Support for the TCFD Recommendations

Governance

In August 2022, we established the Sustainability Committee as an organization to supervise business execution related to sustainability and report to the Board of Directors. The Sustainability Committee meets quarterly, and the Investor Relations & CSR Promotion Department serves as the secretariat.
　In addition, the ESG Materiality Steering Committee meets monthly to report on the progress and challenges in terms of activity themes related to the five identified materiality issues on a phase-by-phase basis. The reports are made directly by the officers in charge of each activity theme, and the matters discussed and decided at the Committee meetings are immediately reflected in the action plan.

Strategy

One of the targets in our medium-term strategy goal, Vision 2025, is to promote ESG management centered on carbon neutrality. Our policy is to set targets for climate-related risks and opportunities that may affect our business, strategies, and financial plans, and to work towards the targets over the medium-to-long term. The main identified climate-related risks and opportunities are shown below.

Going forward, through scenario analysis, we will grasp the possible financial impact of climate-related risks and opportunities and incorporate the impact into our management strategies.

Risk management

To establish a risk management system for the entire group, we have framed risk management regulations and set up the Risk Management Committee. The Risk Management Committee is placed under the Board of Directors and chaired by the officer in charge of risk management. The Committee decides risk management policies and measures and submits reports and proposals to the Board of Directors. It also monitors the status of company-wide risk management and constantly reviews the adequacy of allocation of resources necessary for risk management. Based on the annual policies established by the Risk Management Committee, department general managers in charge of risk management and the Group companies formulate and carry out their respective annual plans.

Indicators and targets

Identifying “contribute to environmental sustainability” as one of our materiality issues, we have set the KPIs shown below.

In addition, as a major pillar of our medium-term strategic goal Vision 2025 and ESG materiality measures, we have set the target of achieving carbon neutrality by FY2040. To achieve this target, we first aim to substantially reduce the CO₂ that Nidec emits directly through its business activities at present (Scope 1), and CO₂ that is emitted in the production stage of heat or energy used in business activities (Scope 2), by making our businesses more energy efficient and proactively introducing renewable electricity. After building a solid foundation for renewable energy-oriented CO₂ emissions reduction, we will promote a shift to energy-saving, low-carbon fuels and employ carbon offset investments and other measures, thereby achieving carbon neutrality in our business activities by FY2040. For CO₂ emitted in the supply chain (Scope 3), we will decide a reduction plan by FY2025.