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The azbil Group Raises Current Target and Establishes New Targets for SDGs Initiatives
― Contributing “In Series” to the Achievement of a Sustainable Society ―

TOKYO, May 14, 2021: Azbil Corporation (Tokyo Stock Exchange Code: 6845) announced it will raise one current target while also establishing new targets in order to pursue specific initiatives for its essential goals of the azbil Group for the SDGs^*1 and strengthen those efforts.

In pursuit of achieving a sustainable society, the azbil Group has positioned the SDGs as important guideposts for management and established essential goals of the azbil Group for the SDGs, which are the four goals to be achieved by 2030 listed below (Environment and Energy; New Automation; Supply Chain and Social Responsibility; and Health and Well-Being Management and An Organization That Never Stops Learning) covering business and general corporate activities, including human resource development, that aim to create value unique to the azbil Group. To advance its contributions “in series” to the achievement of a sustainable society, the Group has been setting specific targets but added the revised and new targets detailed below.

I. Environment and Energy
Through cooperative creation, the azbil Group aims to preserve the Earth’s environment and solve energy-related problems in striving for a decarbonized society. The Group previously announced its 2030 target of contributing to the effective reduction of 3.40 million metric tons of CO2 per year at customers’ sites through its products, services, and solutions. In addition to the efforts of effective reduction, it has revised and added new targets to be met through its own business activities.

Revised target: Reduce greenhouse gas (GHG) emissions from business activities by 60% from a 2013 base-year (this revision significantly increases the previous 30% target)
Seeing the rapidly building momentum to create a decarbonized society, the azbil Group revised its target to reduce GHG emissions from business activities to 60%, which represents a significant increase from the previous 30% target. The Group will further accelerate activities to achieve carbon neutrality through its “2050 Long-Term Vision for Reducing Greenhouse Gas Emissions,” which will reduce greenhouse gas emissions from business activities to substantially zero by 2050. (Based on the target of 1.5 degrees Celsius set forth by the Science Based Targets initiative^*2, a certification application was submitted on May 11.)

New target: Design all new products to be 100% recyclable
Employing best available technology (BAT)^*3, the azbil Group will design products such that they can be appropriately disassembled, separated, and recycled upon disposal by the customer.

II. New Automation
By providing solutions based on technological innovations and new ideas, the azbil Group will realize improved productivity and value that will contribute to customers’ safety and comfort while also striving for the realization of a smart society. Due to rapid changes in the customer’s business environment brought upon by the COVID-19 pandemic and accelerating digital transformation, the Group will link this goal with their new medium-term plan (for fiscal years 2021 to 2024) and specify the goal’s definition and focus as the following: through autonomy of manufacturing and operations, the azbil Group will improve the quality of customers’ living, production and other shared spaces, and create new value. By providing autonomy and solutions based on new ideas, the azbil Group will solve societal problems.

III. Supply Chain and Social Responsibility
The azbil Group will fulfil its social responsibilities to customers and business partners and has set two new targets to promote social responsibilities in diverse regions.

New target: Work with business partners for the common purpose of achieving the SDGs and share the azbil Group’s CSR values across its supply chain
The azbil Group will work with business partners to solve problems facing the environment and society^*4 in ten major areas and will evaluate the direction, framework, initiatives and effectiveness of those initiatives using a four-tiered system.

New target: Implement social contribution activities that have taken root in various regions across all the azbil Group’s offices^*5, with each employee actively participating^*6
The azbil Group established the Social Contribution Office in April 2021 to strengthen voluntary initiatives taken by each employee toward solving societal problems, with the aim to contribute “in series” to the achievement of a sustainable society. In regions in Japan and overseas where it has offices, the azbil Group will focus on issues such as the Earth’s environment and how to train the next generation, and will actively participate in social contribution activities.

IV. Health and Well-Being Management; An Organization That Never Stops Learning
For strengthening the foundation of solving societal problems through health and well-being management (job satisfaction, health, and diversity & inclusion) and continuous learning, the azbil Group has previously established the target for 2030 of 65% for both the ratio of employees who find satisfaction working in the Group and the ratio of employees who experienced personal growth over the past year. The following will be added as related targets.

New target: By 2024, double the points^*7 for promoting the success of women (compared with 2017)
Placing importance on diversity & inclusion, the azbil Group will implement initiatives to achieve this target by 2024, to match the final year of the new medium-term plan.

New target: By 2024, double the points^*8 for promoting educational opportunities (compared with 2012)
The azbil Group set this target to be met by 2024 to ensure steady progress for creating opportunities for employees to demonstrate their abilities and for expanding opportunities for continuing education of globally active employees and opportunities to learn with stakeholders.

Through these new targets, the azbil Group aims to provide unique value and will continue to announce in an appropriate manner its progress in achieving its goals for the SDGs.

Based on the Group philosophy of “human-centered automation,” the azbil Group will strive to contribute “in series” to a sustainable society and achieve sustained growth, while moving forward with specific initiatives to do so.

^*1 The azbil Group’s goals for the SDGs are as follows.

^*2 The Science Based Targets initiative is a collaboration between the CDP, United Nations Global Compact, World Resources Institute, and World Wide Fund for Nature, and certifies corporations whose CO2 emissions reduction targets have a scientific basis. Their goal is to keep global temperature increase below 1.5 degrees Celsius compared with pre-industrial levels.
^*3 BAT refers to the most effective technology that is economically and technologically viable.
^*4 The evaluation system is unique to the azbil Group and is linked with external ESG evaluations such as FTSE.
^*5 All offices both in Japan and overseas.
^*6 The azbil Group aims to participate in activities of a scale that can accommodate the total number of employees.
^*7 Points tallied internally with weight given based on the role, such as company executive, officer and manager.
^*8 Points tallied internally for participating in opportunities (frequency or number of employees) to learn with stakeholders, such as internal training, internships, and training and briefings for customers.

* Posted information is accurate as of the date of announcement.