Climate Change Measures: Initiatives

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.

Business activities (Scope 1 and 2)

Category	Action plan	Past initiative results	Relevant SDGs
Business	Improve operational efficiency (all operations for development, production, sales, and administration) Energy-saving activities Promote digital transformation Raise environmental awareness (carbon neutrality)	Reduced standby power Reviewed compressor operation Recycle waste items Abolished paper cups and promoted paperless Use FSC-certified paper Perform environmental beautification activities at each plant Identified the number of SDGs-related patents at the Intellectual Property Department
Equipment	Install renewable energy equipment Use renewable energy	Changed to LED lighting Changed to high-efficiency equipment (air conditioning systems) Installed renewable energy equipment Introduced air conditioning powered by geothermal energy (earth tubes) in Toyota Plant Parts Processing Factory

Social initiatives (Scope 3)

Category	Action plan	Past initiative results	Relevant SDGs
Development (products)	Life cycle assessment (LCA) Develop eco-friendly products and environmental contribution products Reduce environmental impact throughout the product life cycle (all processes)	Develop eco-friendly products Develop products that contribute to the environment
Procurement	Visualize and reduce CO2 emissions associated with supplied materials	Promote use of reusable containers Adopted reusable steel packaging materials Reduced packaging materials (change of cushioning material) Adopted vendors employing flexographic ink Endorsed "White Logistics" promotion activities

Internal Carbon Pricing (ICP) is a mechanism that assigns an internal price to CO₂ emissions and incorporates it into investment decision-making.
By utilizing ICP, companies can promote decision-making toward decarbonization and advance sustainable management.
By not only considering direct costs such as utility bills, but also the costs associated with CO₂ emissions that may be incurred in the future, we are able to make more realistic and understanding investment decisions. We are certain that this will further advance our decarbonization efforts.

The Ministry of the Environment of Japan implemented a project to support efforts to promote decarbonization management through collaboration among multiple companies and to create an advanced model for reducing emissions throughout the value chain. We participated in this project together with three suppliers and one group company that manufactures overseas, in order to work towards achieving carbon neutrality.
We received interest from government agencies and manufacturing organizations regarding the knowledge gained from this project and supplier support methods, and were able to expand our scope of activities through seminars and other means.
Going forward, we will expand this project to more suppliers and work to reduce CO₂ emissions across the entire value chain, striving to achieve the Fuji Group's long-term environmental goals as soon as possible.

In fiscal year 2022, an analysis of CO₂ and other greenhouse gas emissions across Fuji's entire business revealed that emissions originating from the supply chain, such as raw material procurement and logistics, accounted for approximately 60% of total emissions. To achieve its medium- and long-term environmental goal of reducing CO₂ emissions in the supply chain by 30% by fiscal year 2031 (compared to fiscal year 2022), it is essential to reduce emissions by working with suppliers, in addition to energy conservation and the implementation of renewable energy within the company, and we are working to raise awareness of this. Specifically, we are providing videos to start raising awareness among supplier employees.

We are also deepening mutual understanding by participating in a model project by the Ministry of the Environment together with representative supplier companies and holding study sessions on carbon neutrality hosted by our company. In addition, in calculating supply chain emissions, we are promoting the use of primary data calculated from energy consumption (Scope 1 and 2) at suppliers, rather than the simplified method of estimating CO₂ emissions by multiplying the purchase amount by the CO₂ emission unit specified for each industry.