Climate Change

Long-Term Targets for Reducing Greenhouse Gas Emissions

The Seiko Group has been striving to reduce greenhouse gas emissions through all its business activities, including energy-saving activities in offices and manufacturing sites, and improving energy efficiency in products and services. Recently, we have been proactively introducing renewable energy.
In addition, we have set Initiatives for Climate Change and a Decarbonized Society among the Group’s key materiality issues, and we are accelerating our Group-wide efforts toward a decarbonized society by endorsing the Task Force on Climate-related Financial Disclosures (TCFD) in October 2021.

In the future, we will strive to further reduce greenhouse gas emissions in accordance with the greenhouse gas emission reduction targets based on the SBT (Science Based Targets), and aim for SBT certification in the future.

*1: Based on the “1.5℃ level”, which is a science-based greenhouse gas emission reduction target operated and promoted by SBTi (Science Based Targets initiative).

Information Disclosure Based on TCFD Recommendations

FY2021 Overview

We have strengthened our company-wide promotion of this policy, from top management to line employees, aiming to achieve a decarbonized society by endorsing the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and setting long-term targets to reduce greenhouse gas (GHG) emissions. In FY2021, in addition to ongoing efforts to reduce GHG emissions through the efficient operation of our facilities, we also made efforts to upgrade to more energy-efficient equipment and switch to LED lighting fixtures, among other measures. The introduction of renewable energy has progressed at several operating companies and facilities as well (renewable energy ratio: 7.3%). To achieve our long-term target, we need to reduce energy consumption by 4.2% annually from the 2020 level; in FY2021 we achieved a significant 6.1% year-on-year reduction.

Greenhouse gas emissions

102,634t-CO²

Scope 1: Direct emissions by the company itself (e.g., fuel combustion)
Scope 2: Indirect emissions from the use of electricity, etc. supplied by other companies
* The total amount of Greenhouse gas emissions and the breakdown may not exactly match due to fractional rounding.

• Note 1:

  Emission factors

• Electricity:

  In Japan, we use emissions factors as determined by the emissions output for each separate electric power utility, as specified in the Act on Promotion of Global Warming Countermeasures.
  Overseas, the International Energy Agency (IEA) emission factors for each country are the standard reference.

• Fuel:

  Both in Japan and overseas, emissions are measured as the calorific value by type of fuel and emission factors for fuel use as specified in the Act on Promotion of Global Warming Countermeasures.
  However, if information such as calorific value is provided by the fuel supplier itself, that data is used.

• Chilled/heated water:

  Emission factors provided by suppliers are used.

• Note 2:

  Starting in FY2020, tenants, stores, warehouses, company vehicles, etc. have been added to the scope of calculation, but energy use by outsourced companies is not included.

• Note 3:

  For stores, warehouses, etc., where the amount of electricity used cannot be specified, the amount of electricity is estimated from the floor area.

Category	Item	CO2 emissions (t-CO2)	%
Category 1	Products and services purchased	302,783	56.8%
Category 2	Capital goods	25,809	4.8%
Category 3	Fuel and energy-related activities not included in Scope 1, 2	16,565	3.1%
Category 4	Transportation and distribution (upstream)	37,851	7.1%
Category 5	Waste from business activities	2,678	0.5%
Category 6	Business travel	1,936	0.4%
Category 7	Employee commuting	5,974	1.1%
Category 8	Leased assets (upstream)	122	0.0%
Category 9	Transportation and distribution (downstream)	3,880	0.7%
Category 10	Processing of sold products	14,391	2.7%
Category 11	Use of sold products	114,259	21.4%
Category 12	Disposal of sold products	5,930	1.1%
Category 13	Leased assets (downstream)	586	0.1%
Category 14	Franchises	-	-
Category 15	Investments	-	-
total		532,764	100.0%

*The total amount may not match due to the processing of fractions.

Examples of Initiatives

Promotion of LED lighting

The Seiko Group operating companies are continuously working to convert to LED lighting.
SII Crystal Technology Inc. has been promoting the use of LEDs in a four-year plan starting in 2019. In FY2021, 292 fluorescent lamps were replaced.

Introduction of Renewable Energy

The Seiko Group is accelerating the introduction of renewable energy to help achieve a decarbonized society. The Sendai Unit of Seiko Instruments Inc. introduced a renewable energy system and commenced operation in March 2022. Under a power purchase agreement (PPA service) with Fuyo General Lease Co., Ltd., a solar power generation system of approximately 760 kW was installed on the roof of the Sendai Unit plant. The Sendai Unit is now using the clean energy generated by this system.

Solar panels were also installed at the Navanakorn Factory of Seiko Instruments (Thailand) Ltd. (SIT), and began generating power in June 2021. Subsequently, more solar panels were added, and a total of 1.7 MWp of electricity has been generated since October 2021. This is particularly significant because SIT produces the largest amount of CO² emissions of any operating company in the SII Group. Going forward, the Group will continue to introduce solar power generation to reduce CO² emissions.

In addition, the Ginza head office of Seiko Group Corporation and Wako Main Building (now SEIKO HOUSE GINZA) has converted to renewable energy through clean electric power supply contracts, and has also purchased overseas renewable energy power certificates.