The Environmental Management of the IDEC Group

The IDEC Group aims to create the optimum environment for humans and machines, and to achieve safety, ANSHIN and well-being for people around the world. We have also established an environmental policy that makes the conservation of the global environment a top priority in all aspects of our business activities and aims to create a sustainable society for future generations. In 2024, we renewed our Environmental Policy.

This Environmental Policy serves as a set of guidelines for meeting social demands from various stakeholders and fulfilling corporate social responsibilities. In working to improve upon environmental issues, the IDEC Group considered establishing environmental targets aimed at linking such improvements to contributions to its own business activities and established new sustainability KPIs to coincide with the renewal of its three-year Medium-Term Management Plan beginning in FY2026.

We have established three new KPIs. In addition to further increasing the numerical target for reduction of CO2 emissions by the end of FY2025, we have added two new items: sales of eco-friendly products and supply chain engagement ratio.

To achieve these new KPI targets, the IDEC Group is working globally as One IDEC, utilizing the global environment management system established in FY2025. Here, we are setting common issues for all locations and priority issues for each location, checking progress on a quarterly basis, and working to achieve the new KPIs for the entire group, while accumulating and sharing success stories.

By disclosing global initiatives aimed at improving environmental issues and their positive impact on business activities, we hope to respond to the interests of not only investors, shareholders, and customers, but also various other stakeholders. Through these initiatives, we aim to achieve both conservation of the global environment and sustainable growth in our business activities.

Initiatives to reduce CO2 emissions

A 24% reduction in CO2 emissions (Scope 1 & 2)—one of our sustainability KPIs for the period from FY2023 through FY2025—has been achieved, with emissions reduced from 11,943 t-CO2 in the baseline year FY2020 to 8,555 t-CO2 in FY2025, representing a 24% reduction.
To achieve the target of reducing CO2 emissions by 35% (vs. FY2020 levels) over the three years beginning in FY2026, it is essential that the entire IDEC Group (not only domestic operations) works together. For Scope 1, we will review the appropriate number of company vehicles, increase the ratio of hybrid and electric vehicles, and promote the electrification of various heat sources. For Scope 2, we will reduce power consumption at each site, switch to electricity providers with low CO2 emission factors, and replace air conditioning and production equipment with more energy-efficient models.

Strengthening supply chain engagement

Reducing Scope 3 CO2 emissions requires not only the efforts of the IDEC Group, but also the cooperation of its suppliers. As part of our efforts to achieve this, we have set engagement with suppliers that account for 80% of the transaction amount at each production site as a KPI under our new medium-term plan, and plan to engage in dialogue with approximately 60 companies globally in FY2026.

Specifically, we will list the areas in which we wish to engage with suppliers, and engage with them in achievable areas at all purchasing sites, both domestically and globally, through our global environmental management system activities.

We will increase the number of suppliers with which we engage each year, and work together with the suppliers with whom we are already engaged in dialogue to improve achievable items.
Going forward, engagement with suppliers is expected to contribute to reducing Scope 3 Category 1 emissions (purchased goods and services), which account for the largest share of CO2 emissions in our Scope 3 upstream.

Sustainability KPIs (FY2026-FY2028)

Sales of eco-friendly products: 8.2 billion yen
Reduction ratio of CO2 emissions: 35% (Scope 1&2, vs. FY2020)
Supply chain engagement ratio: 80%

IDEC's "B" score for climate change in 2024 is at the management level in CDP's classification, which indicates that the company understands its own environmental risks and impacts and takes actions on climate issues.

IDEC expressed the support for TCFD in 2021 and has been disclosing climate-related financial information in 2022. Starting in 2024, we have disclosed environmental information based on the IFRS S2.