DENSO sets Scope 3 as new target to reduce greenhouse emissions and acquires SBT certification

DENSO has set newly established goals for Scope 3 to reduce CO₂ emissions throughout the supply chain by 25% by FY 2030 from its FY 2020 level and has obtained SBT certification for this target. In addition to the SBT certification for Scope3, DENSO has set the goal of “achieving carbon neutrality throughout the entire supply chain by FY 2050^*3”.

To attain these targets, DENSO will provide know-how on conserving energy by communicating closely with suppliers, as well as support for addressing issues faced by respective suppliers, such as switching to renewable energy and low-carbon materials. This approach will contribute to reducing the CO₂ emissions generated during the manufacturing processes of components and raw materials procured by DENSO. Additionally, by developing products and systems that underpin the widespread use of electric vehicles, including HEVs, BEVs, and FCEVs, DENSO will work to decrease the CO₂ emissions associated with its products that are incorporated into mobility.

In 2016, DENSO formulated “DENSO Eco Vision 2025,” an action plan to realise sustainable communities and society by promoting efforts toward carbon neutrality. By the end of FY 2020, DENSO set the goal of "achieving carbon neutrality by FY 2035".

By 2025, DENSO aims to switch to renewable electricity and achieve carbon neutrality for gas by using carbon credits, and to achieve carbon neutrality for electricity and gas without using carbon credits by 2035 and is promoting various initiatives to attain these objectives.

In FY 2021, the Anjo Plant achieved carbon neutrality, followed in FY 2022 by the Nishio and Hirose plants and DENSO Fukushima, as well as DENSO Group companies across Europe. Thanks to many years of efforts, DENSO was selected by CDP^*4 for the A List^*5, the highest rating, as a leading company in terms of efforts in “climate change” and “water security” and information disclosure in the evaluation of environmental efforts in FY 2022.

Furthermore, with the goal of contributing to the overall reduction of societal CO₂ emissions, DENSO aims to leverage the technology developed in the development of automotive components to establish and promote technologies for the collection and reuse of CO₂, as well as the utilisation of hydrogen.

DENSO will continue to accelerate its efforts toward CO₂ reduction and contribute to the creation of a carbon-neutral society.

^*1 The definitions of Scopes 1 to 3 are based on the brochure “Supply-chain emissions in Japan” published by the Ministry of the Environment.

Scope1: Direct emissions of greenhouse gases from activities under the control of the organisation, such as fuel combustion and industrial processes.

Scope2: Indirect emissions resulting from the consumption of purchased electricity, heat, or steam.

Scope3: Other indirect emissions, including those from activities not owned or controlled by the reporting organisation, but related to its activities.

^*2 The SBT is an international organisation jointly established by the World Wide Fund, the CDP, the World Resources Institute, and the United Nations Global Compact. Aiming to limit the global temperature increase to 1.5°C above pre-industrial levels as required by the Paris Agreement, the SBT provides guidance to companies on setting specific targets based on scientific knowledge and awards SBT certification to companies that are recognised to meet the science-based targets.

^*3 The goal of "achieving carbon neutrality throughout the entire supply chain by FY 2050" has not been certified by SBT.

^*4 CDP is a non-governmental organization managed by a charity organisation based in the U.K. It operates a global information disclosure system that enables investors, companies, nations, regions, and cities to manage their environmental impact.

^*5 DENSO Receives Highest Rating from CDP in “Climate Change” and “Water Security”: https://www.denso.com/us-ca/en/news/newsroom/2022/20221213-01/

References

SBT Official Website:

https://sciencebasedtargets.org/

DENSO’s commitment to the environment:

https://www.denso.com/global/en/about-us/sustainability/environment/

DENSO’s technologies to capture and reuse CO₂ and use hydrogen:

https://www.denso.com/nl/en/news/newsroom/2021/20210407-01/

DENSO and Taisei Corporation to Start Joint Technology Verification Using a CO₂ Capturing System to Realise a Carbon Neutral Society:

https://www.denso.com/jp/ja/news/newsroom/2023/20230613-01/

DENSO and DENSO Fukushima Launch a Demonstration Project to Realize Carbon-Neutral Plant Using Hydrogen:

https://www.denso.com/global/en/news/newsroom/2023/20230309-g01/

DENSO Demonstrates New Energy Management System Using a Highly Efficient SOFC at Nishio Plant:

https://www.denso.com/global/en/news/newsroom/2023/20230518_g04/

DENSO to Begin SOEC Demonstration at Hirose Plant to Produce and Use Green Hydrogen for Manufacturing:

https://www.denso.com/global/en/news/newsroom/2023/20230627-g01/

Further details of the DENSO Aftermarket programme are available online at: www.denso-am.eu