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 2025)

1.Greenhouse Gas Emissions

1.＜Scope＞
Production sites in Japan and consolidated overseas production subsidiaries Coverage ratio of total sales: 95.8% (Coverage ratio of total greenhouse gas emissions: 99% or more)

2.＜Power coefficients＞
Japan:
Fiscal 2019 to 2022: Calculated with reference to KEIDANREN's Commitment to a Low Carbon Society Fiscal 2023 onward: Adjusted emission factors of power suppliers (residual menu) listed in Emission Factors for Power Supplied by an Electric Utility Company published by the Ministry of the Environment and the Ministry of Economy, Trade and Industry

Overseas:
Calculated by referencing the latest country-specific average power coefficients from the IEA Emission Factors database
- Reference year for fiscal 2024 results: 2022
- Reference year for fiscal 2025 results: 2023

3.＜Calculation of Scope 2＞
Scope 2 emissions in Japan have been calculated in accordance with market-based methods since fiscal 2023.

2.Status of Achieving Targets

Actual greenhouse gas emissions in production activities in fiscal 2025 were 330 thousands of tons. This achievement was approximately 20% below the target for the fiscal year (340 thousands of tons or less), achieving the target. Currently, we are on the reduction trajectory toward the fiscal 2030 SBT-certified target based on fiscal 2019, and progress is proceeding as planned toward achieving the target.

3.Greenhouse Gas Emissions by Segment (fiscal 2025)

4.Actual Effects of Reduction Measures (fiscal 2025)

1. Main reduction measures and actual results (Figures in parentheses are percentages of fiscal 2025 emissions)

Total reduction based on measures: -69 thousands of tons (25.5%)

Measures to Achieve 2030 Targets

CO₂ emitted during production comes under Scope 1 and Scope 2 emissions.

1.Reduction of “Scope 1 CO₂ and Scope 2”

To reduce CO2 emissions, before formulating Environmental Vision 2050, we worked to increase energy efficiency, mainly through energy-saving activities. However, it is difficult to achieve our Fiscal 2030 Goals simply by extending conventional energy-saving activities. 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 production site. Furthermore, we are working to reduce emissions even further by installing solar power generation equipment on the premises of production sites in Japan and overseas, and by expanding the procurement of renewable energy.

In fiscal 2022, production sites in the Semiconductor segment began purchasing renewable energy and renewable energy certificates on a trial basis and have been switching to renewable energy. As a result, the proportion of renewable energy in our total power consumption increased to 27.4% in fiscal 2025, reducing CO2 emissions by approximately 64 thousands of tons.

【Actual results and plans for installing solar power generation equipment】

As a specific measure to achieve our Fiscal 2030 Goals (for reducing greenhouse gas emissions) in our Environmental Vision 2050, we are aiming to maximize the installation of solar power generation equipment at our production sites in Japan and overseas, promoting installations on the rooftops of factory buildings through self-investment or PPAs.
In Japan, in fiscal 2025, operations commenced with a capacity of 1.0 MW at the Kobe Factory, Saitama Region, Hakko Electronics Co., Ltd., and other sites. Plans are underway at the Kawasaki Factory, Tsukuba Factory, Kobe Factory, Chiba Factory, and other sites by fiscal 2027.

Cumulative solar power generation capacity

Actual amount of utilized renewable energy

Unit: MWh

*Amount of electricity purchased: Amount of electricity purchased + In-house solar power generation

Case studies

2. Reduction of “Greenhouse gas types other than Scope 1 CO₂”

The GHGs we use and their main uses are as follows.

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.

In addition, toward reduction, we have drawn up specific reduction plans for each production base and initiated measures such as gas substitution and effective utilization. We are proceeding carefully, including R&D plans and Quality assurance for gas substitution.
As a key measure for fiscal 2025, at the Tsugaru Factory, which manufactures semiconductors, we are continuously installing pyrolyzers in exhaust gas systems for semiconductor production lines installed in or before 2010*. These pyrolyzers enable us to decompose 90% or more of the greenhouse gases contained in the exhaust gas.

Through these efforts, across Fuji Electric as a whole, we reduced greenhouse gases by approximately 0.2 thousand tons.

Greenhouse Gas Emissions Other than CO₂

Contribution of products to Society’s CO₂ reduction

At Fuji Electric, we aim to contribute to the society-wide reduction of CO2 through innovations in our electricity and thermal energy technologies. Having customers use our clean energy and energy-saving equipment contributes to reducing CO2 emissions during operation. As an indicator, for products shipped in fiscal 2009 and later, we calculate the CO2 reduction effect when they are in operation for an entire year as our contribution.

Note) Calculation method: (“Fuji Electric existing product emissions volumes” – “Fuji Electric new product emissions volumes”) × number of units in operation during the year

Contribution to CO₂ Reductions by Our Products in Use in Fiscal 2025: Targets and Results

In fiscal 2025, we achieved our target with a total contribution of 58.88 million tons thanks to energy-saving equipment, such as low-voltage inverters in the Industry segment, IGBT modules in the Semiconductors segment, and clean energy in the Energy segment. The year-on-year increases in contribution were 0.89 million tons for the Industry segment and 0.14 million tons for the Energy segment.

Contribution of products to Society’s CO₂ reduction (by stock-based approach)

Fuji Electric’s Environmentally-friendly Products

1. Products included in the contribution calculation: Clean energy

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 2025, we shipped four hydroelectric power generation units with a total capacity of 38 MW. This enables a power supply of approximately 300 million kWh per year, contributing to a reduction in societal CO2 emissions equivalent to approximately 100 thousand tons of CO2 per year from thermal power generation fuel.

2. Products included in the contribution calculation: Energy-efficient equipment

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.

Product Introduction

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

Approach to calculating Scope 3 Category 11 emissions (CO₂ emissions from sold products)

Scope3 emissions

(kt-CO₂e）

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.

Transition of environmental burden in logistics in Japan

Initiatives to Reduce Environmental Load in Logistics

In fiscal 2025, Fuji Electric’s overall logistics volume increased by 1.0% year-on-year, and CO₂ emissions decreased by 1.0% year-on-year, improving CO₂ emissions per logistics volume compared to the previous fiscal year. We are continuously promoting logistics efficiency, and in the vending machine division, which accounts for Fuji Electric’s largest logistics volume, we are continuously improving CO₂ emissions per logistics volume unit by expanding initiatives for the batch delivery method*.

Page Top