Environmental Management
The Environmental Management of the IDEC Group
The IDEC Group aims to create an optimal environment for humans and machines, and to achieve safety, ANSHIN and well-being for people around the world. We regard the preservation of the global environment as the highest priority in all aspects of our business activities.
In 2024, we renewed our Environmental Policy as a set of guidelines for meeting social demands from various stakeholders and fulfilling corporate social responsibilities. In addition, we have established the realization of carbon neutrality by 2050 as a long-term vision and incorporated it into one of our long-term visions.
In 2025, we established new sustainability KPIs aimed at linking our efforts to address environmental issues with contributions to our business activities, in conjunction with the renewal of the medium-term management plan. The KPIs consist of three targets: (1) Sales of enhanced eco-friendly products: 8.2 billion yen, (2) Reduction ratio of CO2 emissions: 35% (vs. FY2020), and (3) Supplier engagement ratio: 80% based on transaction value. For each KPI, we have established annual milestones and review progress on a quarterly basis, while working toward the achievement of these new KPIs across the entire IDEC Group.
Alongside our initiatives based on the new sustainability KPIs, we are advancing efforts to realize a circular society by reducing environmental impacts from our business activities, including waste reduction and the introduction of recycled materials, with a focus on our major global manufacturing sites. Through these initiatives, we aim to achieve both environmental conservation and sustainable business growth.
Transition Plan
■ Strategy
The IDEC Group regards its environmental strategy as an important part of its business strategy. To incorporate the transition plan into the medium-term management plan starting in FY2026, we have introduced a sales target for enhanced eco-friendly products as a KPI. Through this initiative, we will systematically work to increase our environmental contribution through our business activities.
We are also accelerating the development of a value chain in collaboration with suppliers by establishing a KPI for the supplier engagement ratio and revising our CSR Procurement Guidelines and Green Procurement Guidelines. In addition, we continue to promote various environmental initiatives, including reducing CO2 emissions toward achieving carbon neutrality, reducing industrial waste, and increasing recycling.
These activities related to our transition plan represent a balanced environmental approach toward contributing to the IDEC Group Purpose of “the realization of safety, ANSHIN and well-being around the world.” ESG-related information, including disclosures aligned with IFRS S2, has also been included in our Annual Securities Report since FY2024.
■ Governance Structure
Our transition plan is implemented under the supervision of the Board of Directors, and progress toward climate-related targets is reported to the Board annually. For details, please refer to “Disclosure Aligned with IFRS Sustainability Disclosure Standard S2.”
■ Initiatives to Reduce CO2 Emissions
For our sustainability KPI covering FY2023 through FY2025, we achieved the target of reducing CO2 emissions (Scope 1 and 2) by 24% compared with FY2020. CO2 emissions decreased from 11,943 t-CO2 in the FY2020 base year to 8,555 t-CO2 in FY2025. Going forward, we aim to reduce CO2 emissions by 35% by the end of FY2028 and by 50% by the end of FY2031, and to achieve carbon neutrality by the end of FY2051.Achieving these targets requires efforts not only in Japan but across the entire IDEC Group. For Scope 1 emissions, we will review the appropriate number of company vehicles, increase the proportion of hybrid and electric vehicles, and electrify various heat sources. For Scope 2 emissions, we will reduce electricity consumption at each site, switch to electricity providers with lower CO2 emission factors, and replace air-conditioning and production equipment with more energy-efficient alternatives.
■ Strengthening Supplier Engagement
Reducing Scope 3 CO2 emissions requires not only the IDEC Group's own efforts but also cooperation from our suppliers. As part of our efforts to achieve this goal, we have established engagement with suppliers accounting for the top 80% of transaction value at each production site as a KPI under our new medium-term management plan.Specifically, we will identify and list areas in which we seek to engage with suppliers and, through our global environmental management system activities, promote engagement on feasible initiatives at procurement sites in Japan and around the world. While increasing the number of suppliers we engage with each year, we will also work collaboratively with suppliers with whom dialogue is already underway to further advance feasible initiatives.Our supplier engagement initiatives are expected to contribute over time to reducing Category 1 emissions associated with purchased goods and services, which account for the largest share of CO2 emissions in our upstream Scope 3 emissions.
Environment-related sustainability KPIs
① Sales of enhanced eco-friendly products: 8.2 billion yen
As an indicator for measuring the financial contribution generated by environmentally conscious initiatives in product development, we have set sales of enhanced eco-friendly products as a KPI. This target is based on estimated sales of enhanced eco-friendly products previously launched, as well as products scheduled to be introduced under the medium-term management plan that are expected to qualify as environmentally conscious products. As of the end of FY2026, sales of enhanced eco-friendly products amounted to 3.5 billion yen.
② Reduction ratio of CO2 emissions: 35% (Scope1&2, vs. FY2020)
To achieve carbon neutrality by 2050, we have set the reduction ratio of CO2 emissions as a KPI. In FY2026, CO₂ emissions amounted to 8,420 t-CO₂, representing a reduction of 29.5% from the baseline year FY2020 level of 11,943 t-CO₂. To achieve a 35% reduction by the end of FY2028, we plan to promote measures to lower emissions, including the increased adoption of hybrid company vehicles, the expanded use of green electricity, and the electrification of heat sources.
| FY2025 |
FY2026 plan |
FY2027 plan |
|
| Reduction ratio | 30% | 31% | 35% |
| Result | 29.5%* | - | - |
| Progress | △ | - | - |
③ Supplier engagement ratio: 80% (based on transaction value)
In FY2026, we conducted questionnaires targeting key suppliers at our major global manufacturing sites to gain an understanding of the current status of their environmental initiatives and to initiate collaborative relationships with them. In FY2027, based on an analysis of the survey results, we aim to achieve a supplier engagement ratio of 50% with key suppliers.
| FY2025 |
FY2026 plan |
FY2027 plan |
|
|
Engagement ratio |
25% | 50% | 80% |
| Result | 35% | - | - |
| Progress | ○ | - | - |
External environmental evaluations
In the “CDP Climate Change Report 2025” published by CDP in November 2025, we received a “B” score for the third consecutive year since 2023. While we achieved A or A− scores in many climate change categories—such as business strategy, initiatives to reduce CO₂ emissions, governance, dependencies and impacts, and processes for risks and opportunities—challenges remained in the areas of third-party verification and target setting. For CDP Water 2025, we received a B− score, the same as in 2024, while the Supplier Engagement score improved significantly to B, up from D in 2024.
IDEC's "B" score for climate change in 2025 is at the management level in CDP's classification, which indicates that the company understands its own environmental risks and impacts and takes actions on climate issues.
In EcoVadis 2026, we scored 78 points in the environmental category, an improvement of three points from 2025. Our overall score of the IDEC Group reached a record high of 66 points, earning a Bronze Medal for the second consecutive year.
IDEC expressed support for TCFD in 2021 and has been disclosing climate-related financial information since 2022. Starting in 2024, we have disclosed environmental information in accordance with the IFRS S2. We actively engage in external initiatives, including the United Nations Global Compact, climate change initiative, and the GX Future Consortium. In addition, we are a full member of NECA (Nippon Electric Control Technology Industries Association), an industry association in Japan.