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Environment

Climate Change

Climate Change

EnvironmentClimate Change

Awareness

Since its establishment in 1897, Meidensha has produced a range of technologies, products, and services and contributed to the development of a sustainable society in its role as a manufacturing company. In particular, we are deeply involved with decarbonization and reduction of carbon through power generation systems that utilize renewable energy sources such as solar, wind, and small to medium hydroelectric, as well as energy solution services such as smart grids. Through these environmentally conscious products, we aim to contribute to the achievement of a sustainable society and we are working to reduce greenhouse gas emissions from business activities.

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Monitoring of Climate Change by the Board of Directors

Governance
Monitoring of Climate Change by the Board of Directors

Monitoring of the Risks and Opportunities Created by Climate Change at the Level of the Board of Directors

Under the direction of the President, who is the Chief Executive Officer, the Executive Officer (Environment) oversees the environmental management of the entire Meiden Group, while the Environmental Manager in Charge of EMS promotes maintenance and improvement of the environmental management system.
As the highest decision-making body with regard to environmental activities, the Meiden Group Environmental Committee, which is chaired by the Executive Officer (Environment), identifies issues including risks posed by climate change and deliberates concerning environmental targets, action plans, and emergency response, etc., as well as determining environmental management direction. As part of its role, the Environmental Committee refers important matters to the Executive Committee and the Board of Directors, etc., to initiate activities based on executive-level decision-making.

EMS Promotion Organizations

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Medium to Long-Term Environmental Targets at the Meiden Group

Strategy
Medium to Long-Term Environmental Targets at the Meiden Group

The Meiden Group aims to reduce greenhouse gas emissions from business activities by 30% by fiscal 2030 (compared to fiscal 2017 levels).
This target was determined using Science Based Targets (SBT) in conformity with the Paris Agreement *1. We work for with stakeholders in the Meiden Group’s supply chain, including customers and business partners, to set common objectives for the challenges we share.
Under the Medium-term Management Plan 2020, our targets for fiscal 2018, fiscal 2019, and fiscal 2020 are reductions of 1%, 2%, and 4%, respectively (compared to emissions in Japan in fiscal 2017). These steps were decided to help us achieve our aims for 2030. We will periodically revise those targets.

*1 Paris Agreement: A new framework for tackling global warming from 2020, adopted by the 21st Conference of the parties (COP21) to the UN Framework Convention on Climate Change.

Amount of Greenhouse Gas Emissions from Business Activities

Amount of Greenhouse Gas Emissions from Business Activities

To address emissions stemming from energy consumption, we are working thoroughly to conserve energy through production streamlining, capital investments, etc., and converting to renewable energy. In addition, we are practicing strict control and making technological innovations to address direct emissions of GHGs like SF6 gas.

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Amount of Greenhouse Gas Emissions

Indicators
Amount of Greenhouse Gas Emissions

Scope 1 and Scope 2 emissions

(t-CO2

  FY2017 FY2018 FY2019
Japan Overseas Japan Overseas Japan Overseas
SCOPE1
Direct emissions from in-house use of fuel, etc.
27,197 5,723 18,137 4,886 16,491 5,215
SCOPE2
Indirect emissions from power or heat purchased from an outside source
Location basis 27,309 7,177 27,212 7,480 24,980 7,043
Market basis 25,868 25,573 24,724

Amount of Greenhouse Gas Emissions (Scope 1 and 2) – Emissions from Business Activities

Amount of Greenhouse Gas Emissions (Scope 1 and 2) – Emissions from Business Activities

Scope 1: Direct Emissions
Combustion of fuel (town gas and oil, etc.) and release of greenhouse gasses (SF6 and CFCs, etc.)
Scope 2: Indirect Emissions
Combustion of fossil fuel to generate electricity (electricity company) that is consumed by the company
* Renewable energy produces zero emissions

Results Data
Amount of CO2 Emissions from Energy Sources

Amount of CO<sub>2</sub> Emissions from Energy Sources

* Japanese emissions: The amounts of fuel oil and fuel gas are calculated referring to the "List of Calculation Methods and Emission Factors in the Calculation, Reporting and Publication System" published by the Ministry of the Environment. The amount of electric power is calculated referring to the "Emission Factor List by Electricity Power Company" published by the Ministry of the Environment.
* Overseas emissions: The amounts of fuel oil and fuel gas are calculated referring to the emission coefficient by country published by the GHG protocol. The amount of electric power is calculated referring to the average coefficient by country in 2010-2012 published by the International Energy Agency (IEA).
* Energy consumptions per unit are emissions (t-CO2) divided by net sales (million yen).

Energy Consumption (crude oil equivalent)

Energy Consumption (crude oil equivalent)

* Energy consumptions per unit are energy consumption (crude oil equivalent, kL) divided by net sales.

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Reduction of CO2 Emissions from Business Activities

Initiatives
Reduction of CO2 Emissions from Business Activities

The Meiden Group is conducting strategic capital investment in order to reduce greenhouse gas emissions from energy consumption, such as by replacing lighting and air conditioning equipment with highly efficient models. Furthermore, we are working to improve operation of equipment by enabling visualization of power consumption and strictly managing power consumption, particularly at night and on holidays.
In fiscal 2019, our domestic CO2 emissions decreased due to pursuing energy-efficiency measures such as work efficiency and improving the operation of air conditioners and compressors, and the initiation of new electricity procurement using non-fossil fuel certificates. Furthermore, CO2 emissions per sales unit improved over fiscal 2017.
Going forward, we will further streamline energy usage through capital investment and operation.

TOPICS
Procurement of Electricity with Zero CO2 Emissions Using Non-Fossil Fuel Certificates

Since November 2019, Meidensha has procured electricity from substantially renewable energy sources for the R&D Center and Osaki Kaikan Hall in combination with FIT*1 and non-fossil fuel certificates*2, which carry tracking information for the subsidiary, M WINDS Co., Ltd.’s Choshi Shiosai Wind Farm. Through non-fossil fuel certificates containing tracking data, we are able to link electricity that is consumed by the R&D Center and Osaki Kaikan hall to the environmental value of energy produced by the Choshi Shiosai Wind Farm, demonstrating that we produce net zero CO2 emissions. In this way, electricity consumption by Meidensha’s R&D Center and Osaki Kaikan hall produces net zero emissions.
Furthermore, using non-fossil fuel certificates with tracking information makes it possible to conform with the international initiatives RE100, which has the goal of obtaining 100% of the electricity required for business activities from renewable energy sources. This expand our options to effectively utilize existing wind farms.
As demand for electricity from renewable energy sources is rapidly increasing, with the aim of decarbonization, Meidensha will continue to work to reduce our environmental impact and provide products and services that contribute to a sustainable society.

Procurement of Electricity with Zero CO2 Emissions Using Non-Fossil Fuel Certificates

*1 Feed-in tariff (FIT) system: A system to require electricity companies to purchase electricity generated from renewable energy sources (solar, wind, hydro, geothermal, biomass) for a certain period of time. The system was launched in July 2012 in order to promote the use of renewable energy.
*2 Non-fossil fuel certificate: A certificate issued by the Ministry of Economy, Trade and Industry that certifies the environmental value of electricity that does not create CO2 emissions, such as electricity from renewable energy sources. Trading commenced through Japan Electric Power Exchange in May 2018, and a demonstration experiment that included tracking information (information that clearly states the type and location of energy source) in certificates commenced in March 2019.

TOPICS
New EV Factory Acquired the Highest Rating for BELS (Kofu Meidensha Electric Mfg. Co., Ltd.)

Kofu Meidensha Electric Mfg. Co., Ltd. acquired the highest five-star rating for BELS for its newly constructed EV factory on its premises.
BELS is a third-party rating system that indicates the energy efficiency features of buildings. It uses a five-star rating system to objectively rate energy efficiency based on primary energy consumption.
The new EV factory acquired the highest rating due to its 250-kW photovoltaic equipment and 100-kW battery, walls and window glass with exceptional insulation properties, optimized HVAC and lighting, etc.

New EV Factory Acquired the Highest Rating for BELS (Kofu Meidensha Electric Mfg. Co., Ltd.)
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Reducing Emissions of Greenhouse Gasses Other than CO2

Initiatives and Results Data
Reducing Emissions of Greenhouse Gasses Other than CO2

The Meiden Group’s emissions of greenhouse gasses other than CO2 include SF6 gas, which is used for lightning arresters and circuit breakers, etc., and CFCs, which are used as refrigerants in air conditioners.
With regard to SF6 gas, which contributes greatly to the greenhouse effect, we are working to reduce emissions and conducting technical investigations and trials of substitute gasses. Furthermore, in order to reduce CFC emissions, we are promoting stricter management and replacement of air conditioners.

Emissions of Greenhouse Gasses Other than CO2 (Japan)

Emissions of Greenhouse Gasses Other than CO2 (Japan)
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Reduction of CO2 Emissions from Product Transport

Reduction of CO2 Emissions from Product Transport

The transport division is conducting product transport efficiency reforms such as mixed loads and modal shift, as well as initiatives to reduce CO2 emissions from transport. There are many issues relating to product transport, including diversification of forms of delivery, but going forward, we will work to reduce CO2 emissions by promoting efficient transportation.

CO2 Emissions from Product Transport (Japan)

CO2 Emissions from Product Transport (Japan)
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Calculation of Greenhouse Gas Emissions in the Supply Chain

Calculation of Greenhouse Gas Emissions in the Supply Chain

Meidensha is working to calculate greenhouse gas emissions, including indirect emissions in the upstream and downstream supply chain in addition to those produced in the course of its business activities.
Meidensha is facing the issue of producing a large proportion of its emissions from “use of sold products” (scope 3, category 11) and “purchased goods and services” (scope 3, category 1). We are promoting environmental measures throughout the entire supply chain, including reducing downstream greenhouse emissions through environmentally considerate product design and reducing upstream impact through green procurement.

Meidensha’s Greenhouse Gas Emissions in the Supply Chain (Scope 3)

Category  Calculation Method Emissions Volume
(t-CO2 eq)
Amount of Activity Basic Unit
1. Purchased goods and services Purchase price (materials, consumables, services, etc.) 3EID 787,564
2. Capital goods Amount invested in fixed assets Ministry of the Environment Basic Unit - DB 27,312
3. Fuel and energy related activities not included in Scopes 1 or 2 Amount of energy consumption (electricity, etc.) Ministry of the Environment Basic Unit - DB 1,285
4. Transportation and delivery (upstream) Transportation cost (freight, storage, packing, etc.) 3EID 822
5. Waste generated by operations Emissions of each type of waste Ministry of the Environment Basic Unit - DB 1,083
6. Business travel Transportation expenses provided (travel expenses, etc.) Ministry of the Environment Basic Unit - DB 2,179
7. Employee commuting Transportation expenses provided (travel allowance, etc.) Ministry of the Environment Basic Unit - DB 786
8. Leased assets (upstream) Rent (Leased items, etc.) 3EID 1,545
9. Transportation and delivery (downstream) Amount of activity of sales agents, etc. 3EID 775
10. Processing of sold products Not applicable as the Company’s products include many formed items
11. Use of sold products Estimated with given operating conditions such as availability 3EID 8,726,650
12. End-of-life treatment of sold products Expected cost of disposal of sold goods 3EID 4,089
13. Leased assets (downstream) Energy usage at leased real estate Ministry of the Environment Basic Unit - DB 12,631
14. Franchises Not applicable as outside of the scope of the Company’s business
15. Investments Not applicable as shares held by the Company are not for the purpose of investment
Other Excluded from the scope of calculation as item is optional
Total 9,566,721

*We calculate for our supply chain with reference to Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain Ver. 2.3 published by the Ministry of the Environment and the Ministry of Economy, Trade and Industry

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