Realizing a Decarbonized Society | CASIO

Realizing a Decarbonized Society

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Approach and Policy

│Social Issue

The increasing intensity of harmful weather events in recent years has been attributed to rising greenhouse gas emissions. River flooding and landslides caused by heavy rains have impacted livelihoods and taken lives, and economic losses continue to rise around the world. There is now a growing crisis awareness, not only in international political arenas such as the United Nations, but also in the business world, and in the financial sector in particular.

In 2015, the Sustainable Development Goals (SDGs) were established as part of the 2030 Agenda for Sustainable Development adopted at the United Nations Sustainable Development Summit, and the Paris Agreement was adopted at the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (COP21). The objective of the Paris Agreement is to keep a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius. To achieve that goal, the agreement set out the target of net zero emissions of greenhouse gases by the second half of this century.

Moreover, in October 2018, the Intergovernmental Panel on Climate Change (IPCC) released the Special Report on Global Warming of 1.5°C, which is based on scientific knowledge and stresses that many of the impacts of climate change could be avoided by limiting global warming to 1.5°C above pre-industrial levels instead of 2°C.

In this way, international awareness has evolved from “global warming” to “climate change,” and now to “climate crisis.” Based on this heightened understanding, Casio has revised its social mission from “helping to achieve a low-carbon society” to “helping to build a decarbonized society.”

In order to promote emissions reduction targets that are consistent with scientific knowledge concerning the achievement of decarbonization, Casio has set its long-term targets.

In April 2021, based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD),*1 Casio strengthened its governance relating to climate change, formulated strategies based on climate-change risk and opportunity analysis, and disclosed climate-related financial risk information.

*1 TCFD: Established by the Financial Stability Board (FSB), an international body that monitors and makes recommendations about the global financial system, this initiative aims to help companies understand and disclose the financial impact of their climate change risks and opportunities.

│Importance for the Casio Group

Greenhouse gas emissions related to the Casio Group include direct emissions from the entire Group (Scope 1) and indirect emissions associated with the Group’s overall energy use (Scope 2), as well as emissions from the value chain such as procurement and manufacturing of raw materials, logistics, sales, and product disposal (Scope 3). Scope 3 accounts for 93.76% of total emissions.

Based on this, Casio has set targets for Scope 3 in addition to Scope 1 and 2, and is implementing measures to contribute to a decarbonized society.

In 2020, in order to gain a more detailed understanding of its greenhouse gas emissions and contribute to a decarbonized society based on objective indicators, Casio revised its criteria for calculating greenhouse gas emissions and its medium- to long-term targets to bring them into line with scientific knowledge.

Casio then requested the Science Based Targets initiative (SBTi),*2 an international initiative, to validate its revised calculation criteria and medium-term targets. In April 2021, the SBTi recognized that Casio’s approach is in line with Well-Below 2°C and validated that Casio’s criteria and targets are based on scientific evidence.

Going forward, the Casio Group will advance various initiatives to achieve the medium- and long-term goals that have been validated by the SBTi.

*2 SBTi
An initiative promoted by several international NGOs (CDP, the United Nations Global Compact, World Resources Institute [WRI] and the World Wide Fund for Nature [WWF]) to encourage private companies and other organizations to set science-based targets for greenhouse gas emission reduction and help achieve the goals of the Paris Agreement. The SBTi provides validation of science-based greenhouse gas reduction targets that comply with the Paris Agreement.

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Greenhouse Gas Emissions from the Entire Group (Scope 1 and 2)

│Approach and Policy

With the exception of a small number of processes, assembly of final products is the main operation at Casio Group plants. Since the Casio Group is not engaged in any materials manufacturing or electronic component production businesses, direct greenhouse gas emissions in the process of assembly of final products is relatively small, and power consumption is not as large as it is for companies in other industries.

In light of this situation, Casio is promoting the use of low-carbon energy such as renewable energy in addition to implementing measures such as energy conservation for direct emissions from the entire Group (Scope 1) and indirect emissions associated with energy use (Scope 2).

With regard to Scope 2, in order to promote the use of renewable energy and objectively assess the resulting changes in greenhouse gas emissions, Casio reports emissions calculated using both the location-based standard and the market-based standard.

│Targets and Performance

For Scope 1 and 2 emissions combined based on the market-based standard, Casio set a medium-term target of a 38% reduction by fiscal 2031, compared to fiscal 2019, and a long-term target of zero emissions by fiscal 2051.

Additionally, based on the medium-term target, Casio set a target of a 6.3% reduction compared to fiscal 2019 (equivalent to emissions of 30,026 t-CO2) by fiscal 2021 and is carrying out emission reduction activities.

  Scope 2 calculation method Scope 1 + Scope 2 combined target
Base year Target year Reduction rate for target year
Long-term target Market-based standard - FY2051 100%
Medium-term target Market-based standard FY2019 FY2031 38%
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In fiscal 2021, Casio actively took steps such as implementing energy-saving activities and introducing high-efficiency equipment at each site. Furthermore, with a decrease in vehicle-based movement and a decrease in energy consumption at plants and offices due to an increase in telecommuting as a result of COVID-19 pandemic, emissions were down by 20.3% compared to fiscal 2019 (equivalent to 25,555.3 t-CO2 based on the fiscal 2021 calculation standards).

With regard to fiscal 2022, as of April 2021, it is possible that the COVID-19 pandemic will impact performance results . In view of this, and based on the medium-term target, Casio has set a target of a 9.5% reduction compared to fiscal 2019 (equivalent to 29,010.9 t-CO2 based on the fiscal 2021 calculation standards) by fiscal 2022. Casio is also promoting the use of renewable energy with the aim of joining RE100.*3

*3 RE100: An environmental initiative whose members are committed to meeting 100% of their electricity needs from renewable energy sources.

Evaluation ◎: All targets met, ○ : Most targets met, △ : Remaining issues outweigh results, × : No progress made

Medium and long-term targets FY2021 Targets FY2021 Performance Evaluation FY2022 Targets
Long-term target:
Reduce to zero the total volume of Casio Group’s greenhouse gas emissions (Scopes 1 and 2) by  FY2051
Reduce the greenhouse gas emissions (Scopes 1 and 2) of group companies by 6.3% compared to FY2019, based on a market-based standard Reduced 20.3% compared to FY2019 Reduce the greenhouse gas emissions (Scopes 1 and 2) of Casio Group by 9.5% compared to FY2019, based on a market-based standard
Medium-term target: Reduce the total volume of Casio Group’s market-based greenhouse gas emissions (Scopes 1 and 2) by 38% compared to FY2019 by FY2031.

Greenhouse Gas Emissions from the Value Chain (Scope 3)

│Approach and Policy

Scope 3 emissions account for 93.76% of all greenhouse gases emitted in association with Casio’s business activities (Scopes 1, 2, and 3).

Casio considers it essential to reduce emissions, including across the value chain, in order to contribute to a decarbonized society. The Group sets targets for priority categories and works to reduce greenhouse gas emissions throughout the value chain, including by calling on suppliers to commit to making reductions.

│Targets and Performance

For Casio, purchased goods and services (Category 1) and use of sold products (Category 11) account for 94% of total Scope 3 emissions as of fiscal 2019. Targeting these emissions, Casio has set the medium- to long-term target of a 30% reduction by fiscal 2031, compared to fiscal 2019, and is promoting activities to reduce greenhouse gas emissions.

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Target categories Base year Target year Reduction rate for target year
Category 1: Purchased goods and services
Category 11: Use of sold products
2018 2030 30%
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In fiscal 2021, in addition to making efforts to objectively ascertain Scope 3 emissions as a whole and reduce greenhouse gas emissions throughout the value chain, mainly by urging major suppliers to set targets for reducing greenhouse gas emissions, there were special circumstances caused by the COVID-19 pandemic. As a result, Casio achieved a 44.84% reduction in emissions compared to fiscal 2019.

Medium and long-term targets FY2021 Targets FY2021 Performance Evaluation FY2022 Targets
Reduce greenhouse gas emissions from purchased goods and services (Category 1) and the use of sold products (Category 11) by 30% by FY2031, compared to FY2019 Survey suppliers’ greenhouse gas reduction targets Started survey of supply chain in Japan Start survey of supply chain outside Japan and keep moving forward with survey of supply chain in Japan

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