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Environmental Management

Environmental Vision: Green OMRON 2020

Green OMRON 2020-OMRON Group’s environmental vision based on the OMRON Principles
Environmental Vision: Green OMRON 2020

Green OMRON 2020

Green OMRON 2020

Based on the OMRON Principles, we have established our Environmental Vision, Green OMRON 2020, to achieve our VG 2020 long-term vision.

In Our Mission statement, a better society means an environmentally sustainable society. We will contribute to achieve this through our business activities.

OMRON Group Environmental Policy

In line with OMRON Principles, we will contribute to realizing sustainable societies, globally, by providing eco-friendly products and services that can contribute to the global environment and by efficient management of resources.

  1. Provide eco-friendly products and services that can contribute to the global environment
    We will provide eco-friendly products and services that can contribute to realizing sustainable societies.
  2. Prevent Global Warming
    We will continually strive to make improvements to the volume of greenhouse gas emissions generated throughout the value chain.
  3. Use resources efficiently
    We will make efficient use of resources needed in our manufacturing processes, considering these to be entrusted to our care, in stewardship, by our local and global communities.
  4. Co-existence with nature
    We will work to prevent pollution, recognizing that water, air and soil pollution leads to the destruction of the natural environment.
  5. Implement environmental management
    We will continue in the establishment of our corporate environmental management system by: making continual improvements, complying with legal requirements, and holding ourselves accountable by ensuring disclosure of environmental information to our stakeholders.

Revised August 1, 2015
Yoshihito Yamada
Chief Executive Officer
OMRON Corporation

Based on the Policy above, OMRON strives to reduce our burden on the environment from the aspect of the product lifecycle throughout the entire value chain. This value chain begins with product planning, development, and design, and extends to procurement, production, logistics, sales, customer service and maintenance, and resource recovery and reuse or disposal.

Our impact on the product lifecycle in the value chain includes development contractors, suppliers, manufacturing contractors, logistics agents, sales agents, other outsourcing partners, and our customers. Further, related business activities include expansion through M&A and participation in new projects. We endeavor to identify latent environmental risks associated with M&A, reflecting these considerations appropriately in our terms of acquisition and conducting due diligence to form post-merger improvement plans.

Environmental Objectives (Fiscal 2020 Goals)

In fiscal 2017, OMRON has set out to address below environment-related social issues, in accordance with our identified sustainability issues and long-term goals.

Issues Fiscal 2020 Goals
Reduction of greenhouse gas emissions Achieve four percent reduction in greenhouse gas emissions vs. fiscal 2016 result*1
Environmental contribution*2 greater than CO2 emissions at production centers
Appropriate management and reduction of hazardous substances Reduction of mercury through the prevalence of digital thermometers and digital blood pressure monitors: 69 tons / year*3
Stop use of fluorocarbon (CFC) in fiscal 2018. Stop use of fluorocarbon (HCFC) and mercury (fluorescent lamp use) in fiscal 2020
Reduction of waste Achieve Zero Emission*4 at all global production sites
Prevention of air, water, and soil contamination Perform environmental legal assessments at all global production sites
Effective usage of water resources Reduce water usage at all global production sites by 6% vs. fiscal 2015 result*5
Facilitating environmental management Acquire and maintain ISO 14001 certification at all global production sites
  • *1 OMRON committed its participation in Science Based Targets Initiative in July 2018, and revised FY2020 target to absolute amount, back-casting from FY2050 goal. Click here for more information.
  • *2 Volume of CO2 emissions reduction contributed by society’s use of the OMRON Group’s energy generation and savings products and services
  • *3 Revised reduction goals following trends of mercury regulation in each country
  • *4 Recycling of waste: 98% or higher
  • *5 Changed the previous goal into absolute-amount goal at the beginning of FY2017

Response to Climate Change

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 of Scope 1 and 2 by the year 2050*1.
Through these initiatives, OMRON intends to reduce greenhouse gas emissions by 32 percent by the year 2030 (compared to 2016). At the same time, we declared our intent to set the target to reduce greenhouse gas emissions based on scientific grounds provided by SBTi*2. We are also considering emissions reductions based on Scope 3*3.
Further, we declared our support for TCFD*4 in February 2019. We intend to provide information disclosures in line with TCFD framework.

  • *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
  • *3 Scope 3: Emissions of greenhouse gases across a company’s value chain
  • *4 TCFD: Task Force on Climate-Related Financial Disclosures: Task force on climate-related information disclosure established by the Financial Standards Board in response to requests by the G20 Finance Ministers and Central Bank Governors Meeting

TCFD Disclosures

OMRON recognizes that climate change impacts the sustainable growth of society and our own businesses. Therefore, in February 2019, we declared our support for the Task Force on Climate-Related Financial Disclosures (TCFD). We intend to pursue group-wide initiatives, disclosing these initiatives and our progress using the TCFD framework.

Category OMRON Initiatives
Governance

Incorporating Climate Change Issues Within Sustainability Management Structure

  • OMRON engages with climate change issues through the OMRON board of directors (overall supervision), the Executive Council (execution), and the Sustainability Committee (discusses issues held in common).
  • OMRON has added a sustainability performance indicator (including indicators related to climate change) to the components of medium- and long-term performance-linked compensation for internal directors and officers.
Strategy

OMRON has defined the following risks and opportunities as group-wide issues at this time:

Risks
Transition Risks
Increased business costs due to the impact of rising energy costs, investments in facilities for renewable energy and energy conservation, carbon taxes and other regulations, etc.
Physical Risks
Business and supply chain continuity risks and rising insurance costs associated with natural disasters, including the expanding scale of flood risk due to the impact of climate change
Opportunities
  • Expand the environmental contribution of products and services offered through our businesses (measured by environmental contribution index)
    • Improve energy conservation functions in OMRON products (numerous types of temperature controllers, etc.)
    • Contribution to energy conservation/energy creation functions in customer products (PV inverters, storage battery systems, signals, electric power steering controllers, etc.)
    • Contribution to energy conservation/energy creation among customers (electricity usage monitors, environmental solutions, etc.)
  • Expanding opportunities for environmental solutions businesses and environment-related maintenance and upkeep
    • New opportunities stemming from changes in regulations and consumer habits (shift toward captive consumption, etc.) associated with expanded list of items (560,000 in Japan) no longer eligible for the feed-in tariff system beginning fiscal 2019

*Moving forward, through scenario analysis and other measures, OMRON will analyze climate-related risks and opportunities and their financial and social impacts on each business at OMRON to integrate into business strategies, taking into consideration of business models, supply chain, and value chain.

Risk Management

We identify and manage risks in the following manner:

  • We collect and analyze information about climate change-related regulations, the impact on our business, and other risk factors from a wide range of sources.
  • We conduct vulnerability assessments and prepare business continuity plans for locations in areas of projected increases in the strength and number of natural disasters due to climate change (flooding, torrential rains, water shortages, etc.)
Metrics and Targets

Reducing total volume of greenhouse gas emissions

  • We have set goals to achieve (Scope 1 and 2) carbon elimination by the year 2050 (revised target to 1.5°C in line with SBT standards)
  • We are currently considering setting goals for Scope 3 as well.
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