Climate change initiatives

In line with the Environmental Policy, the SCREEN Group aims to contribute to the sustainable development of society by reducing environmental impacts from all business activities, including the development, production, and sale of technologies, products, and services, as well as environmental impacts at client sites. Since December 2021, we have been advancing disclosure based on the recommendations published by the Task Force on Climate-related Financial Disclosures (TCFD).
Initiatives related to TCFD recommendations

Achieving carbon neutrality by 2050

Transition plan (Scope 1 + Scope 2)

The SCREEN Group is working to reduce the greenhouse gas (GHG) emissions of its businesses, aiming for carbon neutrality by 2050, in order to contribute to decarbonization and the sustainable development of society.
With respect to the GHG emissions produced by our business activities, we are currently implementing initiatives to combat climate change at a pace aligned with keeping the global temperature rise below 1.5°C. Specifically, we are working to cut our GHG emissions significantly faster than the pace required to meet our target (FY2030/03: 50.4% reduction compared with FY2019/03) approved by the Science Based Targets initiative (SBTi)¹.
We strive to contribute to global decarbonization and sustainable development by advancing three approaches: expanding the use of electricity derived from renewable energy sources, effective energy management (energy saving, energy generation, and improving production efficiency), and decarbonizing fuel-based energy.
1. An international initiative that promotes the setting of scientifically sound GHG reduction targets to combat global warming

● Business activity decarbonization strategy

Metrics and targets

Our efforts to reduce GHG emissions and to contribute to decarbonization through our businesses are aimed at reducing climate-related risks and expanding climate-related opportunities. The Group has set targets for reducing GHG emissions from business activities (Scope 1² + Scope 2³) and GHG emissions from the use of sold products (Scope 3 category 11), which are significant in volume and of great interest to our clients, and is making efforts to reduce both.

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

Note: Detailed performance data related to climate change can be found in Sustainability Data and the Sustainability Data Book 2025.
To improve the reliability of the sustainability information we disclose, some of the performance figures related to climate change for the period from April 1, 2024 to March 31, 2025 in the Sustainability Data Book 2025 have been verified by an independent third party.
Please refer to the Sustainability Data Book 2025 for details.

● GHG emissions from business activities (Scope 1 + Scope 2)
Reduce GHG emissions from business activities by 70% (absolute volume) compared with FY2019/03 to 15.2 thousand metric tons CO₂e by FY2027/03
FY2025/03 result: 56.6% reduction (absolute volume) compared with FY2019/03; 22.0 thousand metric tons CO₂e

In the fiscal year ended March 31, 2025, the Group reduced GHG emissions from business activities (Scope 1 + Scope 2) through the expanded use of renewable energy and other initiatives.
Going forward, we will continue working to reduce emissions by expanding the use of renewable energy and implementing other initiatives laid out in our transition plan.

Major initiatives
Expanding the use of electricity derived from renewable energy sources
In the fiscal year ended March 31, 2025, we achieved 100% renewable electricity usage⁴ at group business sites in Japan,⁵ contributing greatly to GHG emissions reduction.

4 Achieved by the generation of electricity from proprietary solar facilities as well as the procurement of electricity with added environmental value, such as electricity bundled with RE100-recognized non-fossil certificates (NFCs).
5 The eight main operating sites of the business operating companies and SCREEN Holdings: The Head Office and the Rakusai, Kumiyama, Yasu, Hikone, Taga, Takaoka, and Monzennakacho sites.

Effective energy management: Energy saving, energy generation, and improving production efficiency
Through the environment and energy subcommittee of the sustainability Committee, as well as other bodies, we share and spread know-how and data on initiatives related to energy savings of group companies. We also systematically replace equipment with and install new highly energy efficient equipment. In the fiscal year ended March 31, 2025, we reduced annual GHG emissions by around 160 metric tons CO2e in part by upgrading heating and air conditioning equipment and switching to LED lighting. In addition, solar power generation systems installed at our plants generated around 903 MWh of electricity in the fiscal year ended March 31, 2025.

● GHG emissions from the use of sold products (Scope 3 category 11)
Reduce GHG emissions from the use of products sold by 48% (per unit of gross profit) compared with FY2019/03 to 13.5 metric tons CO₂e/million yen by FY2027/03
FY2025/03 result: 55.7% reduction (per unit of gross profit) compared with FY2019/03; 11.5 metric tons CO₂e/million yen

The absolute volume of GHG emissions from the use of sold products (Scope 3 category 11) for the fiscal year ended March 31, 2025 came to 2,701 thousand metric tons CO₂e, while on a per unit of net sales basis, these emissions came to 11.5 metric tons CO₂e/million yen.

Major initiatives
Development of products with excellent energy-saving performance
As part of our efforts to reduce GHG emissions from the use of sold products (Scope 3 category 11), we have created a system for certifying products with superior energy-saving performance as Super Green Products and strive to expand sales of products with excellent environmental performance. Furthermore, under a sustainability medium-term plan, Sustainable Value 2026, we have set a target for the portion of our total net sales that is attributable to Super Green Products (3% in the fiscal year ending March 31, 2027). In the fiscal year ended March 31, 2025, we increased the number of certified Super Green Products from three to seven. We will continue working to expand our lineup of Super Green Products through both the Group’s independent efforts and collaboration with industry organizations as we strive toward our target.

Green Products
SCREEN Receives Renewed Approval from Science Based Targets Initiative

Reducing GHG emissions from the supply chain

● Cooperation with suppliers
The SCREEN Group implements activities for reducing GHG 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. In addition to sharing business operation policies, we communicate the importance of addressing climate change and other initiatives and related challenges. In addition, we have set up the SCREEN Supply Chain Sustainability Site for suppliers. Through this portal, we provide suppliers with information on initiatives related to addressing climate change in the supply chain and other sustainability topics in the form of email newsletters, online seminars, and videos. Furthermore, in June 2023, we concluded an agreement with Shiga Prefecture and The Shiga Bank, Ltd. aimed at more actively promoting decarbonization in the supply chain to enhance sustainability. Going forward, in cooperation with suppliers and other stakeholders, we will continue to learn and work toward the reduction of GHG emissions to contribute to the realization of a sustainable world.

● Reducing GHG emissions from logistics operations
In cooperation with parts suppliers and assembly companies, the SCREEN Group has introduced the shared delivery service, enabling the joint delivery of components from multiple suppliers, and the production unit service, comprising the joint delivery of large units in trucks managed by SCREEN. Joint delivery enables higher logistical efficiency than separate delivery to or from individual suppliers or clients, helping reduce GHG emissions.
Sales outside Japan account for nearly 80% of group net sales, and many of our products manufactured in Japan are assembled at client sites overseas. Accordingly, we also work to reduce GHG emissions from transportation. We especially work to achieve a modal shift from the use of trucks to marine vessels. SCREEN Logistics Co., Ltd., our specialized transport subsidiary, leads efforts to reduce GHG emissions through highly efficient logistics.