Zero CO2 Monozukuri
To address global warming due to climate change in the field of manufacturing, DENSO (1) promotes technological development in production processes; (2) ensures thorough employee participation in energy conservation, from departments that supply energy to those that use it; and (3) utilizes renewable energy. By working proactively to reduce CO2 in these ways, we aim to halve our energy use by fiscal 2026 (halving CO2 emissions per unit compared with fiscal 2013), while promoting energy conservation activities with a view to achieving carbon neutrality by fiscal 2036.
Progress on Meeting CO2 Emissions Targets
Throughout the Company, in fiscal 2023 we made 2,490 energy-saving improvements. As a result, we achieved our “energy half” target of reducing CO2 emissions per unit (non-consolidated basis) by half compared with fiscal 2013 three years ahead of schedule. Due to aggressive energy-saving activities, CO2 emissions of Group companies declined 49%, to 51, compared with the fiscal 2013 level.
CO2 emissions per unit (Scope 1 and 2) (Global, DENSO Group)
(1) Promoting Technological Development in Production Processes
The “DENSO Global Initiative for Monozukuri Carbon Neutrality”
The “DENSO Global Initiative for Monozukuri Carbon Neutrality” was established in April 2021 by the Safety, Health＆ Environment Division, the Monozukuri Group, and the Environment Neutral Systems Development Division. The “DENSO Global Initiative for Monozukuri Carbon Neutrality” works with senior management to formulate Companywide guidelines, lead and motivate the promotion of said guidelines, promote the achievement of carbon neutrality by fiscal 2036, and further the establishment and commercialization of manufacturing technologies that will make this goal possible.
Road Map to Carbon Neutrality at DENSO’s Plants
The DENSO Global Initiative for Monozukuri Carbon Neutrality is focusing its efforts on the three key themes of promoting energy conservation, verifying energy creation, and procuring renewable energy. With regard to promoting energy conservation, we will continue to carry out straightforward energy-saving activities while forging ahead with the development of energy-saving technologies. Through these measures, we strive to realize even more drastic changes in materials and processes and promote their widespread use throughout the DENSO Group, with a view to achieving complete carbon neutrality in the future.
Case Study: Drastic Changes in Materials and Processes
(2) Ensuring Thorough Employee Participation in Energy Conservation, from Departments That Supply Energy to Those That Use It
Energy Just-in-Time (JIT) Activities
Based on the idea that “energy for production is not fixed infrastructure but another component to be controlled,” DENSO is working to establish a system for the utilization and supply of just the right amount of energy at the necessary time through energy JIT activities.
In fiscal 2010, emissions per unit worsened as a result of the plunge in production we experienced due to the global financial crisis. To address this situation, we have worked to create an energy-saving manufacturing structure that is resilient in the face of variations in production. We now include energy conservation as a basic tenet of our facility design and production activities.
From 2020 to 2022, emissions per unit temporarily worsened due to the decline in production brought about by the COVID-19 pandemic and the semiconductor shortage. However, by the end of the fiscal year, emissions per unit improved 22% compared with fiscal 2020, before the impact of the COVID-19 pandemic, as a result of strengthening such measures as comprehensive JIT inspections of energy supply divisions and the consolidation and idle stoppage of production lines as well as implementing thorough, organization-wide energy-saving activities that covered everything from energy supply to use.
DENSO Wins Prizes at the Energy Conservation Grand Prize Awards, for a Run of 13 Consecutive Years
As part of its factory improvement efforts, DENSO has successfully rolled out energy-conserving efforts across its factories. Accordingly, we enthusiastically apply for the Energy Conservation Grand Prize Awards, sponsored by the Energy Conservation Center, Japan, with cases of improvements implemented at our factories that are highly effective in saving energy and have the potential for horizontal deployment. Since fiscal 2010, we have won prizes at the Energy Conservation Grand Prize Awards, for a run of 13 consecutive years.
DENSO receives the Director General Prize of the Agency of Natural Resources and Energy
Support for Energy JIT at Group Companies in Japan and Overseas
We support introduction activities to encourage the proliferation of Energy JIT throughout the DENSO Group.
Specifically, in fiscal 2021, we renewed the Perfect Energy Factory (PEF), a collection of case studies of generic and highly economical energy-saving improvements on the supply and production sides, including Energy JIT activities, and are promoting activities to re-examine them at Group companies in Japan and overseas.
(3) Realizing Carbon Neutral Plants
With a view to achieving carbon neutrality in its manufacturing activities, DENSO is systematically introducing measures such as purchasing electricity and gas derived from renewable energy sources, installing solar panels and other private power generation equipment, and utilizing voluntary carbon credits. The Company considers progress made toward achieving targets and economic rationality when implementing such measures.
We achieved carbon neutrality at the Anjo Plant in fiscal 2022, and at the Nishio Plant, Hirose Plant, and DENSO FUKUSHIMA CORPORATION, as well as at all of our European sites, in fiscal 2023.
TOPIC: Development of New Technologies for Energy Utilization
Amid the recent acceleration of the global shift toward decarbonization, we are working to establish technologies for capturing, recycling, storing, and reusing CO2.
For example, we have developed a CO2 circulation plant,*1 a facility designed to capture and circulate CO2, using technologies we have refined through development in the mobility domain, and have begun demonstration tests at the Anjo Plant in Aichi Prefecture. We have also started to demonstrate new technologies such as solid oxide fuel cells (SOFC) and solid oxide electrolysis cells (SOEC) using hydrogen, gases, and other natural resources at the Hirose Plant, the Nishio Plant, and DENSO FUKUSHIMA CORPORATION, our model plants in Japan.
In the future, we will work on further technological developments for the CO2 recycling plants geared toward their social implementation, thus contributing to the achievement of carbon neutrality throughout the entire Company.
DENSO CO2 circulation plant
Also Capturing Humanity’s Legacy CO2 Emissions
DENSO has supplied society with numerous automotive systems. For example, we develop systems with excellent environmental performance that minimize CO2 emissions. However, entirely eliminating the CO2 emitted by vehicles that use our systems and by manufacturing processes is not possible. Therefore, we hope to utilize in-house developed technologies to effectively capture and recycle past and future CO2 emissions. We believe advancing such efforts is our corporate responsibility.
Going forward, the flexibility of the CO2 capture system, which makes full use of DENSO’s technologies, may facilitate CO2 local-production-for-local-consumption arrangements whereby CO2 emissions captured from households and commercial buildings are utilized for an array of different applications. With our sights set on carbon neutrality, we will work with various partners to create a major carbon-recycling trend.
(4) Reducing CO2 Emissions within Logistics Activities
DENSO strives to reduce CO2 from logistics through distribution improvements.
In Japan, we consign distribution operations to DENSO Logitem Corporation, a subsidiary, and work together to promote CO2 emissions reduction at specified shippers in efforts to fulfill our social responsibility. Specifically, we are cooperating with a focus on a composite program that includes the following measures:
Improving loading ratios
Using optimized routes to save energy during transport
Shortening transport routes to suppliers through production area transfers
Increasing efficiency of logistics between factories/intermediary warehouses
Introducing tools to enhance fuel efficiency
Amount of CO2 emissions in logistics / Physical production and sales (Unit: 100 million yen) [DENSO CORPORATION]
We are striving to reduce logistics CO2 emissions through logistics improvements such as increasing loading ratios and reducing transportation distances to delivery destinations.