Fuji Electric Global


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

Since endorsing the Task Force on Climate-related Financial Disclosure (TCFD) in June 2020, we have updated our disclosures in line with TCFD recommendations. In March 2022, we disclosed our “Risks and Opportunities” and “Adaptive Measures” associated with climate change. The risks that will have the greatest impact on our business are (1) “suspension of production activities due to flooding and other damage caused by frequent extreme weather events” under the 4°C scenario, and (2) “increased environmental investments and expenses” to reduce greenhouse gas emissions in production activities under the 1.5°C scenario. We specifically identified these two risks and examined and calculated their countermeasures and financial impact.
In June 2023, we reflected this in the “Strategy” section.


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.”
  • June 2023: Specific identification of significant “Risks” and disclosure of countermeasures and financial impact


Disclosed in June 2020
Updated in August 2023

  • 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.
  • In 2022, we held the SDGs Promotion Committee twice and reported on the deliberation results to the Executive Committee and the Board of Directors.
    [Main deliberation matters]
    - Measures to achieve decarbonization goals (FY2030) and a greenhouse gas emission reduction plan
    - TCFD “Impact of climate change risks on corporate activities”
  • Deliberates and reports on important management issues as an advisory body to the President.


Disclosed in June 2020
Updated in August 2023

Among the “Risks and Opportunities” under the “4°C scenario” and “1.5°C scenario,” we specifically identified the significant risks in both scenarios and discussed the measures to be taken and the financial impact.

Scenario Analysis

Outline Adopted Scenario
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 IEA World Energy Outlook 2020
IPCC 1.5 degree C Special Report
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 Assessment Report

IEA: International Energy Agency          
IPCC: Intergovernmental Panel on Climate Change

The “Risks and Opportunities," which we recognize and the "Countermeasures,”which we should approach, are shown as below." (March 2022)

Risks indicated in bold red are those we recognize as having a particularly significant impact on business (June 2023).

Risks Opportunities Adaptive countermeasures
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

Identification of Significant “Risks” Recognized by Fuji Electric and Countermeasures and Financial Impact (disclosed in June 2023)

In light of the above, we identified risks, formulated countermeasures, and calculated the financial impact of “suspension of production activities due to flooding and other damage caused by frequent extreme weather events” and “increased environmental investments and expenses to reduce greenhouse gas emissions in production activities.”

Items Identification of risks Countermeasures and financial impact
Suspension of production activities due to flooding and other damage caused by frequent extreme weather events (4°C)
  • Number of production sites found to be at risk of flooding
    - Applicable sites: All 44 domestic and overseas bases
    - Results: 6 sites (3 domestic and 3 overseas) are at risk
  • We asked Tokio Marine dR Co., Ltd. to conduct a risk assessment and we reviewed it internally.
    Sites with a flooding hazard of 0.5 m or more according to official hazard information, and sites without hazard information, were assessed as having “risk of flooding” when they were determined to have a high “risk of flooding” due to topographical conditions.
  • <Reference>

  • In Japan: “Web-Based Flood Simulation Search System at an Arbitrary Point” (MLIT), hazard maps (each municipality)
  • Overseas: “Aqueduct Water Risk Atlas” (WRI)
  • Production sites at risk of flooding began developing and implementing flood countermeasures to minimize damage, and revised business continuity plans (BCP).
  • Even at sites considered to be low risk, flood countermeasures will be taken as necessary.
  • Efforts will be made to stabilize the supply of parts in the event of disasters by establishing a supply system from multiple sites while identifying the risk of flooding in the supply chain.
Increase in environmental investments and expenses (1.5°C)
  • Our environmental vision for FY2030 aims to reduce greenhouse gas emissions in production activities by more than 46% compared to FY2019 levels.
  • To achieve this goal, the following environmental investments and expenses were estimated.
    - Installation of photovoltaic power generation equipment at the company’s factories
    - Purchase of renewable energy credits
    - Equipment renewal

    The total environmental investments and expenses associated with the reduction of greenhouse gas emissions in production activities are as follows.

  • Approximately 2.5 billion yen in FY2022
  • The cumulative total from FY2023 to FY2030 is approximately 13 billion yen (Including the risk of increase in the purchase price of renewable energy credits)

  • The financial impact will need to be reviewed if there are business plan revisions or if there is impact associated with sudden environmental changes.

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

Fuji Electric has formulated the Environmental Vision 2050 and has positioned its interim action goals, referred to as the Fiscal 2030 Goals, as “metrics and targets” that correspond to TCFD recommendations.
In March 2022, we revised our Fiscal 2030 Goals to establish new metrics for greenhouse gas emissions throughout the supply chain (Scope 1+2+3). Together with the existing metrics for GHG emissions in production activities (Scope 1+2), we have established the “metrics and targets” for Scope 1+2 and Scope 3 GHG emissions, which are items required for disclosure under TCFD recommendations. In the same year, our Scope1,2 and Scope3(1-8,11) targets were approved as 1.5˚C targets by the SBTi (Science Based Targets initiative).

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