YKK AP's Goal of Carbon Neutrality

The Science Based Targets initiative (SBTi), established in 2014, is an international organization that promotes setting reduction targets aligned with scientific evidence for companies working to reduce greenhouse gas emissions. The "Science-based targets," are a set of global standards for companies to follow when setting greenhouse gas emission reduction targets consistent with the levels required by the Paris Agreement.
YKK AP has been a supporter of the SBTi since 2017, a relatively early stage among Japanese companies, and has committed to the goals it has set. The SBTi declaration standards were raised to a more stringent level after July 2022, but prior to that, we were certified in February 2021 as meeting the new standards as a "target well below 2℃."
The Company also endorsed the Task Force on Climate-related Financial Disclosures (TCFD) launched by the Financial Stability Board in 2019. We understand the risks and opportunities posed by climate change and reflect them in our management strategies, including countermeasures. (See Co-existence with the Environment and the YKK AP Environmental Report (Information in Japanese) for more details.)

Reducing greenhouse gas emissions requires definitions (scopes) by which to measure emissions. These are Scopes 1, 2, and 3. Scope 1 covers greenhouse gases emitted directly through corporate activities, while Scope 2 covers greenhouse gases emitted indirectly through electricity consumption at manufacturing sites and offices. Scope 3 covers indirect greenhouse gas emissions other than Scopes 1 and 2, and relates to the supply chain as a whole.
YKK AP's CO₂ reduction targets are to achieve a 50% reduction in Scopes 1 and 2 and a 30% reduction in Scope 3 (relative to FY 2013) by FY 2030. Beyond that, we aim to achieve zero emissions by 2050.

For Scope 1, which refers to CO₂ emitted directly through the company's own activities, we are working to reduce the amount of fuel used in our manufacturing processes.
In terms of what can be done with existing technology, we have already begun to electrify heat source equipment and switch to natural gas by using gas burners, in addition to conserving energy for production equipment and increasing its efficiency. We are also developing and verifying, based on existing technology, a switch to carbon-neutral methane, co-firing with hydrogen gas, and the use of hydrogen and ammonia in gas burners.

Scope 2 refers to CO₂ emitted indirectly through the use of electricity in corporate activities. As such, we are working to reduce our electricity consumption through energy saving and energy creation.
In terms of our energy creation efforts, we are conducting trials to introduce solar power generation (installed on rooftops and in fields), hydroelectric power generation (using the power of water flowing through pipes), biomass power generation and boilers (using wood and RPF generated during manufacturing for in-house consumption), and wind power generation (using exhaust wind inside factories).
We plan to dramatically increase the deployment of these renewable energies from FY 2022 onwards, and in particular, solar power generation facilities are being installed one after another at our plants in Japan and overseas.

To measure progress in reducing CO₂ emissions in Scopes 1 and 2, it is essential to visualize emissions. In FY 2021, we established a database to identify energy consumption of each equipment and visualize CO₂ emissions from the manufacturing phase. By FY 2022, the database will enable automatic calculation and visualization of CO₂ emissions from the design and development phase of new equipment.
In terms of our products, meanwhile, we will revise the "Environmentally-Friendly Design Evaluation Sheet" and launch a system to have CO₂ emissions linked with evaluation criteria during design and development, as well as encouraging the development of environmentally friendly equipment with lower CO₂ emissions when manufacturing new products.
The new Saitama Factory, which will exemplify these efforts, is scheduled to start operation in September 2023. The new Saitama Factory will be carbon neutral as a result of improved thermal insulation of the building, windows that provide excellent thermal insulation and ventilation, dimmer lighting, and high-efficiency air conditioning, as well as the sourcing of solar-generated and other renewable electricity.

To achieve carbon neutrality throughout society, the housing and building construction industries are promoting the spread of net zero energy houses (ZEH) and net zero energy buildings (ZEB).
According to our calculations, the amount of heat that flows into a house from the outside through the windows accounts for more than half of the total. Our high thermal insulation products reduce the amount of energy used for heating and cooling, contributing significantly to the reduction of CO₂ emissions. We plan for these products to contribute to the reduction of CO₂ emissions across society by 696,000 tons of CO₂ in FY 2024. This amount is equivalent to the CO₂ emissions from 230,000 average households per year (See Graph).

YKK AP holds "Environmental Action" events twice a year to help employees recognize and put into practice behaviors that will lead to a sustainable society. The number of participants has increased each year, with participation exceeding 97% for the summer and winter events in FY 2021. For example, from January to February 2022, under the theme of carbon neutrality, employees took on the challenge of the "Zero Carbon Action" recommended by the Ministry of the Environment in their daily lives.

By changing the mindset of each and every one of our employees, we will contribute to achieving carbon neutrality in society as a whole.