Azbil Names to CDP’s 2023 “A List” for Climate Change, Earning Highest Rating for Third Consecutive Year
TOKYO, Feb. 7, 2024: Azbil Corporation (Tokyo Stock Exchange code: 6845) announced that the company was selected for A list, the highest rating, of the environmental non-profit organization CDP, for the company’s initiatives in reducing greenhouse gas (GHG) emissions at its own and customers’ sites, along with its associated information disclosure. This is the third year in a row that the company has made the A List for climate change. In addition, the company received an A- rating for water security for the third consecutive year.
CDP assesses companies for climate impact, water resource protection, and forest conservation, allocating them a score (A to D-) based on the comprehensiveness of disclosure, awareness and management of environmental risks, and demonstration of best practices associated with environmental leadership, such as setting ambitious and meaningful targets. In 2023, approximately 23,000 major companies around the globe responded to CDP’s appeal for disclosure, and about 346 companies were selected for the A List for climate change, including Azbil and 108 other Japanese companies.
Addressing climate change is viewed by the azbil Group as a key management issue, and we are engaged in ensuring (1) the reduction of GHG emissions at our own sites, and (2) the reduction of CO2 emissions at our customers’ sites.
As regards the reduction of GHG emissions at our own sites, based on our 2050 Long-term Vision for Reducing GHG Emissions, we have announced policies and plans to achieve substantially zero GHG emissions from our own business activities (scopes*1 1+2) by 2050. In 2023, we further advanced this goal: aiming to achieve net zero for all GHG emissions (scopes 1+2+3) in 2050, we have submitted a letter of commitment to the Science Based Targets initiative (SBTi)*2 stating that within two years we intend to formally set this target and submit the requisite application. To achieve this ambitious goal, we are promoting energy efficiency using our own automation systems and control equipment, and working on a variety of measures, such as procuring electricity from 100% renewable energy sources and making use of solar power generation. For example, at the Fujisawa Technology Center, which serves as the Group's R&D base, we operate clean rooms and experimental facilities that have a high energy load, but by installing air conditioning controlled by our latest sensors and systems we have achieved a comfortable environment for the staff while enhancing productivity and energy conservation.
As regards the reduction of CO2 emissions at our customers’ sites, as an initiative unique to the azbil Group, we are striving to reduce CO2 emissions through the provision of automation-related products, services, and solutions. We are aiming to achieve an annual CO2 reduction of 3.4 million metric tons by FY2030, which is the essential Goals of the azbil Group for the SDGs *3. Based on these initiatives, we disclose information on governance, strategies, risk management, metrics and targets in line with the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD), including quantitative disclosure of business opportunities and risks.
To address water security, we are continuously striving to reduce water usage. Moreover, as an aspect of business continuity planning, we identify business sites with heightened water risk and implement appropriate measures.
Guided by the philosophy of “human-centered automation,” the azbil Group aims to ensure, through its business activities, its medium- to long-term development and the continuing enhancement of enterprise value by making contributions that lead “in series” to a sustainable society.
About CDP
CDP is a global nonprofit organization that operates a worldwide environmental disclosure system for companies, cities, states, and regions. Founded in 2000 and working with more than 740 investors with over $136 trillion in assets, CDP pioneered the use of capital markets and corporate procurement to motivate companies to disclose their environmental impact, reduce GHG emissions, safeguard water resources, and protect forests.
https://www.cdp.net/en
*1Scopes
Scope 1: Direct GHG emissions from a business (from fuel burning, industrial processes, etc.)
Scope 2: Indirect GHG emissions from using electricity, heat or steam provided by another business
Scope 3: Indirect GHG emissions related to business activities (indirect emissions not included in scopes 1 and 2)
*2Science Based Targets initiatives (SBTi)
The SBTi is a collaboration between CDP, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF), and United Nations Global Compact. It helps corporations achieve science-based targets (SBT) for reducing CO2 emissions.
*3 Essential Goals of the azbil Group for the SDGs
The azbil Group has established four Essential Goals of the azbil Group for SDGs: I. Environment and Energy; II. New Automation; III. Supply Chain and Social Responsibility; and IV. Health and Well-being Management, and An Organization That Never Stops Learning. We have set specific indicators and targets, which we are steadily working to attain, while continuously reevaluating them and raising standards. The indicators/ targets for reducing GHG emissions, including CO2 emissions at customer sites, are as follows.
Targets for Essential Goal 1: Environment and Energy (for FY2030)
• Effective reduction of CO2 at customers’ sites: 3.4 million metric tons of CO2 /year
• Reduction in GHG emissions from business activities (scopes 1+2): 55% (from base year: 2017);
reapproved in August 2021 by the SBTi to match their target of 1.5 degrees Celsius
• Reduction in GHG emissions across the entire supply chain (scope 3): 20% (from base year: 2017)
* Posted information is accurate as of the date of announcement.