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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, the OMRON Group 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, the OMRON Group 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 sites
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 The OMRON Group 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, the OMRON Group 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, the Group 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.
In addition, as an opportunity to discuss climate-related issues, the OMRON Group is aware of the importance of activities within the industry and trade associations. The Group participates in the Committee on Environment and Safety at Keidanren (Japan Business Federation), and Liaison Group of Japanese Electrical and Electronics Industries for Global Warming Prevention*5, where climate change related policies and latest trends are discussed. The Group makes the most of the discussion into its environmental management measures.

  • *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
  • *5 Liaison Group of Japanese Electrical and Electronics Industries for Global Warming Prevention: The group of electrical machinery/electronics-related trade associations including the Japan Electrical Manufacturers' Association (JEMA). It supports the government’s national action campaign to prevent global warming, and promotes a number of initiatives, taking the industries’ collective principles into consideration.

TCFD Disclosures

The OMRON Group 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

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.

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

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
  • Expanded the environmental contribution of products and services offered through our businesses (measured by environmental contribution)
    • Improved energy saving of OMRON products (energy-saving nebulizers and temperature controllers among others)
    • Contribution to energy saving/energy creation of customer products (PV inverters, storage battery systems, signals, etc.)
    • Contribution to energy saving/energy creation initiatives of customers (road traffic control systems, electricity usage monitors, environmental solutions, etc.)
  • Expanded 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, the OMRON Group will analyze climate-related risks and opportunities and their financial and social impacts on each business at the Group 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 (revising 2030 target to align with “Global Warming of 1.5℃: An IPCC special report”.)
  • We are currently considering setting goals for Scope 3 as well.
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