Climate Change Initiatives

The SCREEN Group aims to contribute to the development of a sustainable 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 promoting disclosures based on the recommendations published by the Task Force on Climate-related Financial Disclosures (TCFD).
Initiatives for TCFD Recommendations

Achieving Carbon Neutrality by 2050

Carbon Neutrality Declaration

We are 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 GHG 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℃. We will contribute to the decarbonization and sustainable development of global society by advancing three approaches: expanding the use of electricity derived from renewable energy, effective energy management (energy saving, energy generation, and improving production efficiency), and decarbonizing fuel-based energy.

● Decarbonization targets (business activities)

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 opportunities. The Group have set targets for reducing GHG emissions from business activities (Scope 1^*1+ Scope 2^*2) 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 are making efforts to reduce both.

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

・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.

● GHG emissions from business activities(Scope 1 + Scope 2)
Reduce GHG emissions from business activities by 75.0% by the fiscal year ending March 31, 2030 compared with the fiscal year ended March 31, 2019
Target for the fiscal year ending March 31, 2030: 12.6 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)
Results for the fiscal year ended March 31, 2024 (preliminary figure): 27.6 thousand metric tons CO₂e (reduction of 45.3% compared with the fiscal year ended March 31, 2019)

In the fiscal year ended March 31, 2024, GHG emissions from business activities (Scope 1 + Scope 2) were reduced by 45.3% (preliminary figure) from the fiscal year ended March 31, 2019. This reduction significantly exceeded the target of our medium-term plan, Sustainable Value 2023 (10% reduction), which extended through the fiscal year ended March 31, 2024. Compared to the fiscal year ended March 31, 2023, emissions increased slightly due to worsening of the emission factor for general electricity, but this increase was restrained thanks to the expansion of business sites using renewable energy and efficiency improvements achieved through upgrades to energy-saving equipment.
We are reducing GHG emissions at a much faster pace than that needed to reach our target (FY2030/03: -50.4% compared with FY2019/03), which has been approved by the Science Based Targets initiative (SBTi)^*3 as consistent with limiting the global temperature rise to 1.5°C, and we will continue our proactive efforts.

*3 An international initiative to prevent global warming by setting GHG reduction targets that are based on scientifically sound principles.

Major initiatives
Expanding the use of electricity derived from renewable energy
In order to promote the decarbonization of Scope 2 as a high priority, we plan to switch 100% of our main sites in Japan to renewable electricity by the fiscal year ending March 31, 2027. We expanded the scope of energy switch to the head office, Hikone Site, and Taga Site in the fiscal year ended March 31, 2022 and to Kuze Site of SCREEN SPE Tech Co., Ltd. in the fiscal year ended March 31, 2023, contributing to a major reduction in GHG emissions.

Effective energy management (energy saving, energy generation, and improving production efficiency)
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, 2024, we reduced annual GHG emissions by around 500 metric tons in part by upgrading heating and air conditioning equipment and switching to LED lighting. In addition, the installation of a solar cell generation system at our plants generated around 400 MWh of electricity in the fiscal year ended March 31, 2024.

● GHG emissions from the use of sold products (Scope 3 Cat. 11)
Reduce GHG emissions from the use of sold products by 58.1% by the fiscal year ending March 31, 2030 compared with the fiscal year ended March 31, 2019 (per unit of gross profit)
Target for the fiscal year ending March 31, 2030: 10.8 metric tons CO₂e/million yen
Results for the fiscal year ended March 31, 2023: 16.6 metric tons CO₂e/million yen (reduction of 35.8% compared with the fiscal year ended March 31, 2019)

GHG emissions from the use of sold products (Scope 3 Cat. 11) for the fiscal year ended March 31, 2024 are still being calculated, but we expect them to meet the Sustainable Value 2023 target due in part to the increase in the sales ratio of green products that have high environmental performance.
Given the expected increase in demand for semiconductors toward decarbonization, our target for reducing GHG emissions (Scope 3 Cat. 11) from the use of products sold since January 2024 has been renewed from an absolute volume basis to a per unit of gross profit basis, which aims to simultaneously achieve business growth and GHG emissions reduction.
Although the hurdle for achieving the per unit of gross profit target is still very high, as it requires a higher reduction rate than the absolute volume target, all group members, including R&D, manufacturing, and sales, are united in their efforts to further focus on reduction efforts.

Major initiatives
Development of products with high energy-saving performance
We focus on expanding sales of products with high environmental performance that are certified as “Green Products” according to our independent evaluation standards, so as to contribute to GHG emission reductions on our clients’ side. In terms of energy consumption, our "green products" should achieve 25% or more energy saving compared to standard equivalent products.
In addition, to further accelerate the reduction of GHG 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. The proportion of sales from Super Green Products is designated as one of the outcome KPIs of the Management Grand Design, a 10-year vision which extends through the fiscal year ending March 31, 2033. During the period of the new medium-term plan, in addition to the Group’s independent efforts, we will collaborate with industry organizations to adapt flagship products in each business.

Green Products
SCREEN Receives Renewed Approval from Science Based Targets Initiative

Reducing GHG Emissions from the Supply Chain

● Cooperation with suppliers
The SCREEN Group promotes 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, 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 toward the reduction of GHG emissions to contribute to the realization of a sustainable society.

● Reducing GHG emissions from logistics operations
In cooperation with parts suppliers and assembly companies, the SCREEN Group has introduced the shared delivery service for components procured from multiple suppliers, and likewise for delivery of large units by our managed trucks. By replacing the independent delivery system, we seek to improve logistical efficiency and thereby reduce GHG emissions.
Since nearly 80% of our net sales comes from overseas and many products are assembled within the client sites outside Japan, we also work to reduce GHG emissions from shipping activities. We especially focus on achieving a modal shift during shipment, by changing from trucks to marine vessels. SCREEN Logistics Co., Ltd., specialized transport operator, plays a leading role in the reduction of GHG emissions by streamlining logistics.