Response to climate change
As global warming countermeasures are one of the most important issues for our management focus, we have drawn up a vision of what we aim to be by 2030, and are working on it by setting short- and medium-term targets through backcasting.
Vision for 2030
Successfully managed the anticipated risks related to climate change and entered into businesses that present significant opportunities.
Reached our targets for reducing CO2 emissions in accordance with the Science Based Targets reduced CO2 emissions from our business sites, and established a structure for developing eco-friendly products with reduced CO2 emissions.
Global warming has various effects on various areas. One of these is concerns about climate change. Even a corporate group considers measures to be important and promotes measures to avoid the impact of natural disasters on its business and to achieve sustainable development.
Climate change initiatives are being promoted under three themes
Response to TCFD (Task Force on Climate-related Financial Disclosures)
Ushio recognizes that climate change affects its sustainable growth. Accordingly, we declared our support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) as we believe it is necessary to clarify the impact and increase transparency. Based on the recommendations of TCFD, we will analyze the risks and opportunities that climate change may have on our business and reflect them in our management strategies. We will also disclose related financial and management information.
Reducing CO₂ Emissions from Business Sites (SCOPE1, 2)
Climate change risks include tighter regulations on CO2 emissions from energy use, and we expect the costs to meet these regulations will increase. Therefore we set renewable energy target and are proceeding it accordingly. By installing solar power generation facilities and procuring inexpensive renewable energy, we will choose the optimal method through a variety of means. For example, we have installed solar panels in Gotemba Division and in Ushio Philippines, Inc. As for the Harima Division, which emits the most CO2, all electric power has been changed to renewable energy plan since FY2022. From now on, we will continue to introduce renewable energy at our business sites in japan. In addition, we continuously work on energy-saving air conditioning and LED lightning.
We have established SBT for reducing CO₂ emissions from business sites (SCOPE1, 2) and have formulated long-term reduction plans. In our SBT, In November 2020, we reviewed it and set a new target of significantly lower than 2℃ from the 2℃ level to 33% reduction compared to fiscal 2017. we have aimed for a 21% reduction compared to fiscal 2017. However, we have raised our targets further, taking into account the "IPCC (Intergovernmental Panel on Climate Change) Special Report on the impacts of global warming of 1.5°C" in 2018, discussions at COP26 in November 2021, and SBT certification standards revisions and net-zero targets.
We have raised our target by 45% reduction by FY2030 from FY 2017 levels and carbon neutrality by FY2050.
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Reducing CO₂ Emissions by Developing Environmentally Conscious Products (SCOPE3)
By promoting environmentally conscious design and development that contribute to energy conservation and curbing CO₂ emissions from all business activities, Ushio is actively reducing our impact on climate change. Specifically, we include "energy conservation" as one of Ushio's original standards for the Super Green Products certification. We believe that we can make contributions to energy conservation by promoting sales of certified products. Viewing climate change as a new business opportunity and we are involved in the development of plant factories to meet the growing demand for stable food procurement that is expected under climate change.
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In addition to these themes, we are also working on initiatives that related to climate change from BCP perspectives. Floods, droughts, and fires caused by extreme weather conditions around the world have resulted in the inability of factories to operate, the shutdown of supply chains, and the materialization of material procurement risks. Therefore, to reduce this risk, we are taking strategic measures, such as incorporating BCP perspectives in the dispersal of production and material procurement.