ESG
Achieve a Decarbonized Society
- Contribution to SDGs
- ESG Material Issues
- Environmental Vision
- Environment
- Society
- Governance
- ESG Index
- Comparison with ISO26000
- External Evaluation
- Activity Archives
- Participation in initiatives
- Fuji Electric Report/Annual Reports
In light of the global movement toward carbon neutrality and the Japanese government’s decarbonization goals, we at Fuji Electric have clearly stated in our Environmental Vision 2050, which outlines the long-term direction of our environmental activities, that we aim for carbon neutrality across the supply chain. In addition, we have revised the Fiscal 2030 Goals, which are our interim action goals, to establish a new target of greenhouse gas emission reductions across the supply chain, including our business partners as well as ourselves.
To realize a decarbonized society, we aim to achieve carbon neutrality in the overall supply chain by 2050.
Action Plan to Reduce Greenhouse Gas Emissions
Society has been making great progress in preventing global warming since the adoption of the Paris Agreement in December 2015. The agreement stipulates that the average worldwide temperature increase must be kept sufficiently below 2°C compared to pre-industrial levels, and that efforts must be made to limit the increase to 1.5°C. Against this backdrop, Fuji Electric set a target in fiscal 2018 to reduce greenhouse gas emissions (Scope 1+2) in production activities by fiscal 2030, and formulated its “Environmental Vision 2050” in fiscal 2019.
Despite this, social trends have been accelerating more quickly than we had initially anticipated. For example, in 2020, major countries around the world started raising their greenhouse gas emission reduction targets. Amid this fast-moving social trend toward decarbonization, Fuji Electric partially revised its “Environmental Vision 2050” in 2021, announcing that it will aim for carbon neutrality in its entire supply chain. In addition, we also revised our fiscal 2030 target in March 2022, raising the target for greenhouse gas emissions in production activities and establishing a new target for reducing greenhouse gas emissions (Scope 1+2+3) throughout the entire supply chain.
Furthermore, we obtained certification for the “1.5°C level” by SBTi (Science Based Targets Initiative), an international initiative, in 2022 for our new reduction targets for Scope 1+2 and Scope 3 (Categories 1-8,11).
Reducing Greenhouse Gas Emissions During Production
Reduction of Total Greenhouse Gas Emissions
Fuji Electric takes greenhouse gas (GHG) emissions as a metrics to assess our activities for realizing a society with net-zero carbon emissions. We define greenhouse gas emissions as the sum of CO2 emitted through energy consumption and greenhouse gases such as HFC, PFCs, SF6, and NF3 emitted in the production process.
Even before formulating Environmental Vision 2050, we were working to reduce GHG emissions from production activities.
The new target set for fiscal 2030 aims at a more than 46% reduction of CO2 equivalent on the fiscal 2019 results, and this is equivalent to a 69% reduction from the fiscal 2006 level (our base year for energy-saving activities) and an 85% reduction from fiscal 1990 (global base year for the Kyoto Protocol).
Greenhouse gas emissions reduction initiatives and results in production activities (fiscal 2022)
1.＜Scope＞
(1)Japan: All production sites and consolidated production subsidiaries
(2)Overseas: Consolidated production subsidiaries (Fuji Electric Consul Neowatt (India) was included in the scope of consolidation in fiscal 2020)
2.＜Power coefficients＞
(1)Japan: Based on The Electric Power Council for a Low Carbon Society (0.436 kg-CO2e/kWh for fiscal 2022)
(2)Overseas: Latest average power coefficients for each country in IEA’s Emission Factors 2022. Average values for 2020 used for fiscal 2022.
Actual greenhouse gas emissions in production activities in fiscal 2022 were 334,000 tons, down 8.2% year-on-year. This achievement was approximately 16% below the target for the fiscal year (below 400,000 tons). Since this target value corresponded to the value of the SBT action plan (the value for fiscal 2022 on the straight line connecting the base value for fiscal 2019 and the target value for fiscal 2030), it can be said that we are currently on track to achieve results that will meet the SBT plan.
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1.
Main reduction measures and actual results (values in parentheses represent percentage of year-on-year reductions)
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Energy-saving activities (installation of high-efficiency lighting, air conditioning, etc.): -5,000 tons (1.30%)
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Greenhouse gas replacement: -12,000 tons (3.36%)
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Power coefficient reduction effect: -1,000 tons (0.34%)
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Increased purchase of renewable energy:-6,000 tons (1.52%)
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Amortization of renewable energy certificates: -5,000 tons (1.47%) (since fiscal 2022)
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Total emissions reduction based on the measures: -29,000 tons (7.98%)
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2.
Following are factors that had impact on emission volumes other than the reduction measures
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Business withdrawal: -9,000 tons (2.57%): Termination of HD media business in July 2021
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Production capacity expansion: +9,000 tons (2.37%) in terms of the semiconductors, etc.
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Greenhouse Gas Emissions: Results and Future Measures
CO2 emitted during production comes under Scope 1 and Scope 2 emissions.
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Scope 1：Direct greenhouse gas emissions by the reporting company itself.（eg. fuel combustion, industrial process）
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CO2 directly emitted from factories due to combustion of fuel during cogeneration power generation, boilers, drying furnaces, etc.
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Four greenhouse gas types directly emitted from production processes
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Scope 2：Indirect emissions from the use of electricity, heat, or steam supplied by others.
Until now, we have worked to reduce CO2 emissions mainly through energy-saving activities aimed at increasing energy efficiency. However, it became clear that we could not meet our medium-term target by simply expanding conventional energy-saving measures. For this reason, we reviewed our investment criteria and incorporated investments in high-efficiency air conditioners and LED lighting into a five-year renewal plan for each factory in order to reach our reduction target.
In fiscal 2022, factories associated with our semiconductor divisions started purchasing renewable energy and renewable energy certificates on a trial basis. This provided an increase of 4.7 times in the ratio of renewable energy to company-wide electricity consumption, from 1.3% in fiscal 2021 to 6.2% in fiscal 2022. The reduction in CO2 emissions was approximately 10,000 tons.
As a specific measure to achieve the goals of our “Fiscal 2030 targets (for reducing our greenhouse gas emissions)” in our “Environmental Vision 2050,” we are aiming to maximize the use of solar power generation equipment at our production sites in Japan and overseas, and are installing equipment on the rooftops of factory buildings through power purchase agreements (PPA) with third-parties and through self-investment.
In Japan, operations began at the Suzuka Factory in April 2023 with a capacity of 2.3 MW. Operations are also planned to begin at the Tokyo Factory in October 2023 with a capacity of 1.2 MW. Overseas, operations began at Fuji Electric Dalian and Fuji Electric Motor (Dalian) in April 2023 with capacities of 1.1 MW and 1.0 MW, respectively. Operations are also planned to begin at Fuji Electric Philippines in April 2024 with a capacity of 2 MW. In addition, plans are underway to introduce equipment at sites in Japan and overseas so that all scheduled sites can benefit from the effects in fiscal 2024.
Fuji Electric began using renewable energy in 1996 in fields tests for its own businesses. Starting in fiscal 2013, we began installing solar power generation equipment at our factories in Japan and overseas, and we now generate approximately 1,000 MWh of our own electricity annually. Starting in fiscal 2018 at our Chinese sites, we have been developing general-purpose PCSs for PPA businesses that sell power to factories by renting factory rooftop space to install solar power equipment.
We have been expanding renewable energy (approximately 5,000 MWh) and reducing power costs by installing solar panels on the rooftops of factories, mainly at our Chinese sites, in order to lease them out to PPA commercial retailers so that the generated power can be purchased at prices lower than the unit price of grid-connected electricity.
Starting in fiscal 2022, as mentioned above, factories associated with our semiconductor divisions have begun purchasing renewable energy electricity and renewable energy certificates.
Unit: MWh
At the Suzuka Factory—the mainstay factory of the Power Electronics Systems Industry business unit—we are carrying out energy-saving activities in which all employees can participate in an effort to reduce the amount of power we consume.
In fiscal 2022, the Suzuka Factory installed approximately 4,200 solar panels on the rooftops of its buildings, taking the first step in our company-wide initiative to introduce solar power. Annual power generation has been estimated at approximately 2,000 MWh. This represents about 15% of the factory’s power consumption and contributes to reducing CO2 emissions.
A total of 21 energy-saving management teams have been formed between departments on each floor of the Suzuka Factory. These teams formulate their own annual targets and action plans and follow-up on the results at monthly meetings. Uncovering areas where energy can be saved is made much easier with the use of an energy visualization system. By visualizing and identifying wasteful energy use, we can make a difference simply by turning off the power used when manufacturing equipment is idle on weekends and holidays, for example.
The GHGs we use and their main uses are as follows.
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HFC (CFC substitute): Used as refrigerants, solvents, and for dry etching of semiconductors
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PFC (perfluorocompounds): Used for dry etching of semiconductors
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SF6 (sulfur hexafluoride): Used for dry etching of semiconductors and as insulating gas
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NF3 (nitrogen trifluoride): Used for dry etching of semiconductors
Greenhouse gases other than CO2 (hereinafter GHGs) are calculated by multiplying direct emissions from our factories by the global warming potential (GWP), which is a CO2 conversion coefficient.
Our two main initiatives and results for fiscal year 2022 are as follows.
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1.
We have been developing technologies for the production processes at our Fukiage Factory, which manufactures high-voltage circuit breakers. In particular, we have almost completed replacing SF6 gas and other insulating gases with alternative gases with a low global warming potential (GWP) .
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2.
We installed additional pyrolyzers in the exhaust gas systems of semiconductor production lines constructed before 2010 to help decompose more than 90% of the greenhouse gases in the exhaust gases.
These initiatives have reduced overall greenhouse gas emissions by approximately 12,000 tons.
The Matsumoto Factory is taking initiatives as Fuji Electric’s main power semiconductor factory to reduce greenhouse gas emissions other than CO2.
In production processes such as etching of semiconductor surfaces, PFC (perfluorocarbon) and other gases with high global warming potential are used. To mitigate the effects, we installed abatement apparatuses to perform thermal decomposition to prevent greenhouse gases from being released into the air. Furthermore, in FY2022, we sequentially installed PFC and CF4 abatement apparatuses on production lines that were not subject to the initial deployment of abatement apparatuses. As a result, we reduced greenhouse gas emissions by 920 tons in 2022 for these production lines. Moving forward, we expect that these apparatuses will be able to reduce greenhouse gas emissions by 5,500 tons a year.
Reducing Society’s CO2 Emissions through Products
Fuji Electric aims to contribute to the achievement of carbon neutrality together with our customers through our energy and environmental businesses. The indicator is the contributions to CO2 emissions reduction in society through our products, which we began calculating in fiscal 2009. The difference in power consumption between cases where existing products continue to operate and cases where products with superior environmental performance are implemented to replace them is converted into CO2 equivalent figures. For products shipped in and after fiscal 2009 during their operation period, the amount of CO2 reduction of the product operated for one year is calculated as the amount of contribution. We intend to increase our contribution amount by increasing the sales weight of new products that maximize the reduction of power loss in addition to increasing sales of equipment that generates clean energy.
CO2Emission Reduction Effect of Products Shipped in Fiscal 2022: Targets and Results
In fiscal 2022, we achieved our target with a reduction effect of 49.79 million tons thanks to the use of energy-saving equipment, such as inverters in the Power Electronics segment, IGBT modules in the Semiconductors segment and clean energy in the Power Generation segment. The increases in reduction effect were 3.53 million tons for the Power Electronics segment, and 1.03 million tons for the Power Generation segment.
Fuji Electric’s Environmentally-friendly Products
Renewables, such as geothermal and hydroelectric power generation, are clean energy sources that contribute to the prevention of global warming. This is because they use the power of nature to generate electricity and do not emit greenhouse gases. If we could use clean energy to supply electricity to households served by existing CO2-producing power plants, we could meet their electricity needs without emitting any CO2 emissions. By promoting the proliferation of clean energy, Fuji Electric contributes to the reduction of CO2 in society.
In fiscal 2022, in the Power Generation segment, we delivered two biomass power generation units (total capacity of 150 MW) that used biomass—recyclable biological resources such as woodchips and agricultural waste—as a fuel source and seven water power generation units (total capacity of 136 MW). They are capable of providing approx. 1,400 million kWh of renewable energy per year, contributing to reducing CO2 emissions in society by an amount equivalent to approx. 930,000 tons of CO2 per year emitted by thermal power fuel sources.
Products supplied by the Power Electronics Systems Industry segment, such as inverters, can be incorporated into factory and other equipment in order to realize energy savings in motor control and various other areas. Meanwhile, uninterruptible power systems (UPS) can contribute to energy saving by improving efficiency through lower electricity consumption losses. Power semiconductors, an offering in the Semiconductors segment, are used as key devices in those power electronics products, contributing to the energy efficiency through highly efficient energy conversion and power control.
Aiming to realize power electronics devices with high-efficiency energy conversion and power control, we continue our developments of innovative devices and module technologies for attaining further reductions of the electricity consumption losses of our IGBT modules and expand the line of offerings of this key device for its 7th-generation family.
In fiscal 2022, we expanded our offerings of intelligent power modules (IPMs) with built-in drive circuits and protection circuits for use in AC servo applications, as well as our lineup of high-capacity modules for renewable energy applications. The 7th generation IGBT module achieves a 10% to 20% reduction of power losses through lower heat generation and other factors, compared to its preceding generations, contributing to the mitigation of CO2 emissions.
The sales of the 7th generation IGBT modules and other products grew through fiscal 2022, reducing CO2 emissions by approximately 5,800,000 tons through the use of our power semiconductors. We will continue our efforts to mitigate CO2 emissions through a wider distribution of our low-loss semiconductor offerings..
nverters are used in pumps, fans, conveyors, and the like to help their motors rotate intendedly. The power consumption of pumps and fans is proportional to the cube of the motor’s rotational speed. Accordingly, systems with inverters, which optimize the rotational speed of the motor, can enjoy energy savings of around 50% compared with a damper-controlled system running at a constant rotational speed.
In fiscal 2022, we shipped around 60,000 units (100 kW equivalent) of the latest general-purpose inverters (FRENIC-MEGA (G2) series). This translates to a CO2 emissions reduction effect of around 4.6 million tons per year when they are operated for one year. This reduction effect will continue for roughly 10 years (the average span of operation).
Customers increasingly want to procure long-term, stable renewable energy. Fuji Electric offers a variety of products that are essential in providing a stable supply of energy. We leverage the strength of these products by installing renewable energy systems at customer facilities and undertaking on-site PPAs that ensures long-term, stable procurement of renewable energy by connecting power producers and customers.
However, there is only a limited amount of space available for installation on customer premises. Therefore, we expect to see significant growth in off-site PPAs in the future. Off-site PPAs represent an arrangement in which renewable energy systems are installed at remote locations in order to send the generated electricity to customers through power distribution networks. Moving forward, Fuji Electric will help stabilize the supply of renewable energy according to customer needs by offering products required for off-site renewable energy supply models, such as renewable energy systems, electrical equipment, storage battery management systems, and supply-and-demand management systems, in cooperation with off-site PPA businesses.
Target for Reducing Greenhouse Gas Emissions Across the Supply Chain
Fuji Electric announced its commitment to help realize a society with net-zero carbon emissions. Going forward, in addition to production activities, including procurement and transportation, we will aim to achieve carbon neutrality across the entire supply chain by working to reduce CO2 emitted when are products are being used.
Scope 3 Emissions
Greenhouse gases (Scope 3) emitted indirectly upstream to downstream in Fuji Electric’s entire supply chain have been calculated since fiscal 2012 based on guidelines*1 issued by the Ministry of the Environment.
In fiscal 2022, we obtained SBT certification. SBTi has estimated emissions in categories that we were not able to calculate and has verified that thereit is not necessary to add them to the scope of our targets.
In fiscal 2019, our internal working group started deliberating the scope and method of calculation of Category 11 for determining the emissions attributed to the use of our products. For this fiscal year, we estimated the emissions of all products based on the actual performance from fiscal 2018. In fiscal 2020, we reviewed the methods of aggregation and calculation concerning the seven products, which altogether account for at least 80% of the total emissions. In fiscal 2021, we recalculated the performance of fiscal 2019 and 2020 and submitted to a third-party verification (marked in bold letters in the table below). As for fiscal 2022, we are receiving third-party verification of our fiscal 2021 results.
To state specific details, Fuji Electric handles finished and semi-finished products (approx. 100 families and 470,000 types).
To these, we applied the following calculation methods:
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Emissions of finished products such as electric furnaces, vending machines, and thermal power generators are annual power consumption x life expectancy x power coefficient.
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Emissions of semi-finished products such as transformers, inverters, and power semiconductors are annual power loss x life expectancy x power coefficient.
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Semi-finished products are Fuji Electric’s products (components) that are integrated into client products to reach end clients.
We have defined the portion of emissions at the end client attributed to Fuji Electric to be the emission volumes due to the power consumption losses within our components. Loss ratio may be defined as (1 - efficiency). Therefore, improving the efficiency of our products will contribute toward reducing the Company’s CO2 emissions.
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In fiscal 2019, we delivered two combined-cycle LNG thermal power generation units (total capacity of 1,248 MW) in one batched delivery.
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In fiscal 2021 and 2022, we delivered one coal fuel thermal power generation unit (650 MW) in one batched delivery.
Therefore we factored in the total emissions of these delivered units over their life cycles, which pushed up the emissions from product use for each fiscal year.
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*1
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General Guidelines on Supply Chain GHG Emission Accounting, Version 2.1 by the Ministry of the Environment
Scope 1： Direct greenhouse gas emissions by the reporting company itself.（eg. fuel combustion, industrial process）
Scope 2： Indirect emissions from the use of electricity, heat, or steam supplied by others.
Scope 3： Indirect emissions other than Scope 1 and Scope 2（Emissions by others related to the company's activities）
(unit:kt-CO2）
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Bold
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the figures are verified by Independent Organization
All purchased materials, components, and outsourced services
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Materials: Iron, copper, plastic, etc.
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Components: Electronic parts, mechanical parts, etc.
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Outsourced services: Processing and assembly, construction and utilities, etc.
The scope of calculation for Category 11 (use of sold products) has been revised as follows.
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Scope of calculation: Seven product groups that cover more than 80% of emissions generated when using all our products
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1.
End products: Product groups in which customers use our products as-is without modification [Thermal power generation (batch delivery), industrial electric furnaces, showcases, etc.]
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2.
Intermediate products: Product groups in which our products are incorporated into customer products [Turbines/generators (individual product orders), power semiconductors, inverters, motors, transformers, etc.]
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Calculation method：
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1.
End products: Number of units shipped × total annual power consumption (fuel consumption) × life expectancy × CO2 coefficient
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2.
Intermediate products: Number of units shipped × total annual power loss (energy loss of components) × life expectancy × CO2 coefficient
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Energy Conservation Initiatives in Logistics
Fuji Electric’s logistics load in fiscal 2022 increased by 4.5% year-on-year, but CO2 emissions increased only 2.8% year-on-year. This means that CO2 emissions per logistics load improved year-on-year.
We are continuing to streamline logistics operations. Fuji Electric’s most logistics-load-intensive vending machine business, for example, continuously and progressively adopts our batch delivery method, which has helped us improve our CO2 emissions intensity per logistics load.
Batch delivery method refers to a distribution method in which products are first shipped to regional delivery centers by 10-ton vehicles, then transported individually to each delivery destination by 4-ton vehicles. Compared with the individual delivery method of using only 4-ton vehicles, this method involves shorter mileage and thus reduces the environmental impact.
