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.

The Paris Agreement was adopted by COP21 in December 2015. Japan ratified this agreement in November 2016 and began promoting initiatives toward achieving the agreement’s emission reduction targets. The three main points of the Paris Agreement are as follows.

1. All countries are obligated to submit their greenhouse gas reduction targets to the United Nations every five years and to implement initiatives toward achieving these targets.

2. Countries are expected to strive to limit the rise in average temperature to less than 2.0℃ above preindustrial levels and to make efforts to keep this rise below 1.5℃.

3. Countries should seek to achieve zero emissions of greenhouse gases on a real basis in the second half of the 21st century.

Following the adoption of the Paris Agreement, in 2016 the Japanese government released a plan to combat global warming. It also submitted a 2030 greenhouse gas emissions reduction target of 26% versus fiscal 2013 levels to the United Nations. For the electrical machinery and electronics industries, the key initiatives of the government’s action plan are improving energy efficiency of production processes and helping to limit emissions with products and services.

In response to this policy, in fiscal 2018 we established two targets for 2030: a 31% reduction in greenhouse gas emissions versus fiscal 2013 and a 50 million ton reduction in CO₂ emissions in society through our products. In fiscal 2019 we formulated our Environmental Vision 2050 and clearly documented our approach to targeting a reduction of 80% or more in greenhouse gas emissions across the supply chain.

In fiscal 2021,  we revised our Fiscal 2030 Goals in order to realize a decarbonized society.

• Greenhouse gas emissions throughout the supply chain (Scope 1+2+3) : Reduction of over 46% (compared to FY2019)
• Greenhouse gas emissions through production (Scope 1+2) : Reduction of over 46% (compared to FY2019)

In fiscal 2022, our Scope1,2 and Scope3(1-8,11) targets were approved as 1.5˚C targets by the SBTi (Science Based Targets initiative).

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).

Actual volume of greenhouse gases emitted during production at our facilities in fiscal 2021 totaled 364,000 tons, meaning that we achieved our target for this fiscal year, which was 460,000 tons. This figure represents a 16.7% year-on-year reduction.
Specific activities and reductions are as follows.
To achieve the fiscal 2030 emissions reduction target, we calculated the effects of specific measures, the results of which were factored in the plans for each fiscal year. Where the effects of the measures came short of achieving the target, we arranged in the plans additional investments for energy-saving activities, gas abatement equipment, and other measures, to develop an action-based plan for achieving the Environmental Vision 2050. (Percentages in brackets represent the ratio to the year-on-year reduction volumes)

• Energy-saving activities (installation of high-efficiency lighting, air conditioning, etc.): 4,000 tons
• Greenhouse gas replacement:  -10,000 tons (2.38%)
• Power coefficient reduction effect: -1,000 tons (0.28%)
• Increased purchase of renewable energy:-1,000 tons (0.22%)
• Total emissions reduction based on the measures: -16,000 tons (3.76%)

To utilize renewable energy, Fuji Electric first introduced a solar power generation system in 1996 as part of a PCS (power conditioning system) field test.
Subsequently in 2005, we installed a solar generation system with 10 kW capacity (proprietary developed solar power module) following a field test, which is still in operation today.
Beginning in 2005, we purchased seven years’ worth of “green” energy certificates at one million kWh per year.
From fiscal 2013 we were able to cover roughly 1.0 million kWh annually ourselves with the installation of mid-size (300–500kW) solar power generation equipment at production sites in Japan and overseas.
In fiscal 2018 we installed solar power generation equipment on the roofs of our plants in China and developed a general purpose PCS for the electricity sales business. The first project under this initiative was to install the equipment at our own plants and conduct field testing.
In fiscal 2019 we upgraded the equipment to a capacity of roughly 4.0 million kWh per year. However, the electricity generated only accounts for about 1% of the power we purchase.
During fiscal 2021, Fuji Electric (Changshu) Co., Ltd. started a purchase of solar energy.

Solar power generation at Fuji Electric
 Japan —four plants equipped with solar generators　　　　　　　　　　: 0.62 million kWh
 Overseas — four plants equipped with solar generators　　　　　　　　: 1.61 million kWh
　　　　　　　Three plants purchase in-house rooftop power                : 3.3 million kWh

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.

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.

To reduce GHG emissions, moreover, we have formulated specific reduction plans for each factory and begun efforts to switch to alternative gasification and ensure more effective utilization. We are proceeding methodically with R&D and quality assurance related to alternative gasification.

In fiscal 2021, we pursued the technological development of production processes at our Fukiage Factory, which produces high-voltage circuit breakers. Through this initiative, we have replaced SF₆, used as an insulating gas, with more environmentally-friendly alternatives. Similarly, we installed additional thermal decomposition devices in our exhaust system on the semiconductor manufacturing lines that were established before 2010, to treat more than 90% of greenhouse gases contained in the exhaust. These efforts culminated in approx. 10,000 tons of greenhouse gases mitigated in overall emissions.
Meanwhile, the Malaysia Factory terminated its HD media manufacturing business in July 2021, which resulted in the reduction of approx. 45,000 tons of HFC being used as solvents.
Going forward, we will look to install more thermal decomposition devices for existing semiconductor production lines.

Fuji Electric aims to help reduce CO₂ emissions in society as a whole by innovating electric and thermal energy technologies.

The use of clean energy and energy-saving products by our customers also helps reduce CO₂ emissions during equipment operation. We calculate the CO₂ emission reduction effect of our products shipped after fiscal 2009 (products that have not yet reached their average service life) when they are in operation for one year.

CO₂Emission Reduction Effect of Products Shipped in Fiscal 2021: Targets and Results

In fiscal 2021, we achieved our target with a reduction effect of 45.44 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 1.79 million tons for the Power Electronics segment, 840,000 tons for the Semiconductors segment and 2.58 million tons for the Power Generation segment.

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 2021, 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. They are capable of providing approx. 900 million kWh of renewable energy per year, contributing to reducing CO₂ emissions in society by an amount equivalent to approx. 560,000 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.

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.

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 2021, we reviewed the scope and method of our current Scope 3 emissions calculation fundamentally in view of a prospective application for the SBT certification, which would require a third-party verification of the past performance retrospectively up to fiscal 2019. The scope of calculation was expanded to the emissions from all Fuji Electric products. The method of calculation was reformulated based on objective data.
In fiscal 2019, our internal working group started deliberating the scope and method of calculation 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).
To state specific details, Fuji Electric handles finished and semi-finished products (approx. 470,000 types).

To these, we applied the following calculation methods:

• Emissions of finished products such as electric furnaces, vending machines, and thermal power generators are annual power consumption x life expectancy x power coefficient.
• Emissions of semi-finished products such as transformers, inverters, and power semiconductors are annual power loss x life expectancy x power coefficient.
• 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.

• In fiscal 2019 we delivered two combined-cycle LNG thermal power generation units (total capacity of 1,248 MW) in one batched delivery.
• In fiscal 2020 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.