- JTEKT TOP
- Sustainability
- Environmental Report
- Establishment of Low-carbon Society
Establishment of Low-carbon Society
In October 2020, the Japanese government declared its goal to achieve a carbon-neutral, decarbonized society by 2050. Then in 2021, COP26 was held in Glasgow, England, where the goal was formally agreed upon to limit the rise in temperature below 1.5 degrees Celsius versus the temperature level before the industrial revolution, so the initiatives towards achieving carbon neutrality are accelerating both domestically and internationally, and companies are required to respond from a perspective that includes LCA (Life Cycle Assessment).
In order to prevent global warming and mitigate the various impacts of climate change, the JTEKTgroup as a whole will minimize the energy consumption in its business activities, promote energy conservation and logistics improvement throughout all processes from product design to delivery, and promote the use of renewable energy with the aim of achieving carbon neutrality of CO2 in production by 2035.
Carbon Neutral Roadmap
Our company has declared that it will reduce its total CO2 emissions from production by 35% by FY2025 compared with FY2013, by 60% by FY2030, and achieve carbon neutrality by 2035.The FY2030 target for total CO2 emissions to achieve this has been certified as a Science Based Target (SBT) and is consistent with the 1.5℃ target agreed under the 2016 Paris Agreement.
Through our initiatives in FY2024, we were able to achieve our FY2025 targets one year ahead of schedule. In order to achieve our SBT targets, we have raised our 2025 challenge target to a 45% reduction compared with FY2013. In addition to visualizing energy consumption by process at manufacturing sites, we are expanding the energy-saving activities that were effective at domestic manufacturing sites to group companies both domestically and internationally, promoting energy-saving activities in a globally unified manner.
Major FY2024 Results
Environmental Action Plan 2025 / FY2024 Activity Result
[ ]compared to 2013
| Category | Initiative items | Target and initiative policy | FY2024 Activity Results | Assessment | |||||||||||||||
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| Reduction of CO2 emissions | (1) CO2 reduction in production and logistics activities ・Global CO2 reduction ・ CO2 reduction by improving logistics |
<Production> ① Promotion of CO2 reduction activities through daily improvement at plants（Pursuing productivity improvement, adopting high-efficiency equipment, and deploying initiatives such as energy-saving diagnoses） ② Development and introduction of low CO2 production technology through production technology innovation
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| <Logistics> Reduction of CO2 emissions by improving logistics and fuel efficiency
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| (2) Promotion of renewable energy | Promote renewable energy that considers the characteristics of each district and region
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TOPIC
Carbon Pricing Initiative
Carbon pricing is a system that aims to create economic incentives to reduce CO2 emissions and promote responses to climate change by pricing carbon through carbon taxes and emissions trading.
JTEKT employs 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 basic unit of each newly installed or newly developed product compared to conventional equipment.
Furthermore, to promote investment in emission reduction activities, JTEKT has relaxed the criteria for making investment decisions and expanded the payback period to four years with respect to energy-saving investments in order to encourage active investment and lead to the reduction of CO2 emissions.
Issuance of Sustainability-Linked Bonds
Sustainability-linked bonds are financial products in which the terms of the bonds change based on the issuer's progress towards achieving sustainability and ESG goals.
Through the funds raised by issuing corporate bonds, we will accelerate our environmental activities, including reducing CO2 emissions and achieving carbon neutrality as the JTEKT Group, as well as our business activities as a solution provider.
| KPI | Reduction rate of CO2 emissions in Scope1 and 2 (compared with FY 2021) |
| SPTs | Reduce CO2 emissions in Scope1 and 2 by 28.2% in FY 2027 |
※SPTs (Sustainability Performance Targets) are pre-defined targets, measured by using Key Performance Indicators (KPIs), that underpin the terms of a bond in a sustainability-linked bond.
■Regarding the issuance of sustainability-linked
https://www.jtekt.co.jp/news/2024/004173.html
Daily improvement initiatives at plant
Reducion of CO2 emissions in production
●(JTEKT JAPAN)
Total CO2 emissions in FY2024 reduced 3.7% from the previous year, reaching 201.9kt- CO2 due to energy-saving initiatives, and reduced 43.6% from FY2013, successfully meeting the targets for FY2024.
In addition, the company was rated Class A in the business classification evaluation system in FY2024 based on the Act on Rationalizing Energy Use (hereinafter referred to as "Energy Conservation Act").
| Total CO2 emissions *1 | 201.9Kt-CO2 (43.6% reduced) |
|---|
*1: Calculated using the actual conversion factor (market basis) for each purchased electric power company for each fiscal year
Total CO2 emissions in production
●Global
Total CO2 emissions in FY2024, including domestic and overseas group companies, reduced 6.7% from the previous year, reaching 602.2kt-CO2 due to energy-saving initiatives and greening energy, and reduced 36.3% from FY2013, which enabled us to achieve our challenge target for FY2025 (35% reduction)1 year ahead of schedule.
| Total global CO2 emissions | 602.2Kt-CO2 (36.3% reduced) |
|---|
Total global CO2 emissions
Energy-saving diagnosis
In FY 2024, in order to create new energy-saving items and improve the level of energy-saving diagnostic engineers, the in-house diagnosis team conducted diagnoses at the Kokubu Plant and JTEKT FINETECH Co., Ltd., a domestic Group company.
Items created through diagnosis are deployed horizontally to all plants, contributing to the promotion of energy-saving activities. In FY2025, the internal diagnostic team will continue to diagnose internal and domestic Group companies.
Improvement example 1：Tokushima Plant
Grindstone used in the grinder was replaced with "Sakura" from JTEKT GRINDING TOOLS CORPORATION, a group company.
Sakura eliminates abrasive materials called aggregates and increases porosity, which suppresses heat generation due to friction during processing and leads to reduced powerconsumption. Also, the skip dress is extended and, as a side effect, the life of the grindstone is improved, contributing to resource conservation.
[Reduction effect] Calculated based on 1 product number that has been switched (production: 50,000 units/month)
-Electricity consumption: approx. 3,060 kWh/year (approx. 1.1 t-CO2/year)
-Cost: ¥80,000/year
Improvement example 2：Kokubu Plant
＜Before improvement＞
【Before renewal of heat insulation in heat treatment furnace】
-Electricity consumption: approx. 323,000 kWh/year
＜After improvement＞
【Inside the heat treatment furnace after insulation material replacement】
Changed to high-performance insulation material "Super Moldatherm (SMT)" from our group company, JTEKT THERMO SYSTEMS CORPORATION and to porous insulation material
-Power consumption: Approx. 207,000 kWh/year
【Reduction effect】
-Power consumption: Approx. 115,000 kWh/year (approx. 42.7t-CO2/year)
-Cost: ¥2,844,000/year
Inside of furnace after SMT installation
Introduction of renewable energy
In FY2024, a total of 5.98MW of solar power systems were installed on-site at 8 business bases in Japan and overseas, reducing CO2 emissions by approximately 2,600 tons annually.
As a result, the amount of renewable energy installed became 7.0 MW for JTEKT alone and 43.8MW for the entire JTEKT Group and the renewable energy introduction rate*reached 13.1%.
With the aim of Greening energy, we will actively work to achieve the challenge targets of a renewable energy introduction rate of at least 35% for the entire group by 2025 and 60% by 2030.
*Renewable energy introduction rate = Amount of renewable power /Total power consumption
Renewable Energy Introduction Roadmap
Initiatives for the introduction of off-site renewable energy
In FY2024, we concluded a contract with domestic group companies to purchase electricity through an off-site physical PPA* that procures renewable energy from a total of 8 MW of power generation facilities installed off our premises. This will reduce annual CO2 emissions by approximately 6,400 tons.
The solar power plants to be utilized under this contract have "additionality," meaning that they will be newly installed by the generator, and thus contribute to the expansion of renewable energy in society as a whole.
Off-site solar power generation
*Off-site Physical PPA
A system in which electricity generated by renewable energy power generation facilities installed outside the company's premises is delivered to electricity purchasers via the power grid.
Main implementation contents
JTEKT: Tadomisaki Plant
Overseas Group Companies: JTRE (Belgium), JTC (Thailand)
JTEKT's Tadomisaki Plant installed a 520kW solar power generation system in conjunction with the construction of a new forging plant. In addition, JTRE, an overseas group company in Belgium, plans to install a 597kW solar power generation system, following wind power generation in 2022, which will enable the plant to cover 52% of its total electricity consumption with renewable energy. JTC, our overseas group company in Thailand, has also continued to gradually introduce solar power generation systems since 2018, with a total of 6,421 kW installed as of FY2024.
We will continue to work on the introduction of renewable energy with low environmental impact, expand the greening of energy, promoting the development of plants in harmony with nature.
Initiatives to reduce CO2 through production engineering innovation
To achieve carbon neutrality in 2035, we reduced CO2 emissions by 709 tons in FY2024 through our production engineering initiatives.
Three major initiatives are being undertaken as carbon neutral activities in production engineering.
1) Steady improvement activities
Activities to pursue zero waste in production such as CT shortening, introduction of karakuri (gimmicks), stop
in a standby , air minification, downsizing and inverterization.
2) Production engineering element development
Development of elemental technologies to realize high performance and high efficiency of equipment and
construction methods, and machining saving process by considering raw materials, heat treatment,
processing, and assembly as a process through.
3) Carbon-neutral innovation development
Development of innovative technologies to replace and recover energy like gas → electricity → hydrogen
with the aim of achieving a revolutionary reduction.
Among these initiatives, this time, we will introduce an example of initiatives to achieve carbon neutrality in the processing of bearings.
Initiatives to make bearing cleaning fluids water soluble
Background and Purpose
Conventionally, oil-based cleaning solution was used in the bearing cleaning process.The used cleaning solution was being purified and reused by utilizing the difference in boiling points in a distillation regeneration device, but this method of repeated heating and cooling consumed a lot of energy.
Results of Initiatives
In this development, we adopted a high-performance filtering unit instead of abolishing the distillation regeneration device by changing the cleaning solution from oil-based to water-soluble. As a result, this led to a 76% reduction in power consumption, as well as a decrease in the amount of foreign substances after cleaning, and it also proved effective in reducing the costs of electricity and cleaning agents.
Reduction of CO2 emissions in logistics
In FY2024, we improved our CO2 emissions by introducing fuel-efficient trucks in cooperation with logistics companies, asking drivers to support eco-driving, and integrating transportation services.
In addition, emissions reduced due to improved loading rates and efficiency through the use of Semi-trailer + ship.
In FY2025, we will assess loading volume fluctuations, maintain a high loading ratio, and promote further reductions by modifying or eliminating trucking services.
