Reducing Greenhouse Gas (GHG) Emissions
The 2015 Paris Agreement set a goal of keeping the increase in average global temperature to well below 2℃ above pre-industrial levels. Epson has set targets for reducing GHG emissions in the value chain to achieve this 2℃ goal as well as the goals of Epson 25 Renewed. Epson's targets have been approved by the Science Based Targets initiative as being consistent with climate change science.
In the 2021 fiscal year, Epson plans to update its absolute emissions reduction targets in line with a 1.5℃ scenario, as set forth in Environmental Vision 2050.
GHG reduction targets
|Reduce scopes 1 and 2 GHG emissions by 34% by the FY2025.
* Updated to in line with 1.5℃ in November 2021
|Scope 3||Reduce scope 3 (categories 1 and 11)*1 GHG emissions as a percentage of value added (business profit) by 44% by the FY2025.
*1 Category 1: Purchased goods and services
Scope 1: Direct GHG emissions from the use of fuels, etc.
Scope 2: Indirect GHG emissions from purchased energy, etc.
Scope 3: Indirect GHG emissions of the entire value chain
Epson's Science-Based Targets (SBTs)
Epson has set FY2025 targets for reducing direct emissions associated with its business activities (scopes 1 and 2 emissions) and for reducing indirect emissions (scope 3 emissions). To achieve these SBTs, we are working in concert with our customers and partners to provide eco-conscious products and services that will both drive business growth and increase corporate value.
Initiatives to Reduce Scopes 1 and 2 Emissions
Epson has launched an Epson Group-wide SBT project under which each business has selected full-time energy conservationists. Actions to reduce emissions are being explored at model sites and then shared with others to increase the likelihood that targets will be achieved.
Main actions for reducing emissions
- Production innovations
- Investment in updated facilities and equipment such as plant infrastructure, scrubbers, and solar power systems
- Purchasing low-carbon electricity and using other forms of renewable energy
- Other reductions to be achieved by power utilities reducing their GHG emissions factors
Renewable Energy Use
Epson expects its energy use to increase as production increases in line with its long-term growth strategy. Therefore, all Epson sites and businesses are implementing energy-saving measures and increasing the use of renewable energy to achieve our SBT. In 2018, Epson decided to expand its use of renewable energy by purchasing low-carbon electricity for a new factory in Japan that is involved in the production of PrecisionCore printheads, the core device at the heart of inkjet printers. We were able to increase the rate of renewable electricity use to 19% in FY2020 and make progress in reducing the Epson Group's total scope 2 emissions. We achieve this primarily by entering into long-term contracts for the purchase of low-carbon electricity and by generating power on-site at our plants overseas.
In 2021, Epson joined the international initiative RE100, which aims to drive a transition on the part of corporation to the use of 100% renewable electricity for their business activities by 2050. We have set a goal of switching to 100% renewable energy to meet the electricity needs at all Epson Group sites1 around the world by 2023.
1 Excludes some sales sites and other leased properties
Carbon pricing, an instrument that captures the costs of GHG emissions across society, is seen as a way to spur action and innovation in support of lower carbon emissions. Epson prepared payback period criteria and guidelines that incorporate carbon pricing principles to evaluate (study the feasibility of) potential investments for reducing GHG emissions. They were introduced on a trial basis in FY2018 and were formally adopted in 2020.
Reducing Scope 3 Emissions Intensity
Category 11 emissions (emissions from the use of sold products) represent the largest source of Epson's scope 3 emissions, followed by category 1 emissions (emissions from the production of products purchased or acquired).
Under the Epson 25 Renewed Corporate Vision, we are seeking to provide environmental value and mitigate environmental impacts along with our customers. In each product category, we set targets (metrics) that are linked to product value. Ultimately, we have an ambitious goal of reducing scope 3 emissions per unit of value added that is linked to a management performance indicator.
Epson's inkjet technology saves resources. Our printers, which do not use heat to print, draw comparatively little electricity while consumables and limited lifetime parts require only infrequent replacement. Using Epson inkjets instead of laser printers can cut users' electricity consumption and reduce the environmental impacts of society as a whole. In fiscal 2020, in addition to business inkjet printers and laser projectors, the contribution to avoided environmental impacts*1 from our digital textile printing and dry process office papermaking systems was calculated to be 257,000 t-CO2e.
*1 Third-party GHG emission avoidance was estimated by using a flow base approach to calculate the contribution to avoided emissions achieved by replacing conventional products and work processes with Epson products. This is different from the actual reduction amount.
(1) Replacement of laser printers with inkjet printers, (2) flat panel displays with laser projectors, (3) analog printing with digital printing, (4) digital textile printing dye inks with pigment inks, and (5) commercially available recycled paper with paper produced from used paper using dry process office papermaking systems.
Climate-Related Issues: Risks & Opportunities
The Task Force on Climate-related Financial Disclosures (TCFD) released its final report in June 2017. The TCFD encourages businesses to publicly disclose their medium- to long-term risks and opportunities related to climate change as financial information. Epson takes this as a call to develop resilient management and corporate health, able to adapt to all sorts of transitions in the face of climate change with impacts of a scope and scale we cannot predict.
Epson considers the impact of climate change on business to be an important topic. We are responding to the associated risks and business opportunities. We will address risks arising from the effects of things such as the power consumption of our products during their production and use. As presented in the Epson 25 Renewed Corporate Vision, we will also expand sales opportunities by upgrading the resource and energy efficiency of the products and services that we provide. In addition, we see opportunity in contributing to a restructuring of industry through collaboration and open innovation and in the building of a low-carbon society.