Living Harmoniously with the Earth to Secure the Future (329KB)

46

NEC's Business Model

Living Harmoniously with the Earth to Secure the Future

"Living harmoniously with the earth to secure the future," part of the NEC 2030VISION, includes three elements: decarbonization, preventing global warming, and water and food safety. Under this banner, we intend to utilize our business to solve and improve climate change and a variety of other environmental issues occurring on the earth today, and realize a sustainable society. Since 2018, NEC has highlighted "environmental action with a particular focus on climate change" as one of its materiality themes. Therefore, we are providing value in the form of mitigation-based (decarbonization) and adaptation-based countermeasures to climate change, more specifically, reducing CO2 emissions from customers and society through DX and "preparing for the various impacts of climate." By expanding provision of solutions and services that help resolve environmental issues, we will support the conservation of the global environment and the sustainable growth of both companies and society.

Environmental Initiatives for Realizing a Sustainable Society

As our response to climate change, we have set Science Based Targets (SBTs) for 2030 as part of

our goal of reducing our CO2 emissions to effectively zero by 2050, and are working to provide solutions

and services to contribute toward resolving environmental issues.

NEC Integrated Report 2021		47

Aiming to Reduce CO2 Emissions to "Effectively Zero" by 2050

Decarbonization Preventing global warming

In July 2017, we formulated our climate change countermeasure guidelines up to 2050 in order to strengthen NEC's sustainable management base and promote creation of a sustainable society together with our customers. In accordance with these guidelines, we aim to reduce CO2 emissions associated with NEC's business activities (Scope 1 and Scope 2) to effectively zero by 2050. In 2021, NEC joined RE100 and is dedicated to procuring 100% of its electricity from renewable sources.

CO2 Emissions Reduction Targets

Without reduction measures		Reduction measures
		1. Thorough efforts to improve efficiency
		2. Expand introduction of renewable energy
55% reduction		3. Purchase renewable power
	Effectively zero

2050

Course of Action for Climate Change Toward 2050

(Announced July 2017)

Effectively zero CO2 emissions by 2050

2030

SBT* 1.5℃ (Validated in May 2021)

Reduce Scope 1 and Scope 2 CO2 emissions by 55% compared with fiscal 2018

Ⅱ. Achieving sustainable society by collaboration

"Mitigation"	Realizing a low carbon society	climate change risks	"Adaptation"
(Keeping global average temperature
	as a goal for the planet	Realizing a safe, secure
	society that is resilient to
climateof	rise between 1.5ºC and 2ºC)		climateto
Aiming for zero CO2	Strict countermeasures
change	emissions from	against climate change	change
supply chains	risks in supply chains
	Ⅰ . Building sustainable management foundation

2017

2030

2050

NEC's Initiatives Toward Achieving the SBTs

Decarbonization

In 2021, we increased the stringency of our Science Based Targets for climate change

­countermeasures from the "well below 2℃" goal to an alignment with the "1.5℃" goal, and we are redoubling efforts to reduce environmental footprint and risks throughout our supply chains. Since CO2 emissions from the supply chain account for 95% of NEC's total emissions, we are making new efforts to reduce emissions from purchased goods and services through engagement with our suppliers. These efforts are in addition to our existing efforts to reduce emissions from the use of sold products.

2020

Goals of Climate Change Countermeasures up until Fiscal 2021

5Target:

77..77times倍 目標times

Reducing Scope 3 CO2 Emissions from the Supply Chain

Other (excluding Category		Scope 1, 2
13, 14, and 15) 4％		Emissions produced by the Company	Upstream	Downstream

Create Five Times More Environmental

4.2 5..2times倍

5

倍

5％

Value through Business

(Announced July 2014)

2.7 times

times

Adaptation

Mitigation

6,485

kilotons

Category 1	Category 11
Emissions from purchased goods	Emissions from use of sold products
and services*
Fiscal 2031 Reduction Target of 33% (Compared with Fiscal 2018)

2018

"Response to environmental issues centered on climate change" positioned as materiality

Contribution

Social貢献 value創出createdする社by会NEC価値

Impact

負荷

事業が及ぼす影響

FY2018

FY2019

FY2020

FY2021

Impact of NEC's business

* Science Based Targets

(FY2021)

Scope 3 (95%)

Category 1	Category 11
Emissions from purchased	Emissions from use
goods and services	of sold products
53％		37％

NEW	OngoingReductions through
Reductions through supplier engagement	improved energy efficiency in products

In addition to existing efforts to improve the energy efficiency of products, we will promote new emissions reduction measures that leverage supplier engagement.

* Comprises 35% of all Category 1 emissions

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NEC's Business Model

Living Harmoniously with the Earth to Secure the Future

Contributing to Decarbonization through Business

Decarbonization

NEC Integrated Report 2021		49

Risks and Opportunities

Decarbonization Preventing global warming Water and food safety

Although NEC's CO2 emissions are small relative to the rest of the industry, with a small impact on society, industries with high CO2 emissions can take advantage of NEC's ICT technology to help reduce their emissions. Therefore, we are ramping up efforts to make our business means toward decarbonization to accelerate the decarbonization process across society.

Note: Materials adapted from those produced by Green Pacific Co., Ltd. All rights reserved.

NEC's Position When Mapping Corporate CO2 Emissions

High

1＋2	NEC	CO2 emissions (risk)
relatively low
Scope			High
		Scope 3

Recognizing the impact that such environmental risks as climate change and pollution by hazardous substances could have on its businesses, NEC conducts risk reduction and prevention activities through assessment, inspection, and education.

For climate change in particular, we examine risks and opportunities from both a short-term and a medium- to long-term perspective in line with TCFD recommendations, evaluate future impacts, and identify assets in relation to risk countermeasures and opportunities.

Risks and Opportunities at a Glance	Climate change Other environmental issues

Calculation Methods for CO2 Emission Reductions

Use CO2 emissions as a metric for evaluating changes from introducing ICT (centered on seven activities concerning CO2 emissions)

Ways that introducing ICT can reduce impact

Environmental Targets: NEC Eco Action Plan 2025

Decarbonization Preventing global warming Water and food safety

1. Human Movement		2. Use of Paper		3. Use of Object
Use of online		Electronic file sharing,		Use of network
conferencing systems		e-books		services

4. Object Movement		5. Object Storage
Streamlining logistics,		Lower storage space
	needs from reduction
digitalized items		in paper and objects

1

2

3

Reduction effect after one year (calculated with evaluation tool)

To reduce CO2 emissions to "effectively zero" by 2050, we have set a series of environmental targets to be achieved over the course of five years, based on the NEC 2030VISION and the Mid-term Management Plan 2025.

We have selected 11 priority activities based on the three goals.

1. Reduce own risks and footprints
2. Increase contributions through businesses
3. Build foundations to promote environmental management

Ways that introducing ICT can increase impact

6. Use of IT Devices		7. Use of Network
		Services
Greater power consumption		Greater power consumption
from increased use of IT		from increased use of
devices for new systems		network services

4

5

6

7

Before

After

1. 2.3 For more details on the NEC Eco Action Plan 2025, please refer to pages 31 and 32 of Sustainability Report 2021.

1. Reduce own risks and footprints

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Contributing to Society with Businesses Related to Carbon Neutrality

Resource aggregation business

Expansion of business

FY2026 business scale: 12.0 billion yen

NEC HQ

（Distributors）

Decarbonization

Power companies

management solutions

Self-

consignment

Surplus power supply

Adjusting

Price

Circular economy

Regulated

supply

and

capacity

Energy management

（Todemandopen inmarketFY2022）

Aggregation

Price

service

NEC business locations

and NEC Group

Surplus power supply

companies

Contribution to a

decarbonized society

• Uptake of renewable energy

• Improvement of resource productivity of industrial sector

CO2 reduction economic effect: 90.0 trillion yen*

• Source: Green Growth Strategy for Carbon Neutrality in 2050 (Ministry of Economy, Trade and Industry, published in 2020) Note: Market size is an estimate of the Japanese market in
  2030.

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External Evaluation Regarding the Environment

Decarbonization Preventing global warming Water and food safety

NEC was included in the "A List" for both climate change and water security in 2019 and 2020 consecutively. NEC was also listed on the CDP's supplier engagement "Leaderboard," the highest recognition the CDP offers for supplier engagement.

Other Examples

1. Please refer to page 42 of Sustainability Report 2021 to learn about our efforts to reduce CO2 emissions in Africa with a Hybrid Energy Storage System.

	Decarbonization
S	Please refer to page 41 of Sustainability Report 2021 to learn about our IoT-based River Water Level Monitoring System, which has been installed as a global
	warming measure and to assist with water safety.	Preventing global warming Water and food safety