Environment

Basic environmental policy

Guiding principles

Environmental management framework

We have established the Environmental Management Committee under the Risk Compliance Committee, which defines our risk management framework. Aiming for improving our environmental performance, the committee members meet regularly to monitor the progress of our initiatives toward our environmental targets, energy consumption, waste footprint, and compliance with environmental laws and regulations.
The Risk Compliance Committee, in cooperation with the Sustainability Promotion Committee, is developing a framework to expand our sustainability-related initiatives to our subsidiaries.

Medium- and long-term environmental targets

We have been working to combat climate change, with the medium-term target of reducing CO₂ emissions by 46% from the fiscal 2014 level by fiscal 2031. In April 2023, the Sustainability Promotion Committee established the Fuji Group's long-term goals and strategic roadmap for achieving carbon neutrality, as we are strongly aware that the preservation of the global environment is one of the most important issues shared by all humankind. We will address climate change throughout the entire Group and supply chain.
Especially in scope 3, we will calculate emissions and reduce CO2 emissions across the entire Fuji Group.

Note: Scope 1: Direct emissions by in-house fuel consumption
Scope 2: Indirect emissions by in-house use of electricity and heat
Scope 3: Emissions of other companies generated in the value chain such as material procurement, logistics, and sales related to our business activities other than those of scopes 1 and 2.

Carbon neutral strategy roadmap

We have formulated a carbon neutral strategy roadmap for achieving the medium-term and long-term targets. In order for Fuji Group to meet these targets, we are working together with group companies and business partners to take action against climate change throughout the supply chain.

Environmental action plans for fiscal 2025 to 2027

We update the environmental action plans every three years, and validate the target values with our performance for the key categories every year.

At the same time, we make it clear which activities are relevant to which goal of the 17 SDGs and implement the PDCA cycle for environmental management practices.

Eco-friendly actions

Energy-saving	Upgrading to LED lighting Upgrading to more efficient equipment (air conditioners) Installing renewable energy equipment Reducing standby power Air conditioning powered by geothermal energy (earth tubes) introduced in the machinery processing factory in Toyota Plant
Waste reduction	Waste recycling Promoting returnable containers Eliminating paper cups Adopting reusable, steel packaging
Use of eco-friendly goods	Using FSC-certified paper *FSC: Forest Stewardship Council Selecting supplier using flexographic ink
Other	Endorsing "White Logistics" promotion activities Eco-friendly design Beautification activities at each plant

Installing solar power generation systems

Solar power generation systems have been installed in some buildings at Fuji Toyota Plant's part processing factory, EDEC LINSEY SYSTEM, and Fasford Technology. The solar power generation systems have a total power generation capacity of 1,049 kw, and can reduce CO₂ emissions by approximately 545 tons per year.

the machinery processing factory in Toyota Plant

Use of renewable energies

Fuji Group is gradually increasing the ratio of CO₂-free electricity purchased to reduce CO₂ emissions.
ADTEK FUJI has been purchasing CO₂-free electricity only since July 2023, while since October 2022, Fasford Technology has been using electricity generated by the Yamanashi Prefectural Enterprise Bureau's hydroelectric power plants through the prefecture’s hydroelectric power project. We are thereby emitting zero CO₂ emissions from our electricity use.

　

　

Develop eco-friendly products

We will promote reduced power consumption by improving the placement speed of the "NXTR" SMT pick and place machine. We are also working to reduce the weight of materials used, recycle materials, reduce consumables used during electronic part placement, and curb air consumption to reduce loads that impact the product life cycle.

We are working to reduce power consumption of our products such as the CSD300II, a front facing twin spindle lathe. Efforts are being made to reduce waste (hydraulic standby control, air saving), shorten warm-up time through thermal displacement compensation, and promote visualization (energy saving screen).

　

　

Develop environmental contribution products

The public stocker system, Quist, is a delivery locker that enables the consolidation of delivery locations as a solution to the last mile problem.

The electronics 3D printer, "FPM-Trinity", is a machine that combines both circuit formation by printing and ultra-low temperature parts placement. This revolutionary process significantly reduces the amount of liquid and waste materials used in manufacturing electronic circuit boards.

　

　

Participation in Model Project for Promoting Decarbonization Throughout the Value Chain Initiative From the Ministry of the Environment in fiscal 2024

This project is being implemented by the Ministry of the Environment as a support program, and aims to support efforts by multiple companies to promote decarbonization management through collaboration, and to create advanced model cases for reducing emissions throughout the value chain.
Of the CO₂ emissions across our entire value chain, more than 50% are in Category 1 (purchased products and services) in Scope 3 (emissions upstream and downstream in the supply chain). We recognize that reducing Category 1 is the most important issue for us to achieve carbon neutrality. We thus participated in this project together with three suppliers and one group company that engages in manufacturing overseas.
Going forward, we will expand the knowledge and supplier support methods gained through this project to more suppliers and work as a whole value chain to reduce CO₂ emissions, striving to achieve the Fuji Group's long-term environmental goals as soon as possible.

Action plans
- Creating awareness-building videos (in multiple languages) for carbon neutrality
- Creating CO₂ emission calculation tools for suppliers
- Establishing support methods to enable suppliers to consider measures and plan targets for CO₂ emission reductions on their own
- Raising employee awareness for carbon neutrality and incorporating it into departmental policies
- Establishing Scope 3 calculation methods for overseas group companies

Briefing on carbon neutrality for executive officers

Meetings with partner companies

Decarbonization management forum (fiscal 2024)

Environmental impact framework (fiscal 2023)

We strive to reduce our environmental impact by understanding our resource inputs and waste outputs at Fuji Group production sites.

　

　

Ecological footprint

The scope of data management was expanded to include Fuji Group production sites from fiscal 2023. We will work on environmental data management for the entire Fuji Group.

　

　

CO₂ emissions and intensity by sales

In addition to energy-saving activities by employees, we are striving to reduce CO₂ emissions through installing energy-saving equipment, purchasing CO₂-free electricity, and managing room temperatures.

Amount of renewable energies introduced

 

 

　

　

Total waste volume

We will be more committed to waste reduction and recycling of used resources in order to contribute to the establishment of a recycling-oriented society.

Waste processing results

 

　

　

Amount of copy paper purchased

We are making company-wide efforts to reduce use of paper by eliminating paper materials, shifting to workflow systems, promoting a paperless environment on the production floor by introducing production systems, and switching to electronic files for documents submitted to customers, which leads to improved work efficiency and digitalization.

Volume of water purchased (tap water)

We strive to conserve water at the water source by managing the volume of water purchased. We purchase tap water from public water facilities and use it mostly for daily activity purposes.

　

　

Response to water pollution

In consideration of aquatic ecosystems, we have established our own management standards, which are more stringent than Japanese regulatory standards, to control wastewater discharged from our plants. Our water quality inspection in fiscal 2024 showed we have not exceeded our designated limits for all categories. We will continue to manage the discharge of wastewater to reduce the environmental impact on local communities.

Chemicals used

We have created a chemical substance handling and management guideline based on laws and regulations, etc., and are working to reduce health and safety risks and environmental impact by properly managing the handling of chemical substances used within the company.

　

The scope of the environmental management data includes Fuji (headquarters, Okazaki Plant, Toyota Plant), ADTEK FUJI, EDEC LINSEY SYSTEM, Fasford Technology, and Kunshan Fuji Machine Mfg., while the scope of the data for water pollution control and chemicals used includes Fuji (headquarters, Okazaki Plant, Toyota Plant).

Disclosure based on TCFD Recommendations

We consider that one of the most important issues in building a sustainable society is to respond to climate change by reducing CO2 emissions. We are investigating and analyzing the risks and opportunities posed by climate change in relation to our business activities, and reflecting the results of our analysis to our management strategies while calculating the financial impact.
In June 2022, we will endorse the TCFD (Task Force on Climate-related Financial Disclosures) and disclose information.

Governance

Since climate change issues can be pose both risks and opportunities for our "corporate value" and "business activities", we will report our progress in addressing climate change to our directors and executive officers twice a year at the "sustainability promotion committee". This committee will serve the function of decision-making and supervision, effectively implementing the PDCA cycle. Issues that have a significant impact on the business are treated as a matter for report and placed on the agenda for the Board of Directors.
The environmental awareness subcommittee, which aims to promote environmental responsiveness, and each business division make recommendations on capital investment and business plans to the sustainability promotion committee and report on their progress.

Strategy

We conducted a scenario analysis of the impact of climate change on our business activities.

Targeted items were identified from current and potential future transition risks (policy and regulation, technology, market, and reputation), physical risks (acute and chronic), and opportunities (resource efficiency, energy sources, products and services, markets, and resilience). Based on the information released by the Intergovernmental Panel on Climate Change (IPCC), we have set out a 2 degrees Celsius scenario*1 and a 4 degrees Celsius scenario*2 using the year 2030 as a marker. In terms of physical risks, we obtained data relating to future forecasts based on observed and projected climate change data from the climate change adaptation information platform (A-PLAT). As for business, we expect to see an increase in the various IoT devices needed to realize Society 5.0 and a shift toward automated solutions in factories and other facilities. From this information, we organized the viewpoints for the 2 degrees Celsius and 4 degrees Celsius scenarios, envisioned what our future society might look like, and conducted a five forces analysis consisting of new entrants, sellers, buyers, substitutes, and industries orbiting our own company.

The identified risks and opportunities are classified as "major," "medium," or "minor" in terms of their impact on business, and countermeasures are determined for each, incorporated into business activities, and progress is reported to the sustainability promotion committee, thereby repeating the PDCA cycle.

*1: Scenario in which the global average temperature rises approximately 2 degrees Celsius above pre-industrial levels (IPCC RCP2.6)

*2: Scenario in which the global average temperature rises approximately 4 degrees Celsius above pre-industrial levels (IPCC RCP8.5)

Fuji's main risks and opportunities related to climate change, the degree of impact, and response measures are listed in the table below.

 

2 degrees Celsius scenario

Risk or opportunity	Transition or physical	Category	Issue	Responses to risks and opportunities	Impact level
Risk	Transition	Policies and regulations	Increases in fuel costs and material and procurement costs due to the introduction of a carbon tax. Increases in costs due to the purchase of green power and other costs due to stricter emission regulations.	Investigate using new materials and construction methods through partnerships and cooperation with suppliers. Purchase CO₂-free electricity. Introduce renewable energy equipment and batteries for storage.	Medium
Risk	Transition	Technology and markets	Increases in cost in due to the use of low-carbon technologies in products (such as lightweight and high-strength materials, environmentally friendly motors, semiconductors, and other advanced equipment), resulting in higher product prices and reduced competitiveness.	Promote the development of energy-saving technologies. Research software technology that is not affected by material procurement costs, based on the latest technical information. Begin research and development efforts, including joint research, to secure low-cost, high-quality materials.	Medium
Risk	Physical	Acute	Fuji Group: Increases in instances of damage due to frequent weather disasters, resulting in plant shutdowns and increased repair costs. Suppliers: Stagnation of production activities due to disruptions in the supply chain, including disruptions to the procurement of parts and product shipments, caused by frequent weather disasters.	Strengthen business continuity planning (BCP) measures including for the supply chain.	Minor
Risk	Physical	Chronic	Increases in costs due to increased energy consumption for air conditioning at Fuji-owned plants. Increases in costs for countermeasures to prevent infectious diseases.	Reduce CO₂ emissions by introducing renewable energy equipment and promoting the use of CO₂-free electricity. Promote the use of automation and labor-saving tools in factories.	Minor
Opportunity	Transition	Product and service markets	Expansion of market size due to an increase in energy-saving electrical products in the market. Wider scope of business opportunities in solutions for greater energy-saving performance and improvements in the productivity of factories and equipment. Wider scope of business opportunities in machine tools and SMT pick and place machines for EV manufacturing, as the automotive industry shifts toward EV.	Increase opportunity for orders by developing and promoting energy-saving products and services.	Major
Opportunity	Transition	Market	Market expansion of automation solutions including robotics because of a greater interest in automation, due to labor-saving efforts being pursued in many fields; driven by the need to address increases in abnormal weather conditions and infectious diseases.	Create product and service configurations that meet requirements for factory automation and optimization efforts.	Medium
Opportunity	Transition	Resilience	Increased quantity of machines purchased as users establish factories in multiple countries in order to mitigate the risk of disasters caused by climate change.	Establish a flexible production system that can respond to sudden demand.	Medium

　

4 degrees Celsius scenario

Risk or opportunity	Transition or physical	Category	Issue	Responses to risks and opportunities	Impact level
Risk	Physical	Acute	Fuji Group: Increases in instances of damage due to frequent weather disasters, resulting in plant shutdowns and increased repair costs. Suppliers: Stagnation of production activities due to disruptions in the supply chain, including disruptions to the procurement of parts and product shipments, caused by frequent weather disasters.	Strengthen business continuity planning (BCP) measures including for the supply chain.	Medium
Risk	Physical	Chronic	Increases in costs due to increased energy consumption for air conditioning at Fuji-owned plants. Increases in costs for countermeasures to prevent infectious diseases.	Reduce CO₂ emissions by introducing renewable energy equipment and promoting the use of CO₂-free electricity. Promote the use of automation and labor-saving tools in factories.	Medium
Opportunity	Transition	Market	Market expansion of automation solutions including robotics because of a greater interest in automation, due to labor-saving efforts being pursued in many fields; driven by the need to address increases in abnormal weather conditions and infectious diseases.	Create product and service configurations that meet requirements for factory automation and optimization efforts.	Medium
Opportunity	Transition	Resilience	Increased quantity of machines purchased as users establish factories in multiple countries in order to mitigate the risk of disasters caused by climate change.	Establish a flexible production system that can respond to sudden demand.	Medium

The results of the scenario analysis showed that the 2 degrees Celsius scenario provides an opportunity with solution business focused on increasing factory productivity and energy-saving capabilities, as well as the shift in the automotive field to EV, resulting in greater demand for SMT pick and place machines and machine tools. The risks include increased procurement costs for materials and increased costs for products with low-carbon technologies. Under the 4 degrees Celsius scenario, low carbon emissions will not be promoted and weather-related disasters are expected to become more severe, making it important to address physical risks.
In the future, we will identify financial items among the items that will be highly impacted and continue to gain understanding of the true financial impact of these.

　

　

Risk management

A Risk Compliance Committee presided over by the Representative Director is in place to adequately manage the risks which surround our business to support the setup of risk management systems for each department, and to analyze each type of risk surrounding our business and promote measures for responding to events that may have significant impact.

Risks and opportunities related to climate change are reviewed annually for each business division. The Environmental Management Committee monitors the status of reviewed updates and activities to progress up the spiral of the PDCA cycle on a company-wide level. Information is regularly shared with the Sustainability Promotion Committee and the Board to prevent risks from occurring and minimize their impact through appropriate management and response.

　

　

Indicators and targets

With CO2 emissions as an indicator of climate change, we have set a medium-term environmental target of a 46% reduction in CO2 emissions in scope 1 (direct emissions by the company) and scope 2 (indirect emissions from energy use by the company) by fiscal 2031 based on the fiscal 2014 level. In April 2023, the Sustainability Promotion Committee set our long-term goals toward carbon neutrality, with "Challenge to become carbon neutral by 2050" for scope 1 and 2, and "Reduce CO2 emissions for net sales per unit by 80% by 2050 (compared to fiscal 2022)" for scope 3.
In fiscal 2022, we began calculating emissions in scope 3 (upstream and downstream emissions in the supply chain). The fiscal 2024 results indicate that scope 3 accounts for 98% of emissions from the entire supply chain, excluding category 9 (downstream transportation and distribution), which is still under investigation. The scope 3 emissions are influenced largely by category 1 (purchased products and services) and category 11 (use of sold products). In light with this, we will strive to reduce scope 3 emissions by deepening cooperation with suppliers and promoting environmentally conscious design of products.

　

　

・CO₂ emissions across the entire supply chain

 

・Scope 3 CO₂ emissions by category

 

Detailed breakdown of scope 3 (t-CO₂)

Category	CO₂ emissions (Investigation FY2022)	CO₂ emissions (Investigation FY2023)	CO₂ emissions (Investigation FY2024)	Calculation method
Category1. Purchased goods and services	CO₂ emissions (Investigation FY2022)308,836	CO₂ emissions (Investigation FY2023)299,001	CO₂ emissions (Investigation FY2024)354,356	Calculation methodCalculated by applying emissions intensity metrics to the amount and value of goods purchased from suppliers.
Category2. Capital goods	CO₂ emissions (Investigation FY2022)30,976	CO₂ emissions (Investigation FY2023)22,468	CO₂ emissions (Investigation FY2024)24,723	Calculation methodCalculated by applying per capital good intensity metrics to the fixed asset acquisition value.
Category3. Fuel and energy related activities not included in scope 1 or scope 2	CO₂ emissions (Investigation FY2022)8,288	CO₂ emissions (Investigation FY2023)9,351	CO₂ emissions (Investigation FY2024)1,454	Calculation methodCalculated by applying emissions intensity metrics to energy consumption (such as electricity and fuel).
Category4. Upstream transportation and distribution	CO₂ emissions (Investigation FY2022)-	CO₂ emissions (Investigation FY2023)4,631	CO₂ emissions (Investigation FY2024)6,078	Calculation methodCalculated by applying emission intensity metrics to the transportation distance that was estimated based on the addresses of suppliers and delivery locations.
Category5. Waste generated in operations	CO₂ emissions (Investigation FY2022)96	CO₂ emissions (Investigation FY2023)133	CO₂ emissions (Investigation FY2024)251	Calculation methodCalculated by applying emissions intensity metrics to the emissions for each waste type.
Category6. Business travel	CO₂ emissions (Investigation FY2022)450	CO₂ emissions (Investigation FY2023)542	CO₂ emissions (Investigation FY2024)798	Calculation methodCalculated by applying emissions intensity metrics based on the days traveled.
Category7. Employee commuting	CO₂ emissions (Investigation FY2022)1,003	CO₂ emissions (Investigation FY2023)975	CO₂ emissions (Investigation FY2024)1,018	Calculation methodCalculated by applying emissions intensity metrics based on the normal number of employees in commute.
Category8. Upstream leased assets	CO₂ emissions (Investigation FY2022)619	CO₂ emissions (Investigation FY2023)938	CO₂ emissions (Investigation FY2024)1,015	Calculation methodCalculated by applying emissions intensity metrics to the floor area of the leased property.
Category9. Downstream transportation and distribution	CO₂ emissions (Investigation FY2022)-	CO₂ emissions (Investigation FY2023)-	CO₂ emissions (Investigation FY2024)-	Calculation methodUnder investigation
Category10. Processing of sold products	CO₂ emissions (Investigation FY2022)-	CO₂ emissions (Investigation FY2023)-	CO₂ emissions (Investigation FY2024)-	Calculation methodNot applicable
Category11. Use of sold products	CO₂ emissions (Investigation FY2022)183,974	CO₂ emissions (Investigation FY2023)162,929	CO₂ emissions (Investigation FY2024)123,056	Calculation methodCalculated by applying emissions intensity metrics to the lifetime energy consumption (assuming 7 years of use) for the annual sales volume of the NXT III SMT pick and place machine and the CSD II front-facing twin spindle lathe, which are the main products of each business division.
Category12. End-of-life treatment of sold products	CO₂ emissions (Investigation FY2022)31	CO₂ emissions (Investigation FY2023)38	CO₂ emissions (Investigation FY2024)31	Calculation methodCalculated by classifying the materials that configure packing materials for the NXT III SMT pick and place machine and the CSD II front-facing twin spindle lathe, which are the main products of each business division, and by applying emissions intensity metrics to the annual sales volume of these.
Category13. Downstream leased assets	CO₂ emissions (Investigation FY2022)-	CO₂ emissions (Investigation FY2023)-	CO₂ emissions (Investigation FY2024)-	Calculation methodNot applicable
Category14. Franchises	CO₂ emissions (Investigation FY2022)-	CO₂ emissions (Investigation FY2023)-	CO₂ emissions (Investigation FY2024)-	Calculation methodNot applicable
Category15. Investments	CO₂ emissions (Investigation FY2022)-	CO₂ emissions (Investigation FY2023)-	CO₂ emissions (Investigation FY2024)-	Calculation methodNot applicable
CategoryTotal	CO₂ emissions (Investigation FY2022)534,472	CO₂ emissions (Investigation FY2023)501,205	CO₂ emissions (Investigation FY2024)512,780	Calculation method

• Message from Top Management
• Sustainability Philosophy
• Sustainability promotion framework
• Contributions to SDGs
• Society
• Governance
• GRI Standards Table
• External Recognition
• ESG Data

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