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Targets and Achievement

Medium- to Long-term Targets

Position of Environmental Management

At NEC, we have set medium- and long-term environmental targets based on the NEC Way that align with trends both inside and outside the Company. With the aim of being carbon neutral by 2040, we are currently defining specific activities for the NEC Eco Action Plan 2025, a five-year plan from fiscal 2022 through fiscal 2026, and are encouraging all of our employees to take action.

  • *1
    Business Ambition for 1.5°C
  • *2
    The Climate Pledge (see note 6 below)
  • *3
    An international initiative in which companies aim to use 100% renewable energy to produce the electricity used in their own businesses
  • *4
    Science Based Targets. Greenhouse gas (GHG) emission reduction targets set by companies with 5- to 15-year timelines that align with levels outlined in the Paris Agreement
  • *5
    We have moved our carbon neutral target up to 2040 because we have joined The Climate Pledge (see note 6 below).
    Accordingly, the contents of the Course of Action for Climate Change Toward 2050 have been reinterpreted as the Action Guidelines on Climate Change toward 2040.

Targets

Net Zero Emissions by 2040

In September 2021, NEC became a signatory to Business Ambition for 1.5℃ (BA1.5℃) and declared that it will target net zero CO2 emissions from Scope 1, 2, and 3 by 2050. In addition to its previous target for the Company's business activities (Scope 1 and 2), NEC targets net zero emissions for Scope 3, which includes its entire supply chain.

Before then, in May 2021, NEC changed its SBT from well below 2℃ to 1.5℃ and was recertified as such. We are taking action to achieve our targets to reduce CO2 emissions for Scope 1 and 2 by 55% as well as for Scope 3 by 33% by fiscal 2031 (both compared with fiscal 2018 levels). Moreover, in September 2022, NEC has joined The Climate Pledge(TCP*) climate change initiative to accelerate its carbon neutral programs, and has moved its target for achieving carbon neutrality up to 2040. In particular, NEC is advancing activities to reduce emissions along with its suppliers and sellers because Scope 3 accounts for 96% of the entire Group's greenhouse gas emissions.

  • *
    An initiative launched jointly by Amazon and Global Optimism in 2019. It is a pledge to target carbon neutrality by 2040—10 years earlier than the Paris Agreement—through cooperation among companies, organizations and individuals to address climate change issues and promote decarbonization of the economy.
“Effectively zero” CO2 emissions from supply chains

NEC's SBT 1.5℃ target

Scope 1 and 2:
Reduce GHG emissions by 55% by fiscal 2031 compared with fiscal 2018 level

Scope 3:
Reduce GHG emissions by 33% by fiscal 2031 compared with fiscal 2018 level in Category 1 (purchased goods and services), Category 3 (fuel and energy activities not included in Scope 1 and 2), and Category 11 (use of products sold)

Scope 3 coverage: 35% of Category 1, 100% of Category 3, 100% of Category 11

SCIENCE BASED TARGETS DRIVING AMBITIOUS CORPORATE CLIMATE ACTION

Course of Action for Climate Change Toward 2050

In 2017, we formulated the Course of Action for Climate Change Toward 2050 as our long-term stance on climate change. This policy has four quadrants for mitigating and adapting to climate change, and expresses NEC's ambition to co-create a sustainable society with customers and reinforce its business foundation into a more sustainable one.
NEC has joined The Climate Pledge climate change initiative to accelerate its carbon neutral programs, and has moved its target for achieving carbon neutrality up to 2040. Accordingly, the contents of the Course of Action for Climate Change Toward 2050 have been reinterpreted as the Action Guidelines on Climate Change toward 2040.

Ⅰ. Building a sustainable management foundation

To reduce CO2 emissions from our supply chain to zero, we are taking steps with our suppliers to reduce CO2 emissions and improve the energy efficiency of our products. Additionally, NEC is advancing measures to counter risks in its supply chain while mitigating the impact of climate change on its supply chain.

  • Aiming for zero CO2 emissions from supply chains
  • Implementing strict countermeasures against climate change risks in supply chains

Ⅱ. Achieving a sustainable society by collaboration

Through the provision of ICT solutions, NEC helps its customers and society reduce CO2 emissions. We aim to realize a safe and secure society by supporting preparations for disasters, and predicting and forecasting potential natural disasters.

  • Realizing a low-carbon society as a goal for the planet
  • Realizing a safe, secure society that is resilient to climate change risks

NEC Environmental Targets 2030

NEC Environmental Targets 2030 calls on the Company both to continuously reduce its own environmental footprint and risks and to increase its contributions through businesses with an eye on 2030. Further, NEC will increase environmental contributions through its businesses by providing value not only in the area of climate change countermeasures, which has been the focus of its 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 these targets, NEC has backcasted from the 2030 targets to prepare the NEC Eco Action Plan 2025, a five-year action plan that the entire NEC Group is advancing.

Achievements

SBT

Fiscal 2023 Results

Regarding Scope 3 emissions in fiscal 2023, CO2 emissions decreased from the previous fiscal year, despite an increase in procurement costs of raw materials and other items due to business expansion and a change (slower) in the environmental function improvement cycle.

  Fiscal 2023 emissions Compared with fiscal 2018
Scope 1, 2 258,000 tons Down 45%
Scope 3*1 4,396,000 tons Down 15%
  • *1
    Scope 3 coverage: 35% of Category 1, 100% of Category 3, 100% of Category 11
  • *2
    Scope 3 figures for fiscal 2021 (2020 above) were revised due to an error in the figures disclosed for fiscal 2022. We will work to improve the accuracy of Scope 3 disclosures.

Reduction Measures

Scope 1 and 2 Use more LED lighting, upgrade power facilities, optimize hours of air conditioner operation, install additional solar power
Scope 3 Category 1*1 Engage suppliers to reduce emissions, share the state of improvements at energy conservation, survey actual conditions
Scope 3 Category 11*2 Improve energy efficiency through assessments during product development stage
  • *1
    Scope 3 Category 1: CO2 emissions of purchased products and services
  • *2
    Scope 3 Category 11: CO2 emissions of sold products

RE100*

In May 2021, NEC joined RE100, which aims for a significant increase in the use of renewable energy globally. Aiming to use only renewable electricity, we are moving forward with activities based on a policy of installing solar power generation equipment on roofs wherever possible while procuring more green electricity. In fiscal 2023, renewable energy was used to generate 24.9% of the electricity we consumed. We aim to increase this ratio to approximately 50% by fiscal 2031 and to 100% by fiscal 2041.

RE100 °CLIMATE GROUP | CDP

Bases and Companies with 100% Renewable Energy

Japan NEC head office, NEC Cloud IaaS Data Center, NEC Solution Innovators, Ltd. headquarters, Shinkiba Center Building, and Japan Aviation Electronics Industry, Limited (JAE Hirosaki, Ltd. and JAE Yamagata, Ltd.)
International KMD A/S (Denmark), NEC Corporation of America (U.S.), and NEC Scandinavia AB (Sweden, Norway, and Finland)
  • *
    RE100: This initiative is based on a partnership with the CDP and The Climate Group, an international NGO. It consists of companies that aim to derive 100% of the energy they use from renewable energy.

Renewable Energy Results / Plan

FY Renewable energy results / Plan (Solar power)
FY2020 Abiko Plant: 1.2 MW
NEC Platforms Thai Co., Ltd.: 1.4 MW
FY2021 Abiko Plant: 0.3 MW
FY2022 NEC Platforms Kofu: 1.2 MW
FY2023 Abiko Plant: 1.8 MW
NEC Platforms Nasu: 0.3 MW
NEC Platforms Kakegawa (Buildings D and E): 0.6 MW
FY2024 Abiko Plant: 0.8 MW
Sagamihara Plant (Step 1): 0.09 MW (Scheduled to come on line in October 2023)
Sagamihara Plant (Step 2): 0.1 MW (On line date undecided)
NEC Platforms Kakegawa (New Building A): 0.2 MW
FY2025 NEC Platforms Otsuki: 0.6 MW (Planned)
Tamagawa Plant (in conjunction with plant redevelopment): 1 MW (Planned)
NEC Platforms Shiroishi Lines 1 and 2: 0.9 MW (Planned)
FY2026 Fuchu Plant (in conjunction with plant redevelopment) (Planned)
NEC Platforms Fukushima Building B, C and D: 0.3MW (Planned)

NEC Eco Action Plan 2025

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

To advance environmental management, NEC has defined “priority items,” or specific action plans to achieve the targets, and “management items,” which are geared toward improving the level of activities that do not necessarily require targets and plans.

Priority Items

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

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

1. Reduce own risks and environmental footprint

We aim to reduce our environmental footprint.

Themes Indicator Fiscal 2023 results Fiscal 2026 targets
(1) Reduction of CO2 emissions In-house Reduce total emissions
(absolute value) (SBT)
Reduction rate of energy-derived CO2 emissions (absolute value) (compared with FY2018) –45% –25%
Note: New higher targets based on The Climate Pledge membership with
FY2021 as the baseline
(2) Expand use of renewable energy Amount of electric power used from renewable energy(MWh) 180,072MWh 220,500MWh
Note: Higher targets based on the results of full-scale introduction by Group companies and The Climate Pledge membership
(3) Supply chain Reduce Category 1
emissions (SBT)
Reduction rate of energy-derived CO2 emissions from purchased goods and services (compared with FY2018) +5%*1 –6%
(4) Reduce Category 11
emissions (SBT)
Improvement rate of product energy efficiency (compared with FY2014 products) 61.0%*2 80.0%
Note: Revised targets based on changes in product mix
(5) Reduce water usage Reduction rate (compared with FY2019) –25%*3 –10.5%
Note: Revised targets based on usage reductions due to COVID-19 and other factors
(6) Reduce waste emissions Reduction rate (compared with FY2019) –9.9% –4.8%
(7) Encourage recycling of plastic resources
(new itemized targets from FY2024)
Reduce plastic waste output Reduction targets
(compared with FY2020)
–4.2%
Information disclosure Disclosure
  • *1:
    (3)Due to an increase in the procurement of raw materials in tandem with business growth
  • *2:
    (4)Caused by an increase in CO2 emissions due to a change (slower) in the environmental function improvement cycle
  • *3:
    (5)Decrease due to implementation of reduction measures and telecommuting due to COVID-19

2. Increase contributions through businesses

We are clarifying the environmental value of existing businesses and creating solutions that are focused on environmental issues.

Themes Fiscal 2023 results Fiscal 2026 targets
(8) 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.) Created definition of businesses that contribute to the environment Define businesses that contribute environmental value; set targets for fiscal 2031
(9) Manage environmental business assets and encourage eco appeal Update environmental assets (as needed, with an annual review)
Encourage eco appeal (manage outcomes)
Update environmental business assets (each year) and encourage eco appeal
(10) Create new environmental solutions and create new themes for R&D Conducted one workshop for evaluating environmental businesses(1 time / hear) Evaluate environmental businesses
Hold workshops

3. Build foundations to promote environmental management

We strive to raise the environmental awareness of each of our employees.

Themes Indicator Fiscal 2023 results Fiscal 2026 targets
(11) Increase environmental awareness among all employees Environmental education class completion rate Japan 96.6% At least 95%
International 95.3% At least 95%

Management Items

Areas Themes Management contents Targets
Reduction of own 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 waste 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 FY2018
Reducing chemical substance usage 8 Amount of chemical substances purchased Reduce by 1% or more compared with FY2018
9 VOC emissions Reduce by 1% or more compared with FY2018
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 of 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 measures implemented to preserve biodiversity Conduct 10 or more activities per year