Indicators and Targets (aligned with TCFD recommendations)
The vast majority of greenhouse gas emissions in our group's supply chain come from Scope 3 Category 11 (use of products sold). Our group has set a goal of reducing CO2 emissions from products by 30% by FY2030 compared to FY2010, but this cannot be achieved solely through improvements in the performance and fuel efficiency of conventional diesel-engine construction machinery; the widespread adoption of battery-powered construction machinery is a prerequisite. In July 2021, we launched a 2-ton lithium-ion battery-powered compact excavators, but the electrification of the construction machinery market is progressing at a pace significantly slower than initially anticipated. On the other hand, the use of our products directly impacts our customers' Scope 1 or Scope 2 emissions, and under a 1.5°C scenario, it is possible that the adoption of battery-powered construction machinery will accelerate due to increased environmental awareness, changes in customer consciousness, and strengthened public subsidies or regulations.
We see this "transition risk and opportunity" as a chance for business development, and we are working on product development to expand our lineup of battery-powered construction machinery. Following the 2-ton class currently on sale, we are testing 1.5-ton and 3.5-ton class prototypes in the market.
Climate Change Indicators and Targets
| index | the goal |
|---|---|
| CO2 emissions from products | A 30% reduction by FY2030 (compared to FY2010, per unit). |
| CO2 emissions from factories (in Japan) | Reduce by 50% by FY2030 (compared to FY2015, per unit) |
| Percentage of renewable energy used in factories (in Japan) | 100% (Achieved) |