society
TOPIC
JTEKT believes that the conditions for sustainable growth of a company lie in the identification of mid-to-long-term climate-related risks and opportunities in business, assessment of the resilience of its initiatives, and disclosure of information to investors and other stakeholders. For this reason, in 2018, JTEKT announced its support for the final report recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) established by the G20 Financial Stability Board (FSB).
This time, we disclose JTEKT’s initiatives for climate change in accordance with the TCFD framework.
In the future, we will use scenario analysis to identify climate-related risks and opportunities and evaluate the adaptability (resilience) of our initiatives upon setting the image of the future society by selecting multiple scenarios including the International Energy Agency’s 2-degree scenario (2DS), below-2-degree scenario (B2DS), and the scenario in which climate change countermeasures do not progress. We will also consider assessing and disclosing the financial impact of climate-related risks and opportunities.
Activity report
Reduction of CO2 emissions volume in production
From FY2021, the base unit target will be changed to the total emissions target, and JTEKT will engage in activities to meet its challenge target of 35% reduction by FY2025 and 60% reduction by FY2030 compared to FY2013.
Additionally, consecutively since FY2017, JTEKT has been rated as the highest S class in the Business Classification Evaluation System based on the Act on the Rational Use of Energy (hereinafter referred to as the Energy Saving Act).
- CO2 emissions
- 176,631t-CO2
- CO2 emissions per in-house production volume
- 129.4 t/100 million yen (reduced by 17.1%)


- CO2 emissions per in-house production volume
- 154.8 t/100 million yen (10.2% decrease)


Initiatives for realizing Environmental Challenge 2050
1. Energy visualization / Award system
From 2016 to 2017, JTEKT improved the environment for “energy visualization” that allows us to grasp energy consumption in the main production lines at all plants.
Along with starting company-wide improvement activities using visualization, we started an award system to promote more ambitious activities from FY2018.
In FY2020, two award ceremonies were held, and over 550 improvements were implemented in total.
We will continue to hold the awards after FY2021 and beyond to promote improvement activities through visualization.

Message from the award recipient
Takashi Ikegami ITCC Production Section, Manufacturing Dept., Tadomisaki Plant
We were able to achieve great results by carrying out activities with participation of all members, a plant philosophy, collaborating with related departments, and practicing genchi genbutsu (go-and-see). I believe that this award has further raised awareness among our staff. We will further step up our initiatives as we carry out future activities.

2. Energy-saving audit
In order to create new energy-saving items and boost the level of energy-saving audit engineers, JTEKT’s internal audit team carried out the audits of the Kariya Plant and Toyooki Kogyo Co., Ltd., one of our group companies, in FY2020. The items created from the audits have been rolled out to all plants, contributing to the promotion of energy-saving activities. In FY2021, the internal audit team is scheduled to conduct audits of Shikoku Plant and two domestic group companies.

3. Reflow furnace: Power consumption reduction by heat insulation Hanazono Plant
・Heat radiation from the reflow furnace cover

・Reduced heat radiation by attaching a heat insulation jacket to the cover and cut heater power consumption


4. Creative proposal system
JTEKT operates the “Creative Proposal System” as an improvement suggestion system for all employees.
Proposals related to CO2 reduction are included in this system in which the unit price for each energy type is set and the effects are calculated.
Carbon pricing is a system that aims to promote a response to climate change by offering economic incentives to reduce CO2 emissions by pricing carbon through carbon taxes and emissions trading.
Although JTEKT is not able to set carbon prices, we employ an internal carbon pricing system in which an eco-sheet stating the energy consumption of the equipment and CO2 emissions per product is attached to approval documents when introducing new equipment. By doing so, we have established investment decision criteria on which we operate to significantly reduce the CO2 base unit of each newly installed or newly developed product compared to conventional equipment.
By doing so, we have established investment decision criteria on which we operate to significantly reduce the CO2 basic unit of each newly installed or newly developed product compared to conventional equipment.
Receiving the Energy Conservation Grand Prize
“Agency for Natural Resources and Energy Commissioner’s Award”
JTEKT’s CO2 Zero Challenge received the Agency for Natural Resources and Energy Commissioner’s Award (Small Group Activity Field), a part of the FY2020 Energy Conservation Grand Prize (Energy Conservation Case Category) sponsored by the Energy Conservation Center, Japan. The Energy Conservation Award recognizes companies and business establishments that promote excellent energy conservation efforts as well as products and business models that demonstrate outstanding energy conservation properties. JTEKT’s CO2 Zero Challenge was highly evaluated, earning the company the award for the first time. JTEKT promotes efforts to minimize CO2 emissions based on Environmental Challenge 2050, and this award was given to us for CO2 Zero Challenge, an initiative focusing on improvement in the field to significantly reduce energy consumption, which JTEKT has been working on since 2016. The JTEKT group will continue to take on the challenge of achieving the targets of Environmental Challenge 2050 in the spirit of JTEKT’s environmental philosophy “All for One Earth”.

In FY2020, we installed a total of 3,285 kW of solar power generation systems at a total of five plants in Japan, China, and Malaysia, and reduced annual CO2 emissions by 1,340 tons.
As a result, the amount of renewable energy introduced was 2.27 MW for JTEKT alone and 17.5 MW for the entire group.
We will continue to make proactive efforts to reduce CO2 emissions by aiming for renewable energy introduction rates* of over 25% for JTEKT alone and over 20% for the entire group by 2030.
*Renewable energy introduction rate: Amount of renewable power generation/total power consumption
Overseas Group Company: KLF (China), JAMY (Malaysia)
In FY2020, JTEKT installed a total of 240 kW of solar power generation systems at the Hanazono Plant. At the Hanazono Plant, JTEKT has 1,168 kW of solar power generation including the amount from the systems introduced so far, and approximately 6% of total energy consumption is covered by renewable energy. JAMY in Malaysia and KLF in China have introduced 858 kW and 2,053 kW of solar power generation systems, respectively. In China, a total of 6,564 kW has been introduced, and approximately 5% of total energy consumption is covered by renewable energy. JTEKT will continue to work on the introduction of renewable energy with a low environmental load to create plants in harmony with nature.



Promotion of energy conservation and cost reduction through the introduction of a cutting-edge gas cogeneration system. As the demand for fossil fuels increases due to worldwide denuclearization and a movement to reduce CO2, the Okazaki Plant aimed to level the initial investment and running costs by improving efficiency through upgrades to the latest gas cogeneration system and updating obsolete equipment to highly energy efficient ones and using them for energy services (lease). JTEKT promotes further energy conservation by introducing an energy management system that reduces costs by reviewing the operation of existing equipment.

Initiatives to reduce CO2 through production engineering innovation
JTEKT also continues engaging in activities to achieve its new 2025 and 2030 targets.
Furthermore, in the midst of this period of drastic change that comes every 100 years, as products are undergoing major changes including electrification, we are pursuing energy and resource conservation through a reform of construction methods tracing back to the materials.
We introduce examples of CO2 reduction efforts through “machining allowance reduction, machine and process saving, and energy and resource saving” with material and heat treatment innovations and halving machining allowances, which feature one-by-one production.
【Development Case 1】Development of energy-saving and high-precision casting techniques
JTEKT has reduced the amount of heat radiation by downsizing and increased heat insulation of furnace body. By adopting the immersion-type tube burner and immersion-type heater, we have also discontinued use of the holding burner, improved heat efficiency, and reduced CO2 by 50% compared to conventional measurements. Furthermore, we are also working on high-precision casting by improving the die and contributing to energy saving by reducing the cutting stock of post-processes.

Three units—DC4, !--DC10, and DC11—in operation, scheduled for expansion



【Development Case 2】Development of the hot sizing method

【Development Case 3】e-GL Management Board



Reduction of CO2 emissions in logistics
In FY2021, JTEKT will continue to maintain and expand the use of JR train containers, replace trucks with full-loaded containers, and identify fluctuations in loading capacity to promote reform and abolition of truck freight to achieve reduction targets of 161 million tons in basic unit and 10.9 thousand tons of emissions.


Reduction of CO2 emissions volume in logistics
① JTEKT improved loading efficiency and reduced CO2 emissions through improvement of truck fuel efficiency and reflecting eco-driving as the base unit, continued replacement of JR train containers for truck transport, and use of full-loaded trailers from the distribution center in the Tokai area to the Kanto area.


② Implemented use of battery-driven logistics vehicles (forklifts)

① JTEKT will continue our FY2020 efforts to maintain and expand use of JR train containers and full-loaded trailers.
② JTEKT will continue to promote the use of battery-driven logistics vehicles (forklifts).
Safety and Environmental Measures Meeting (held regularly three times a year)
In FY2020, the meetings were held remotely with logistics companies to discuss reduction of environmental load, due to COVID-19.
JTEKT will hold regular meetings in FY2021 and continue efforts to reduce environmental load.