promotion of the SDGs, including those related to climate. (April 2020)
    The results of deliberations and evaluations by the Committee are reported to the Executive Committee* and the Board of Directors and discussed as necessary.
  • Through the promotion of Environmental Vision 2050, we will analyze the risks and opportunities that climate change poses for our business and value chains together with the financial impacts of these risks and opportunities, and we will incorporate them into our management strategy and proactively disclose the information.
  • Deliberates and reports on important management issues as an advisory body to the President.


Disclosed in March 2022

We reanalyzed the “Risks and Opportunities” analyzed under the “2°C Scenario” (disclosed in June 2021) under the “Below 1. 5°C Scenario” to identify “Risks and Opportunities” and “Adaptation Measures.”

(1) Scenario Analysis

Outline Adopted Scenario Considered external environment
Below 1.5°C scenario Scenario in which stringent measures are taken to limit the global average temperature rise as of 2100 to1.5°C above the pre-industrial average World Energy Outlook 2020(Published by the IEA:International Energy Agency)
4°C scenario Scenario in which a global temperature rise of around 4°C above the Industrial Revolution period is assumed unless measures exceeding the current level are taken. IPCC Fifth Report(Published by the IPCC: Intergovernmental Panel on Climate Change)

(2) “Risks and Opportunities” and “Adaptation Measures” at 1.5°C/4°C

<Points for the revised contents>

  • We reanalyzed “Risks and Opportunities” under the scenarios of “Below 1.5°C” and “4°C”.
  • We identified and summarized “Risks and Opportunities” of high importance for each supply chain process.
  • We identified “Risks and Opportunities” and “Countermeasures.”
  • We considered not only the short-term perspective, but also the medium- to long-term perspectives, envisioning the year 2040, when identifying “Risks and Opportunities” and “Countermeasures.”

We approach the “Risks and Opportunities” and “Countermeasures” as follows.

Risks Opportunities Adaptive countermeasures
Below 1.5°C Suppliers
  • Deterioration in profit due to procurement difficulties and cost increases
  • Promotion of parts standardization and unification
  • Expanded use of recycled materials in products
  • Promote multi-sourcing
  • Support for decarbonization of key suppliers
  • Accelerate R&D of new technologies, release them to the market in a timely manner, and reduce their costs related to decarbonization
  • Expand parts recycling through collaboration with customers and recycling companies
  • Strengthen reduction of greenhouse gas emission at production facilities
  • Respond to increased demand by increasing production capacity [Semiconductors]
  • Shift resources to renewable energy business [Power generation]
  • Aim to realize optimal transportation modes
Development and design
  • Delays in technology development to meet decarbonization requirements
  • Increased demand for technologies needed to promote decarbonization
  • Cost increases associated with decarbonization of production facilities (capital investment, etc., purchase of renewable electricity)
  • Promotion of “local production for local consumption” (inventory reduction, logistics cost reduction, tax saving)
Customers and markets
  • Loss of opportunities due to lack of 100% usage of renewable energy during production
  • Decrease in demand for thermal power generation
  • 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
  • Delays in procurement of parts
  • Cost increases due to wind and flood damage countermeasures in response to frequent extreme weather events
  • Delays in outdoor construction and service work
  • Delays in product delivery due to the disruption of logistics network and influence to production
  • Increased demand resulting from active investment in BCP measures by customers
  • Promote multi-sourcing of parts (Identify parts with high procurement risk due to the disasters, and diversify risks)
  • Reinforce wind and flood protection measures for domestic factory buildings located mainly in bay areas and areas covered by hazard maps

The above “countermeasures” include items that have already been initiated.

We will continue to discuss countermeasures and financial impacts based on the above risks and opportunities with a view to disclosure.

Risk Management

Disclosed in March 2022

We recognize “risks related to climate change” as one of the “risks that may affect management” in the “Fuji Electric Risk Management Rules.” The year-round “risk management processes” set forth in the Rules are as follows.

Metrics and Targets

Disclosed in March 2022

We have established “Fiscal 2030 Goals” as interim action goals in our “Environmental Vision 2050,” and we aim to achieve these goals by positioning them as “metrics and targets” that correspond to TCFD recommendations.

Environmental Vision 2050

We aim to contribute to the achievement of a decarbonized society, a recycling-oriented society, and a society that is in harmony with nature by expanding the use of Fuji Electric's innovative clean energy technologies and energy-saving products.

Achieve a Decarbonized Society: Target carbon neutrality across the supply chain

Fiscal 2030 Goals

Metrics Targets
Greenhouse gas emissions in production Reduction of over 46%
(compared to FY2019)
Greenhouse gas emissions throughout the supply chain Reduction of over 46%
(compared to FY2019)
Contribution to CO2 reduction in a society Over 59 million tons/year