Accelerated Controls on GHG Emissions are Required for Carbon Neutrality
The COP 21 Paris Agreement, adopted in December 2015, set out a long-term, shared worldwide goal of limiting the average global temperature increase to considerably less than 2℃ and preferably 1.5℃ over pre-Industrial Revolution temperatures, as well as the goal of carbon neutrality (net zero emissions) by the second half of this century (2050). Correspondingly, moves aimed at achieving a carbon neutral society have been accelerating on a global scale. Subsequently, the COP26 Glasgow Accords strengthened the 1.5°C target adopted under the Paris Agreement and shifted the standard for global climate change measures to the 1.5°C target.
Given this impetus, efforts towards achieving a carbon-neutral society are accelerating on a global scale.
The Task Force on Climate-related Financial Disclosures (TCFD) was established in December 2015 by the Financial Stability Board, which includes participants representing central banks, financial regulatory authorities and finance ministries from major countries. The TCFD requests companies to use multiple climate scenarios to evaluate the climate-related risks and opportunities to their business and to assess and disclose the financial impact. Various international initiatives have also been launched, such as the Science Based Targets initiative (SBTi), which calls for corporate emissions reduction goals designed to meet the 1.5℃ target, and RE100, which calls for companies to source 100% of the electricity they use from renewable energy. Furthermore, CDP (*1), which runs the global disclosure system for investment that takes into account Environmental, Social and Governance (ESG) factors, requests that companies reduce GHG emissions by at least 2.1% year-on-year through voluntary efforts.
An international not-for-profit organization providing the only global system for companies and cities to measure, disclose, manage, and share vital environmental information. CDP works with major institutional investors around the world to encourage companies to disclose their impact on the environment and natural resources and to adopt measures that mitigate the impact.
Fujitsu Group Position
GHG Emissions Reductions are a Critical Issue for the Fujitsu Group
The Fujitsu Group, as an entity with global operations, is fully aware that climate change is a serious worldwide issue that spans national and regional boundaries. For example, disasters triggered by climate change can disrupt procurement, logistics and energy supply networks, which in turn interrupts the process of supplying materials and energy to business sites. Regulations governing GHG emissions have an impact on the development and production of products and services, and any delays in responding to requirements can lead to lost business opportunities.
Since launching the Fujitsu Group Environmental Action Plan, we have treated the reduction of GHG emissions as a critical issue and worked to achieve the defined targets.
Most of the GHG emissions generated by the Fujitsu Group derive from purchased electricity, not from the combustion of oil or gas. Advances in 5G technology will lead to the expansion of cloud computing, IoT and mobile communications, thereby spurring increased power consumption in data centers, and this growing trend is expected to continue. We are therefore focusing on reducing power consumption by conducting energy conservation audits and regular power usage checks in our data centers, as well as in our factories and production lines in Japan and elsewhere.
Approach under the Fujitsu Group Environmental Action Plan (Stage XI)
Strengthen Efforts to Achieve Carbon Neutrality
In May 2017, the Fujitsu Group formulated the FUJITSU Climate and Energy Vision, its medium- to long-term environmental vision. In August of the same year, the company obtained SBT certification for 2°C-aligned GHG emissions reduction targets. The SBTi aims to significantly reduce greenhouse gases over the medium to long term by encouraging companies to set voluntary GHG emissions reduction targets based on scientific knowledge compiled by organizations such as the IPCC (*2). Given the accelerating global trend toward carbon neutrality, the Fujitsu Group reviewed its position and revised its target to reduce GHG emissions from business sites in FY2030 from 33% to 71.4% below FY2013 levels. On April 15, 2021, this revised figure was successfully validated as a 1.5°C-aligned target by SBTi. To further accelerate our carbon neutrality as a global company, including our supply chains, we committed to expanding our use of renewable energy and achieving net zero GHG emissions in our business activities by FY2030 and throughout our value chain (scope 1, 2 and 3 emissions) by FY2040.
In June 2023, our target of net-zero by FY2040 obtained “Net-Zero Target certification” under the SBTi standard.
Working backwards from our future GHG emissions reduction targets, we have formulated our Fujitsu Group Environmental Action Plan (Stage XI) as the implementation plans for our environmental targets between FY2023 and FY2025. To achieve carbon neutrality, we are aiming for at least 50% of the energy used by our businesses to be from renewable sources by FY2025, with a target of 100% by FY2030. At the same time, we are working towards achieving net-zero GHG emissions across the entire value chain through measures such as identifying the environmental impacts of our suppliers and promoting emissions reductions, and by further reducing energy consumption by Fujitsu products.
From April 1, 2021, the largest facility in the Fujitsu Group, the Kawasaki Factory, switched over to 100% renewable energy for power consumed. As such, it serves as a flagship model for the Fujitsu Group as we focus on the future adoption of renewable energy in Japan. This initiative accounts for approximately 5% of the electricity used by the Fujitsu Group in Japan. In April 2022, Fujitsu Australia signed the Fujitsu Group’s largest ever Power Purchase Agreement (PPA) for renewable energy, which will ensure that around 40% of Fujitsu Australia's annual power consumption comes from renewable sources.
In addition, Fujitsu intends to continue boosting purchases of green energy and renewable energy certificates, after considering relevant regional characteristics and the economic feasibility, and to implement more on-site renewable energy capacity. Use of the Fujitsu Group’s leading-edge technological expertise in areas such as blockchain technology will also contribute to the spread and expansion of renewable energy.
- (*2)Intergovernmental Panel on Climate Change (IPCC):
An organization established in 1988 by the United Nations Environment Programme (PDF) (UNEP) and the World Meteorological Organization (PDF) (WMO) with the aim of providing comprehensive assessments of human-induced climate change and its impacts, together with adaptation and amelioration measures from scientific, technological and socio-economic perspectives.
- (*3)Net zero:
The elimination of greenhouse-gas emissions through emissions reductions of at least 90% by the target year and removing the remaining 10% or less through measures such as reforestation or Direct Air Capture (DAC) of CO2 in the atmosphere.
Actions and targets related to climate change initiatives under the Fujitsu Group Environmental Action Plan (Stage XI)