Environmental Management(Eco-Management)

DENSO’s Companywide Safety, Health, and Environment Committee, chaired by the executive vice president and representative member of the Board 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.

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.

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. Going forward, we will expand the scope of our unified certification and step up our efforts to maintain and improve certifications based on the integrated management system.

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.

We are working to visualize the level of environmental impact (risk) that the chemical substances emitted from our plants have. We are also introducing eco-friendly production processes. Through these measures, we are contributing to the conservation of the global environment.

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:

As mechanisms to balance the above initiatives with business growth, we are introducing an internal carbon pricing (ICP) system and reorganizing our business portfolio.

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.

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

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.

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.

DENSO is a member of the Japan Auto Parts Industries Association (JAPIA) and Keidanren (Japan Business Federation), and participates in the decision-making process of the advisory councils and other committees of these bodies as a committee member.
Both JAPIA and Keidanren view climate change as a matter of serious concern and support the Paris Agreement and the Japanese government’s views and policies for achieving carbon neutrality.

Along with supporting the goals of the international community, the Japanese government, and industry associations, DENSO incorporates carbon neutrality into its environmental strategy and works to achieve electrification in terms of automotive components and systems while aiming to establish carbon neutrality in order to decarbonize its manufacturing processes. DENSO also works to establish technologies to capture, recycle, store, and reuse CO₂, not only to reduce its own CO₂ emissions but also to contribute to carbon neutrality in greater society by reducing the CO₂ emissions of society as a whole.

At JAPIA, in particular, DENSO officers and employees have taken positions that include the chairperson of JAPIA and the chair of its Environmental Committee, playing a central role in promoting carbon neutrality in the industry.
Through efforts such as workshops and surveys for members, for example, we actively support the entire automotive parts industry in achieving carbon neutrality. At the same time, we engage in scientific discussions and make proposals on climate change mitigation measures with the government and other industry organizations, such as the Japan Automobile Manufacturers Association (JAMA), and we also collaborate with them to conduct demonstration tests and hold exhibitions.

In this way, DENSO supports the Japanese government’s emissions reduction targets and pursuit of carbon neutrality while actively promoting activities to achieve carbon neutrality from a wide range of perspectives in collaboration with the government, industries, and industry associations.