Relevant SDGs
Climate change-related risks to business, such as natural disasters, are on the rise each year, which only increases the responsibility of companies to help bring about a decarbonized society.
Our Group is committed to reducing greenhouse gas emissions through all our business activities, from energy-saving efforts in offices and manufacturing sites to reducing emissions connected with all the products and services provided by every business unit. While continuing these initiatives, we are further strengthening efforts toward decarbonization, including the introduction of renewable energy and emissions reduction in the supply chain.
Long-term target
In November 2023, our Group revised its long-term targets to expedite the reduction of greenhouse gas emissions. For example, we aim to achieve 100% renewable energy usage at all our domestic facilities during fiscal year 2024, and for all Group facilities, including those overseas, by FY2040. After we maximize energy conservation, fuel conversion, and Scope 3 reduction, we will offset the remaining residual emissions through removal credits.
In line with this long-term goal, we will continue to accelerate our adoption of renewable energy and make efforts to further reduce greenhouse gas emissions. Regarding our targets for fiscal year 2030, we have obtained certification from the Science Based Targets initiative (SBTi), confirming that our targets align with the 1.5°C target set out in the Paris Agreement.
Our long-term targets for reducing greenhouse gas emissions
Greenhouse gas emissions reduction target
Fiscal year 2030
Scope1, 242% reduction compared to the FY2022 level.
Scope325% reduction compared to the FY2022 level, targeting categories 1 and 11.
Fiscal year 2050
Aiming for net zero.
Summary of Fiscal Year 2022
We are actively engaged in reducing greenhouse gas emissions, targeting both CO2 and other gases. The key focus areas for emissions reduction include “energy-saving activities,” “adoption of renewable energy,” and “reduction in the value chain.” In addition, we are dedicated to creating energy-efficient products and services.
Among our energy-saving activities, we promote the efficient operation and management of our facilities, invest in high-efficiency equipment, and encourage everyday energy-saving practices. We believe continuous efforts in these areas are essential. With regard to renewable energy, we recognize the importance of adopting suitable methods based on the location and characteristics of each facility.
Through these initiatives, we achieved a reduction of 6,045t of CO2 emissions (Scope 1+2) in FY2022 compared to FY2021. We calculated that, compared to the 2020 baseline, we would need an 8.4% reduction in order to achieve our long-term targets, but we actually achieved an 11.6% reduction in that year. The introduction of renewable energy has also progressed, with the ratio of total renewable energy now in use reaching 15.3%.
Scope 3 emissions totaled 572,562t-CO2, with approximately 63% attributed to Category 1 (purchased goods and services) and approximately 17% to Category 11 (use of products sold). Going forward, we will focus on exploring emission reduction strategies in the supply chain, particularly within these two categories.
In October 2021 we pledged to support the Task Force on Climate-related Financial Disclosures (TCFD). Since July 2022, we have been disclosing information based on the TCFD recommendations. Furthermore, we submitted a letter of commitment to the Science-Based Targets initiative (SBTi) in April 2023, aiming for SBT certification (short-term targets).
※ In FY2022, we took steps based on our original long-term target of a 42% reduction compared to the 2020 baseline. With the revised long-term target established in November 2023, we now aim to achieve a 42% reduction compared to FY2022.
Scope1, 2 Greenhouse Gas (GHG) Emissions
96,581t-CO2
Aggregation Scope: Seiko Group Corporation and all business units
Scope 1: Direct emissions by the operator (e.g., burning of fuels)
Scope 2: Indirect emissions associated with the use of externally supplied electricity, etc. (market-based)
※ Due to rounding, the total value of GHG emissions and their breakdown may not match.
※ In line with the revision of CO2 emission factors, CO2 emissions for fiscal years before 2019 have been recalculated retroactively.
※ There are no biogenic GHG emissions.
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- Note 1:
- Emission Factors:
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- Electricity:
- In Japan, we use the adjusted emissions factors for electricity providers specified in the Act on the Promotion of Global Warming Countermeasures.
Overseas, we use emissions factors for each country provided by the International Energy Agency (IEA).
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- Fuels:
- Worldwide, we use emissions factors based on the heat generation and fuel use specified in the Act on the Promotion of Global Warming Countermeasures.
However, if information on heat generation, etc., is available from the provider, we use that data.
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- Hot and Cold Water:
- We use emissions factors provided by the energy provider.
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- Note 2:
- Beginning in FY2020, tenants, stores, warehouses, etc., are included in the calculation. Company vehicles are also included, excluding those related to energy usage by commissioned operations.
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- Note 3:
- For locations such as stores and warehouses, where exact usage cannot be known, electricity consumption is estimated based on floor area.
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- Note 4:
- Domestic facilities include Scope 6.5 gas. Overseas facilities include only CO2 derived from energy production.
Scope3 Greenhouse Gas Emissions
| Category | Item | CO2 emissions (t-CO2) | % |
|---|---|---|---|
| Category 1 | Purchased goods and services | 362,397 | 63.3% |
| Category 2 | Capital goods | 25,690 | 4.5% |
| Category 3 | Fuel- and energy-related activities not included in Scope 1 or Scope 2 | 16,128 | 2.8% |
| Category 4 | Upstream transportation and distribution | 39,076 | 6.8% |
| Category 5 | Waste generated in operations | 2,888 | 0.5% |
| Category 6 | Business travel | 3,679 | 0.6% |
| Category 7 | Employee commuting | 5,755 | 1.0% |
| Category 8 | Upstream leased assets | 122 | 0.0% |
| Category 9 | Downstream transportation and distribution | 2,682 | 0.5% |
| Category 10 | Processing of sold products | 12,226 | 2.1% |
| Category 11 | Use of sold products | 95,742 | 16.7% |
| Category 12 | End-of-life treatment of sold products | 5,630 | 1.0% |
| Category 13 | Downstream leased assets | 546 | 0.1% |
| Category 14 | Franchises | - | - |
| Category 15 | Investments | - | - |
| total | 572,562 | 100.0% |
*The total amount may not match due to the processing of fractions.
Energy Usage
248,512MWh
Aggregation Scope: Seiko Group Corporation and all its business units
Emissions of Fluorinated Gases
Our Group has completely eliminated the use of ozone-depleting substances in our manufacturing processes. However, we still possess refrigerants used in air conditioning and refrigeration equipment. Each business unit adheres to the Fluorocarbons Emissions Control Act*, conducting inspections and regular check-ups to prevent leaks during usage, as well as specific measures during disposal.
*Japanese Law
Examples of Initiatives
Promotion of LED Conversion
Each subsidiary within our Group is involved in the ongoing plan to convert all lighting to LEDs.
For example, SII Crystal Technology Co., Ltd. has been promoting the LED conversion of ceiling lighting since 2019 as part of a four-year plan. The initiative was completed in FY2022, with a total of 1,150 units replaced over the four-year period.
Certified as Green Industry Level 4
Seiko Instruments (Thailand) Ltd. has received Level 4 certification in the Green Industry Project organized by the Thai Ministry of Industry. The Green Industry Project is a program aimed at raising awareness within industry and promoting sustainable industrial development in response to environmental and social issues. The certification is granted on a scale from Level 1 to Level 5, based on the level of contribution to the environment. In Level 4 (Green Culture), all individuals working in a factory must have a sense of responsibility towards society and the environment.
Even after achieving Level 3, Seiko Instruments (Thailand) Ltd. continued its efforts, with the full cooperation of its employees, and thus attained Level 4 certification. The company engaged in various activities to foster a corporate culture in which everyone in the factory takes responsibility and acts with consideration for the environment and society. These efforts were highly praised by the Thai judges, who noted that each employee demonstrated a high level of awareness and practical application of environmental consciousness.
Introduction of Renewable Energy
Our Group is accelerating the adoption of renewable energy to help achieve a decarbonized society.
Seiko Precision (Thailand) Co., Ltd. has installed solar panels on the roof of its two main buildings. The solar power generation system for the first factory became operational in January 2023 with a capacity of 723.2 kW, and the system for the second factory went online in in August 2023, with a capacity of 869.4 kW. The combined system has already resulted in a reduction of 478 tons of CO2 emissions since the start of operations, and there are plans to expand it further. Seiko Precision (Thailand) is also working on activities to reduce CO2 emissions company-wide, such as achieving space efficiency through layout revisions and optimizing power consumption.
Seiko Instruments (Thailand) has the highest CO2 emissions of any company in the SII Group. However, it has been steadily introducing solar power generation. In 2022, solar panels were installed on the roof of the building at the Gateway factory, and this solar power generation system began operating in February 2023. The company plans to systematically introduce solar power generation in the future and continue its efforts to reduce CO2 emissions.
In addition, three companies responsible for domestic watch manufacturing — Morioka Seiko Instruments Inc., Tono Seiki Co., Ltd., and Ninohe Tokei Kogyo Co., Ltd. — have recently contracted for a renewable electricity plan provided by Tohoku Electric Power. This ensures that 100% of the electricity used in our domestic watch factories will be sourced from renewable energy.
