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Environment

Climate Change

Sustainability - Climate Change

Climate Change

Climate 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 eco-friendly products and services, we aim to achieve a sustainable society and 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

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.

Public Relations Section

Amount of Greenhouse Gas Emissions

Indicators

Amount of Greenhouse Gas Emissions

Scope 1 and Scope 2 emissions

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.

(t-CO2
  FY2019 FY2020 FY2021 FY2022
Japan Overseas Japan Overseas Japan Overseas Japan Overseas
Scope1
Direct emissions from in-house use of fuel, etc.
16,491 5,215 16,161 3,848 14,267 2,636 17,262 3,067
Scope2
Indirect emissions from power or heat purchased from an outside source
Location basis 24,980 7,043 24,479 9,755 25,160 10,605 25,737 8,523
Market basis 24,724 23,490 21,478 21,237

scrollable

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

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.

Amount of CO2 emissions from energy sources/CO2 emissions per sales unit

Amount of CO2 emissions from energy sources/CO2 emissions per sales unit
  • *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" for the relevant fiscal year 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 factors by country published by the GHG protocol. The amount of electric power is calculated referring to the average emission factors by country in 2010-2012 published by the International Energy Agency (IEA). Since FY2022, we have used the 2018 average emission factors by country.
  • *Energy consumptions per unit are emissions (t-CO2) divided by net sales (million yen).

Energy Consumption (crude oil equivalent)

Energy consumption/energy consumption per unit of sales

Energy consumption/energy consumption per unit of sales
  • *Energy consumptions per unit are emissions (t-CO2) divided by net sales (million yen).
Public Relations Section

Reduction of CO2 Emissions from Business Activities

Initiatives

Reduction of CO2 Emissions from Business Activities

Introduction of Renewable Energy

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.

TOPICS

Promoting Internal Carbon Pricing

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.

● Internal carbon price:
15,000 yen/t- CO2
● Subject to application:
Proposed equipment for FY2023 and beyond
Activity Results

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)
  • *Reduction is calculated based on the lifecycle (statutory useful life) of equipment.

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

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.

Procurement of Electricity with Zero CO<sub>2</sub> Emissions Using Non-Fossil Fuel Certificates
  1. *1Feed-in tariff (FIT) scheme:
    A system that obliges 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. *2Non-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.

Procurement of CO2-Free Electricity that is Produced and Consumed in Gunma Prefecture for Ota Works

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.

Procurement of CO<sub>2</sub>-Free Electricity that is Produced and Consumed in Gunma Prefecture for Ota Works

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.

  1. *1Application for trademark registration of “Gunma Hydroelectric Power Source Plan” filed in Gunma Prefecture.
  2. *2FY2019 power consumption: 7,123 MWh.

Double Winner of the FY2022 Environment Minister’s Commendation for Global Warming Prevention Activity

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.

(Left) Isato Kunisada, Parliamentary Vice-Minister of the Environment and Member of the House of Representatives (Right) Takeshi Miida, Representative Director & President & Executive Officer, MEIDENSHA CORPORATION
(Left) Isato Kunisada, Parliamentary Vice-Minister of the Environment and Member of the House of Representatives
(Right) Takeshi Miida, Representative Director & President & Executive Officer, MEIDENSHA CORPORATION
*(As of December 2022)
The new MEIDEN KOHSAN head office
The new MEIDEN KOHSAN head office

■ 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

  • MEIDEN KOHSAN’s aging head office was rebuilt with an ABW layout.
    Windows were optimally placed to allow natural lighting to come in, lighting was replaced with LEDs, etc., resulting in major energy savings.
  • A multi-functional PCS developed by Meidensha was introduced; it is used as a storage battery for power generated with solar panels; for charging and discharging power by EVs; and as a power source used at the new head office.
  • Certified as being the highest rank in the Building-Housing Energy-efficiency Labeling System (BELS), as well as ZEB Ready*3 as defined by the Ministry of Economy, Trade and Industry
  • Uses CO2-free electricity generated by M Winds Co., Ltd., a Meiden Group company, thereby emitting no CO2 in Scope 1 and 2 and reducing annual CO2 emissions by about 49 tons.
  1. *1:Activity Based Working.
    A work style that allows employees to choose the time and place to work in a way that suits their type of job.
  2. *2:Power Conditioning System.
    A device to convert power generated by solar panels into power for the utility grid.
  3. *3:ZEB Ready means that a building consumes at least 50% less primary energy (not counting renewable energy) compared to standard primary energy consumption.

Using Energy More Efficiently

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.

TOPICS

Energy Saving Campaign

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.

Examples of Initiatives

1. Turning off unnecessary lighting

  1. (1)Normally keep lights off in unoccupied areas; use fewer lights in common areas
  2. (2) Be sure to turn off lights when away from the desk (when going to meetings, taking a break, or leaving the office at the end of the day)
  3. (3)Turn off lights to vending machines; turn off neon “MEIDEN” sign on top of main building at Numazu Works

2. Strictly controlling air-conditioner operations

  1. (1)Set air-conditioning to save energy but still be reasonably comfortable (suggested settings: 28°C in summer, 20°C in winter); use timer to control operations
  2. (2)Practice Cool Biz and Warm Biz: wear light clothing and avoid wearing neckties in seasons when the workplace is being cooled and wear layered clothing in seasons when it is being heated
  3. (3)Limit the number of air-conditioning units operating 24 hours a day
  4. (4)Inspect filters when doing basic air-conditioner inspections and clean filters when doing major cleanings

3. Saving power with office equipment

  1. (1)Put PCs into power-saving mode
  2. (2)Turn monitors off when away from the desk; lower monitor brightness (but keep bright enough)
  3. (3)Reduce the number of laser printers and multi-function printers in use

4. Introducing energy-saving equipment

  1. (1)Introduce energy-saving equipment based on internal carbon pricing evaluation
  2. (2)Switch to LED lighting and top-of-line equipment; replace air conditioners with energy-saving equipment; build solar houses at work sites
  3. (3)Reduce standby power consumption by reviewing the operating conditions of equipment such as conveyors and compressors
Public Relations Section

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.

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.

Emissions of Greenhouse Gasses Other than CO2 (Japan)

Emissions of Greenhouse Gasses Other than CO2 (Japan)
Public Relations Section

Reduction of CO2 Emissions from Product Transport

Reduction of CO2 Emissions from Product Transport

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.

CO2 Emissions from Product Transport (Japan)

CO2 Emissions from Product Transport (Japan)
Public Relations Section

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)

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.

Category Calculation Method
Amount of Activity Basic Unit
1. Purchased goods and services Purchase amount (materials, consumables, services, etc.) Ministry of the Environment Basic Unit - DB
2. Capital goods Amount invested in fixed assets Ministry of the Environment Basic Unit - DB
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
4. Upstream transportation and distribution Transportation cost (freight, storage, packing, etc.) Ministry of the Environment Basic Unit - DB
5. Waste generated in operations Emissions of each type of waste Ministry of the Environment Basic Unit - DB
6. Business travel Transportation expenses provided (travel allowance, etc.) Ministry of the Environment Basic Unit - DB
7. Employee commuting」 Transportation expenses provided (travel allowance, etc.) Ministry of the Environment Basic Unit - DB
8. Upstream leased assets Rent (Leased items, etc.) Ministry of the Environment Basic Unit - DB
9. Downstream transportation and distribution Amount of activity of sales agents, etc. Ministry of the Environment Basic Unit - DB
10. Processing of sold products Not applicable as Meidensha’s products include many formed items
11. Use of sold products Calculated based on the specifications of the Company’s products and operating conditions Ministry of the Environment Basic Unit - DB
12. End-of-life treatment of sold products Assumed disposal cost of sold products Ministry of the Environment Basic Unit - DB
13. Downstream leased assets Energy usage at leased real estate Ministry of the Environment Basic Unit - DB
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 this item is optional
(t-CO2
Category FY2019 FY2020 FY2021 FY2022
Purchased goods and services *1 916,059 790,749 944,989 1,161,608
Capital goods *2 44,023 56,146 31,329 24,862*3
Fuel- and energy-related activities not included in Scopes 1 or 2 1,882 1,893 3,425 3,472*4
Upstream transportation and delivery *1 1,324 1,481 1,586 1,830
Waste generated in operations 1,587 2,004 1,645 1,925※5
Business travel 3,192 1,007 2,160 4,770
Employee commuting 1,152 940 1,182 1,401
Upstream leased assets *1 2,491 2,336 2,287 2,756
Downstream transportation and distribution *1 1,249 1,162 1,285 1,165
Processing of sold products
Use of sold products 6,370,000 6,050,000 5,922,573 5,745,708
End-of-life treatment of sold products *1 6,591 5,960 6,573 7,025
Downstream leased assets 18,509 16,837 16,298*2 16,441
Franchises
Investments
Other
Total 7,368,060 6,930,516 6,935,330 6,972,963

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  1. *1Up through FY2021, results were calculated by multiplying the monetary value exclusive of consumption tax by the emissions intensity, but since FY2022, we include the monetary value including the consumption tax.
      Therefore, we recalculated emissions for FY2019 through FY2021 using that approach.
  2. *2Figures for FY2021 have been revised.
  3. *3Since FY2022, the emissions intensity has been revised according to the industry of the sector in which the capital to be calculated has been formed.
  4. *4Since FY2022, figures have been recalculated to include steam use.
  5. *5From Basic Guidelines for Calculating Greenhouse Gas Emissions through Supply Chains, Ministry of the Environment and Ministry of Economy, Trade and Industry
      Waste from the company’s own business activities (excluding salvageable materials): Revised according to the description of emissions related to disposal and treatment outside the company.
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