DRIVEN BASE

Fiscal 2024 Highlights and Lowlights
(April 1, 2023-March 31, 2024)

May 2024

Highlights: Green

Launched the Iriomote Island yuriCargo Project* with the Aim of Reducing Traffic Accidents Involving Iriomote Wildcats

In cooperation with the Iriomote Wildlife Conservation Center of the Ministry of the Environment, DENSO conducted a project tasked with protecting an endangered species by eliminating Iriomote wildcatits fatalities caused by vehicle traffic. The project used the yuriCargo smartphone app, which was provided by DENSO, to raise driving safety awareness among drivers on Iriomote Island in Okinawa Prefecture. By scoring their driving, the app encouraged the island’s drivers to drive safely and observe the speed limit.

* Period of project: May 17, 2023 to March 31, 2024

Highlights: Green

Began Verification of an In-plant Energy Management System That Uses Highly Efficient SOFCs

We commenced a verification test*1 for an in-plant energy management system at our Nishio Plant in Japan as part of efforts to eliminate the facility’s CO2 emissions. Solid oxide fuel cells (SOFCs) developed by DENSO are the principal components of the system used in the test. The system also includes storage batteries for transmitting electricity to the plant; a vehicle-to-grid system, which entails the use of electric vehicles that also serve as storage batteries and facilitates mutual utilization of electricity through connections to the power grids of electric utilities; and solar panels. An SOFC is a device that generates electricity by using hydrogen as fuel. Unlike solar power generation, it can generate electricity stably without being affected by weather conditions. The SOFC developed by DENSO incorporates thermal management technology and ejector-enabled fuel recycling technology,*2 which have been fostered in operations for automotive components. We are advancing development with a view to achieving a world-leading power generation efficiency level of 65%.

*1 As it was a project that contributed to the development of technologies for the realization of a hydrogen society, the test received support from the New Energy and Industrial Technology Development Organization.
*2 This is a technology that efficiently recycles fuel by using an ejector capable of operating even in high-temperature environments.

June

Highlights: Green

Partnered with Suntory to Begin “Bottle-to-Bottle” Horizontal Recycling
—Promoting resource recycling by ensuring rigorous separation through the utilization of self-made collection stations and a special-purpose subsidiary—

In collaboration with Suntory Beverage & Food Limited, we began “bottle-to-bottle” horizontal recycling*1 in which used plastic bottles collected at our head office were converted into new plastic bottles. A distinctive feature of our system was that, rather than simply handing over collected plastic bottles to recycling companies, we sorted and compressed the bottles in-house before handing them over. As well as aiming to recycle 100% of the head office’s plastic bottles, *2 we plan to extend this initiative to encompass all of our domestic plants.

*1 This refers to recycling in which used products serve as raw materials for the manufacture of further products of the same type.
*2 A collection rate of approximately 10% was achieved when one collection station was set up at the head office during a trial period from December 2022 to May 2023.

August

Highlights: Green

Set Our First Scope 3 Target for the Reduction of Greenhouse Gas Emissions and Acquired SBT Certification
—Endeavoring to reduce CO2 emissions throughout the supply chain—

DENSO set its first Scope 3*1 target for the reduction of greenhouse gas emissions. This new target and our Scope 1*1 and Scope 2*1 targets acquired SBT certification from the Science Based Targets initiative (SBTi),*2 which is an international organization.
With a view to achieving the aforementioned targets and contributing to the creation of a carbon-neutral society, DENSO will accelerate its CO2 reduction efforts.

*1 The following definitions of Scope 1 to Scope 3 are based on the brochure “Supply-chain emissions” in Japan, published by the Ministry of the Environment.
Scope 1: Direct emissions of greenhouse gases from activities under the control of the organization, such as fuel combustion and industrial processes
Scope 2: Indirect emissions resulting from the consumption of purchased electricity, heat, or steam
Scope 3: Other indirect emissions, including those from activities not owned or controlled by the reporting organization, but related to its activities

*2 The SBTi is an international organization jointly established by the World Wide Fund for Nature (WWF), the CDP, the World Resources Institute (WRI), and the United Nations Global Compact (UNGC). Aiming to limit the global temperature increase to 1.5°C above pre-industrial levels as required by the Paris Agreement, the SBTi provides guidance to companies on setting specific targets based on scientific knowledge and awards SBT certification to companies that are recognized to meet the Science Based Targets (SBTs).

September

Highlights: Green

Received the Japan Industrial Safety & Health Association Chairperson’s Award

In recognition of the safety and health activities it has undertaken for more than half a century, DENSO received the Japan Industrial Safety & Health Association Chairperson’s Award. At an early stage, we introduced the occupational safety and health management system* concept to the operation of our safety management systems. Five of DENSO’s business sites in Japan and 32 of the DENSO Group’s overseas sites have acquired certification under the ISO 45001 international standard. To ensure that its workplace environments remain safe and secure as they evolve, the Group will advance concerted efforts focused on enhancing “Safe DENSO” initiatives even further.

* This refers to internationally recognized systems for safety and health management. Both the International Labour Organization and the Ministry of Japan’s Ministry of Health, Labour and Welfare issue guidelines on these systems. The purpose of the systems is to prevent industrial accidents, promote workers’ health, create comfortable work environments, and improve the level of safety and health in workplaces by encouraging business operators to voluntarily advance continuous safety and health management through the establishment of a series of plan–do–check–act (PDCA) processes in cooperation with workers.

October

Highlights: Green

Won a Good Design Award for the DENSO Lean Automation School

At the Good Design Award 2023, we received three awards, including one for the DENSO Lean Automation School.*
The school’s commendation was the first Good Design Award to be received by DENSO in the “Initiative and Activity for the General Public” category.
Through the school’s activities, we will continue sharing our know-how and thereby help address issues faced by the manufacturing industry, such as intensifying global competition, a declining workforce, and a shortage of leaders. In this way, DENSO will support the growth of Japan’s manufacturing industry.

* This initiative was launched in October 2020 to help create robust manufacturing sites in Japan’s manufacturing industry by offering society our expertise in the waste-eliminating, highly efficient automation (lean automation) required in the manufacture of automotive components. We have developed this expertise at 130 plants in 35 countries and regions worldwide.

Highlights: Green

Launched the Everycool Cooler for Idling Trucks, Which Both Provides Effective Cooling and Lowers Environmental Impact—Contributing to the realization of a driver- and environment-friendly logistics industry—

DENSO developed the Everycool idling cooler, which can be used when trucks’ engines are not running. The cooler helps address some of the logistics industry’s issues by simultaneously improving drivers’ working environments—particularly during hot summer weather—while reducing environmental impact and enabling efficient energy utilization through the lowering of fuel consumption.

November

Highlights: Corporate Foundation

Won Gold and Other Medals at the 61st National Skills Competition and the 43rd National Abilympics

DENSO won 13 medals at the National Skills Competition, including five gold medals in the machine assembly, precision equipment assembly, sheet metal bending, plant electrical equipment, and mobile robot job categories. In addition, at the National Abilympics we claimed two gold medals in the electronic device assembly and office assistant events.
Moreover, since the inaugural National Skills Competition 61 years ago, we have won a total of 586 podium medals, including 157 gold medals. Also, DENSO’s haul of 35 podium medals from the 27th through the 43rd National Abilympics includes 18 gold medals

Highlights: Corporate Foundation

Received the Highest Rating in the PRIDE Index for the Second Consecutive Year

In 2023, DENSO received a Gold rating in the PRIDE Index for the second year in a row. Prepared by the work with Pride Association, the index evaluates LGBTQ+ initiatives for sexual minorities in Japan’s workplaces.

December

Highlights: Green

Earned the Energy Conservation Center, Japan, Chairman’s Award at the 2023 Energy Conservation Grand Prize Awards

At the 2023 Energy Conservation Grand Prize Awards, DENSO received the Energy Conservation Center, Japan, Chairman’s Award in the Energy Conservation Best Practices Category. This award recognized our win-win energy conservation activities, which are aimed at achieving both energy conservation and improvements in plant environments. Specifically, our practices were highly rated and earned the commendation because, without requiring large investments, they conserve energy and make the environment more comfortable inside plants with firing furnaces or other types of heat source. Previously, the realization of such thermal countermeasures was regarded as being difficult. DENSO won awards at the Energy Conservation Grand Prize Awards for 14 consecutive years, from 2009 to 2023. Also, we have won a total of 15 awards in the Energy Conservation Best Practices Category.

March 2024

Lowlights: Corporate Foundation

Received an Order for Action Based on the Act against Unjustifiable Premiums and Misleading Representations in Relation to Automotive Cleverin

On March 13, 2024, DENSO CORPORATION and DENSO SOLUTION JAPAN CORPORATION received an order for action from the Consumer Affairs Agency based on Article 7, Paragraph 1, of the Act against Unjustifiable Premiums and Misleading Representations regarding the advertisement displays of automotive Cleverin* that both companies provided through car dealerships and other sales outlets.
To prevent the recurrence of such an incident in relation to products offered by DENSO and its Group companies, the Company will make every effort to ensure rigorous compliance with laws and regulations and further strengthen management systems.

* Automotive Cleverin is no longer offered by the Company.

Highlights: Green

Received Special Theme Award (GX Award) for Our Declaration of Partnership Building
—Promoting carbon neutrality throughout the supply chain—

At the Partnership Building Symposium held by the Ministry of Economy, Trade and Industry on March 25, DENSO CORPORATION was selected as an outstanding company from among companies that are pursuing initiatives based on a declaration of partnership and received a Small and Medium Enterprise Agency Director’s Award, the Special Theme Award (GX Award).
Introduced in May 2020, declarations of partnership building are made by companies that place orders in the supply chain. The declarations clarify companies’ commitment to the enhancement of added value and the promotion of coexistence and co-prosperity in the entire supply chain. DENSO announced its Declaration of Partnership Building in September 2020. The GX Award recognizes green initiatives that DENSO’s Supply Chain Purchasing Planning Division is promoting with suppliers.
Aiming to achieve our Scope 3 goals, we are helping our suppliers in their efforts to become carbon neutral. We provide expertise and technical support in relation to energy-saving efforts through exhibits featuring examples of energy-saving measures and through study tours of our processes. Depending on the particular issues of each supplier, we provide support in such areas as switchovers to renewable energy and the use of low-CO2 materials.