Sustainability
Approach 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 June 2024, we updated the “risks, opportunities, adaptation measures, and financial impact” for the 1.5˚C Scenario based on our FY2026 Medium-Term Management Plan. We see the growing volume of greenhouse gas emissions resulting from increased production as a risk; as such, we are currently assessing the increase in environmental investments and expenses required to control these emissions.
We are now applying our measures to combat the “risks of flooding due to extreme weather” in the 4˚C Scenario not only to production sites at risk of a maximum inundation depth of 0.5 meters or more, but also to production sites at risk of a maximum inundation depth of less than 0.5 meters. In addition to implementing physical measures such as flood protection panels, we are focused on reviewing where our inventory is located, and on creating individual timelines for each of our business sites.
(Summarized by Fuji Electric based on the Recommendations of the Task Force on Climate-related Financial Disclosures (Final Report))
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June 2020: Endorsement of TCFD recommendations. In addition, disclosure on “Governance” in the disclosure requirements.
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June 2021: Disclosure on “Risks and Opportunities” (2°C/4°C target base) in the “Strategy” disclosure requirements.
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March 2022: Disclosure on same “Risks and Opportunities” (1.5°C/4°C target) and “Adaptation Measures.”
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June 2023: Specific identification of significant “Risks” and disclosure of countermeasures and financial impact
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June 2024: Disclosure of updated “risks, opportunities, adaptation measures, and financial impact” for the 1.5˚C Scenario
Governance
Disclosed in June 2020
Updated in August 2024
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Fuji Electric positions global environmental protection initiatives as a priority issue for management.
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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.
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In 2023, we held the SDGs Promotion Committee twice and reported on the deliberation results to the Executive Committee and the Board of Directors.
[Key Environment-related Topics of Discussion for the SDGs Promotion Committee]
- Measures to achieve decarbonization goals (FY2030) and a greenhouse gas emission reduction plan
- Communicating the need to realize a recycling-oriented society, and updating Fiscal 2030 Goals
- TCFD “Impact of climate change risks on corporate activities”
Each of these topics is being discussed against the backdrop of the new Medium-Term Management Plan
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*
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Executive Committee: Deliberates and reports on important management issues as an advisory body to the President.
Strategy
Disclosed in June 2020
Updated in June 2024
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.
IEA: International Energy Agency
IPCC: Intergovernmental Panel on Climate Change
Risks indicated in bold are those we recognize as having a particularly significant impact on business.
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Note
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Flood risk assessments were carried out by Tokio Marine DR Co., Ltd., and subsequently subjected to in-house reviews
Sites were assessed as “at risk of flooding” in the following cases:
a) They are located in areas which publicly available hazard information states are at risk of a maximum inundation height of 0.5 meters or more
b) They are located in areas where there is no publicly available hazard information, and which are deemed due to topographical and other factors to be at high risk of flooding
TOPICS
Strengthening measures against wind and flood damage during extreme weather events
Fuji Electric is enhancing its measures against wind and flood damage associated with the increasing frequency of extreme weather events. At the Mie Factory, the main production facility of our Food and Beverage Distribution Business Group, we installed and began operating flood barriers in March 2024. Although the maximum expected flood level at the Mie Factory during emergencies is less than 0.5 meters, there is a risk of water inflow in certain areas. Therefore, we have installed a flood barrier at one of the three gates (the south gate) where the risk is present. In addition to these physical measures, we are also advancing software-based countermeasures. As part of this effort, we have developed a "Flood Response Action Timeline." We are preparing to ensure that necessary disaster prevention actions can be taken according to procedure when the need arises.
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).
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
