To achieve decarbonized societies, we strive to reduce CO2 emissions through energy conservation and cleaner power consumption. In addition, we at the Group pursue manufacturing practices that incorporate energy and resource conservation (what we call Eco Manufacturing).
We are reducing emissions steadily every year to achieve our targets, exercising energy conservation and using cleaner electricity from renewable energy sources.
In fiscal 2022, we continued our efforts towards replacing energy-saving equipment with high-efficiency equipment through capital investment, optimizing operations by implementing measures identified through energy conservation diagnostics, and expanding solar power generation equipment.
Furthermore, as a new initiative, we utilized J-Credits obtained through the business activities of the OMRON Group.
We achieved a 62% reduction compared with fiscal 2016 levels due to the China lockdown and the purchase of renewable energy-derived electricity in Malaysia in addition to the above initiatives.
We aim to achieve 100% renewable electricity at sites in Japan by fiscal 2024. We intend to achieve this target by continuing to improve energy efficiency based on the action plan formulated in the medium-term plan, while also utilizing renewable energy-derived J-Credit Scheme*1 and self-consignment*2 provided our own energy solutions business.
As part of our Eco Manufacturing initiative, we have improved facilities, invested in equipment, and installed optimized equipment at our operating sites. Several examples are shown below.
As energy-saving measures for HVAC equipment, we have reviewed the operation of set temperatures to optimize energy consumption, implemented night-time air conditioning shutdown as part of operational area optimization, and introduced inverter control and cooling water controls. We also reviewed systems controls, enacted measures against air leaks, and adjusted discharge pressure to optimize compressor operation. In addition, we installed motion sensors and reviewed the operation of lighting areas and times as energy-saving measures for lighting facilities. These efforts resulted in a 1,469MWh (0.8 kt-CO2) reduction in power consumption compared with the previous year.
Based on the action plan through fiscal 2022, we pursued environmental investments such as energy conversion (electrification), high-efficiency transformer upgrades, and HVAC system replacement at each operating site. As a result, we reduced power consumption by 2,907MWh (1.7 kt-CO2) compared with the previous year. We will also promote the installation of charging stations in conjunction with the introduction of electric vehicles.
In order to accelerate the promotion of thorough energy conservation, we have continuously conducted energy conservation potential assessments by outside experts since fiscal 2019. In fiscal 2022, we conducted the program again at three sites (one in Japan and two in China) for the purpose of formulating a medium-term management plan.
Fifteen sites in Japan, China, Italy, and Indonesia use electricity generated in-house via solar power (including on-site PPAs installed on our own premises) and self-consigned by off-site PPAs.
In fiscal 2022, we continued to invest in renewable energy facilities at each site in accordance with our action plan.
We made new installations at two sites, one in Japan (Ichinomiya City, Aichi Prefecture) and one in China (Dalian City). We also expanded facilities at one site in Japan (Yamaga City, Kumamoto Prefecture). In total, we estimate annual new renewable energy power generation of 3,354MWh for fiscal 2022.
As a result, our annual power generation from in-house power generation is 4,248MWh.
In the Kansai area of Japan, we continued procurement through centralized power purchasing that incorporates internal carbon pricing. At production sites out of Japan, we also procure electric power in the Netherlands and Malaysia. The amount of electricity purchased from these renewable energy sources totaled 54,960MWh.
Based on the action plan formulated in the medium-term plan, the OMRON Group will utilize J-Credits derived from renewable energy provided by the energy solution business to achieve Scope 2 (purchased electricity) carbon neutrality at 76 sites in Japan by fiscal 2024. In fiscal 2022, a total of five locations switched the equivalent of 1,052MWh of electricity to renewable energy sources.
OMRON tracks greenhouse gas emissions from non-energy sources.
