Azbil Selected as an Asia-Pacific Climate Leader

TOKYO, August 9, 2024: Azbil Corporation (Tokyo Stock Exchange code: 6845) has been selected as one of 350 companies appearing in the Asia-Pacific Climate Leaders 2024 list compiled by the UK’s Financial Times and the German data provider Statista. In choosing this year’s leaders, the compilers considered companies headquartered in the Asia-Pacific region, evaluating them primarily for reduction in greenhouse gas (GHG) emissions (scope 1 and scope 2*1) relative to revenue achieved over five years (2017-2022), but also for such climate-related commitments as extent of Scope 3 emissions reporting, CDP*2 score, and collaboration with the SBTi*3. These assessments were combined to produce an overall score for each company.

The azbil Group recognizes that one of its most important management issues is contributing to solving global environmental and energy issues, and is therefore striving to reduce both its own GHG emissions and CO2 emissions at customers’ sites. As regards the former, we have announced our policy and plans for decarbonization based on our “2050 Long-Term Vision for Reducing Greenhouse Gas Emissions,” which aims to achieve substantially zero GHG emissions from business activities by 2050. In addition, we established a 2050 net-zero target for all CO2 emissions (scopes 1+2+3) and submitted it to the SBTi in December 2023.

Furthermore, in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), we have disclosed information on governance, strategy, risk management, indicators, and targets—including quantitative data on business opportunities and risks. In 2023, we made the CDP’s A list for climate change for the third consecutive year, also receiving an A- rating for water security. We believe that our various initiatives and achievements in reducing GHG emissions led to our selection as an Asia-Pacific Climate Leader.

Guided by the philosophy of “human-centered automation,” the azbil Group will continue with its initiatives to achieve sustainable growth and to make contributions that lead “in series” to a sustainable society.

Reference information

Since the azbil Group is actively engaged in such ESG-related initiatives as GHG emissions reduction, we are the subject of numerous assessments and have been included in the following ESG indexes;

  • Listing on six indices chosen by the Government Pension Investment Fund (GPIF):
    • 　 FTSE Blossom Japan Index, FTSE Blossom Japan Sector Relative Index,
    　 MSCI Japan ESG Select Leaders Index, MSCI Japan Empowering Women Index (WIN),
    　 S&P/JPX Carbon Efficient Index, Morningstar Japan ex-REIT Gender Diversity Tilt Index
  • FTSE4Good Japan Index, MSCI Japan Index, JPX-Nikkei Index 400
  • CDP Climate Change (A score) / Water Security (A- score), Supplier Engagement Leader
  • Selected as an “Environmentally Sustainable Enterprise” for the 5th ESG Finance Awards Japan


    • Related information

    Asia-Pacific Climate Leaders 2024: interactive listing
    https://www.ft.com/climate-leaders-asia-pacific-2024

    The azbil Group’s environmental initiatives
    https://www.azbil.com/jp/csr/basic/environment/index.html

    The azbil Report 2023
    https://www.azbil.com/jp/ir/library/annual/index.html

    *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)

    *2 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.

    *3 SBTi （Science Based Targets Initiative）
    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.

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