Realizing a Decarbonized Society
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 United Nations Sustainable Development Goals (SDGs) and the COP21 Paris Agreement were adopted as stepping stones in solving these problems. 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 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 also updated its long-term targets and calculation standards.
Importance for the Casio Group
Except for a few processes, Casio plants mainly perform final product assembly. This means there is no material or electronic component production within the Casio Group, so direct greenhouse gas emissions are relatively low. Casio’s power consumption is also minimal compared to companies in other industries. Nevertheless, there is still much Casio can do to help achieve decarbonization, such as switching the Group’s energy sources to green electricity. Casio can also bring about significant improvements by reducing the indirect greenhouse gas emissions that are generated in its value chain.
Casio products are an integral part of people’s lives. They help to make work, learning, daily activities and hobbies more convenient and rewarding. Since the business of supplying these products to markets depends upon society remains safe and secure, the climate crisis poses a major risk to Casio’s business that must be addressed.
Over its history, Casio has continued to pursue development and marketing of products that are smaller, lighter, thinner, and more energy efficient. It has also focused on delivering products that function in a wide range of usage environments. By continuing with these efforts, Casio aims to help minimize the environmental impact from the use of its products. Moreover, Casio’s waterproof watches and other robust products will continue to function even in a climate crisis environment. In this respect, Casio may have even greater opportunities to support consumers going forward.
Targets and Action Plan
With the aim of helping to build a decarbonized society, Casio has been pursuing targets for greenhouse gas emissions throughout its value chain. In response to international developments, however, Casio has now revised its medium and long-term targets.
Casio had already set targets to reduce its emissions by 26% and 80% by the end of fiscal 2031 and fiscal 2051, respectively, compared to fiscal 2014. This was in line with targets set by the Japanese government. Going forward, however, Casio has raised its targets to 38% and 100%, respectively, compared to fiscal 2019.
These challenging new targets are designed to help hold global warming to 1.5 degrees Celsius or less. In order to ensure numerical validity during long-term target management, Casio has now adopted the market-based standard for calculating its CO2 emission factor for electricity. This calculation standard is now being applied, starting with the fiscal 2019 results.
Historical environmental performance data based on previous reduction targets is for reference only.
For more information on Casio’s calculation method, see “Calculation Standards” under “Environmental Performance Data.”
Casio has also set new targets for Scope-3 greenhouse gas emissions in the value chain: a 30% reduction in the total volume of emissions from purchased goods and services (Category 1) and the use of sold products (Category 11) by fiscal 2031, compared to fiscal 2019.
Greenhouse gas emissions reduction plan (Scopes 1 and 2) based on Casio’s previous medium and long-term targets
Greenhouse gas emissions reduction plan (Scopes 1 and 2) based on Casio’s new long-term targets
Medium and long-term targets and Performance
Evaluation ◎: All targets met, ○ : Most targets met, △ : Remaining issues outweigh results, × : No progress made
|Medium and long-term targets||FY2020 Targets||FY2020 Performance||Evaluation||FY2021 Targets|
|Long-term target: Reduce to zero the total volume of Casio Group’s greenhouse gas emissions (Scopes 1 and 2) by FY2051.||Acquire SBT certification and join RE100||Promoted SBT certification acquisition Revised long-term CO2 emissions reduction targets and scenarios||△||Acquire SBT certification and join RE100|
|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.||Reduce the total volume of Casio Group’s location-based greenhouse gas emissions (Scopes 1 and 2) by 9.6% compared to FY2014||Reduced the greenhouse gas emissions (Scopes 1 and 2) of Casio Group by 24.54% compared to FY2014, based on a revised calculation method (location-based standard)||Not evaluated, as the calculation method was revised during the fiscal year||Reduce the greenhouse gas emissions (Scopes 1 and 2) of Casio Group by 6.3% compared to FY2019, based on a new calculation method (market-based standard)|
|Reduce the total volume of 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||Establish a supplier survey||Supplier survey was investigated with relevant departments||○||Investigate CO2 emissions reduction targets for suppliers|
Greenhouse gas emissions in business operations (Scope 1 and 2)
When the emissions results for fiscal 2020 were evaluated using the new calculation standards for the recently revised medium and long-term targets, there was a 24.54% reduction compared to fiscal 2014. This already represents an achievement of the previous medium-term target. Going forward, in addition to practicing energy-saving activities and introducing high-efficiency equipment, Casio will also seek to use more renewable energy. It aims to acquire SBT certification and join RE100, based on efforts to achieve its new reduction targets for greenhouse gas emissions.
Greenhouse gas emissions (Scopes 1 and 2) calculated using the new location-based standard
Greenhouse gas emissions (Scopes 1 and 2) calculated using the new market-based standard
Greenhouse gas emissions (Scopes 1 and 2) based on the new location-based standard
|CO2 emissions||CO2 emissions||39,298||38,065||37,267||37,142||33,869||32,090||29,653||-||-|
|Medium-term target||CO2 emissions||39,298||38,697||38,096||37,495||36,894||36,293||35,692||35,091||29,080|
Greenhouse gas emissions (Scopes 1 and 2) based on the new market-based standard
|CO2 emissions||CO2 emissions||32,089||28,893||-||-|
|Medium-term target||CO2 emissions||32,089||31,073||30,057||19,895|
Casio calculates greenhouse gas emissions in its own business operations (Scope 1 and Scope 2) and also emissions throughout the entire value chain, upstream as well as downstream (Scope 3) by unit of emissions. Since emissions from “purchased goods and services” (Category 1) account for 60% or more of Casio’s Scope-3 CO2 emissions, the Casio Group will promote activities to reduce greenhouse gas emissions across the value chain, chiefly by encouraging its main suppliers to establish targets for greenhouse gas reduction.