Environment Environment

The Company deliberates on and makes decisions regarding significant issues deemed to be risks through the “Risk and Compliance Committee,” which is composed of members of the Board of Directors and others.

In addition, we will work with the Business Progress Confirmation Meeting, which promotes our medium-term management plan to place ESG and SDGs initiatives and climate change initiatives at the core of our management, to ensure that our carbon dioxide (CO₂Under management's leadership and control, we are promoting sustainability initiatives across our businesses, including emission reductions.

By identifying important social issues to be addressed by the Company and linking them to the values of the Group and each strategy in the medium-term management plan, we will steadily implement measures that will contribute to the goals of the SDGs and lead to the development of the Group.

Scope 1 and Scope 2 CO₂ emissions are calculated and monitored every fiscal year.

In addition, we have independently calculated the amount of reduction contribution to be realized by expanding sales of decarbonization-related products in a manner similar to Scope 3 Category 11, and are actively working toward achieving carbon neutrality with the goals of a 20% reduction by 2030, a 58% reduction by 2040, and a 100% or greater reduction by 2050. We are actively working to achieve carbon neutrality.

In accordance with the Japanese government's "Green Growth Strategy Accompanying Carbon Neutrality in 2050," we will promote our green growth strategy, viewing the response to global warming as an opportunity for growth.

While the industrial furnace industry as a whole is expected to be affected by factors such as declining demand for industrial furnaces powered by fossil fuels and a reduction in the number of automotive parts due to the shift toward electric vehicles (EVs), on the other hand, capital investment in energy-efficient combustion equipment and facility retrofits—such as regenerative burners and oxygen-enriched combustion systems—as well as components related to EVs, including in-vehicle motors, batteries, and semiconductors, and hydrogen and ammonia combustion, and electrification, capital investment in energy-efficient combustion equipment—such as regenerative burners and oxygen-enriched combustion systems—as well as facility retrofits is expected to continue for the foreseeable future.

Furthermore, in the medium to long term, we will continue to pursue development aimed at achieving carbon neutrality through the use of hydrogen- and ammonia-fired burners in next-generation solar cell manufacturing equipment, industrial furnaces, and other applications.

We believe that by providing technologies and services tailored to our customers’ needs—centered on our core expertise in thermal technology—we can contribute to improving plant efficiency and reducing environmental impact.

In addition, by providing carbon-neutral technologies and services developed by our company—including hydrogen and ammonia combustion and electrification—we will help our customers reduce their CO₂emission reductions.

Since a large portion of our supply chain emissions are from the "use of our products," we have set a decarbonization target for 2050 based on our standards.

CO₂ emissions from our products in 2013, the baseline for Japan's reduction target under the Paris Agreement.₂Emissions total approximately 12 million metric tons, which is equivalent to roughly 1 percent of Japan’s total emissions.

We have set a goal of reducing these emissions to virtually zero by 2050. Although it is impossible to achieve zero emissions, we aim to achieve carbon neutrality by 2050, including reductions in CO₂ emissions from products other than our existing products.

Specifically, we have independently calculated the emission reduction contributions achieved through expanded sales of decarbonization-related products—using a methodology similar to Scope 3 Category 11—and are actively working toward carbon neutrality with the goals of reducing emissions by 25% by 2030 and by 100% or more by 2050.

Scope 1 and Scope 2 CO₂We also calculate and monitor our emissions on a quarterly basis.

The Ministry of Economy, Trade and Industry (METI) of Japan has recognized our efforts in the following projects and selected us as one of the "Zero Emi Challenge Companies" that are boldly taking on the challenge of innovating toward the realization of a decarbonized society. The list of approximately 600 companies, including our company, was compiled as the second round of the "Zero Emi Challenge Companies," and the companies that were made public were selected based on their participation in the projects of the Ministry of Economy, Trade and Industry and the Ministry of Agriculture, Forestry and Fisheries (MAFF), which are linked to the "Innovative Environmental Innovation Strategy," and in 45 projects conducted by the New Energy and Industrial Technology Development Organization (NEDO). The company's contribution to zero emissions through the "Innovative Environmental Innovation Strategy" was highly evaluated and announced at the "TCFD Summit 2021" held on October 6, 2021.