Sustainability - Climate Change
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 eco-friendly products and services, we aim to achieve a sustainable society and are working to reduce greenhouse gas emissions from business activities.
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 Officers’ Meeting and the Board of Directors, etc., to initiate activities based on executive-level decision-making.
To enhance our activities for mitigating environmental impact, we use internal carbon pricing and source CO2-free electricity (in FY2022, more sites began to source CO2-free electricity, including KOFU MEIDENSHA ELECTRIC MFG. CO., LTD. and MEIDEN NANOPROCESS INNOVATIONS, INC.). As a result, Scope 2 emissions fell even as production increased. On the other hand, Scope 1 emissions increased in FY2022 due to a leak of SF6 gas from equipment used to recover it. In response to that incident, we refurbished the recovery equipment and put a stronger check system in place. We will continue working to control Scope 1 and 2 emissions.
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
In FY2022, we started aggregating environmental performance data for MEIDEN (HANGZHOU) DRIVE TECHNOLOGY CO., LTD., VIETSTAR MEIDEN CORPORATION, and MEIDEN AMERICA SWITCHGEAR, INC. As a result, although energy use has increased, the emission factor declined since we started using the International Energy Agency’s (IEA) 2018 country-specific average factors in FY2022, leading to lower CO2 emissions per unit of sales outside Japan.
In recent years, we have procured electricity from renewable sources in an effort to reduce CO2 emissions from business activities.
Since FY2019, we have been working on sourcing electricity with non-fossil certificates and purchasing power from renewable sources.
In FY2022, KOFU MEIDENSHA ELECTRIC MFG. CO., LTD., one of our main production base in Japan, introduced renewable power and switched 30% of its electricity consumption to CO2-free power. In addition, the new head office at MEIDEN KOHSAN CO., LTD. sources electricity produced by M WINDS CO., LTD.’s Choshi Shiosai Wind Farm through non-fossil certificates with tracking information.
| FY2019 |
November: Began sourcing CO2-free electricity from wind power through non-fossil certificates with tracking information at the Meiden R&D Center and Osaki Kaikan Hall. |
|---|---|
| FY2020 |
November: Signed power contract (special contract for renewable energy) at EAML Engineering CO., LTD. and began sourcing CO2-free electricity, mainly from hydroelectric power. |
| FY2021 |
April: Signed power contract (Gunma Hydroelectric Power Source Plan) at Ota Works and began sourcing CO2-free electricity from hydroelectric power. January: Signed power contract (Carbon F Plan) at Chiba R&D location of MEIDEN NANOPROCESS INNOVATIONS, INC. and began sourcing CO2-free electricity from hydroelectric power. |
| FY2022 |
May: Signed power contract (Green Basic Plan) at KOFU MEIDENSHA ELECTRIC MFG. CO., LTD. and began sourcing 30% of the power it uses in the form of CO2-free electricity from solar and wind power. May: Began sourcing CO2-free wind power at headquarters of MEIDEN KOHSAN CO., LTD. using non-fossil certificates with tracking information. |
| FY2023 |
July: Signed power contract at Meidensha’s Numazu Works (Green Basic Plan) and began sourcing 20% of the power it uses in the form of CO2-free electricity from solar and wind power. July: Signed power contract (Green Basic Plan) at Meidensha’s Headquarters (ThinkPark Tower) and began sourcing CO2-free electricity from solar and wind power, etc. |
Internal carbon pricing is a mechanism to promote investment in equipment with a significant CO2 reduction benefit. It works by setting a carbon price within a company and using it to calculate the cost of greenhouse gas emissions.
Meidensha introduced the internal carbon pricing system in April 2021. We will convert carbon emissions from capital investment plans to expenses using an internal carbon price through the system. It will be a tool to make investment decisions. At Meidensha, we initially set ¥3,000/t-CO2 as the internal carbon price. However, after considering the Ministry of the Environment guidelines and the carbon price under the IEA’s 1.5°C scenario, we raised our internal price to ¥15,000/t-CO₂, which applies to capital investment starting in FY2023. We will continue to promote reductions in greenhouse gas emissions in our business activities by considering environmental impact mitigation along with safety and productivity when making equipment investment decisions.
There were 13 cases in FY2022 in which we applied internal carbon pricing. For example, we introduced equipment that is expected to significantly lower CO2 emissions, such as replacing fluorescent lighting with LED bulbs at the Meiden R&D Centerand replacing compressors and air-conditioning equipment at production plants.
| Equipment subject to internal carbon pricing (FY2022) | 1,462 (million yen) |
|---|---|
| Reduction due to internal carbon pricing* | 3,708 (t-CO2) |
Since November 2019, we have sourced electricity from effectively renewable energy sources for the Meiden R&D Center and Osaki Kaikan Hall with a combination of FIT*1 and non-fossil fuel certificates*2 with tracking information for Meiden Group 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 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 expands 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 its environmental impact and provide products and services that contribute to a sustainable society.
From April 2021, Meidensha has been procuring electricity from CO2-free hydroelectric sources in Gunma Prefecture for Ota Works (Ota city, Gunma), which is one of our main production sites. Up to this point, we have trialed procurement of CO2-free electricity for some facilities such as the Meiden R&D Center (Shinagawa, Tokyo), but this is the first time we have introduced it for whole production sites. This initiative uses the Gunma Hydroelectric Power Source Plan*1 from the power menu provided by Gunma Prefecture and TEPCO Energy Partner, Incorporated. This power menu is a plan for local generation and consumption of electricity provided from hydroelectric power plants directly run by Gunma Prefecture (excluding pumped hydro and FIT) to enable zero CO2 emissions from electricity consumption. A portion of electricity charges are used for environmental protection projects, etc., in Gunma, which contributes to the local community.
Ota Works was established in 1977 as a dedicated rotating machinery factory. It currently focuses on medium and large rotating machinery and power generation equipment and dynamometers, which are used for research and development, etc., of vehicles, etc., and develops and manufactures environmentally considerate equipment. We have delivered many generators produced at Ota Works to hydroelectric power plants in Gunma, and Ota Works accounts for approximately 10% of the Meiden Group’s total power consumption.*2 Going forward, Ota Works will manufacture hydroelectric power generation equipment and component products using electricity from renewable energy produced by hydroelectric generation.
The Meiden Group is also considering procurement of electricity from renewable sources at other sites. We will continuously work to reduce greenhouse gas emissions from business activities, etc., including prioritizing the introduction of equipment with a low environmental impact, etc., and contribute to the realization of a sustainable society through the development and delivery of products and services that contribute to global environmental conservation.
MEIDENSHA CORPORATION and MEIDEN KOHSAN CO., LTD. (MEIDEN KOHSAN), a member of the Meiden Group, won an FY2022 Environment Minister’s Commendation for Global Warming Prevention Activity in the category of pioneering introduction and proactive implementation. The two were praised for their efforts to implement ABW*1 and a multi-function PCS*2 manufactured by Meidensha at the new MEIDEN KOHSAN head office.
At the same event, Meidensha’s independent effort to contribute to a decarbonized society by making the world’s first Ecotank Type Vacuum Circuit Breaker (VCB) that does not use SF6 gas also won an Environment Minister’s Commendation for Global Warming Prevention Activity in the product development and commercialization category.
The Ministry of the Environment sponsors the Environment Minister’s Commendation for Global Warming Prevention Activity to honor individuals and entities that have made outstanding achievements in alleviating climate change and adapting to it.
At the FY2022 event, the Meiden Group became the only business group to be a double winner.
■ Category of pioneering introduction and proactive implementation (mitigation and adaptation)
Implementation of ABW and a multi-function PCS manufactured by Meidensha at the new MEIDEN KOHSAN head office
■ Overview of initiative
The Meiden Group makes capital investment systematically, such as introducing internal carbon pricing and replacing lighting and air-conditioning with high-efficiency equipment, to lower greenhouse gas emissions caused by energy consumption. We are in addition visualizing our power consumption and improving equipment operations, especially by practicing strict energy consumption control on holidays and at night.
The Group held an Energy Saving Campaign with the aim of using energy more efficiently, spreading awareness of energy saving, and lowering energy costs. As part of this, employees were invited to propose ideas for improvements that would lead to energy savings. In addition, divisions that made outstanding energy-saving efforts at their respective offices and units received commendations.
1. Turning off unnecessary lighting
2. Strictly controlling air-conditioner operations
3. Saving power with office equipment
4. Introducing energy-saving equipment
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.
The Group is working to reduce emissions of SF₆ gas with its powerful greenhouse effect and is also doing technical research and verification of alternative gases. To curb CFC emissions, moreover, we are strengthening management of air-conditioning equipment and updating facilities.
The transport division is working to reduce CO2 emissions by practicing cargo consolidation, modal shift, and efficient transport, such as using JR containers and switching from trailer transport to ship transport from nearby ports.
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.
We calculate for our supply chain with reference to the Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain, published by the Ministry of the Environment and the Ministry of Economy, Trade and Industry, etc.
In developing the Second Meiden Environmental Vision, which set new medium-to-long-term environmental targets and launched in FY2021, we completely reviewed Scope 3 calculation methods. We transitioned from calculating the non-consolidated value of Meidensha to calculating the consolidated value of the Meiden Group, and conducted review of units for our FY2021 record. For Category 11, we increased precision by conducting more detailed calculation of emissions per unit of production for each product group. For categories calculated on a monetary basis, we also reviewed part of our standards going back to FY2019. Thus, data values disclosed up to FY2021 lack continuity; however, going forward we intend to trace these values using this calculation method and revise them as necessary.
