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Environmental Management

Reducing Greenhouse Gas Emissions

Goal

Goal

Total Greenhouse Gas Emissions (Scope 1 and 2)

  • FY2020 4% reduction (vs. 2016 levels)
  • FY2030 32% reduction (vs. 2016 levels)

To improve lives and contribute to a better society, OMRON set new carbon zero goals in July 2018, aiming to eliminate all greenhouse gas emissions by the year 2050*1.
At the same time, we declared our intent to create policies to reduce greenhouse gas emissions based on scientific grounds provided by SBTi *2

  • *1 See here for more.
  • *2 SBTi: Science Based Targets Initiative
    International initiative promoting targets for medium- and long-term greenhouse gas emissions reductions based on scientific grounds.

Our Stance

To achieve a low carbon society, OMRON will strive to reduce CO2 emissions through consistent energy conservation and the use of clean energy. Moreover, the OMRON Group, as a whole, will promote more efficient manufacturing operations aimed at minimizing energy and resource usage (Eco-Monozukuri).

FY2018 Overview

OMRON completed action plans for fiscal 2020 in October 2018.

In addition to creating CO2 emissions reduction plans consisting of energy conservation and in-house generation of renewable energy during fiscal 2018, we reduced CO2 emissions by 6.8% compared to fiscal 2016.

Further, OMRON received the Environment Minister's Award for Global Warming Prevention Activity for excellence in Implementation and Dissemination of Countermeasures in November 2018.

OMRON has been a leading company in reducing greenhouse gas emissions throughout our entire supply chain. In addition to our Green OMRON 2020 environmental vision and OMRON Carbon Zero environmental goals, we were the first company in Kyoto Prefecture to declare our support of SBTi, setting emissions reduction goals for greenhouse gases based on scientific grounds. Our efforts were recognized with an award from Kyoto Prefecture, which was another factor leading to the honor of the Minister’s Award.

Click here for more information

OMRON Carbon Zero

We believe creating an environmentally sustainable company is consistent with the OMRON Principles of improving lives and contributing to a better society. Therefore, we have pursued activities based on our Green OMRON 2020 environmental vision.

In July 2018, we set goals under our OMRON Carbon Zero project, aiming to eliminate greenhouse gas emissions by the year 2050.

Our aim is to eliminate Scope 1 and 2*1 greenhouse gas emissions by the year 2050, based on SBTi*2. As part of our efforts, we intend to reduce emissions by 32% by the year 2030. Backcasting from that target, we have set goal to reduce emissions by 4% by 2020.

We are also considering setting target for Scope 3*3 emissions reductions.

  • *1 Scope 1: Direct emissions, including those from internal fuel combustion and industrial processes
    Scope 2: Indirect emissions from consumption of purchased electricity, heat, or steam
  • *2 SBTi: Science Based Targets Initiative
    International initiative promoting targets for medium- and long-term greenhouse gas emissions reductions based on scientific grounds
  • *3 Scope 3: Emissions of greenhouse gases across a company’s value chain

Reducing the environmental impact of the entire value chain

To assess the environmental impact of OMRON’s business activities as a whole, including its value chain, OMRON in fiscal 2013 began calculating Scope 1, 2, and 3 of the OMRON Group’s greenhouse gas (GHG) emissions. The calculation is based on the GHG Protocol, which is the most widely used international accounting and reporting tool.

OMRON Group’s Scope 1, 2, and 3 GHG Emissions (FY2018)

Scope Calculation methods Emissions
(t-CO2)
ratio
Scope1
Direct emissions, including those from internal fuel combustion and industrial processes
Multiplying quantity of fuels used, emissions of non-energy origin by the emission factors 43,826 0.32%
Scope2
Indirect emissions from consumption of purchased electricity, heat, or steam
Multiplying quantity of electricity used by the emission factors 190,731 1.39%
Scope3
Other indirect emissions
-
1 Purchased goods and services Multiplying quantity of money spent of goods and services purchased by the emission factors 2,275,908 16.54%
2 Capital goods Multiplying quantity and distance of transportation, distribution by the emission factors 129,349 0.94%
3 Fuel and energy related activities Multiplying quantity of fuels, electricity used by the emission factors 210,409 1.53%
4 Upstream transportation and distribution Multiplying quantity and distance of transportation, distribution by the emission factors 23,145 0.17%
5 Waste generated in operations Multiplying quantity of waste generated by the emission factors 6,717 0.05%
6 Business travel Multiplying quantity of money spent of business travel by the emission factors 11,782 0.09%
7 Employee commuting Multiplying quantity of money spent of employee commuting by the emission factors 1,813 0.01%
8 Upstream leased assets Multiplying quantity of energy used for upstream leased assets by the emission factors 2,461 0.02%
9 Downstream transportation and distribution Estimation from category 4 2,083 0.02%
10 Processing of sold products Excluded
11 Use of sold products Multiplying quantity of annual energy consumption by end use of goods and services sold, service life, the shipping volume by the emission factors 10,751,864 78.15%
12 End-of-life treatment of sold products Multiplying quantity of waste disposal and treatment of products sold by the emission factors 107,179 0.78%
13 Downstream leased assets Excluded
14 Franchises Excluded
15 Investments Emissions from operation of investments 326 0.00%

CO2 emission factors used for the calculation of CO2 emissions

Starting in fiscal 2016, OMRON has been using the following publicized CO2 emission factors for electricity:
Japan: Emission factors set forth for each power company by the Ministry of the Environment;
China: Emission factors set forth for each power company by the National Development and Reform Commission;
Other countries: Country-specific emission factors set forth by the International Energy Agency (IEA, 2011).
For emission factors for fuels, OMRON uses factors set forth in the "Manual for Calculating and Reporting Greenhouse Gas Emissions" of the System to Calculate, Report, and Publish Greenhouse Gas Emissions based on the Act for Promoting Global Warming Countermeasures.

Independent Assurance of GHG Emissions

To ensure the reliability of its data, the OMRON Group’s GHG emissions data (Scope 1, 2, and 3) underwent third-party review by Bureau Veritas Japan Co., Ltd. OMRON received a report that verified appropriate measurement, calculation, and reporting of GHG data, including source data, or evidence.

Category Verification source data (evidence) Verification standard
Scope 1 and 2 -Purchased volume on invoices: Electricity and gas (city gas, LPG, and LNG)
-Consumption volume of fossil fuels managed by internal systems, such as heavy fuel oil and heating oil
International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information
(Effective for assurance reports dated on or after December 15, 2015)
ISO14064- 3(2006): Greenhouse gases Part 3: Specification with guidance for the validation and verification of greenhouse gas assertions
Scope 3 -Activity data of category elements managed by internal systems
-Emission factors by activity datum

Efforts to reduce CO2 emissions

OMRON has been working on Eco-manufacturing, making the best use of limited resources for sustainable manufacturing.

In fiscal 2018, as Eco-manufacturing initiatives, OMRON worked on facility improvement, facility investment, and introduction of optimization equipment to production sites. Examples are as follows.

Facility improvement

OMRON (SHANGHAI) Co., Ltd., an OMRON production site in China, plans to reduce energy usage between fiscal 2018 and fiscal 2020 by 3.32 million kWh (2,252t-CO2 equivalent) by adopting an environment VISIBILITY system consisting of efficient sensors placed effectively to detect electricity, flow, temperature and humidity, and particles in order to identify quality improvements and energy efficiencies in the production line.

Facility investment

OMRON’s Keihanna Innovation Center for research and development upgraded heat sources at the same time the facility replaced its cogeneration equipment. During the prior fiscal year, the center switched energy sources (electrification) from aging gas absorption refrigeration equipment to non-fluorocarbon refrigerant turbo refrigeration equipment with a smaller global warming potential (GWP=1). This upgrade resulted in an annual greenhouse gas emissions reduction of 168t-CO2. At the same time, the new equipment has minimized the environmental risk in cases of refrigerant leakage (ozone layer destruction, global warming).

Renewable Energy Usage

Ten production sites across Japan, China, America, and Italy now produce energy in-house using solar power. OMRON began purchasing energy from renewable sources in the Kansai region of Japan in December 2018 and in the Tokyo region in June of 2019. The combined renewable energy usage for these regions is 22,238MWh (11,346t-CO2 equivalent).

Usage of Greenhouse Gas other than Energy-Oriented CO2

OMRON monitors the usage of GHG other than energy-oriented CO2.

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