DENSO has shared DENSO Eco Vision 2025 with all Group companies and is promoting environmental initiatives in all facets of its business activities.
DENSO’s Companywide Safety, Health, and Environment Committee, chaired by the executive vice president and attended by senior management, presidents of overseas regional headquarters, and persons responsible for environmental management at Group companies, meets twice a year. The committee formulates policies, examines the state of progress in related activities, and discusses specific issues and their solutions.
DENSO has established the Energy Subcommittee, the Logistics Subcommittee, the Clean Products Subcommittee, and the Production Environment Subcommittee, which serve under the Companywide Safety, Health, and Environment Committee. These subcommittees are involved in formulating policies for addressing and responding to issues in each business field. At the same time, these subcommittees collaborate with all relevant divisions to promote efforts on a Companywide basis.
Companywide Safety, Health, and Environment Committee Organization
Promoting Consolidated Environmental Management
The DENSO Group shares environmental policies and guidelines with consolidated environmental management companies expand consolidated environmental management practices.
To steadily move forward with environmental initiatives on a global scale, we are promoting a global structure that centers on six regions: Japan, North America, Europe, Greater Asia, China, and South America. In addition, we have appointed environmental managers at all regional headquarters. Furthermore, we hold meetings of the Global Safety and Environment Committee every year, where we confirm the progress of Eco Vision 2025 and work to resolve any issues. Also, each Group company formulates yearly plans and promotes activities aimed at reaching the targets of Eco Vision 2025. As an effort to check and take action in terms of environmental management on a consolidated basis, we carry out an environmental evaluation of each Group company, both in Japan and overseas. This evaluation aims to enhance the level of environmental management on a local basis by confirming the status of these companies’ efforts to respond to environmental risks and reduce environmental burden (CO2 emissions, waste production, etc.), as well as their activities that contribute to the environment and society as a whole.
Acquisition of ISO 14001 Certification and Implementation of Environmental Inspections
DENSO has acquired ISO 14001 certification, which is an international standard for environmental management systems, at all of its 69 production companies in Japan and overseas, and it works to maintain and update this certification. As a result, 98.6% of all 70 of DENSO’s environmental management sites have acquired ISO 14001 certification. Moreover, one company that has not yet acquired ISO 14001 certification has obtained certification of an alternative system.
In 2016, we completed early transition to the fiscal 2016 version of ISO 14001. In addition, with the aim of strengthening control and improving efficiency, we combined the environmental management systems at our facilities in Japan into a single system in fiscal 2011, for which integrated certification was obtained. Also, in fiscal 2021 we commenced unified certification with domestic Group companies. Since fiscal 2024, we have been aiming to acquire unified certification on a global basis, starting with efforts toward acquiring such certification at our offices in China.
Going forward, we will further expand the scope of our unified certification and step up our efforts to maintain and improve certifications based on the integrated management system.
Environmental Risk Management
We have established DENSO Safety, Health and Environmental Standards (DAS) that extend beyond the environmental regulations of the countries and regions in which we operate and apply them to environmental management both in Japan and overseas. We have identified environmental risks, which include environmental accidents, pollution, and violations of applicable laws, based on the location and business scope of each of our plants. This information is used to prevent and minimize risk.
In particular, we reconfirm compliance with laws and regulations related to wastewater and gas emissions in excess of voluntary criteria, leaks of oils and chemical substances, pollution of soil and groundwater, noise and bad odors, and waste disposal and recycling. At the same time, we have reformulated operating and management regulations for industrial specialty gases (specified high-pressure gases and semiconductor gases), chemical substances, and chemicals, and are working to prevent accidents affecting employees and the region.
Regarding complaints from surrounding areas, we strive to prevent any abnormalities, and in the event that an abnormality occurs, we make every effort to minimize the impact and accurately disclose information. Further, we conduct annual emergency response drills in addition to maintaining daily inspection, monitoring, and measurements.
Also, in fiscal 2022, there were no major infractions or lawsuits pertaining to environment-related laws.
Initiatives for Realizing Carbon Neutrality
DENSO has added the perspective of carbon neutrality to its CO2 reduction plans under Eco Vision 2025 and is promoting initiatives in three key areas:
Achieving carbon neutrality at DENSO’s plants
Contributing to the electrification of automobiles and reducing CO2 emissions from mobility products
Contributing to carbon neutrality in society at large through energy utilization (capturing, reusing, and storing CO2)
As mechanisms to balance the above initiatives with business growth, we are introducing an internal carbon pricing (ICP) system and reorganizing our business portfolio.
Introducing the Internal Carbon Pricing (ICP) System
In 2021, with a view to achieving carbon neutrality at our plants, we began to introduce ICP into our business viability assessments to serve as an indicator for investment decisions. The introduction of this system is aimed at accelerating capital investment in energy conservation and renewable energy power generation by theoretically converting CO2 emissions into profit or loss and factoring this into business viability assessments when considering capital investments that involve an increase or decrease in CO2 emissions.
ICP is set by region and updated annually, after comprehensively taking into account carbon taxes, prices of certified emissions reductions, and other market prices in addition to the Company’s future CO2 reduction targets.
Summary of DENSO’s ICP system
Internal carbon fee: ¥700 to ¥4,600 per ton (set by region)
Subject to the ICP system are capital investments that involve an increase or decrease in CO2 emissions
Reorganizing Our Business Portfolio
We view the “resolution of social issues through our business” as the bedrock of our management, and we believe that contributing to carbon neutrality will lead to ongoing improvements in our competitiveness. In fiscal 2022, we introduced a mechanism to periodically reorganize our business portfolio.
CO2 emissions, profitability, and growth potential of each of DENSO’s business fields are visualized, and the positioning and future direction of each product range is discussed at the Strategy Deliberation Meeting, which is attended by all senior executive officers.
Using this mechanism, we have made decisions on whether to downsize or withdraw from the internal combustion business, promoted a shift in resources to electric vehicle products, and have begun to transition to new businesses such as those that utilize renewable energy.
Example of Reshuffling Our Business Portfolio
Building Green Partnerships within the Supply Chain
DENSO procures materials and components from various suppliers that are active in a wide range of fields. Based on our previously established, globally shared Green Procurement Guideline, we have worked with our suppliers to promote environmental initiatives. These initiatives have helped reduce the environmental burden throughout the entire life cycle of our products. They have also promoted the effective use of resources and energy across the entire Group.
Since fiscal 2018, we have carried out an annual self-assessment to confirm the amount of CO2 reduction in our supply chain and identify water-related risks.
Steady Response to Regulations on Chemicals
To minimize significant health and environmental risks that stem from manufacturing and using chemicals, regulations related to chemicals have become more stringent in each country around the world. Examples of this include Japan’s Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc.,*1 Europe’s End-of-Life Vehicles Directive,*2 and Registration, Evaluation, Authorization and Restriction of Chemicals.*3 To respond to such regulations, DENSO has been collaborating with its suppliers to establish and operate frameworks for managing chemical substances.