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Targets and Achievement

Medium- to Long-term Targets

Course of Action for Climate Change Toward 2050

Globally, NEC is forging ahead with Solutions for Society that create social value in the form of safety, security, fairness, and efficiency. To support these efforts, in July 2017 we formulated guidelines for climate change countermeasures based on a long-term perspective that extends forward to 2050. We have established these guidelines based on the belief that in realizing a sustainable society, preparation for worldwide decarbonization and the regional effects of climate change will become increasingly important. Specifically, regarding both mitigation of and adaptation to climate change, we have set out the following four points to show how we will advance the establishment of a sustainable management base and co-creation that helps realizing a sustainable society.

  • Aiming for zero CO2 emissions from supply chains
  • Strict countermeasures against climate change risks in supply chains
  • Realizing a low-carbon society as a goal for the planet
  • Realizing a safe, secure society that is resilient to climate change risks

The aforementioned points summarize a commitment to strengthening our management base to make it more sustainable and to co-creating a sustainable society with our customers as we move toward 2050.
With regard to "aiming for zero CO2 emissions from supply chains," NEC has declared that it will reduce CO2 emissions from its business activities (Scope 1 and 2) to effectively zero by 2050 by reducing energy consumption through the use of the latest, most advanced energy-saving technologies and by increasing the introduction of renewable energy.

Course of Action for Climate Change Toward 2050

NEC Environmental Targets 2030

We have established the NEC Environmental Targets 2030 as targets to be reached through environment-oriented business management by 2030. We established these new targets after taking into account external trends and the fact that we reached the milestone-year targets of fiscal 2021, which were set under the NEC Group Environmental Management Action Plan 2020/2030; achieved the 2020 Climate Change Countermeasure Goals; and revised the NEC Way.
NEC Environmental Targets 2030 calls on the Company both to continuously reduce (minimize) its own environmental footprint and risks and to increase (maximize) its contribution through businesses. In response to growing social expectations with respect to climate change countermeasures such as the pursuit of carbon neutrality, we have increased the stringency of our Science Based Targets for climate change countermeasures from the "well below 2℃*1" goal to an alignment with the "1.5℃" goal, and we are redoubling efforts to reduce environmental footprint and risks throughout our supply chains. Further, NEC will increase environmental contributions through its businesses by providing value not only in the area of climate change countermeasures (mitigation and adaptation), which has been the focus of initiatives, but also in relation to a broader range of environmental issues, including the realization of a circular economy, water and food safety, and protection of biodiversity.
Aiming to achieve NEC Environmental Targets 2030, NEC has backcasted from the targets to prepare the NEC Eco Action Plan 2025, a five-year action plan that the whole NEC Group is advancing.

  • *1
    Keeping the rise in global temperatures versus pre-industrial levels well below 2℃

NEC's SBTs

Worldwide, Science Based Targets (SBTs) are being set with the aim of achieving the Paris Agreement. In 2017, NEC committed to the use of such targets for its greenhouse gas emissions reductions. Subsequently, our targets were certified as SBTs by the Science Based Targets Initiative in 2018 and aligned with the "well below 2℃" goal of the new standard in 2019.
Furthermore, to accelerate decarbonization, NEC increased the stringency of its Scope 1 and 2 targets from the "well below 2℃" level to the "1.5℃" level in May 2021. Consequently, our 2030 greenhouse gas emissions reduction target has risen from 33% to 55%. Having aligned our targets with the "1.5℃" level, we will progress steadily toward the realization of effectively zero greenhouse gas emissions by 2050.
In addition, aiming to reduce greenhouse gas emissions from our supply chains, we have set targets in Scope 3, Category 1 (purchased goods and services), Scope 3, Category 3 (fuel- and energy-related activities not included in Scope 1 or Scope 2), and Scope 3, Category 11 (use of sold products). In partnership with our suppliers and customers, we will reduce greenhouse gas emissions.

NEC's SBTs

Scope 1 and 2:
Reduce greenhouse gas emissions by 55% compared with fiscal 2018 by fiscal 2031

Scope 3:
Reduce greenhouse gas emissions 33% compared to fiscal 2018 levels by fiscal 2031 in Category 1 (purchased goods and services), Category 3 (fuel- and energy-related activities not included in Scope 1 or Scope 2), and Category 11 (use of sold products)

Scope 3 target range: 35% of Category 1, 100% of Category 3, 100% of Category 11

SCIENCE BASED TARGETS DRIVING AMBITIOUS CORPORATE CLIMATE ACTION

Progress toward the SBTs

Scope 1 and 2
Scope 3
35% of Category 1 / Category 3 / Category 11
  • *
    The overall Scope 3 emissions for fiscal 2018 and subsequent fiscal years have been revised to reflect a revision of the coefficient for Scope 3, Category 1.

RE100

RE100 °CLIMATE GROUP | CDP

In May 2021, NEC joined RE100, which aims for a significant increase in the use of renewable energy globally. An initiative run based on a partnership between the international NGOs The Climate Group and CDP, RE100 comprises companies that aim to use only electricity derived from renewable energy.
NEC aims to use only renewable electricity by 2050. In fiscal 2021, 8.6% of the electricity we used was renewable. We are moving forward with activities based on a policy of installing solar power generation equipment on roofs wherever possible. We are also promoting the purchase of green electricity.
In fiscal 2021, a subsidiary in Denmark, KMD Holding ApS, began exclusively using electricity generated from renewable energy sources.

NEC Eco Action Plan 2025

The NEC Eco Action Plan 2025 is a five-year plan designed to enable the achievement of the Course of Action for Climate Change Toward 2050 and NEC Environmental Targets 2030.

Priority Activities

We selected 11 priority activities based on the following three goals.

  1. Reduce own risks and footprints
  2. Increase contributions through businesses
  3. Build foundations to promote environmental management

1. Reduce own risks and footprints

We have set CO2 emissions reduction targets with the aim of steadily moving toward achievement of SBTs and RE100. Also, we will continue reducing our environmental footprints and risks in relation to water and waste.

Themes Indicator FY2026 Targets
Reduction of CO2 emissions In-house Reduce total emissions
(absolute value) (SBT)
Reduction rate of energy-derived CO2 emissions (absolute value)
(compared with FY2018)
-33.6%
Expand use of renewable energy Amount of electric power used from renewable energy 78,000MWh
Supply chain Reduce Category 1 emissions (SBT) Reduction rate of energy-derived CO2 emissions from purchased goods and services (compared with FY2018) -6.0%
Reduce Category 11 emissions (SBT) Improvement rate of product energy efficiency
(compared with FY2014 products)
90.0%
Reduce water usage Reduction rate (compared with FY2019) -3.5%
Reduce waste emissions Reduction rate (compared with FY2019) -4.8%

2. Increase contributions through businesses

We aim to create a virtuous cycle of business growth and increased contribution by increasing the sales (green revenue) of businesses that benefit the environment. To this end, we are clarifying the environmental value of existing businesses and creating solutions that are focused on environmental issues.

Themes FY2026 Targets
Create a system to expand environmental value (reducing CO2 emissions by promoting DX among customers, etc.) and sales
from environmental contribution-related business(green revenue, etc.)
Determine businesses that contribute to environmental value and set FY2031 target
Manage environmental business assets and encourage eco appeal Update environmental business assets on an annual basis
Create new environmental solutions and create new themes for R&D Hold environmental business study workshops

3. Build foundations to promote environmental management

To raise the environmental awareness of each of our employees, we will ensure they receive environmental education.

Theme Indicator FY2026 Target
Increase environmental awareness among all employees Environmental education class attendance rate Japan 95% or more
International

Management Items

In addition to priority activities, we are tackling the following management tasks.

Areas Themes Management Contents Targets
Reduction of in-house environmental impact Preventing global warming 1 Reduction rate of energy usage (consumption intensity) Achieve 1% decrease year on year
2 Reduction rate of energy usage intensity from logistics Achieve 1% decrease year on year
Promoting effective use of resources 3 Zero emissions Continue to meet target
4 Amount of paper purchased (copy paper, EDP paper) Maintain or reduce levels from FY2006
(by subsidiary)
5 Reuse of collected used products Achieve reuse rate of 90% or more
Preventing pollution (air and water quality) 6 NOx and SOx emissions Reduce by 1% or more compared with FY2018
7 BOD and COD emissions Reduce by 1 or more compared with FY 2018
Reducing chemical substance usage 8 Amount of chemical substances purchased Reduce by 1 or more compared with FY 2018
9 VOC emissions Reduce by 1 or more compared with FY 2018
Risk countermeasures Legal compliance
(for notification, reporting, and emissions)
10 Chemical substance balance management Achieve 100% implementation rate
11 Chemical substance purchasing regulations Achieve 100% implementation rate
Compliance with RoHS rules 12 Conformance status of all products Achieve 100% compliance
Environmental assessments 13 Preliminary evaluation of chemical substances and new waste/assessment of manufacturing methods Achieve 100% implementation rate
14 Environmental assessments when constructing or removing factories and buildings Achieve 100% implementation rate
Reduction of environmental impact of products and solutions Hardware products 15 Percentage of devices that do not use brominated flame retardant in their plastic casing Achieve rate of 95% or more
16 Percentage of devices that use eco-plastics in their plastic casing
17 Continued acquisition of Eco Symbol Star certification Achieve 100% implementation rate
Software products 18 Implementation rate of environmental assessments Achieve 100% implementation rate
19 Implementation rate for products subject to environmental impact evaluation Achieve 100% implementation rate
Hardware and software 20 Applications for Eco Symbol Star certification
21 Promotion of proposals with eco-related appeal
Environmental communication Transmission of environmental activities information 22 Number of publicity campaigns/activities
Promoting contribution to local communities 23 Number of local community activities
Biodiversity Ecosystem conservation activities on and around business sites 24 Number of conservation measures carried out in cooperation with experts and local NPOs Conduct 10 or more activities per year

Achievement of Fiscal 2021 Targets

NEC Group Environmental Management Action Plan 2020/2030

We are moving forward with initiatives aimed at realizing the NEC Group Environmental Management Action Plan 2020/2030. Formulated in July 2016, the plan sets long-term targets for environment-oriented business management and has climate change countermeasures at its core. Thanks to its concerted efforts, the Group was able to achieve all targets set for the milestone year of fiscal 2021.
The Group contributed to a 26.55 million-ton reduction in CO2 emissions in society as a whole through increased provision of IT solutions, including the iStorage HS8 series, the UNIVERGE PF series, and the ULTRAFIX logistics solution. In addition, we achieved a 65.0% improvement in the overall energy efficiency of our products thanks to improvements in such products as mobile infrastructure equipment and internet provider network equipment. As for climate change readiness, with preparations for weather-related disasters proceeding throughout society, we were able to provide 23.60 million tons of value in terms of CO2* emissions by providing more emergency communication and safety confirmation systems.
Also, we successfully reduced our own CO2 emissions intensity by accelerating our measures through the acquisition of Science Based Targets certification, which resulted in a rise in the use of renewable energy that significantly surpassed our target.

  • *
    Based on the upward trend in greenhouse gas (CO2, etc.) emissions and the upward trend in the effect of climate change (natural disasters, health hazards, etc.), a correlation is found for each risk, and the magnitude of damage and costs that could potentially be mitigated by the use of ICT is converted into an amount of contribution to the reduction of CO2 emissions.

Progress of NEC Group Environmental Management Action Plan 2020/2030

The 2020 Climate Change Countermeasure Goals

In July 2014, NEC quantified the social value of its contribution to climate change countermeasures and set a target of contributing to a five-fold reduction in CO2 emissions relative to the total CO2 emissions of the Group's supply chains by fiscal 2021. To this end, in fiscal 2021 we not only reduced the environmental footprint (total CO2 emissions) throughout our supply chains (Scope 1, 2 and 3) but also contributed to mitigation of (reduction of greenhouse gas emissions) and adaptation to (preparation for the impact of) climate change (global warming) through the provision of Solutions for Society in the form of advanced ICT-enabled social infrastructure.
In fiscal 2021, we surpassed our goal by contributing to a 7.7-fold reduction in CO2 emissions relative to our Scope 1, 2, and 3 CO2 emissions. We believe that this achievement resulted from our inclusion of concrete targets in the NEC Group Environmental Management Action Plan 2020/2030 and our stepped up efforts to provide solutions that help both in mitigating and adapting to climate change.

Goals of Climate Change Countermeasures up until Fiscal 2021

Scope 3 emissions for fiscal 2018 and subsequent fiscal years have been revised to reflect a revision of the coefficient for Scope 3, Category 1.
"Footprint" refers to the total volume of CO2 emissions from our supply chains, such as production sites, offices, and the use of products. With respect to NEC's "contribution," "mitigation" includes the reduction in CO2 emissions for society overall through the products and services we provide to customers as well as our improvements in the energy efficiency of products. Meanwhile, "adaptation" includes the contribution to the curbing of society's overall CO2 emissions that results from NEC's solutions.