Sustainability
Achieve a Decarbonized Society
At Fuji Electric, we are seeking to achieve carbon neutrality across the supply chain; this is in line with our Environmental Vision 2050, which we formulated in response to the global shift toward carbon neutrality and the Japanese government’s decarbonization goals. To help us achieve our Fiscal 2030 Goals, which serve as interim goals for our Environmental Vision, we are working to ensure that various measures are incorporated into the action plans of each of our departments.
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.
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 target set for fiscal 2030 aims at a more than 46% reduction of CO2 equivalent on the fiscal 2019 results, 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 2023)
1.＜Scope＞
The aggregation range is equivalent to 95.3% of the entire Group (percentage figures refer to our environmental management activities)
(1)Japan: All production sites and consolidated production subsidiaries
(2)Overseas: Consolidated production subsidiaries
2.＜Power coefficients＞
Japan:
For fiscal 2023, power coefficients were taken from “Adjusted Emissions Factors for Electricity Supply Companies” in Emission Factors for Power Supplied by an Electric Utility Company, jointly issued by the Ministry of the Environment and the Ministry of Economy, Trade and Industry
For fiscal 2019 to 2022, power coefficients were calculated with reference to KEIDANREN's Commitment to a Low Carbon Society; in fiscal 2022, this resulted in a power coefficient of 0.436 kg-CO2e/kWh
Overseas:
The most recent average power coefficient by country were used, as defined in the IEA’s Emissions Factors 2022; fiscal 2021 values were used for fiscal 2023
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Note:
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Japanese Scope 2 emissions for fiscal 2023 were calculated according to a market-based method
Actual greenhouse gas emissions in production activities in fiscal 2023 were 338 thousands of tons, up 1% year-on-year. This achievement was approximately 11% below the target for the fiscal year (below 380 thousands of tons). Since this target value corresponded to the value of the SBT action plan (the value for fiscal 2023 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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Energy-saving activities (solar power, installation of high-efficiency lighting, air conditioning, etc.): -5 thousands of tons (1.5%)
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Greenhouse gas replacement: -9 thousands of tons (2.7%)
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Solar power generated effect -6 thousands of tons (1.8%)
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Increased purchase of both renewable energy and renewable energy certificates -9 thousands of tons (2.7%)
Total emissions reduction based on the measures: -29 thousands of tons (8.7%)
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Increase in production in Malaysia: +15 thousands of tons (+14 Electricity purchased, +1 GHG other than CO2):(4.5%)
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Other increase in production: +17 thousands of tons (5.1%)
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Influence of power coefficient: +1 thousands of tons (0.3%)
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 have been reviewing 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 2023. The reduction in CO2 emissions was approximately 10 thousands of 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, Suzuka Factory commenced operations of solar power generation facilities with a maximum capacity of 2.3 MW in April 2023, and Tokyo Factory with a maximum capacity of 1.2 MW in November 2023.
Fuji Electric FA Components & Systems’ Otawara Factory is slated to commence operations of solar power generation facilities with a maximum capacity of 0.5MW in June 2024, followed by Chichibu Fuji with a capacity of 0.35MW, Fukiage Factory with 0.5MW, and Mie Factory with 1.5MW.
Overseas, solar power generation commenced at Fuji Electric Philippines in April 2024 with a capacity of 1.9 MW. Plans are also underway to install solar power generation equipment at sites in Japan and overseas in fiscal 2025 and beyond.
Unit: MWh
In order to reduce the volume of greenhouse gases it emits during production, in 2022 Fuji Electric launched the Renewable Energy Promotion Project, which aims to install solar power generation facilities at all company production bases. The project was spearheaded by a new energy business department with the knowhow to install renewable energy, which worked together with each of our production bases to draw up installation plans.
Specifically, 18 production bases in Japan and two bases overseas started considering the installation of solar power generation facilities. Tokyo Factory and Fuji Electric Philippines commenced solar power generation in fiscal 2023, and now generate 9.13 million kWh per year from solar power. We are working to install more facilities, with the goal of increasing the total amount of solar power generated to 35 million kWh per year by fiscal 2027.
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 2023 are as follows.
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1.
At Matsumoto and Tsugaru Factories, which manufacture semiconductors, we are working to fit pyrolyzers to the exhaust gas systems of all semiconductor production lines installed before 2010*. These pyrolyzers are capable of decomposing 90% or more of the greenhouse gases contained in the exhaust gas.
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2.
Mie Factory, which manufactures refrigerated showcases, has eliminated the use of urethane foams containing HFCs from its production processes, and successfully completed its shift to CFC-free foaming agents.
The above initiatives have resulted in a reduction in greenhouse gas emissions of approximately 9,000 tons.
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*
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Semiconductor production lines installed in 2010 and later are fitted with pyrolyzers as standard.
Reducing Society’s CO2 Emissions through Products
At Fuji Electric, we aim to contribute to the society-wide reduction of CO2 emissions through innovations in our electricity and thermal energy technologies; to this end, we encourage our customers to use our clean energy and energy-saving equipment to help reduce operational CO2 emissions. To calculate the CO2 emission reduction effect for operational products shipped in fiscal 2009 and later, we assume the products are in operation for an entire year.
We calculate the reductions in CO2 emissions using the following equation: (“Fuji Electric existing product emissions volumes” – “Fuji Electric new product emissions volumes”) x “number of units in operation”
CO2Emission Reduction Effect of Products Shipped in Fiscal 2023: Targets and Results
In fiscal 2023, we achieved our target with a reduction effect of 56 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 Energy segment. The increases in reduction effect were 4.9 million tons for the Industry segment, and 0.9 million tons for the Energy segment, year-on-year.
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 2023, in the Energy segment, we delivered two biomass power generation units (total capacity of 187 MW) that used biomass—recyclable biological resources such as woodchips and agricultural waste—as a fuel source and four water power generation units (total capacity of 17 MW). They are capable of providing approx. 1,100 million kWh of renewable energy per year, contributing to reducing CO2 emissions in society by an amount equivalent to approx. 880 thousands of tons of CO2 per year emitted by thermal power fuel sources.
Products supplied by the 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) supplied by the Energy segment 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.
In the field of industrial and automotive power semiconductors, at Fuji Electric we have engaged in the continuous technological development of devices and modules that realize low loss and high efficiency. In particular, we have sought to expand our line-up of seventh-generation industrial IGBT modules, and to reduce the size and increase the output of our automotive modules.
In fiscal 2023, in the industrial sector we launched a new series of small-capacity Intelligent Power Modules (IPMs) for household appliances and machine tools, fitted with our latest seventh-generation IGBT chips. These new IPMs deliver a 10% reduction in power loss compared to outgoing modules, and help reduce energy expenditure in the appliances and tools they are installed in. In the field of automobiles, we are currently developing compact IGBT modules that leverage our new RC-IGBT and packaging technologies. With a power density 1.3-times greater than their predecessors, these new modules will help extend the range of electrified vehicles.
Thanks to these and other initiatives in the industrial and automotive sectors, in fiscal 2023 our power semiconductor products helped reduce CO2 emissions by 6.07 million tons. Going forward, we intend to increase sales of our low-loss semiconductor products and contribute to even greater reductions in CO2 emissions.
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.
Scope3 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 it is not necessary to add them to the scope of our targets.
CO2 emissions from sold products (Scope 3, Category 11) account for more than 90% of greenhouse gases emitted across our entire supply chain.
To calculate our Category 11 emissions, in fiscal 2019 we defined both the scope and the method of calculation for emissions from sold products.
Since then, every year we have calculated emissions from the use of sold products in our seven biggest product groups, which together account for approximately 80% of the emissions of all our products.
Scopes for Greenhouse Gas Emissions
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Scope 1: Direct emissions from sources that are owned or controlled by the company (fuel combustion and industrial processes)
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Scope 2: Indirect emissions from the use of purchased energy (including heat and steam)
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Scope 3: All indirect emissions not included in Scopes 1 and 2 (emissions from other companies in the value chain, etc.)
Approach to calculating Scope 3 Category 11 emissions (CO2 emissions from sold products)
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Final products – products that customers use in their existing state
▶Products covered: industrial electric furnaces, in-store distribution equipment, and thermal power generation equipment
▶Calculation method: “no. units shipped” x “total annual power consumption (fuel consumption)” x “lifespan in years” x “power coefficient” -
Intermediate products – products that customers incorporate into their own products, before being delivered to end-users
▶Products covered: power semiconductors, low voltage inverters, motors, and transformers
▶Calculation method: “no. units shipped” x “total annual power loss (energy loss)” x “lifespan in years” x “power coefficient”
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*1
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“General Guidelines on Supply Chain GHG Emission Accounting, Version 3.0,” 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）
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Note:
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Verification by a third party has been completed for the results of the fiscal year 2022
(unit:kt-CO2）
Energy Conservation Initiatives in Logistics
In an effort to reduce CO2 emissions in the field of logistics, since 2006 the government has obligated freight owners who exceed annual distribution volumes of 30 million ton-kilometers to account for and rationalize their energy consumption. At Fuji Electric, we formulated the Freight Owner Obligations Guidelines, and calculate the energy consumed by each of our factories.
Initiatives to Reduce Environmental Load in Logistics
Fuji Electric’s logistics load in fiscal 2023 increased 0.8% year on year, with CO2 emissions increasing 0.9% year on year, too; this indicates that our CO2 emissions per logistics load worsened slightly year on year.
We are continually working to streamline our logistics operations. In our vending machine business, which is our most logistics-load-intensive business, we are working to expand our batch delivery method* initiatives, and this has helped us improve our CO2 emissions per logistics load. (CO2 emissions per logistics load in our vending machine business have improved 1% year on year)
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*
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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.
