Received highest rating of A in the climate change category of "CDP 2024"
JTEKT Corporation (Headquarters: Kariya City, Aichi Prefecture, President and CEO: Yoshito Kondo, hereinafter referred to as "JTEKT") has been highly evaluated for its efforts in responding to climate change, receiving an A rating, the highest possible rating out of an eight-point scale, in a survey conducted by CDP, an international environmental non-profit organization, in the "climate change" category, earning it a leadership level rating. In addition, CDP awarded JTEKT as A- rating, the second highest possible rating, in the "water security" category.
The JTEKT Group has formulated the "Environmental Challenge 2050" and is continuing to take on the challenge of passing on our irreplaceable Earth to the next generation under the slogan "All for One Earth." In order to achieve carbon neutrality, we are promoting the reduction of CO2 emissions in all Scopes 1, 2, and 3, and aim to achieve carbon neutrality in Scopes 1 and 2 related to our own production activities by 2035.
JTEKT has been installing solar power generation equipment at each business site, and in June 2024, began operation and demonstration of the "CN Lab," which generates hydrogen using electricity generated by solar power generation equipment, and is also demonstrating a melting furnace that uses the generated hydrogen, striving to reduce CO2 emissions toward achieving carbon neutrality. In addition, JTEKT is workingon on the circular economy, and are striving to improve the sustainability of our business activities by maximizing the value of resources and products, minimizing resource consumption, and reducing waste generation.
Initiatives against "climate change"
In order to prevent global warming and mitigate the various impacts of climate change, JTEKT is aiming to achieve carbon neutrality by 2035 across the entire group. By promoting daily energy-saving activities, the use of renewable energy in the manufacturing process such as the introduction of solar power generation equipment, visualization of power consumption, and innovation in production technology, we aim to reduce CO2 emissions by 31.8% in fiscal 2023 compared to fiscal 2013. In addition to reducing our own CO2 emissions, we also aim to achieve carbon neutrality from the perspective of product life cycle CO2 (the amount of CO2 generated in all processes from manufacturing to transportation, sales, and disposal).
In July 2024, the greenhouse gas emission reduction targets set by the JTEKT Group were certified by SBT (※), which led to the CDP's highest rating of A.
*SBT: Greenhouse gas emission reduction targets certified by companies that are consistent with the standards required by the Paris Agreement.
About CDP
CDP is an international non-profit organization that represents global institutional investors with a strong interest in environmental issues and evaluates and discloses the environmental initiatives of over 24,800 companies worldwide. The evaluation is based on items such as governance, risks and opportunities, business strategy, goals, and engagement, and ranks companies into eight levels: leadership level (A, A-), management level (B, B-), awareness level (C, C-), and information disclosure level (D, D-).
Future Outlook
JTEKT regards climate change as one of its key issues and has formulated the "2025 Environmental Action Plan" which sets out more specific targets to achieve the "Environmental Challenge 2050" guidelines for minimizing environmental impact. In order to achieve carbon neutrality across the entire JTEKT Group by 2035, we will share this plan with the entire group and promote the development of new technologies, improvements to production processes, and the introduction of renewable energy off-site, including virtual PPAs (*), in addition to on-site.
*Virtual PPA: A virtual power purchase agreement (a contract in which only environmental value is traded, without any electricity according to the amount of electricity generated, from a renewable energy power plant built outside the consumer's premises).
Reference
■Examples of our ESG-related initiatives and business activities