Initiatives to Address Climate Change

Under the Environmental Policy, we offer products that enable our customers to contribute to environmental protection. Initiatives of the ULVAC Group are described below.

Received "B" Score in CDP's "Climate Change 2024" and "Water Security 2024"

ULVAC has received a "B" score in "Climate Change 2024" and "Water Security 2024," published by CDP, an international non-profit organization that manages an environmental information disclosure system. This marks the second consecutive year that we have received a "B" score in the climate change category. We also received a "B" score in the water security category, up from a "C" score in the previous year.
CDP collects and analyzes information disclosed by companies and municipalities around the world through questionnaires on climate change and water resource protection, and evaluates their efforts using an eight-point scale: A, A-, B, B-, C, C-, D, and D-. Our current grade of "B" indicates environmental management and signifies that we recognize our company's environmental risks and impacts and are taking appropriate action.
We will continue to promote environmentally friendly business activities to contribute to a sustainable society.

Response to the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and Climate Change Initiatives

ULVAC positions climate change initiatives as one of its key management issues. The ULVAC Group has set medium- to long-term Greenhouse Gas Emissions Reduction Target, namely a 50% reduction in 2030 (compared with 2023, Scope 1 and 2) and effectively zero in 2050. We will take action to mitigate climate change by endeavoring to curb greenhouse gas emissions throughout our activities, such as by doing our utmost to conserve energy in Japan and overseas, introducing renewable energy with low greenhouse gas emissions, and developing environmentally friendly products. We endorse the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and strive to disclose relevant information. Furthermore, ULVAC has been responding to a survey conducted by CDP*, an international NGO.

*CDP: A non-governmental organization (NGO) managed by a British charity. CDP sends questionnaires on climate change and other issues to companies and local governments and assesses and discloses the impact of their activities on the environment. When deciding which companies to invest in, CDP scores are considered important criteria.

Governance

Under the supervision of the Board of Directors, the Executive Officers in charge of sustainability and the environment monitor progress toward targets.

・ Meetings of the Sustainability Promotion Committee attended by the internal directors, executive officers, and department heads are held twice each year to acknowledge social trends and the Company's current condition, and discuss measures to address any issues. If significant issues related to management arise, the Management Council and the Board of Directors deliberate and make management decisions as needed.
・Meetings of the Global Environmental Management Committee chaired by the Executive Officer in charge of the environment and attended by environmental managers of Group companies are held twice each year. In addition, we have established the Environmental Performance Management Committee, which meets four times a year. The committees monitor the setting of targets of each Group company and the progress, check the status of the initiatives for achievement of the targets, discuss measures corresponding to the issues, and report to the Management Council. The statuses of these initiatives are monitored by the Sustainability Promotion Committee and reported to the Board of Directors by the Executive Officer in charge of sustainability at least once a year.

Strategy

Based on scenarios published by the IPCC (Intergovernmental Panel on Climate Change) and the IEA (International Energy Agency), we have identified climate change risks and opportunities. Specifically, we analyzed the scenarios indicating a potential global average temperature increase of 4℃ or more (e.g., RCP8.5-SSP5) and those aligned with the Paris Agreement's targets of limiting the temperature rise to below 2℃, or ideally to 1.5℃ (e.g., RCP2.6, IEA NZE 2050). Based on these scenarios, we have organized the main risks and opportunities that may affect our business in the medium to long term as follows:

・Impact of carbon pricing
・Risk of disasters due to extreme weather events like typhoons and heavy rainfall
・Expansion of market opportunities for power devices and EV batteries

Specifically, detailed analyses of risks and opportunities related to these three points were conducted, and the quantitative impacts on the business were assessed. Going forward, we will continue to quantify further impacts and develop specific measures to strengthen our response towards sustainable business operations.

Risk Management

・ The Management Planning Department is designated as the department in charge of all risks that may cause serious damage to management. The Management Planning Department instructs the relevant internal divisions and departments and Group companies to identify such risks and formulate countermeasures. In this way, risks are identified, Group-wide responses are promoted, and the results are reported to the Risk Management Committee. The Risk Management Committee conducts detailed identification or identification of these risks and considers business reporting and remedial measures, strives for early detection through monitoring, conducts reporting, and implements remedial measures. Moreover, the Sustainable Management Department is designated as the department in charge of medium- to long-term sustainability risks. The Sustainable Management Department instructs the relevant internal divisions and departments and Group companies to identify sustainability-related risks and reports the results to the Sustainability Promotion Committee. The Sustainability Promotion Committee manages the progress of initiatives for medium- and long-term risks. Finally, the Board of Directors receives reports from these committees and oversees the status of risk management. Through these structures, the Group aims to achieve management stability and sustainable growth.
・ ULVAC has significant development and manufacturing bases in Japan, which account for approximately 60% of the total greenhouse gas emissions (Scope 1 and 2) across the entire group. Therefore, if a carbon tax at the level expected in the NZE (Net Zero Emissions Scenario: the scenario in IEA's World Energy Outlook, aiming for net-zero greenhouse gas emissions by 2050) is imposed in Japan, it is anticipated to pose a significant risk to our company. To address this risk, we have estimated the impact for 2030 and 2050 under the NZE scenario, based on our greenhouse gas emissions in Japan, and have assessed the potential risks. Additionally, the energy cost increase risk is monitored by a meeting led by the executive officer responsible for the environment, along with related departments. We assess trends and conduct risk evaluations based on the ongoing developments. Furthermore, in 2023, we revised our target to reduce emissions subject to taxation by aiming for a 50% reduction in Scope 1 and 2 emissions by 2030, compared to 2023 levels. To achieve this target, we have set a goal for the use of renewable energy and plan to purchase the necessary amount of renewable energy based on the progression of Green House Gas emissions.
・For Scope 3, environmental impacts in the value chain are significant upstream in procurement from suppliers and downstream in the use of products by customers. Therefore, mindful of the importance of providing environmentally friendly products, we are promoting initiatives to reflect environmental considerations from the development stage onward.
・ In formulating a business continuity plan, we assumed the occurrence of disasters caused by typhoons, torrential rain, and other extreme weather events, and are implementing measures to ensure continuing operation of our business.

Metrics and Targets

In order to actively address climate issues as a responsible member of society, the ULVAC Group has set medium-to long-term targets for GHG emissions from its business activities, namely a 50% reduction in 2030 (compared with 2023) and effectively zero in 2050. We will take action to mitigate climate change by endeavoring to curb GHG emissions throughout our activities, such as by doing our utmost to conserve energy in Japan and overseas, installing solar power generation facilities, introducing renewable energy, and developing environmentally friendly products.

Utilization of Renewable Energy

The ULVAC Group aims to achieve a renewable energy usage ratio of 60% by 2030 in ordar to actively promote climate change mitigation. We will systematically promote the use of electricity derived from renewable energy sources.

Solar power generation system

ULVAC KOREA, Ltd. Technology Center PYEONGTAEK
　　　　　　　　
ULVAC, Inc. -Kyushu Plant
The ULVAC Group has introduced solar power generation systems and utilizes the power generated in its business activities. In FY 2023, we generated 3,502 thousand kWh, which contributed to the reduction of greenhouse gas emissions. We will continue to consider the active introduction of solar power generation systems and promote the use of renewable energy.

Office and Plants Initiatives

Clean Room Air Conditioner Circulating Airflow Switching Control

By providing air conditioners and airflow switching control, we have introduced a system that allows lowering the air conditioner fan power so that the airflow can be reduced to the minimum circulation flow rate when a clean room is not in operation, e.g. at night and on holidays, to maintain the cleaning capability.

Analysis of power consumption of large evaporation roll coaters

　　
Large evaporation roll coater
We are stepping up our efforts to reduce greenhouse gas emissions and working to reduce not only ULVAC's but also our customers' power consumption through the use of ULVAC equipment.In particular, since large evaporation roll coaters use a lot of electricity, using energy efficiently is a priority. By installing measuring instruments, detailed power consumption of each process is determined in order to maximize overall efficiency of energy use.Going forward, we will analyze the trend of power consumption of each process by comparing the collected data with the log data of the equipment with a view to further improving the equipment.

Change of the temperature setting of the cold/hot water heat source equipment to save energy

　　
Cold/hot water heat source equipment
The cold/hot water heat source equipment at ULVAC's Fuji Susono Plant is a source of cold water for cooling manufacturing equipment as well as cold water and hot water used by the clean room's air-conditioning systems.From the viewpoint of reducing greenhouse gas emissions, temperature settings for cold water and hot water were adjusted corresponding to the cycle of the seasons. As a result, the Fuji Susono Plant reduced its annual greenhouse gas emissions by 47.65 tons.The Fuji Susono Plant will continue endeavoring to further reduce greenhouse gas emissions within the range of temperature control values for production activities and the clean room.