Eco Vision

Eco Vision 2030

Global environmental conservation is fundamental to a sustainable society, and is a key business challenge to be addressed head-on for all stakeholders.
On the premise of aiming for carbon neutrality in 2050, we have established "Eco Vision 2030," which shows the vision (or goal) of what we want to be by 2030 and the vision of what we will pursue until 2040.
For Eco Vision 2030, the impacts that our businesses and products would have on society and our company were analyzed, and 13 issues that would have a large impact were selected. Among them, the four issues that were considered to have a greater impact - "Responding to Climate Change", "Expanding Environmentally Friendly Products", "Conserving Water Resources", and "Waste Management" -were positioned as the four important issues, and numerical goals were set for them. Through the practice of Eco Vision 2030, our group will work together to contribute to the realization of global carbon neutrality and zero emissions.

4 Important Issues

Eco Vision 2030 issues	Our vision for 2040	The milestone to be achieved in 2030	Progress up to FY2025	Explanation
Responding to Climate Change	Implementing activities toward realization of a decarbonized society. * Achieving carbon neutrality by 2050	CO₂ emissions reduction compared to FY2018: 46% for Scope 1 and 2, and 30% for Scope 3.	CO₂ emissions reduction compared to FY2018: 33.2% for Scope 1 and 2 8.5% for Scope 3	Reducing CO₂ emissions to mitigate climate change is a critical global challenge. Many countries and companies around the world are beginning to work towards building a carbon-neutral society and reducing CO₂ emissions throughout their supply chains. Reducing CO₂ emissions is a crucial issue for our group as a manufacturing company, and it is our responsibility to reduce the CO₂ emissions we produce through our business operations. With the goal of achieving carbon neutrality by 2050, we have set CO₂ emission reduction targets for 2030, starting with reductions in Scope 1 and 2 emissions, which can be directly controlled. The targets are aligned with the well-below 2°C level (a level well below 2°C) aimed at limiting the global temperature increase since the Industrial Revolution to within 2°C as defined by the Paris Agreement, and we will implement proactive reduction activities throughout the company with a view to achieving carbon neutrality by 2050. Progress will be managed by the CO₂ Management Committee, which brings together stakeholders from all business operations. We will also promote reductions in Scope 3 emissions, including those throughout the supply chain.
Expanding Environmentally Friendly Products	All products contribute to the improvement of the global environment and contribute to making sustainable society come true	Expand Niterra Green Products	Certified 13 products as Niterra Green Products Initiated design framework to enhance product environmental contribution (applying LCA from early development)	There is a growing global interest in sustainable societies. Our group has a responsibility to contribute to the realization of a sustainable society through the products we create. When addressing environmental challenges, it is crucial to be aware of the significant environmental impact of the entire product lifecycle, from the production of raw materials needed for product manufacturing to the point where the product has completed its purpose and is discarded.
Conserving Water Resources	Implementing sustainable business operations in response to global water risks	Water consumption intensity: Keep below FY2018 level	Water consumption intensity compared to FY2018: 2.6% reduction	Our group has manufacturing bases all over the world, and water demand is increasing due to factory operations. Therefore, water demand trends are an important environmental issue that we must closely monitor. Water resources are unevenly distributed regionally, and some of our group's manufacturing sites may face increased water drought risks in the future due to the progression of climate change. Therefore, we will continue to conduct regular water risk assessments, monitor the current situation, and estimate the amount of resources needed. Furthermore, our group will continue to work towards environmental protection by promoting the efficient use of water, a precious resource, for the future.
Waste Management	Contribute to a global recycle-oriented society by promoting zero emission	Achieve over 95% effective utilization rate	Effective utilization rate: 96.0% Waste intensity compared to FY2018: 24.4% reduction	Our group uses a variety of raw materials, including ceramics and precious metals, but in order to protect the global environment, it is necessary to make effective use of resources, reduce waste, and promote reuse and recycling. Reducing the amount of resources used through improvements in manufacturing processes and promoting recycling are crucial for ensuring stable resource management in the future. To improve the level of activity at all our locations and to promote 3R activities throughout the entire group, we will work to enhance the effective use of resources discarded at each site and reduce waste.
		Reduce at least 1% of waste intensity compared to FY2018
		Promote 3R (reduce, reuse, recycle) activities

Other Issues

Eco Vision 2030 issues	Our vision for 2040	The milestone to be achieved in 2030	Progress up to FY2025	Explanation
<Enhancement of EMS> Integration with Management	Continued efforts to address global environmental issues as a business strategy.	Address global environmental issues as a business strategy.	Integrated global environmental issues (CO₂ reduction, environment/energy business) into 2030 Mid-Term Management Plan to align with corporate management.	Protecting the global environment is fundamental to maintaining a sustainable society. We address environmental issues in our business strategy and integrate environmental activities with our management. Our company has formulated "Eco Vision 2030" in line with our long-term management plan, and we are addressing environmental issues as part of our management strategy.
<Enhancement of EMS> Integration with Management		Executive management takes responsibility for promoting Eco Vision 2030 and achieving environmental KPIs.
<Enhancement of EMS> Globalization of EMS	The entire group is able to share environmental information, and a monitoring and supervision system has been established for all Group companies.	Enhance systems for overseas affiliates to share environmental information and monitor and supervise their activities.	Strengthened governance under Group Environmental Regulations and built incident reporting lines via environmental conferences and audits with overseas subsidiaries.	As our group's business scale expands, our impact on society also increases, and the scope of responsibilities expected of us by society, such as addressing ESG issues globally, is also expanding. The EcoVision 2030 we have formulated this time is a challenging goal that will be difficult to achieve without the participation of all members of our group. However, we will work on EMS globally to strengthen its effectiveness and raise the level of achievement.
<Enhancement of EMS> Analysis of Climate-Related Risks and Opportunities	Sustainable business growth by analyzing the impact of climate change on our business and incorporate them into our business strategies.	Analyze climate change risks and opportunities and incorporate them into our business strategies.	Assessed financial impact of climate change based on TCFD recommendations.	As a group, in order to conduct business sustainably even in a carbon-neutral society, it is important to analyze the impact on our business, clarify our response, and incorporate it into our business strategy. Our company supports the TCFD recommendations and will implement disclosures of information regarding the climate-related risks, opportunities, and their impacts that we have analyzed, in accordance with this framework.
<Enhancement of EMS> Through environmental compliance (Compliance with environmental laws and eradication of environmental accidents)	We have become a socially trusted company by continuing to achieve zero violations of environmental laws and regulations and zero environmental accidents.	Achieve zero violations of environmental laws and regulations and zero environmental accidents.	Reinforced prevention and recurrence-prevention mechanisms by deploying incident countermeasures company-wide and checking site-specific risks.	Ensuring strict environmental compliance not only prevents environmental accidents and maintains a safe and secure work environment, but also helps to secure the trust of stakeholders, including local residents, and society as a whole. Based on internal rules centered on our environmental management system (ISO 14001), we continuously improve our operations by implementing the PDCA cycle, ensuring that all employees have a proper understanding of environmental laws and regulations as they carry out their work.
<Enhancement of EMS> Greater Environmental Awareness	All employees have a high level of environmental awareness and contribute to making sustainable society come true.	All employees take environmental education programs and actively engage in environmental conservation activities.	Conducted Eco Vision training for all employee levels (executives, managers, general staff).	By raising the environmental awareness level across our entire group, it is essential to cultivate personnel who can understand the environmental risks our business faces, such as climate change, and turn them into business opportunities. By thoroughly implementing environmental education for employees using the intranet, we will promote a corporate culture in which all employees deeply understand the purpose and necessity of EcoVision 2030, and each individual naturally translates this into environmentally conscious behavior in their daily work.
Management of Chemical Substances	Contribute to the conservation of biodiversity through the continuous management of appropriate chemical substances.	Appropriately manage chemical substances to reduce environmental impact.	Reduced atmospheric VOC emissions by installing exhaust gas treatment systems.	For manufacturing companies that use chemical substances as raw materials, proper management of these substances is one of their social responsibilities, and appropriate measures are essential for the continuation of their business. Our group is committed to thorough management and operation in accordance with relevant laws and regulations, as well as to responding to customer requirements. In addition, we are working to further reduce and replace the use and emission of environmentally harmful substances through research and development and process improvements, in order to minimize the impact of environmentally harmful substances on human health and the environment.
Promoting Green Procurement	Implementing environmentally friendly procurement activity to making sustainable society come true.	Achieve 100% introduction of green procurement system	Strictened chemical substance management and promoted supplier decarbonization by advancing green procurement and revising guidelines.	Our group aims to reduce the environmental impact throughout the entire product lifecycle and is working to provide products with a lower environmental impact. As part of our activities, we have been promoting green procurement together with our business partners by distributing the "Green Procurement Handbook," an appendix to our Sustainability Procurement Guidelines that outlines our approach to reducing environmental impact, including chemical substance management. However, going forward, it will be necessary to reduce CO₂ emissions across the entire supply chain, respond to stricter chemical substance regulations, and diversify our procurement sources, including overseas, so collaboration with our business partners will become even more important. By establishing a global procurement system and further promoting green procurement, we will contribute to building a sustainable society.
Expanding Green Logistics	Our green logistics system develop globally.	Reduce CO₂ emissions by promoting green logistics and optimizing logistics efficiency.	Improved Scope 3 Category 4 CO₂ calculation accuracy by refining activity data (transport volume × distance) at key overseas sites. Reduced Scope 3 Category 4 CO₂ emissions by 33% vs. FY2018 by optimizing transport methods.	Reducing CO₂ emissions from logistics is one of the challenges we must address as we work to reduce the environmental impact of the entire supply chain. Our group has been working to develop a green logistics network domestically for some time, but the challenge going forward is to realize global green logistics that also includes our overseas bases. Therefore, by extending examples of efficient transportation route construction and other initiatives overseas, we aim to expand our green logistics system globally and work to reduce CO₂ emissions from logistics.
Enhancing Our Disclosure of Environmental Information	Responding to stakeholder requests and practicing communication that leads to dialogue with stakeholders.	Responding to stakeholder requests and practicing communication that leads to dialogue with stakeholders.	Advanced nature-related disclosures based on TNFD recommendations.	With increasing opportunities for communication with institutional investors and growing stakeholder interest in our group, we believe it is crucial to ensure that stakeholders correctly understand our group's business and continue to support us in the future. To this end, we will enhance the quality and quantity of information we disclose, thereby increasing the credibility of that information. Furthermore, we will fulfill our accountability with a high degree of transparency regarding issues of high interest to stakeholders, and we will also enhance opportunities for communication with stakeholders.