Murata Manufacturing : Acquires SBT Certification for Greenhouse Gas Reduction Targets

1/20/2022

Murata Manufacturing Co., Ltd.
President: Norio Nakajima

Murata Manufacturing Co., Ltd. (hereinafter, "Murata") has formulated targets for reducing greenhouse gas (GHG) emissions by fiscal 2030. These targets have received SBT certification under the international initiative SBTi (Science Based Targets Initiative) as science-based targets for "keeping a global temperature rise below 1.5°C above-pre-industrial levels" in conformance with the Paris Agreement.

SBT-certified Murata Group GHG emissions reduction targets

Scope 1 + Scope 2 (1.5°C level) (Domain of emission due to in-house use, such as for product manufacturing at plants and power used at business sites)	Fiscal 2030: Reduce by 46% (vs. fiscal 2019)
Scope 3 (WB2.0°C level) (Domain of indirect emission other than Scope 1 + 2, such as raw material procurement, product transportation, and disposal)	Fiscal 2030: Reduce by 27.5% (vs. fiscal 2019)

In recent years, companies have been expected to take climate change countermeasures, including decarbonization, to tackle environmental problems that are becoming increasingly serious around the world. To respond accurately to such demands from society, Murata has chosen to reinforce climate change countermeasures as a priority issue (material issue) and is conducting business operations with a total GHG emissions reduction target in mind. Further, Murata is investing aggressively to encourage energy conservation and the use of renewable energy throughout the Murata Group.
As an energy-saving initiative, Murata has continued for many years to implement 450 to 600 energy conservation measures annually (equivalent to about 50,000 tons of CO₂ reduction). However, recent business expansion had outpaced the effects of these efforts, and total GHG emissions had increased. Murata has worked actively since fiscal 2018 to expand its use of renewable energy in addition to conserving energy, with the result that total GHG emissions peaked in fiscal 2018 and then began to decrease, reaching 1.435 million t-CO2e for fiscal 2020 (a reduction of 174,000 t-CO2e year over year). Going forward, Murata will continue making efforts to achieve its emissions targets of 1.4 million tons for fiscal 2021, 1.28 million tons for fiscal 2024, and 870,000 tons for fiscal 2030. With regard to Scope 3, Murata will also reduce CO₂ emissions throughout the supply chain, such as by selecting materials with a low environmental load and increasing the input ratio of recycled materials.
Seeking to promote the use of renewable energy, Murata joined RE100^*1 in 2020 and has set the goals of using 50% renewable energy for business activities by 2030 and 100% by 2050. In November 2021, Kanazu Murata Manufacturing Co., Ltd. became the Murata Group's first plant to operate on 100% renewable energy. In January 2022, Philippine Manufacturing Co. of Murata, Inc. became the first overseas production site to operate on 100% renewable energy. Going forward, Murata will continue to actively introduce measures to expand the use of renewable energy to each group company.
To further accelerate such environmental investment, Murata has been operating a carbon pricing system^*2 since fiscal 2021. By assigning an economic value to CO₂ reduction and embedding it into its investment index, Murata has made it easier for group companies to make environmental investments. Murata aims for system design including this carbon pricing system that is highly effective at driving CO₂ reduction.

^{*1 RE100: An international initiative that aims to switch the power used in business activities to 100% renewable energy. RE100 is led by The Climate Group in partnership with CDP, and is also part of the We Mean Business coalition. The participation of Japanese companies in RE100 is achieved with the support of the Japan Climate Leaders' Partnership (JCLP), which has been an official regional partner of RE100 since 2017.
*2 Carbon pricing system: A shadow pricing system at Murata. This system encourages environmental investment by assigning an economic value to CO₂ that can be reduced by investment.}

About the SBT Initiative The SBT Initiative (SBTi) is an international organization jointly established by CDP, an international non-profit organization that provides a platform for environmental information disclosure, United Nations Global Compact (UNGC), World Resources Institute (WRI), and World Wide Fund for Nature (WWF). It encourages companies to set science-based GHG reduction targets and reviews and certifies companies' targets from an independent standpoint.

On Murata's website: • Murata's material issues
• Murata's responses to climate change

Related press releases: Murata's participation in Global Environment Initiative RE100 - Aiming for 100% renewable energy use by 2050 -
https://corporate.murata.com/en-global/newsroom/news/company/csrtopic/2020/1217

Murata Selected for CDP's Climate Change A List for 1st Time
https://corporate.murata.com/en-global/newsroom/news/company/csrtopic/2021/1208

Kanazu Murata Manufacturing's Plant Set to Operate on 100% Renewable Energy - Reducing the load on social infrastructure by deploying the largest storage battery system in the Hokuriku region -
https://corporate.murata.com/en-global/newsroom/news/company/csrtopic/2021/1012

Philippines Plant Set to Become the 1st Overseas Production Site to Operate on 100% Renewable Energy
https://corporate.murata.com/en-global/newsroom/news/company/csrtopic/2021/1220
Murata in Brief

Murata Manufacturing Co., Ltd. is a worldwide leader in the design, manufacture and sale of ceramic-based passive electronic components & solutions, communication modules and power supply modules. Murata is committed to the development of advanced electronic materials and leading edge, multi-functional, high-density modules. The company has employees and manufacturing facilities throughout the world.

For more information, visit Murata's website