Measures to Fight Climate Change -Information Disclosure Based on TCFD Recommendations-
The Financial Stability Board's Task Force on Climate-Related Financial Disclosures (TCFD) asks all companies to assess climate-related risks and opportunities using climate change scenarios and disclose them in their business strategies and risk management. The Kyocera Group endorses the TCFD recommendations and has established a governance system that implements risk management and business strategies and sets metrics and targets as part of efforts to promote these initiatives.
Governance
The Kyocera Group considers climate change to be a priority management issue. The Kyocera Group Sustainability Committee (held twice yearly) is attended by top management and used to deliberate and determine goals and measures for addressing climate change. Sustainability activities including Climate change measures are reported to the Board of Directors and the Group's climate change is shared at the International Management Meeting attended by the Group's top executives. In addition, a task force operating under the Kyocera Group Sustainability Committee has been established to promote climate change measures in an aim to meet the Kyocera Group's Long-term Environmental Targets.
Risk Management
The Kyocera Group regularly conducts scenario analysis on climate change to ascertain, assess, and manage risks and opportunities.
Risk Management Process
Our risk assessment process involves identifying risks and opportunities related to climate change for each value chain, which are then screened from the perspective of the level of awareness among companies and investors, and the degree of impact assumed by companies and investors in a three-step priority assessment where items with the highest priority given a "Major" priority rating.
●Level of awareness among companies and investors: Evaluated based on survey results of external trends from answers given by other companies to corporate assessments of climate change, policies addressing climate change, and other factors.
●Degree of impact assumed by companies and investors: Evaluated by external institutions based on the probability of an event occurring and its impact upon occurrence.
Category | Items | Priority level | Summary of risks (●) and opportunities ( ) | Greatly impacted value chains | ||
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Transition risks | Policy | A | Carbon prices | Major |
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Manufacturing / Development |
B | Each country's carbon emission target | Major |
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Manufacturing / Development Sales / Use |
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C | Energy-saving measures | Medium |
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Manufacturing / Development | ||
D | Subsidy policies for renewable energy and other initiatives | Major |
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Manufacturing / Development Sales / Use |
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E | Regulations on recycling | Medium |
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Manufacturing / Development Sales / Use |
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Technology | F | Increased adoption of next-generation electronic components and semiconductors | Major |
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Manufacturing / Development Sales / Use |
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G | Increased adoption of next-generation technologies in energy-related business fields | Major |
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Manufacturing / Development Sales / Use |
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Market/reputational changes | H | Changes in priority products/product pricing | Medium |
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Procurement of raw materials | |
I | Shift in consumer opinion in electronic components and semiconductors | Major |
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Manufacturing / Development | ||
J | Shift in consumer opinion in the energy business | Major |
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Manufacturing / Development | ||
K | Changes in investor/consumer opinion | Major |
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All | ||
Physical risks | Acute | L | Changes in precipitation patterns and rises in average temperature. | Medium |
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Manufacturing / Development |
Chronic | M | Intensifying extreme weather patterns | Major |
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Manufacturing / Development |
Strategy
The Kyocera Group analyzes risks and opportunities posed by climate change to the Kyocera Group in consideration of the impact of climate change on the Company's business, and changes in customer industries for 2030 using an 1.5°C scenario*1 and a 2.6°C scenario*2 based on information provided by the IPCC(Intergovernmental Panel on Climate Change). In particular, due to the importance that trends toward decarbonization plays in Kyocera's renewable energy business, energy adoption patterns and other considerations set under the 1.5°C scenario were applied, and the financial impact of risks and opportunities for each pattern were evaluated and analyzed. Based on these analysis results, we aim to achieve our greenhouse gas emission reduction targets for by FY 2030, and achieve carbon neutrality by FY2050.
- Scenario where temperatures rise between 1.0 and 1.8°C in 2100 compared to average global temperatures compared to pre-industrial levels (IPCC Sixth Assessment Report: SSP1-1.9)
- Scenario where temperatures rise between 2.1 and 3.5°C in 2100 compared to average global temperatures compared to pre-industrial levels (IPCC Sixth Assessment Report: SSP2-4.5)
Scenario
Scenario | Overview |
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1.5℃ |
A rise of +1.0 to 1.8°C in 2100 compared to the pre-industrial levels |
2.6℃ | A rise of 2.1 to 3.5°C in 2100 compared to the pre-industrial levels |
Main references:
RCP8.5, RCP4.5, RCP2.6, IEA ETP 2DS, IEA ETP B2DS, IEA450, IEA NPS, IEA ETP 2017, IEA NZE2050, IEA Sustainable Development Scenario, IEA WEO2022 Scenario, WRI Aqueduct Water Risk Atlas, Practical Guidelines on Flood Mitigation Planning in Consideration of Climate Change, etc.
Assessment of Business Impact
Items of major importance were assessed for their impact on the business. Although the business was forecast to suffer major impacts from flooding damage under the 2.6°C scenario, while under the 1.5°C scenario, the business was expected to be deeply impacted by carbon prices, and Kyocera sees this as a major opportunity for its renewable energy and hydrogen-related business. The main business impact assessments results are depicted below.
Category | Risks/opportunities | Change in operating profit | Reference materials and calculation methods | |
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2.6°C scenario | 1.5°C scenario | |||
Manufacturing services | Increase in carbon prices | 0 billion yen | ▲9 billion yen | Assuming reduction targets for 2030 are met, as referenced in the IEA "World Energy Outlook 2022" Calculation method: Future emissions for Kyocera x Future carbon prices |
Increase in energy prices | 3 billion yen | ▲1 billion yen | Assuming renewable energy introduction targets for 2030 are met, as referenced in the IEA "World Energy Outlook 2018" Calculation method: Future grid-based power consumption level x Electricity prices x Percent increase in power costs |
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Damage from natural disasters | ▲7 billion yen | ▲3 billion yen | Estimates based on case scenarios where all areas inside and outside Japan at high risk of flooding are affected by 2030, referencing materials including the Flood Control Economic Survey Manual (draft), Hazard Maps, and Populations in Areas at Risk of Flooding by Prefecture prepared by the Ministry of Land, Infrastructure and Transport, and WRI: Aqueduct Calculation method: Future cost of damages to Company sites by Inundation height x Rate of increase in the frequency of flooding - current cost of damages by future inundation height (Cost of damages to Kyocera sites by inundation height based on an analysis of direct and indirect damages) |
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Sales and consumption | Expansion of Energy Business | 0 billion yen | 6.5 billion yen - 8.5 billion yen (Results of Company-specific scenarios) |
Estimates based on the EV Outlook 2022 by the IEA, the 2030 Energy Mix Proposal (Version 1) by the Renewable Energy Institute, 2050 Zero Scenarios for Decarbonizing Japan by the WWF, and the Basic Energy Plan and Energy Supply and Demand Forecasts for 2030 by Japan's Ministry of Economy, Trade and Industry Calculation method: Sales of related businesses x Business profit margins x Market growth rate |
Measures
Measures Addressing Increases in Carbon and Energy Prices
In order to implement measures for reducing greenhouse gas emissions, the Kyocera Group will look to strengthen energy saving in production facilities and implement renewable energy solutions, while also introducing a data visualization system at each plant across four stages from FY2019 to FY2030.
Stage 1 FY2019 to FY2021 |
Stage 2 FY2022 to FY2024 |
Stage 3 FY2025 to FY2027 |
Stage 4 FY2028 to FY2030 |
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Implement renewable energy solutions |
[On-site] Install solar power generation facilities at domestic/overseas affiliate companies |
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[Off-site] Install solar power generation facilities in Japan |
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[Off-site] Install solar power generation facilities in Japan (PPA) |
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Promote energy savings |
Introduction of waste heat recovery facilities
Implement top-runner utility facilities
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Energy visualization and efficiency improvements to production equipment |
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Shift away from steam-based solutions (electrification/humidification) and fossil fuels (transition to natural gases, etc.) |
Review hydrogen/ammonia use |
Introduction of renewable energy
In addition to installing solar power generation systems on building roofs at business sites, in factory premises, and in parking areas both inside and outside Japan, since FY2020, the Kyocera Group has been working to expand the scope of power use derived from renewable energy sources by introducing solar power generation systems on off-premises land through a self-consignment system*1 and off-site PPAs*2.
- Self-consignment system: A system where the power generated at company sites is supplied to other company sites via a power transmission and distribution network of an electric power provider
- PPA (Power Purchase Agreement): A power purchase agreement entered into between an electric power provider and specific users
[On-site] Installation of a solar power generation system
Introduction of Solar Power Generation Systems
Site | Generating capacity (kW) | Installation/Additional year (FY) | |
---|---|---|---|
Japan | Hokkaido Kitami Plant | 759 | FY2011 (Final extension: FY2019) |
Yamagata Higashine Plant | 611 | FY2020 (Final extension: FY2022) | |
Fukushima Koriyama Plant | 2,401 | FY2014 (Final extension: FY2021) | |
Niigata Shibata Plant | 411 | FY2020 | |
Toyama Nyuzen Plant | 360 | FY2020 | |
Nagano Okaya Plant | 327 | FY2011 (Final extension: FY2021) | |
Kawasaki Plant | 47 | FY2020 | |
Shiga Gamo Plant | 571 | FY2011 (Final extension: FY2016) | |
Shiga Yohkaichi Plant | 2,480 | FY2006 (Final extension: FY2023) | |
Shiga Yasu Plant | 1,178 | FY2011 (Final extension: FY2021) | |
Kyoto Ayabe Plant | 2,406 | FY2014 (Final extension: FY2021) | |
Kagoshima Sendai Plant | 1,419 | FY2011 (Final extension: FY2020) | |
Kagoshima Kokubu Plant | 2,157 | FY2006 (Final extension: FY2023) | |
Kagoshima Hayato Plant | 189 | FY2006 (Final extension: FY2021) | |
Keihanna Research Center | 605 | FY2019 (Final extension: FY2023) | |
Tochigi Moka Office | 172 | FY2021 | |
Chiba Sakura Office | 493 | FY1985 (Final extension: FY2014) | |
Yokohama Office | 58 | FY2012 | |
Yokohama Nakayama Office | 266 | FY2012 (Final extension: FY2023) | |
Headquarters | 306 | FY1999(Final extension: FY2022) | |
Headquarters of Kyocera Document Solutions Inc. | 12 | FY2008 | |
Kyocera Document Solutions Inc. Tamaki Plant | 922 | FY2011 (Final extension: FY2021) | |
Kyocera Document Solutions Inc. Hirakata Plant | 60 | FY2006 | |
Chiba old factory site | 855 | FY2016 (Final extension: FY2022) | |
Overseas | Kyocera International, Inc. (USA) | 279 | FY2006 |
KYOCERA Mexicana, S.A. de C.V. (Mexico) | 100 | FY2011 | |
KYOCERA Document Solutions Espana S.A. (Spain) |
36 | FY2008 | |
KYOCERA Document Solutions Belgium N.V. (Belgique) |
9 | FY2010 | |
KYOCERA Document Solutions Deutschland GmbH. (Germany) | 16 | FY2008 | |
KYOCERA Vietnam Company Limited. (Vietnam) | 1,544 | FY2021 (Final extension: FY2023) | |
KYOCERA Thailand Co. Ltd. (Thailand) | 1,660 | FY2021 (Final extension: FY2022) | |
DONGGUAN SHILONG KYOCERA CO., LTD.(China) | 196 | FY2022 | |
KYOCERA (TIANJIN) SOLAR ENERGY CO., LTD. (China) | 93 | FY2011 | |
KYOCERA AVX Industries, Pte. Ltd. (El Salvador) | 2,058 | FY2023 | |
Total | 24,954 |
[Off-site] Installation and use of solar power generation systems in Japan (self-consignment)
The Kyocera Group installs solar power generation systems on unused land and consolidates and bundles the renewable energy generated for transmission to factories and business sites on a self-consignment system.
[Off-site] Installation and use of solar power generation systems in Japan (PPA)
The Kyocera Group purchases surplus power generated by solar power generation systems installed in ZEH rental apartments operated by major rental housing companies, which is consolidated and bundled together to be transmitted to plants and business sites.
Promotion of energy-saving measures
Example of cutting-edge utility facility installation
Installation of exhaust heat recovery chillers
Exhaust heat recovery chillers have been installed in the air conditioning system at the Kyoto Ayabe Plant as part of energy conservation efforts. Exhaust heat recovery chillers use heat pump technology to recover low-temperature heat for use. The exhaust heat generated when cool water is produced for air conditioning is recovered, reducing the hot water load for air conditioning. These facilities are scheduled to be rolled out in stages across the Kyocera Group.
CO2 emissions reduction (estimated): 325 (t-CO2/year)
Replacement with alternative CFC refrigerator equipment
Production and import of specified CFCs (HCFC) are regulated to protect the ozone layer, and the production of specified CFCs (HCFC) stopped in developed countries in 2020. As a result, we are replacing our air conditioning systems with alternative CFC refrigerants (HFC). For packaged air conditioners and chillers, 15-year-old equipment will be replaced by FY2025, and other equipment, including dryers and small chillers, will be replaced by FY2028.
CO2 emissions reduction (estimated): 12,300 (t-CO2/year)
Update to LED
Since 2012, we have been replacing fluorescent lamps with LEDs, mainly in areas where energy-saving effects are significant. The plan is to replace all fluorescent lights, except for those in special areas such as explosion-proof areas, by FY2024, and to replace exterior lights, downlights, etc. with LEDs by FY2029.
CO2 emissions reduction (estimated): 2,200 (t-CO2/year)
Example of energy visualization and efficiency improvements to production facilities
Progress is being made on visualizing the level of CO2 emissions by segment, business division, department, and business site. By tracking targets and performance in a timely manner, Kyocera is looking to tie this data back to efforts seeking to reduce CO2 emissions. In addition, Kyocera strives to efficiently reduce CO2 emissions by promoting visualization efforts by production facilities and reducing equipment standby power consumption at sites with high CO2 emission levels.
CO2 emissions reduction (estimated): 11,000 (t-CO2/year)
Steps to move away from reliance on petroleum-based fuels (transition to natural gas, etc.) and steam (electrification/water humidification)
Kyocera's Kitami Plant in Hokkaido, Nyuzen Plant in Toyama Prefecture, and Sendai Plant in Kagoshima Prefecture are working to reduce CO2 emissions by converting their production fuel from petroleum-based fuels to city gas or LNG (natural gas), which has a low CO2 emission coefficient.
CO2 emissions reduction (estimated): 5,130 (t-CO2/year)
Breakdown: {Hokkaido Kitami Plant: 160 (t-CO2/year)、Toyama Nyuzen Plant: 1,870(t-CO2/ year)、Kagoshima Sendai Plant: 3,100(t-CO2/ year)}
Measures Addressing Damage from Natural Disasters
In addressing physical risks, the Kyocera Group takes the optimal approach to implementing countermeasures by ascertaining the potential for disasters to occur based on geographical considerations, which are addressed by installing water bars at each site, and by taking inundation height into account when positioning facilities that are being renewed or newly installed, among other measures.
Expansion of Energy Business
The Kyocera Group seeks to improve the rate of renewable energy use across the Kyocera Group while looking to branch out externally into the environmental management business and other areas by purchasing surplus power generated by homes, companies, and large-scale solar power plants, and coordinating and matching the supply and demand for renewable energy, while also utilizing this renewable energy in-house.
Metrics and Targets
The long-term targets set for the Kyocera Group are as follows. Greenhouse gas emission targets are certified SBT (Science Based Targets).
- Scope 1, 2*1, GHG emissions (1.5℃ level) : Reduce 46% by FY2031 compared to FY2020 levels
- Scope 1, 2*1, 3*2 GHG emissions (1.5℃ level) : Reduce 46% by FY2031 compared to FY2020 levels
- Renewable energy adoption: Increase 20x by FY2031 from FY2014 levels
- Carbon neutral by FY2051
*1 Scope 1: | Direct emissions associated with fuel consumption and production processes |
Scope 2: | Indirect emissions associated with consumption of power or heat purchased from outside |
*2 Scope 3: | Indirect emissions other than Scope 1 or 2 (Including procurement of raw materials, transport, use and disposal of products, as well as employee commuting and business trips) |
Data have been updated to improve the accuracy of data aggregation for some locations.
Corporate Motto / Management Rationale
- Our Thoughts on Sustainability Activities
- Top Management Message
- Kyocera Group's Value Creation Model
- Sustainability Management
- Kyocera Group CSR Guidelines
- Stakeholder Engagement
- Environmental Safety Policy / Targets and Promotion System
- Measures to Fight Climate Change -Information Disclosure Based on TCFD Recommendations-
- Water Risk Response
- Recycling Activities
- Initiatives to Prevent Environmental Pollution
- Conservation of Biodiversity
- Environmentally Friendly Products / Green Procurement
- Environmental Communication
- A History of Our Environmental Protection Activities
Social Citizenship Initiatives
- The Kyocera Group Human Capital
- Respect for Human Rights
- DEI Promotion
- Occupational Safety
- Occupational Health, Safety, and Fitness Initiatives
- Supply Chain Management
- Approaches to Raising Quality and Customer Satisfaction Levels
- Social Contribution Activities
- Academic Advancement and Research
- Support for Culture and the Arts
- International Exchanges and Collaboration
- Environmental Protection Activities
- Local Community Activities
- Social Welfare Activities
- Contributions to Society through Business Activities
Relevant data
- ESG Data Sheets
- Third Party Assurance of Environmental and Social Data
- Promoting Digitalization
- Innovation Management
- Integrated Report
- Employees Creating the Future
- GRI Standards Comparison Table / SASB Index
- Editorial Policy
- Participation in Sustainability Related Initiatives & External Evaluation
- News & Announcements