The Shindengen Group is committed to reducing the environmental impact and mitigating the
environmental risks of its business activities in areas including global warming countermeasures,
chemical substance reduction, waste reduction, and water resource and biodiversity conservation.
The following are examples of key activities among the initiatives we undertook in FY2024.

Initiatives to Reduce Energy Consumption

The Shindengen Group is endeavoring to reduce its CO2 emissions to achieve its environmental
targets for FY2030, which were announced concurrently with Environmental Vision 2050.
As a participant in the Carbon Neutrality Action Plan, formulated and promoted by Japanese
electrical and electronics industries as a voluntary action plan, the Shindengen Group in Japan
seeks to improve its energy consumption intensity by a yearly average of 1% or higher and
reduce its CO2 emissions by 46% compared to FY2013. To this end, we have launched initiatives
to improve the energy efficiency of our production processes and equipment and to reduce CO2
emissions in our business activities.
The Asaka Office, which opened in 2021, has significantly reduced Shindengen’s energy
consumption by consolidating the functions of business divisions and departments that were
previously spread across the Otemachi Head Office and multiple buildings at the Hanno
Factory into a single building, and by attaining ZEB Ready* building certification.

Shindengen Group’s Main Energy Conservation Initiatives (FY2024)

LED light installation	Shindengen Electric MFG, Higashine Shindengen, Shindengen Three E, Lumphun Shindengen, Shindengen Thailand, Shindengen Vietnam
Conversion of equipment to inverters, etc.	Shindengen Philippines, Lumphun Shindengen, Shindengen Thailand, Shindengen Vietnam
Improvement of operational efficiency of power regenerators	Shindengen Three E

Adopting Electricity Derived from Renewable Energy Sources

The Shindengen Group is working to adopt electricity derived from renewable energy sources to
achieve its goal of carbon neutrality by FY2050.
 The following is a summary of the status of renewable energy adoption.

FY2023 25,836MWh⇨FY2024 37,675MWh（28.0% of the entire Group）

FY2024 Shindengen Domestic Group Renewable Energy Power Contract Status

Shindengen	100%	FY2022 onward
Okabe Shindengen	88%※１	FY2022 onward
Shindengen Three E	10%※２	FY2023 onward
Akita Shindengen	30%	FY2024
Higashine Shindengen	40%	FY2024

*1 Since September 2024, Okabe Shindengen has been operating its own solar power generation facilities to meet 100% of its electricity consumption with renewable energy.
*2 Shindengen Three E’s results are for FY2023.

 

FY2024 Solar Power Generation Equipment Installation Status

Okabe Shindengen	449 MWh (September 2024 onward)
Shindengen India	360MWh
Lumphun Shindengen	760ＭＷh
Shindengen Thailand	FY2025 introduction planned (under consideration)
Shindengen Indonesia	FY2025 introduction planned (under consideration)
Guangzhou Shindengen	FY2025 introduction planned (under consideration)

Initiatives on CO2 Emission Reduction Activities

As part of the Decarbonization and Energy Conservation Promotion Committee’s initiatives to reduce CO₂ emissions in fiscal year 2024, we have been advancing plans and operations for installing solar power generation systems. At Okabe Shindengen, a domestic affiliate, the solar power system began operating in August 2024, and during a carbon-neutral site inspection by our business partners in December, we introduced the solar power system as part of our efforts to reduce Scope 2 CO₂ emissions.
For overseas affiliates, we are planning the installation of solar power systems at Shindengen Indonesia (estimated annual power generation equivalent to about 7.9% of annual electricity consumption) and Guangzhou Shindengen (estimated annual power generation equivalent to about 35% of annual electricity consumption), aiming for operation in fiscal year 2025.
Additionally, we have continued to incorporate renewable energy contracts within domestic group companies, reviewed related costs, and implemented cost-saving measures.

Contributing By Providing Environmentally Friendly Products

Aiming to achieve decarbonization and sustainability across society, as targeted by the Paris Agreement, the Shindengen Group provides environmentally friendly products as a proactive way of reducing greenhouse gas emissions during product use and attempting to solve issues in line with the international sustainable development goals (SDGs) initiative. The Group agrees with measures promoted by local communities to mitigate and adapt to climate change effects and proactively supports related activities. Refer to the Initiatives for the SDGs for details.

Greenhouse Gas Emissions (Scope 1, Scope 2, Scope 3)

Shindengen Electric Manufacturing Co., Ltd. calculates the GHG Protocol's Scope 1, Scope 2, and Scope 3
emissions based on greenhouse gas emissions-related data collected from the value chain.

Manage Chemical Substances Initiatives

The Shindengen Group is working to achieve its stated environmental objective of “engaging in sustainable activities to protect people and the environment through appropriate management of information about chemical substances contained in products.”
Centered around the Chemical Substance Management Promotion Subcommittee, which consists of Shindengen Electric Manufacturing Co., Ltd.’s Asaka Office and domestic group companies, we share the latest information on domestic and international regulations, review green procurement standards, manage information on chemical substances contained in products, and control substances in chemicals used internally. Through these efforts, we ensure compliance related to products, raw materials, and chemical substances.
For domestic regulations, such as the Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management thereof (PRTR Act) and the Poisonous and Deleterious Substances Control Act, we promote systematic compliance by sharing practical, site-based operational information.
For international regulations, including the EU’s REACH Regulation and the U.S. TSCA, frequent amendments are made, and stricter requirements are expected in the future. We monitor regulatory trends, promptly share information with domestic group companies, and implement appropriate chemical management measures.

Plastic Reduction Initiatives

The Shindengen Group in Japan is committed to protecting the environment by replacing or
reducing the use of plastic, with each company setting specific targets for this initiative.
Asaka Office conducted internal briefings centered on the Act on Promotion of Resource
Circulation for Plastics (the Act), which went into effect in 2022. This allowed us to raise the
awareness regarding plastics of all our employees and deepen their understanding of future
initiatives.
Our criteria for product design include provisions for plastic reduction, which we utilize to
develop product design based on the Act’s Guideline for Design of Plastic-containing Products.
Meanwhile, individual domestic Group companies have set targets relevant to them, such as
packaging reduction, selecting recycling operators, and increasing the recycling rate through
improved sorting.
For example, we promote reusable plastic for product transportation and replace various
disposable plastics used throughout the Company with reusable ones.

Water Conservation Initiatives

The Shindengen Group considers sustainable water conservation initiatives, including water
recycling, to be necessary to address the global water shortage caused by factors such as
population growth and climate change. The Group’s water conservation initiatives involve a
variety of efforts tailored to the local environment and business conditions at each of our
domestic and overseas companies.
Shindengen Philippines is engaged in water recycling, maintaining a recycling rate of over
20% through both heating and recovery processes. Shindengen Indonesia purifies water used
for bathing then uses it to water plants throughout the factory grounds.