Azbil Named to CDP's 2022 “A List” for Climate Change, Earning Highest Rating for Second Consecutive Year
TOKYO, Jan. 10, 2023: Azbil Corporation (Tokyo Stock Exchange code 6845) announced that its initiatives in reducing greenhouse gas emissions at its own and customers’ sites, along with its information disclosure, have received the highest-level evaluation by the environmental non-profit organization CDP, earning it a spot on CDP’s “A List”. This is the second year in a row that Azbil has been selected for the A List. In addition, the company received an A− rating for water security for the second consecutive year.
CDP assesses companies in the areas of climate change, water resource protection, and forest conservation, allocating a score of A to D− based on the comprehensiveness of disclosure, awareness and management of environmental risks and demonstration of best practices associated with environmental leadership, such as setting ambitious and meaningful targets. In 2022, approximately 18,700 major companies around the globe responded to CDP’s appeal for disclosure, and about 330 companies were selected for the A List, the highest rating. Of these, 283 companies were selected for the A List for climate change, including Azbil and 73 other Japanese companies.
The azbil Group, under the philosophy of “human-centered automation,” aims to ensure its medium- to long-term development and continuing increase in enterprise value by making contributions that lead “in series” to a sustainable society through its business.
Recognizing that finding solutions for climate change is an important management issue, the azbil Group strives to reduce greenhouse gas (GHG) emissions associated with both its own activity and activity at its customers’ sites. Regarding reduction of its own GHG emissions, based on the company’s 2050 Long-term Vision for Reducing GHG Emissions, according to which the Group will achieve substantially zero GHG emissions by 2050, it has announced policies and plans for decarbonization. To reach this goal, the azbil Group is promoting energy efficiency using its own automation systems and control equipment, and is working on a variety of measures such as procuring electricity from 100% renewable energy and using solar power generation. The Group also set a target of 1.5 degrees Celsius based on the Science Based Targets Initiative (SBTi)*1 and it discloses information on governance, strategies, risk management, indicators, and targets in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), including quantitative disclosure of business opportunities and risks. Regarding CO2 reduction at its customers’ sites*2, the Group offers its own unique automation-related products, services, and solutions that help to reduce CO2 emissions. By fiscal year 2030, as an SDG-related goal, the Group aims to achieve an annual CO2 reduction of 3.4 million metric tons.
In dealing with water security, the azbil Group continuously strives to reduce water usage, while identifying offices and bases that are at high risk from a water usage standpoint as business continuity preparation.
Guided by its philosophy of “human-centered automation,” the azbil Group continues to make contributions that lead “in series” to a sustainable society.
CDP is a global nonprofit organization that operates a worldwide environmental disclosure system for companies, cities, states and regions. Founded in 2000 and working with more than 680 investors with over $130 trillion in assets, CDP pioneered the use of capital markets and corporate procurement to motivate companies to disclose their environmental impact, reduce greenhouse gas emissions, safeguard water resources, and protect forests. https://www.cdp.net/en
※1 SBTi (Science Based Targets Initiative)
The SBTi is a collaboration between CDP, the World Resources Institute (WRI), and World Wide Fund for Nature (WWF), and United Nations Global Compact. It helps corporations achieve science-based targets (SBT) for reducing CO2 emissions.
※2 CO2 reduction at customers’ sites
The azbil Group has established and is working to achieve “Essential Goals of azbil Group for SDGs,” which include four concrete targets in areas that the Group is continuously reevaluating and improving (Environment and Energy; New Automation; Supply Chain and Social Responsibility; Health and Well-being Management and An Organization That Never Stops Learning). The targets for reducing GHG emissions are as follows.
Essential Goal #1 for environment and energy (for fiscal year 2030)
・Effective reduction of CO2 at customers’ sites: 3.4 million metric tons of CO2/year
・Reduction in GHG emissions from business activities (scopes 1+2): 55% (from base year 2017);
reapproved in August 2021 by the SBTi to match their goal of 1.5 degrees Celsius
・Reduction in GHG emissions across the entire supply chain (scope 3): 20% (from base year 2017)
* Posted information is accurate as of the date of announcement.