Response to Climate Change

Response to Climate Change > Trends in Volume of CO2 Emissions

In the Eco Vision 2030 announced in April 2021, the NGK SPARK PLUG Group declared its intention to achieve carbon neutrality by 2050. Prior to this declaration, we announced, in 2020, our CO2 emissions reduction target “30% reduction by FY 2030 compared to that of FY 2018.” Our declaration of carbon neutrality encourages us to redouble our efforts.

Our group’s efforts to achieve carbon neutrality

Target for Scopes 1 and 2

Item Target
Scopes 1 and 2
  • 30% reduction by FY 2030 (compared to that of FY 2018)
  • The target has been classified by the Science Based Targets initiative (SBTi) as SBT WB2℃ (well below 2℃).

Initiatives aimed at realizing a carbon recycle-oriented society (Carbon Neutral as a service)

In order to contribute to the realization of a carbon-neutral society, we are developing methanation-related technologies (hydrogen production technology that applies ceramic solid electrolytes and CO2 recovery technology that applies oxygen concentrator technology).

Efforts at production sites

For the installation of production equipment, we create a checklist to ensure energy-efficient design. We take measures to reduce standby power consumption during holidays and at night. Manufacturing conditions are reviewed on an as-needed basis so as not to use excessive energy for production. In addition, to prevent air leaks and other energy loss due to aging equipment, we carry out periodic inspections and maintenance in a planned manner.
The amount of CO2 emissions is visualized on an internal dashboard on a business company by business company basis. Each business base works to make improvements on a daily basis to increase energy efficiency in the production process to the extent possible. By applying successful cases of improvement to other business bases, our group makes a concerted effort to promote energy-saving activities.

Efforts at offices

In the new office building at the Komaki plant, “N-FOREST,” which started operations in September 2021, a solar power generation unit and a power generation system using a solid oxide fuel cell (SOFC) have been installed. On top of that, we save energy by replacing old lights with LED lighting, turning off lights and computers when taking a break, recommending observance of the Cool Biz dress code (e.g., for men, wearing short sleeve dress shirts and chinos, without a tie) in summer and the Warm Biz dress code (encouraging people to wear warm clothes) in winter, and controlling temperature, humidity, and ventilation as appropriate.

Efforts to raise internal awareness (internal carbon pricing, internal carbon taxation, and internal environmental fund)

To reduce emissions in Scopes 1 and 2 with the aim of achieving carbon neutrality, we take the following awareness-raising measures: internal carbon pricing, internal carbon taxation, and an internal environmental fund.
For internal carbon pricing, our group has decided to collect 10,000 yen per ton of CO2. Internal carbon taxation is a system under which fees are collected from departments, including internal business companies and group companies, depending on the amount of their CO2 emissions. This system is expected to further raise awareness of and accelerate CO2 emissions reduction.
The internal environmental fund is a system to appropriate the fees collected through internal carbon taxation for capital investment as a grant to reduce CO2 emissions. For example, in FY 2021, we provided a grant for a solar power generation unit to NGK Spark Plugs (India) Private Limited.

Efforts to introduce renewable energy

We enhance the use of renewable energy, including solar energy, hydropower, and geothermal energy.
Ceramica e Velas de Ignicao NGK do Brasil Ltda. and NGK Spark Plugs (India) Private Limited are equipped with solar power generation units with a maximum power generation capacity of 793 kW and 514 kW, respectively.
The Komaki plant has a solar power generation unit with a maximum power generation capacity of 120 kW and a small hydro generation unit. At the Okusa plant of Sparktec WKS Co., Ltd., a geothermal heat pump system is installed, and the Nagoya plant of the company is equipped with a solar power generation unit and a solar water heater.Our group’s total renewable electricity output in FY 2021 was 2.02 million kWh, which is equivalent to a reduction of 358 tons of CO2.

Solar Power Generation Units

Efforts to create energy

The Komaki plant already has a hybrid power system using a fuel cell with a rated power output of 250 kW and a compact fuel cell system with a rated power output of 20 kW. We will continue to take on the challenge of reducing CO2 emissions through the creation of clean energy by studying the possibility of installing various energy devices, such as pure hydrogen fuel cell systems and storage batteries.

Pressurized hybrid power system

Efforts to introduce CO2-free electricity

From June 2022, SparkTec WKS Co., Ltd. Satsuma Plant and Satsuma Electrode Plant have adopted CO2-free electricity. All power for factory operation is covered by renewable energy that does not emit CO2. This initiative is expected to reduce CO2 emissions by approximately 20,000 tons annually.
We will continue to reduce power consumption and systematically introduce CO2-free power.

Efforts to achieve carbon neutrality in the supply chain

Target setting for Scope 3

Item Target
Scope 3:Category 1 “Purchased goods and services”
    Category 4 “Upstream transportation and distribution” (in part)
    Category 11 “Use of sold products”
  • 30% reduction by FY 2030 (compared to that of FY 2018)
  • The target has been classified by the Science Based Targets initiative (SBTi) as SBT WB2℃ (well below 2℃).

Scope 3 emissions are indirect greenhouse gas emissions excluding those in Scopes 1 and 2 (emissions from other companies associated with our business operations), divided into 15 categories.
Our emissions in Category 1 “Purchased goods and services,” Category 4 “Upstream transportation and distribution,” and Category 11 “Use of sold products” make up 97.6% of our total Scope 3 emissions. Therefore, we work on reducing CO2 emissions by setting a target to be achieved by FY 2030 in terms of these three categories.
For Category 1 emissions, through the CSR and Sustainability Procurement Guidelines, we ask our business partners to set a target for reducing CO2 emissions and work toward achieving the target. We also provide our business partners with support when needed.
For Category 4 emissions, as a specified consigner stipulated in the Act on the Rational Use of Energy, we work to reduce CO2 emissions associated with transportation by reducing shipping distances through the restructuring/consolidation of plants and the reconsideration of waste-disposal service vendors.
For Category 11 emissions, which account for the largest portion of total Scope 3 emissions, we work on, for example, designing products to improve their energy efficiency while being used.

Promoting disclosure of information about climate-related risks and opportunities

In July 2020, the NGK SPARK PLUG Group announced its support for the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
We will examine the impact of climate change on our Group’s business, strategies, and finance within the company-wide risk management framework based on TCFD Recommendations, and these topics will be discussed at the Risk Management Committee and the CSR and Sustainability Committee attended by the entire board of directors. We will also promote voluntary and proactive disclosure of information in accordance with the recommendations.

Information Disclosure Based on TCFD Recommendations

Participation in business organizations and initiatives

To enhance our efforts to mitigate climate change, our group participates in the following organizations and initiatives:

  • Task Force on Climate-Related Financial Disclosures (TCFD)
  • Science Based Targets initiative (SBTi)
  • Japan Climate Initiative (JCI)
  • GX League (established by the Ministry of Economy, Trade and Industry)