Climate Change Countermeasures
Reducing CO₂ in Supply Chain and Product Use
Basic stance
A global business enterprise, the Nidec Group believes it is important to address climate change not just within our company, but across our entire supply chain.
Based on the GHG Protocol, an international standard for calculating CO₂ emissions, the Nidec Group calculates Scope 3 (other indirect business-related emissions) in addition to Scope 1 (direct emissions) and Scope 2 (energy-oriented indirect emissions). Majority of the Nidec Group’s CO₂ emissions are Scope 3 emissions. In promoting Scope 3 CO₂ emissions reduction, Nidec set “new mid- and long-term targets on CO₂ emissions.” As achieving this target requires actions on our individual products, as a first step, we are calculating CO₂ emissions by product. By utilizing calculated results for product designing and development, we create environmentally friendly products, and promote CO₂ emissions reduction throughout our supply chain.
Target
In March 2024, the Nidec Group set its first target for Scope 3 CO₂ emissions reduction, establishing a long-term target of achieving a net-zero status of its entire supply chain by FY2050. In addition, the company has in place a mid-term target of reducing its Scope 3 CO₂ emissions by 25% from the FY2022 level by FY2030.
This FY2030 CO₂ emissions reduction target was recognized as a science-based target to achieve the 1.5°C goal stipulated in the August 2024 Paris Agreement, and became SBT-certified after being recognized as such by the SBTi (Science Based Targets initiative), an international climate change initiative. Going forward, we will proceed with CO₂ emissions reduction actions with our suppliers to achieve the aforementioned targets, while reducing the CO₂ emissions of our entire supply chain by utilizing our resource- and energy-saving products. In addition, in our Seventh Mid-Term Environmental Conservation Plan, which was revised in October 2024, we have set a target of reducing Scope 3 emissions by 9.4% in fiscal year 2025 compared to fiscal year 2022, with the aim of achieving the mid-term target. We will work with our suppliers to reduce CO₂ emissions and reduce CO₂ emissions throughout our supply chain through resource- and energy-saving products.
The seventh mid-term environmental conservation plan
| Item | Three-year targets (FY2025 goals) |
|---|---|
| Greenhouse gases (Scope 3) | 9.4% reduction compared to fiscal year 2022 (total amount) |
Achievements
Nidec’s Scope 3 CO₂ emissions during FY2023 totaled 285,034,000 tons, with large portions coming from Category 1 (purchased goods and services, totaling 5,552,000 tons), and Category 11 (used sold products, totaling 277,099,000 tons).
With an increase in the ratio of small-size products sold from the previous year, our Category 1 CO₂ emissions decreased by 262,000 tons from the prior fiscal year. For Category 11, the aforementioned reasons, combined with an increased accuracy of information regarding our customers’ use of products, resulted in a reduction of CO₂ emissions by 43,006,000 tons compared to the prior fiscal year.
Please click here to view Nidec’s Scope 3-related achievements.
Actions
While working to reduce Scope 3 CO₂ emissions, we calculated the emissions by product to begin visualizing potential areas for reduction. By providing those results for our future product development, Nidec will contemplate the use of lower-carbon materials, while aiming to reduce its entire supply chain’s CO₂ emissions via collaborations with its customers.