Implement Climate Change Initiatives

In April 2020, we obtained the SBT approval from the Science Based Targets initiative (SBTi)*¹and have since been implementing our initiatives to reduce GHG emissions. In December 2021, we declared our support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
We will actively promote information disclosure in accordance with TCFD recommendations and further promote efforts to address climate change, with the aim of helping to achieve a carbon neutral society by 2050.
*1 An international initiative to prevent global warming by setting CO2 reduction targets that are based on scientifically sound principles.
Initiatives for TCFD Recommendations

Achieving Carbon Neutrality by 2050

Carbon Neutrality Declaration

To contribute to the decarbonization and sustainable development of global society, the SCREEN Group is working to reduce the greenhouse gases (GHG) emitted by our businesses. Our goal is to support the achievement of carbon neutrality by 2050.
With respect to the CO2 emissions produced by our business activities, we are currently implementing climate change initiatives at a pace that will help to keep global temperature rise below 1.5℃. Going forward, the Group will continue to promote sustainable initiatives targeting carbon neutrality, including energy conservation and creation efforts at our facilities as well as the introduction of energy storage and renewable energy systems.

Metrics and Targets

We set targets for 2030 for reducing CO2 emissions from business activities (Scope 1 ^*2 + Scope 2^*3) and reducing CO2 emissions from the use of sold products that have significant emissions and are of great interest to our clients. These targets were approved as Science Based Targets (SBTs).
In January 2024, the approval from SBTi was renewed as targets consistent with the level required to keep the global temperature rise to 1.5℃.
SCREEN Receives Renewed Approval from Science Based Targets Initiative
　Greenhouse Gas Targets consistent with the levels required to keep the global temperature rise to 1.5℃
・Detailed actual value on our activities for the climate change can be found in Sustainability Data and the Sustainability Data Book 2023.
・To improve the reliability of the sustainability information we disclose, some of the environmental and social performance figures for the period from April 1, 2022 to March 31, 2023 are assured by an independent third party in the Sustainability Data Book 2023.
Please refer to the Sustainability Data Book 2023 for details.

*2 Direct greenhouse gas emissions by the reporting company itself. (eg. fuel combustion, industrial process)
*3 Indirect emissions from the use of electricity, heat or steam supplied by others.

● CO2 emissions from business activities(Scope 1 + Scope 2)
Reduce CO2 emissions from business activities by 30% by 2030 compared with the fiscal year ended March 31, 2019
Target for 2030: 35.4 thousand metric tons CO₂e
Results for the fiscal year ended March 31, 2023: 23.9 thousand metric tons CO₂e (reduction of 52.7% compared with the fiscal year ended March 31, 2019)

In the fiscal year ended March 31, 2023, we reduced CO2 emissions from business activities a significant 52.7% compared to the base year, mainly through the introduction of renewable energy. Thus, we achieved our 2030 SBT ahead of schedule.
Although our targets had been approved by SBTi as consistent with the level required to keep the global temperature rise to well below 2℃, in January 2024, SBTi approval was renewed as targets consistent with the level required to keep the global temperature rise to 1.5℃.
The SCREEN Group has been implementing climate change initiatives at a pace that will help to keep global temperature rise below 1.5℃. Going forward, the Group is considering various measures, including the further introduction of renewable energy, energy conservation in facilities, and the creation and storage of electricity while considering its BCP. We intend to continue to actively reduce GHG emissions in order to become carbon neutral by 2050.

Major reduction initiatives
Introducing renewable energy
The SCREEN Group is actively promoting the introduction of renewable energy. We expanded the introduction area to the head office, Hikone Plant, and Taga Plant in the fiscal year ended March 31, 2022 and to Kuze Plant of SCREEN SPE Tech Co., Ltd. in the fiscal year ended March 31, 2023, contributing to a major reduction in CO2 emissions.

Promoting energy saving measures
Through the environment and energy subcommittee and other bodies active under the Group EHS Committee, we share and spread know-how and data on initiatives related to energy savings of each Group company and systematically replace equipment with and install new highly energy-saving equipment. In the fiscal year ended March 31, 2023, we reduced annual CO2 emissions by around 400 metric tons in part by upgrading heating and air conditioning equipment and switching to LED lighting.

● CO2 emissions from the use of sold products (Scope 3 Cat. 11)
Reduce CO2 emissions from the use of sold products by 20% by 2030 compared with the fiscal year ended March 31, 2019
Target for 2030: 2,082 thousand metric tons CO₂e
Results for the fiscal year ended March 31, 2023: 2,577 thousand metric tons CO₂e (reduction of 0.9% compared with the fiscal year ended March 31, 2019)

Scope3 Cat.11_E.png

In the fiscal year ended March 31, 2023, CO2 emissions from the use of sold products (Scope 3 Cat. 11) fell 0.9% compared with the base year.
Even though emissions were restrained significantly compared to the increase in products sold, we are behind on our progress toward the interim target for the fiscal year ending March 31, 2024 (8% reduction compared to base year) and the SBT for 2030. To achieve these targets, in addition to the Group’s independent efforts, we will collaborate with other companies in the industry and industry associations to further focus on the development of products with high energy-saving performance.
Regarding the SBT related to GHG emissions from the use of sold products, in January 2024, we received renewed approval from SBTi as an intensity target per gross profit.

Major reduction initiatives
Development of products with high energy-saving performance
We are focused on expanding sales of products that are certified as “Green Products” according to SCREEN’s independent evaluation standards, thus offering such an excellent level of environmental performance as to contribute to CO2 emission reductions at our clients’ plant operations.Regarding energy consumption, we have set our standard for reduction at 25% or more for existing products based on product environmental assessments.
In addition, to further accelerate the reduction of CO2 emissions from the use of sold products, we introduced a Super Green Product certification system for products with even better energy saving performance. With the energy consumption of products sold in FY2019 as a baseline, the standard for this certification is a reduction of 40% or more per unit of processing area, and we are focusing on developing products that meet this standard.

Green Products

Reducing CO2 Emissions from the Supply Chain

● Cooperation with suppliers
The SCREEN Group promotes activities for reducing CO2 emissions to mitigate and adapt to climate change across the entire supply chain. Each business operating company holds business policy briefing sessions for suppliers, such as parts suppliers and assembly companies, etc. We share business operation policies as a matter of course in addition to communicating the importance of working together across the supply chain and issues contain climate activities that need to be addressed. In addition, we set up the SCREEN Supply Chain Sustainability Site for suppliers. Through the website, we started providing webinars, materials, and videos related to climate change initiatives.
In June 2023, we concluded an agreement on decarbonization to help enhance sustainability with Shiga Prefecture and The Shiga Bank, Ltd. This agreement aims to more actively promote decarbonization in the supply chain. Going forward, in cooperation with various stakeholders, we will continue to learn and work proactively reduction of CO2 emissions to contribute to the realization of a sustainable society.

● Reducing CO2 emissions from logistics operations
In cooperation with parts suppliers and assembly companies, the SCREEN Group introduce the Shared Delivery Service, shared delivery of components from multiple suppliers, and Production Unit Service, delivery of large units by our managed trucks. By promoting Shared Delivery Service, higher logistical efficiency than the Independent Delivery System, we work to reduce CO2 emissions.
Nearly 80% of our net sales is occupied by overseas sales and many products are assembled on the global customer sites. Accordingly, we also work to reduce CO2 emissions by transport. We especially work to achieve a modal shift during shipment, by changing from trucks to marine vessels and have been authorized to use the Eco-ship Modal Shift mark in 2011. Mainly, SCREEN Logistics Co., Ltd., specialized transport operator, promotes reduction of CO2 emissions by highly efficient logistics.