Climate Change

In order to achieve a decarbonized society, companies have an increasingly important role and responsibility to play. At the same time, the risks to business due to climate change, such as the frequent occurrence of natural disasters, have been increasing year by year.
SII has been striving to reduce greenhouse gas emissions through all of our business activities, including energy-saving activities at our manufacturing sites as well as the products and services our subsidiaries and affiliates provide. While continuing these activities, we further strengthen our efforts toward decarbonization by introducing renewable energy and other measures.

Long-Term Targets

In November 2023, Seiko Group Corporation, the parent company of SII, revised its long-term goal to reduce greenhouse gas emissions ahead of schedule. In alignment with this revised target, SII is actively working towards achieving a decarbonized society.

[Greenhouse gas emissions reduction target]*

FY 2030
 Scope 1 & 2:42% reduction from FY 2022 level
 Scope 3:25% reduction from FY 2022 level Target: Category 1 & 11

FY 2050
Strive for net-zero emissions.

* Based on the 1.5 °C level of SBTi (Science Based Targets), a science-based greenhouse gas emissions reduction target operated and promoted by SBTi (Science Based Targets initiative).

FY 2022 Overview

To reduce greenhouse gas emissions of Scope 1 and 2, SII is working hard on two key points, energy conservation activities and the introduction of renewable energy, to target both CO2 and other greenhouse gases. In addition, SII is focusing on the creation of energy-conserving products within its green product system for both products and services.
Through its energy conservation activities, SII promotes the efficient application management of various equipment, capital investment in high-efficiency equipment, and familiar energy conservation activities. SII considers continuous implementation of these activities as important.
There are various kinds and means of renewable energy, but SII considers the adoption of the optimal methods for the plant site and characteristics as essential.

While SII was able to reduce energy consumption at domestic production sites through these initiatives in FY 2022, greenhouse gas emissions increased slightly, such as fluorocarbons. SII greatly reduced greenhouse gas emissions at overseas production sites. This was due to the expansion of renewable energy use and a reduction in production.

The use of solar power at an overseas site of Seiko Instruments (Thailand) Ltd. was expanded. As for sites in Japan, the use of PPA is now being considered for the Sendai plant. There are many types of PPA*, and SII is planning to use the optimal method for the special characteristics of the plant.
As a member of the Seiko Group, SII is continuously engaged in disclosure of information and calculation of Scope 3 based on TCFD proposals.

* PPA: Power Purchase Agreement

Greenhouse Gas Emissions (Japan Sites)(t-CO2)

Greenhouse Gas Emissions (Japan Sites)
GHG Emissions (Japan Sites): 
27,930 tーCO2
46 tonsーCO2 increase, or +0.2% from FY 2021

Greenhouse Gas Emissions (Overseas Sites)(t-CO2)

Greenhouse Gas Emissions (Overseas Sites)
GHG Emissions (Overseas Sites): 
 28,708 tーCO2
4,052 tonsーCO2 decrease, or -12.4% from FY 2021
  • Overseas bases
    • SIT: Seiko Instruments (Thailand) Ltd. 
    • DSI: Dalian Seiko Instruments Inc.
    • SITS: Seiko Instruments Technology (Shanghai) Inc.

■Greenhouse Gas Emissions by Scope [Sites in Japan]

  FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Scope1 3,585 3,584 3,172 3,409 3,327
Scope2 38,952 38,781 25,527 24,476 24,603
Total 42,538 42,365 28,699 27,885 27,930

*There are some items that do not add up to the total due to fractional processing.

■ In accordance with a review of CO2 emission factors, CO2 emissions prior to FY 2019 have been recalculated.
* For electricity, the "emission factor by electric utility" in the Law Concerning the Promotion of Measures to Cope with Global Warming is used.
* For fuels, the “calorific value by fuel type” and “emission factor for fuel use” in the Law Concerning the Promotion of the Measures to Cope with Global Warming are used.
* For hot and cold water, emission factors provided by suppliers are used.
* From FY 2020, tenants and company vehicles have been added to the scope of the calculation.
* For stores, warehouses, etc., where the amount of electricity used cannot be specified, the amount is estimated from the floor area.

■ FY 2022 includes HFC emissions due to fluorocarbons leakage. No emissions of HFCs, PFCs, SF6, and NF3 in the manufacturing process, although they are subject to control.

■Greenhouse Gas Emissions by Scope [Sites outside Japan]

  FY 2017 FY 2018 FY 2019 FY 2020 FY 2022
Scope1 427 473 464 757 728
Scope2 48,300 47,334 29,708 32,003 27,980
Total 48,727 47,807 30,173 32,760 28,708

*There are some items that do not add up to the total due to fractional processing.

■ In accordance with a review of CO2 emission factors, CO2 emissions prior to FY 2019 have been recalculated.
* Electricity is based on IEA Emission Factors 2020.
* For fuels, the “calorific value by fuel type” and “emission factor for fuel use” in the Law Concerning the Promotion of the Measures to Cope with Global Warming are used.
* For stores, warehouses, etc., where the amount of electricity used cannot be specified, the amount is estimated from the floor area.

■ Not including greenhouse gas emissions other than energy-origin CO2 (not subject to control)

■Greenhouse Gas Emissions by Scope [Total of sites in and outside Japan]

  FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Scope1 4,012 4,057 3,636 4,166 4,055
Scope2 87,253 86,115 55,235 56,479 52,583
Total 91,264 90,172 58,872 60,645 56,638

*There are some items that do not add up to the total due to fractional processing.


■ Greenhouse Gas Emissions by Scope3

Greenhouse Gas Emissions by Scope3

Category Item GHG emissions
(t-CO2
%
Category 1 Products and services purchased 110,658 61.8%
Category 2 Capital goods 12,104 6.8%
Category 3 Fuel and energy-related activities
not included in Scope 1, 2
8,800 4.9%
Category 4 Transportation and distribution (upstream) 10,735 6.0%
Category 5 Waste from business activities 2,001 1.1%
Category 6 Business travel 982 0.5%
Category 7 Employee commuting 2,474 1.4%
Category 8 Leased assets (upstream) 122 0.1%
Category 9 Transportation and distribution (downstream) 56 0.0%
Category 10 Processing of sold products 184 0.1%
Category 11 Use of sold products 30,552 17.1%
Category 12 Disposal of sold products 431 0.2%
Category 13 Leased assets (downstream) - -
Category 14 Franchises - -
Category 15 Investments - -
total 179,099 100.0%

■ Introduction and expansion of renewable energy

Solar power is continuously being introduced at Seiko Instruments (Thailand) Ltd. They installed solar panels on the roof of the structure at the Gateway factory in 2022 and started operation of a solar power system from February 2023. Seiko Instruments (Thailand) Ltd. has the largest amount of greenhouse gas emissions in the SII Group. SII will introduce solar power as planned as it works to reduce greenhouse gas emissions.

Installation of solar panels on factory roof
Installation of solar panels on factory roof

■ Seiko Instruments (Thailand) Ltd. is certified for Green Industry Level 4

Seiko Instruments (Thailand) Ltd.’s two factories received Level 4 certification from the Green Industry Project promoted by the Ministry of Industry of Thailand. The Green Industry Project is intended to increase awareness in the industrial industry of environmental and societal problems and develop a sustainable industry. Certification is divided into five levels from Level 1 through Level 5 based on the degree of contribution to the environment. Seiko Instruments (Thailand) Ltd. was recognized for its continuous environmental activities based on the environmental management system and acquired Level 3 (Green System) status in 2018. The next step, Level 4, requires a corporate culture in which all employees working at the plant act while bearing responsibility for the environment and society. After acquiring Level 3, all employees at Seiko Instruments (Thailand) Ltd. engaged in various environmental activities to reach Level 4 (Green Culture). Examiners said, “all employees are highly aware of the environment and put this awareness into practice”.

Scene of examination/Certificate
Scene of examination/Certificate

■ Promotion of conversion to LEDs

SII promotes the conversion of lighting to LEDs systematically at each plant.
SII Crystal Technology Inc. promoted the conversion of ceiling lights to LEDs through a four-year plan in 2019. The plan was completed in FY 2022, and 1,150 units were exchanged in four years.

LEDs
LEDs