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25 Apr 2023

Azbil Recognized by CDP as Supplier Engagement Leader, the Highest Designation in the Supplier Engagement Rating for the Second Consecutive Year

Azbil Corporation Stand: T40

TOKYO, April 25, 2023: Azbil Corporation (Tokyo Stock Exchange code 6845) announced that it has been named by the nonprofit environmental organization CDP as a Supplier Engagement Leader, the highest CDP Supplier Engagement Rating, for the second consecutive year.

The Supplier Engagement Rating assesses the extent to which companies effectively cooperate with suppliers to address climate change problems from the viewpoint of governance, targets, greenhouse gas (GHG) emissions in the overall supply chain (scope 3*1), and value chain engagement, as well as climate change performance based on the overall score of the CDP climate change questionnaire. In 2022, the top 8% of the companies targeted for the evaluation were selected as Supplier Engagement Leaders, the highest rating, and Azbil Corporation was able to become one of them again.

The azbil Group strives to reduce the CO2 emissions at our customers’ sites through our businesses, as well as sets the target of GHG emissions across the entire supply chain (scope 3) as one of the essential goals of azbil Group for SDGs. And these efforts were highly evaluated.

Environmental Initiatives of azbil Group
We have formulated our 2050 Long-term Vision for Reducing GHG Emissions, which lays out our goal to achieve substantially zero GHG emissions (scopes 1+2*1) from our own business activities by 2050, and we propose to achieve carbon-neutral operations.

To achieve this long-term vision, we have set medium-term 2030 GHG Emission Reduction Targets for our business activities, and we are working on measures to cut CO2 emissions across our entire supply chain.

In FY2021, GHG emissions from our own business activities (scopes 1+2) were down 27% from FY2017 (FY2030 Target: 55% reduction from 2017 base year). GHG emissions across the entire supply chain (scope 3) were down by 23% compared to FY2017 (FY2030 Target: 20% reduction from 2017 base year). We achieved our target for scope 3 emissions ahead of schedule. In the future, we will promote group-wide initiatives for further improvement and intensify joint efforts with suppliers.

In other measures to address climate change, the azbil Group, based on the idea of environment-integrated management*2, is working on a variety of measures such as promoting energy conservation making use of our systems and equipment. In addition, the Group discloses information including quantitative information on business opportunities and risks in line with the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD). Furthermore, as its unique contribution, the Group aims at CO2 reduction at customers' sites*3 by offering automation-related products, services, and solutions. By 2030, the Group is aiming to achieve CO2 reduction of 3.4 million metric tons per year.

Based on its philosophy of “human-centered automation,” the azbil Group aims to contribute “in series” to the achievement of a sustainable society, thereby promoting the Group’s medium-to-long term development and continuous increase in enterprise value.

About CDP
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 GHG emissions, safeguard water resources, and protect forests.https://www.cdp.net/en

*1 Scope 1, 2, 3
Scope 1: Direct GHG emissions from a business (from fuel burning, industrial processes, etc.)
Scope 2: Indirect GHG emissions from using electricity, heat, or steam provided by another business
Scope 3: Indirect GHG emissions related to business activities (indirect emissions not included in scopes 1 and 2)

*2 Integrated Environmental Corporate Management
Management that integrates environmental activities such as decarbonization, resource recycling, and biodiversity conservation into business operations.

*3 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);
approved in May 2019 by the SBTi

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.

* Posted information is accurate as of the date of announcement.



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