Murata and the Environment

Our goal

We aim to reduce the amount of greenhouse gases (GHG*1) emitted during manufacturing by operating in accordance with RE100*2 and SBT*3.

Fiscal 2024 Goals
  • GHG emissions (vs. fiscal 2019): 1.28 million t-CO2e (-20%)*
  • Renewable energy sourcing: 25%
Fiscal 2030 Goals
  • GHG emissions (vs. fiscal 2019): 0.87 million t-CO2e (-46%)*
  • Renewable energy sourcing: 50%
Fiscal 2050 Goals
  • Renewable energy sourcing: 100%

* Scope: Scope1+Scope2

Murata continues efforts to reduce the environmental load of manufacturing. Reinforcing climate change countermeasures has been selected as a priority issue (material issue), and a target GHG reduction amount has also been set.

Total GHG emissions increased rapidly until fiscal 2018, due to increased production spurred by higher demand for electronic components in recent years, M&As, and new business expansion. However, with the enactment of the Paris Agreement, companies are now required to reduce total GHG emissions even as they expand.

Murata is, therefore, working toward reducing total GHG emissions by promoting energy conservation and the use of renewable energy, with the Climate Change Committee (chaired by the Executive Vice President) taking a central role. The Climate Initiative Subcommittee, a subordinate organization of the Climate Change Committee, works on supporting major climate change initiatives, setting goals, and promoting discussion on disclosing information in accordance with TCFD*4 recommendations. In fiscal 2020, the Subcommittee worked on making the RE100 declaration.

In addition, we are supplementing our existing capital investment-based approach to energy conservation by beginning to optimize our use of energy during production through the creation of new energy management systems that utilize Murata sensing and IoT technologies.

Murata has received third-party certification with regard to total GHG emissions and has been highly praised for actively disclosing information on total GHG emissions and climate change countermeasure efforts, even from outside the company (such as CDP*5 climate change survey).

  • *1.

    GHG: Greenhouse gas. Gases that contribute to the greenhouse effect.

  • *2.

    RE100 (Renewable Energy 100): an international initiative administered through a partnership between the international NGO called “The Climate Group” and CDP in which globally influential companies aim for 100% renewable energy.

  • *3.

    SBT (Science Based Targets): Science-based greenhouse gas emission reduction targets in accordance with the Paris Agreement.

  • *4.

    Task Force on Climate-related Financial Disclosures: An organization that supports businesses that discloses information on climate change risks and opportunities.

  • *5.

    Carbon Disclosure Project: An international nongovernmental organization (NGO) that surveys and evaluates the environmental initiatives of entities such as companies and cities and publishes the results.

Reinforcement of climate change countermeasures

Joining the “RE100” international environmental initiative

In December 2020, Murata joined “RE100,” an international initiative which aims to switch the power used in business activities to 100% renewable energy. Murata has set a goal of using 50% renewable energy for business purposes by fiscal 2030, and 100% by fiscal 2050, and continues working toward realizing a sustainable society.

Because multilayer ceramic capacitors (MLCCs) and other electronic components which are our main products require that a high temperature state be maintained in the calcination process, they use a considerable amount of power. Due to the space restrictions on the number of units that can be calcinated at one time, we are promoting initiatives to make MLCCs lighter, thinner, shorter and smaller to reduce the environmental load (use of power and raw materials) during calcination.

In addition to reducing the environmental load in such production processes, we aim to promote the use of renewable energy at production subsidiaries in Japan and overseas. We have already installed solar panels at more than 15 group sites and will make large-scale investments from 2021 onwards. Going forward, we will continue to make improvements in order to make maximum use of power generated with Murata's storage batteries and to maximize the use of power at our business sites.

Reference link: RE100Open in New Window

RE100 is led by The Climate Group in partnership with CDP, as part of the We Mean Business coalition. Since April 2017, Japan Climate Leaders’ Partnership (JCLP) has been the Climate Group’s Regional Delivery Partner on RE100 initiative in Japan.

Participation in the Japan Climate Leaders' Partnership (JCLP) which aims to achieve a decarbonized society

The company has been participating since 2018 as executive member of the Japan Climate Leaders' Partnership (JCLP), an organization which is ambitiously taking on the problem of climate change joined by many companies who believe that the industrial world needs to have a healthy sense of crisis and should begin to act in a positive manner. Utilizing knowledge from outside the company, we are accelerating decarbonization activities through the Murata value chain while also launching businesses that contribute to global climate change measures through collaboration with other participating companies as well as actively participating and considering opinions produced to provide suggestions to the Japanese government through JCLP.

Reference link: JCLPOpen in New Window

TCFD measures

Climate change is a global threat to the life of humanity and the health of the planet. It will also affect our business, our customers and our supply chain. The scientific assessment from the United Nations’ Intergovernmental Panel on Climate Change (IPCC) released in 2021 called for urgent deep decarbonization in this decade in order to avoid the worst climate impacts and maintain a livable planet.

We believe businesses have an important role in fighting climate change. We recognize that climate change presents both risks of increased cost and disruption for our business as well as new opportunities for Murata to create value while meeting the needs of society. The next decade presents immense opportunities to expand our business into new domains, while living out Murata’s mission of contributing to the advancement of society by creating innovative products and solutions.

Murata endorsed recommendations by the TCFD established by the FSB*1. We will analyze risks and opportunities brought on by climate change and work to disclose information related to governance and strategies in accordance with the TCFD recommendations.
The followings outlined Murata’s efforts in the four thematic areas specified in the TCFD recommendations, namely, governance, strategy, risk management, and metrics and targets.

  • *1.Financial Stability Board

Governance

Murata is strengthening its governance in the fight against climate change. The Board has overall accountability for the management of all risks and opportunities, including climate change. Our President and an Executive Vice President, who are Executive Directors of the Board, chair Murata’s CSR Management Committee and Climate Change Committee respectively and are ultimately accountable for the oversight of our climate change agenda.

The Climate Change Committee is responsible for governing Murata’s overall strategies in response to climate change and monitoring the delivery of climate-related objectives across the Murata group of businesses. The Committee, comprising heads of manufacturing operations, environment department, research & development and other business functions, meets at least twice a year, with additional meetings on selected topics. The agenda items discussed in fiscal 2020 included strategic initiatives to reduce GHG emissions at manufacturing operations, the development of lighter, thinner, and more efficient products to help our customers meet their carbon reduction targets, as well as progress in setting SBT and the deployment of renewable energy.

The Climate Initiative Subcommittee, chaired by the General Manager of Murata Group’s enviroment department, along with senior managers of relevant departments and business units, supports the Climate Change Committee in deliberating the implementation of climate-related strategies and offering a platform for collaboration and best practice sharing across the Company.

Following the discussion at the Climate Change Committee, Murata made a key decision to become a signatory of the global initiative of RE100 , committing to sourcing 100% renewable electricity by 2050. As a result, in fiscal 2021, the Committee set up a new Renewable Energy Subcommittee, with members from Murata’s battery, Business Development and environment department, to begin efforts to drive renewable energy adoption across the Company.

The Climate Change Committee reports different climate-related issues to the CSR Management Committee, which further scrutinizes the issues and reports to the Board of Directors. In its oversight of the Company’s management plans and business strategies, the Board of Directors would take into consideration the risks and opportunities posed by climate change, relevant company policies and the status of current initiatives.

In addition, Presidential Award and Committee award system was established for initiatives to reduce CO2 at each production plant as part of our incentives. These awards are primarily given for cases selected according to economic efficiency, reasonableness, and other unique standards adopted by Murata based on CO2 reduction through energy conservation and renewable energy.

To further enhance the governance of climate change issues and reinforce our focus on long-term value creation, starting from fiscal 2021, we introduced internal carbon pricing, assigning a monetary value to carbon reduction and embedding the value into an investment index. The shadow pricing aims to encourage investment decision-making that supports the reduction of emissions and associated business costs and risks in the long run. Going forward, we will explore incorporating shadow carbon pricing into our management accounting system and the performance evaluation of each department.

Strategy

Climate change is an issue of critical importance to Murata. The risks and opportunities brought by climate change are expected to have a significant impact on the sustainable development of our business in the medium and long term. To anticipate the potential impact and appropriately incorporate the potential effects in our strategic planning processes, we analyzed how Murata's key assets and markets would be affected.

Our approach to climate scenario analysis

Two scenarios with different levels of physical risks and transition measures were selected to provide a range of plausible future climate states to help assess the resilience of our assets, business strategies and climate change countermeasures.

  • 4°C scenario based on IPCC Representative Concentration Pathway (RCP) 8.5, in which climate policy is less ambitious and emissions continue to rise at current rates, with average global temperature increased by 4°C by 2100. Physical manifestations of climate change are increasingly apparent. Businesses and society at large are exposed to increasing risks of extreme climate hazards, such as extreme heat, typhoons, flooding, drought etc.
  • 2°C scenario based on IPCC RCP 2.6, where average global temperature rise by 2100 is kept below 2°C in line with the goal of Paris Agreement, as a result of robust climate policies, supported by the development of innovative technologies, to curb emissions and deploy renewable energy. Physical ramifications of climate change are generally constrained but not avoided.

We focused the assessment on the material physical impacts of climate change to Murata’s business in the year 2030 and 2050, and the risks and opportunities brought forth by evolving policy and regulatory changes as the world aspires to transition to a low-carbon economy.

Our climate scenario analysis prerequisites (key assumption and variables):

Approach

A mix of quantitative and qualitative methods:

  • Quantitative modelling to assess potential direct physical climate impact on Murata’s assets
  • Qualitative approach to transition impact analysis

Scenarios

IPCC RCP 2.6 (2°C scenario) and RCP 8.5 (4°C scenario) were used as base scenarios.

  • The physical impact of 10 climate hazards*1 to the selected portfolio of assets
  • The transition impacts from policy intervention in Murata’s top markets

Scope
The assessment covers:

  • Direct physical impacts on 20 major manufacturing sites and business facilities
  • Transition impacts in Murata’s top operating locations and markets (based on sales revenue)

Timing

Given the nature of global warming effect and typical process of public policy formulation, the following time horizons were adopted:

  • Medium term: 2030
  • Long term: 2050

Climate models/data sets

  • Referenced an ensemble of peer-reviewed climate models recognized by IPCC and leading climate bodies, such as CMIP5 (Fifth Coupled Model Intercomparison Project)*2 , GFS weather forecast model, GPM flood and precipitation data, etc
  • Use of AI technology to enhance the predictive power and quality of analysis

Physical risks

  • Examined the impact of 10 climate hazards to the selected portfolio of assets.
  • This research focused on the direct physical impact on the assets, and we are planning to analyze the impact on the whole value chain, such as suppliers and product transportation

Value-at-risk (VaR)

Reflects the estimated financial loss that can incur to the selected portfolio or asset in a year, with a certain probability, if all the estimated hazard events occur under the considered scenarios and period.
VaR is estimated based on a macro view of the following two aspects.

  • Loss from physical damage to an asset : Evaluated with reference to historical events, asset types and cost of construction for the specific locations
  • Loss from business interruption : Evaluated based on macro-economic factors such as country GDP, population, land use (e.g. farming, commercial, residential, manufacturing, etc.), urbanization.

Policy

  • Referenced relevant climate-related policy intentions and objectives announced in Murata’s top operating locations and markets, including national carbon reduction targets, Nationally Determined Contributions (NDCs) for Paris Agreement, etc.
  • Policies are assumed to be more stringent in the 2°C scenario and less in the 4°C scenario.
  • *1.

    Storm surge, rainfall floods, river floods, landslides, typhoons, drought, precipitation, sea-level rise, snowmelt and extreme heat

  • *2.

    Coupled Model Intercomparison Project (CMIP5) is a collaborative framework led by World Climate Research Program (WCRP) with the aim to foster climate model improvements and support national and international assessments of climate change impact.

    Reference Link: WCRPOpen in New Window

Understanding the plausible impacts

The business implications of these climate scenarios were assessed without considering any actions that Murata might take to mitigate or adapt to the evolving circumstances. We outlined the material impacts of these scenarios and included a high-level discussion of how climate change is positioned in our business strategy and our assessment of the resilience of our strategy.

IMPACTS TO MURATA’S BUSINESS

Physical risks

Assessed Murata’s top 20 manufacturing sites and business facilities
Assets: Japan, China and South-East Asia

4°C scenario

  • Over 80% increase in the risk of one or a group of these assets being affected by extreme climate hazards in 2050 from that in 2020
  • Risk exposure by types of acute and chronic physical risks:
    High to very high level of risk extreme typhoons and extreme heat, with risk factors of both being over 70%
    Medium level of risk extreme drought and landslide
    Low level of risk extreme rainfall flood and sea-level rise
    Not material extreme precipitation, storm surge, river flood or snowmelt
  • Value at Risk (VaR): estimated to be approximately 1 billion JPY. We aim to conduct analysis based on Murata-specific information in the future, and depending on the results, VaR may increase.
  • Impact to our operating costs:
    The ramification of physical impact of climate change will likely cause increased incidences of disruption to our supply and distribution networks and higher prices of raw materials

2°C scenario

  • 25% increase in the risk of one or a group of these assets being affected by extreme climate hazards in 2050 from that in 2020; a 60% point reduction in the increase of risk exposure than that in the 4°C scenario
  • Risk exposure by types of acute and chronic physical risks:
    Medium-high to high level of risk extreme typhoons and extreme heat, with risk factors of both being over 50%
    Medium level of risk extreme drought and landslide
    Low level of risk extreme rainfall flood and sea-level rise
    Not material extreme precipitation, storm surge, river flood or snowmelt
  • Estimated to be approximately a few hundred million yen. We aim to conduct analysis based on Murata-specific information in the future, and depending on the results, VaR may increase.
  • Impact to our operating costs:
    Increased operating costs will likely come from transition measures, such as emissions restrictions, price of carbon relating to our operation, raw materials and products

Transition Impact

Assessed major markets (based on sales) and operating locations
Markets: Japan, China, the USA, European Union, South East Asia and Korea.

Transition risks

Emerging Trends Risks
Countries with net-zero emissions targets account for over 70% of Murata’s sales in fiscal 2020. Although the electronic components industry is not a targeted industry for heavy regulatory emissions control across the priority markets that we have assessed, policy interventions (e.g. carbon tax or carbon trading schemes) will likely increase over time Increase in cost of our production activities
Most countries have set energy efficiency improvement targets Increase in utility costs of production operation
Some countries intend to set product energy efficiency standards or carbon import tax Increase in the cost of accessing these markets

Transition opportunities

Emerging Trends Opportunities
All the assessed economies have set targets for the deployment of renewable energy and electric vehicles (EV) by 2025 or 2030 These commitments would fuel a soaring demand for EVs and renewable energy, and hence for Murata’s products
Over the past four years, number of automobiles sold globally declined by 18%*3 , but our sales of automotive electronic components increased by 3.7%, reaching JPY 273.2 billion in fiscal 2020 EVs, with its rising share in the global automobile market, require more electronic components than conventional cars, which will likely bring about higher demand for a number of our product lines
Rising public concern on climate change and policy trends of pursuing a green and smart economic transition globally Increase the demand for our compact and energy-efficient electronic components over the medium to long term, driving revenue growth and creating opportunities for us to enter new markets
Current Nationally Determined Contributions (NDCs) are considered insufficient to limit the rise in global average temperature to below 2°C Our innovative technologies and products will play an increasingly important role
Rising investor interest in green investment in the medium to long term Murata's robust environmental management and carbon-efficient innovations will make it appealing to investors
RESPONSE AND RESILIENCE OF STRATEGY

(Common for Physical and Transition risks)

Company-wide emissions reduction programs, led by the Climate Change Committee, have resulted in continued reduction of our total carbon footprint since 2018.

  • Promotion of energy conservation:
    Initiatives to lower our demand for electricity, a major source of our emissions, include optimizing air-conditioning systems, reducing standby power consumption of equipment and using sensing/IoT technology to improve the performance of energy management systems of production facilities, reducing emissions and operating costs.
  • Promotion of renewable energy:
    Introducing solar power generation facilities and purchase of renewable energy and renewable energy certificates. Renewable energy accounted for approximately 400 million kWh (15% of overall electricity use) in fiscal 2020, contributing to curbing approx. 240 kt-CO2e of emissions.

Additionally, we are developing new internal systems and targets to guide emissions reduction effort.

  • Internal systems:
    • An internal carbon pricing system was introduced in 2021 to align investment decision-making with the Company’s commitment to emissions reduction.
  • New targets:
    • Joined RE100, committing to sourcing 50% electricity from renewables by 2030 and 100% by 2050.
    • Plan to set emissions reduction targets in line with the SBTi criteria.

These initiatives will promote product and process innovation internally and contribute to accelerating the transition to a low-carbon economy.
In the future, we plan to engage with relevant departments to promote climate change countermeasures across our supply chain to reduce Murata’s scope 3 emissions.

(Physical risks)

  • The assessed VaR, in the range of few hundred million to 1 billion JPY, is not expected to have a material impact on the Company’s financial position. As a reference, the potential financial loss would account for less than 0.5% of Murata’s net profit in fiscal 2020.
  • We aim to conduct analysis based on Murata-specific information in the future, and depending on the results, VaR may increase.
  • Business Continuity Plan (BCP) to minimize the impact of hazards on our operations. (Reference Link: Reinforcing Risk Management

(Transition risks)

  • Capital investment projects related to energy saving can result in a less aggressive threshold on the rate of return compared to other investment activities. The net costs of these energy-saving investments are considered to be negligible in the long run as the projects can generate saving in energy costs over time.
  • Positioning the mobility market as opportunity for business growth in our long-term vision “Vision 2030,” as the EV market, with high demand of electronic components, is expected to grow
  • Similarly, harnessing business opportunity related to environmental countermeasures, including working to expand earnings from our battery business, such as from battery storage technology
  • Developing fully-solid-state batteries that can be used in safety-conscious applications, such as consumer wearables, household and power-plant sensors
  • Continuing to evolve the technology behind our market-leading capacitors and piezoelectric components
  • Enhancing our climate-related disclosure, including adopting the TCFD framework, to help communicate more effectively with both domestic and international investors

Risk management

CSR Management Committee regularly evaluates the materiality of a wide range of social, environmental, and economic issues through a structured process.
In the most recent materiality assessment, climate change was identified as a critical risk and endorsed by the Board of Directors as an important issue that Murata should prioritize management oversight and actions.
(Reference Link:Material issue)

On a strategic level, the Climate Change Committee provides oversight on Murata’s climate change agenda, including the continuous monitoring of evolving climate-related risks.
In fiscal 2021, we started to use scenario analysis to evaluate the potential risks and opportunities of plausible future climate states and the resilience of our business strategy.

On the operational level, ISO 14001 is enforced in our production facilities to assess environmental risks and drive continuous improvement.

Risks arising from climate change are incorporated into company-wide enterprise risk register under the supervision of the CSR Management Committee.
For example, guidelines for responding to severe weather conditions are provided in our Business Continuity Plan (BCP) to minimize business disruption.
(Reference Link: Reinforcing Risk Management)

Our participation in industry associations, such as Japan Climate Leaders' Partnership (JCLP), and global alliances, such as RE100, can help us gather insights into emerging risks and opportunities related to climate change.

Metrics and targets

We are in the process of setting science-based emissions reduction targets to help align our ambition with our fair share of contribution to the world’s effort in keeping average temperature rise below 1.5°C.
In addition, as a member of RE100, we have committed to achieving 50% electricity from renewable energy installation ratio by 2030 and 100% by 2050.
In fiscal 2021, although our business is expected to grow (sales up 6.3% year on year)*1, we aim to reduce our Scope 1 and 2 GHG emissions by 2.4% from fiscal 2020 to 1.4 million t-CO2.
Looking forward, we aim to broaden and deepen the scope of our climate scenario analysis to provide more comprehensive assessment of future risks and opportunities. We will also formulate plans that take these into account and accelerate the decarbonization of the entire value chain.
(Refer to ESG Data Collection at ESG Data Book for a breakdown of CO2 emissions by scope/category.)

GHG emmisions
(kt-CO2e/year)
Periods
Fiscal 2018 Fiscal 2019 Fiscal 2020
Total emissions 6,074 5,979 5,237
Scope 1 312 307 278
Scope2*2 1,320 1,302 1,157
Scope 3 4,442 4,371 3,801
  • *1.

    Taken from business forecast released on July 29, 2021.

  • *2.

    Murata changed its CO2 calculation method to market-based in fiscal 2019.

Climate change countermeasure initiatives throughout the supply chain

73% of all Murata's GHG emissions are Scope 3 emissions. We realize that reducing Scope 3 GHGs is just as important as reducing Scope 1 and 2 GHGs and are currently looking into setting new Scope 3 reduction goals in accordance with SBT criteria.

Once these goals have been set, a wide variety of involved departments will work together to promote climate change countermeasures across the entire Murata supply chain.

Murata's total GHG emissions for fiscal 2020 (Scopes 1, 2, and 3)
Link: Created based on “Guide to Calculating Supply Chain Emissions” (Ministry of the Environment)Open in New Window

Method for calculating total greenhouse gas (GHG) emissions, and third-party assurance

Following the GHG Protocol, a global calculation standard, we calculate total emissions within the three scopes defined below:

Scope 1: Direct emissions of GHG from the business operator itself (fuel combustion, industrial processes).
Scope 2*1: Indirect emissions due to the use of electricity, heat, or steam provided by another company.
Scope 3: Indirect emissions outside of Scope 1 and 2 (emissions from entities that are related to the activities of the business operator).

As initiatives to tackle climate change have become essential for companies, Murata manages its greenhouse gas emissions based on reliable data that has been certified by a third party. Murata believes that disclosure of highly reliable data is a first step and receives third-party assurance of greenhouse gas emissions each year. Furthermore, Murata is actively working toward the introduction of solar power generation, and hence, it also receives certification of the amount of solar power generated.
Link: Independent Assurance StatementOpen in New Window

  • *1.

    Location-based: Calculated using the average CO2 emission coefficient for the power network in that region.
    Market-based: Calculated using the CO2 emission coefficient for each power purchase agreement.
    Murata's calculation method changed since FY2019 because market-based calculation is more accurate and has become the mainstream method used in recent years.
    (Reference Link:ESG Data Book Scope 3)
    (Reference Link:GHG Protocol WebsiteOpen in New Window)

Trends in total GHG emissions, and efforts to reduce GHG emissions

Murata has long been involved in implementing energy conservation initiatives and continues to implement anywhere from 450 to 600 energy conservation measures annually (equivalent to 40,000 to 50,000 t-CO2 reduction). However, recent business expansion has outpaced these efforts, and total GHG emissions have increased in recent years.

In response, Murata has implemented measures to conserve energy and expand its use of renewable energy. GHG emissions peaked in fiscal 2018 and then began decreasing, with GHG emissions for fiscal 2020 totaling 1.435 million t-CO2e (a reduction of 174,000 t-CO2e year-over-year). We have set a goal of 1.4 million t-CO2e or less for fiscal 2021, and continue to implement initiatives to further reduce this number by fiscal 2024 and fiscal 2030.

In order to accumulate future CO2 reductions, we designed an internal carbon pricing system and began putting it into operation in fiscal 2021. Specifically, we are assigning a monetary value to CO2 reduction and embedding it into the investment index to introduce shadow pricing, which encourages decision-making that executes investments that are effective at reducing CO2. We will continue to implement systems that can even more effectively help to reduce CO2.

Trend of total GHG emissions (Scope: Scope1+Scope2)

Murata is a member of the Japan Electronics and Information Technology Association (JEITA). The electrical equipment and electronics associations, including JEITA, participate in KEIDANREN’s Commitment to a Low Carbon Society with an eye to 2020, and aim to improve the energy efficiency of production processes by 1% per annum. In order to achieve this target, Murata is also working to improve energy efficiency through energy-efficiency measures at factories and offices, etc.

Link: JEITA (the Japan Electronics and Information Technology Association)Open in New Window

Link: JEITA MembersOpen in New Window

Rate of improvement in quantitative basic units at domestic factories

Breakdown of SCOPE 1 Emissions in FY2020 (CO2 equivalent)

Scope GHG Actual emissions (t-CO2e)
Scope1 CO2 185,586
CH4 0
N2O 0
HFCs 328
PFCs 90,625
SF6 1,642
NF3 0
Others 0

Reducing the use of liquid PFC

PFCs are chemical substances that contribute to global warming and are a target for reduction under the Kyoto Protocol. Murata is a member of the Japan Electronics and Information Technology Industries Association (JEITA), and we stand behind the organization’s voluntary action plan. Murata itself has set a fiscal 2020 target of achieving a 65% reduction in liquid PFCs against fiscal 2002 in terms of CO2 equivalent, and has worked to realize this goal. From 2015, we have been successively introducing PFC regeneration and recovery equipment to worksites that use large amounts of liquid PFCs, and in fiscal 2020 we realized our target, achieving a reduction of 73% against fiscal 2002.

Changes in volume of liquid PFC use and rate of reduction (Domestic)

Reduction of environmental impact arising from distribution

We strive to reduce environmental burden at the distribution stage of products in addition to manufacturing stages.

In addition to reducing CO2 emissions by making transportation more efficient, we are also promoting eco-friendly physical distribution based on the 3Rs.

Tracking CO2 emissions in domestic distribution and overseas distribution

Until fiscal 2015, we set targets for the reduction of CO2 emissions every year based on our 5th Environmental Action Plan and worked to realize them. As a result, we achieved a specific outcome in relation to CO2 emissions during distribution in Japan (a reduction of more than 70% in emissions per unit of net production against figures for fiscal 2007).

Having realized this result, in our 6th Environmental Action Plan in effect from fiscal 2016, we did not stipulate a new set of targets for the reduction of emissions during distribution but made these reductions a feature of standard operations. Going forward, we will continue to implement distribution management that considers the environment, monitoring emissions daily.

  • In fiscal 2020, our CO2 emissions during domestic distribution were 399 tons per month, a 74% reduction in CO2 emissions per unit of net production against fiscal 2007.
  • Murata’s CO2 emissions during distribution for the entire world were approximately 13,251 tons per month.
CO2 Emissions during Domestic Distribution

Reducing energy consumption

Contributing to the prevention of global warming through energy-saving activities that put our organizational capabilities to work

Murata has been continuously implementing energy conservation initiatives from the past and continuously executes between 450 and 600 (equivalent to 40 to 50 kt-CO2 reduction and reduction in energy costs of approximately 700 million JPY) large and small energy conservation measures annually. Since 2015, we have been performing energy audits (energy conservation diagnosis) at each business site as well as creating and deploying approximately 200 energy conservation checklists which can be horizontally deployed from among energy conservation initiatives concerning utilities and production facilities. The progress status, verification of the impact, and updating of the checklists are performed under guidance from the headquarters.
We have made improvements, focusing on measures with a large greenhouse gas reduction effect. Our main energy-saving initiatives included 1) updating to high-efficiency equipment, including refrigeration equipment; 2) introduction of thermal recovery equipment; 3) reducing electricity use when equipment is on standby; and 4) reducing air-conditioning power by optimizing the pressurization of clean rooms.

Murata is working actively on the visualization of energy in its business, using in-house technology, and is establishing a system that will allow us to plan and effectively implement energy-saving measures. Specifically, we are moving ahead with the introduction of an energy management system that enables energy usage to be analyzed at both plants and the head office. The system uses wireless sensors developed by Murata to gather such data as temperature and humidity in a plant and the current value of various pieces of equipment and sharing them online. This system has won a Good Design Award and a Chairman Prize of ECCJ in the Energy Conservation Grand Prize for excellent energy conservation equipment in fiscal 2017. Thus far, Komoro Murata Manufacturing has used this energy management system to optimize its air-conditioning and reduce standby power of equipment through energy visualization, resulting in a 2.2% reduction in greenhouse gas emissions for the plant overall. Murata will continue making efforts to introduce advanced energy-saving measures such as the energy management system throughout the Group, which has operating bases around the world.

Furthermore, in addition to easing previous standards regarding renewable energy and energy conservation investment more than other investment standards to promote investment, starting from fiscal 2021 we introduced internal carbon pricing in order to accumulate future reductions of CO2 through self-supporting efforts. Specifically, we are assigning a monetary value to CO2 reduction and embedding it into the investment index to introduce shadow pricing which encourages decision-making that executes investments which are effective at reducing CO2.

Changes in Energy Consumption*
  • *

    Total energy consumption is the total amount of purchased power converted into primary energy.

Development of energy-efficient electronic component manufacturing equipment

At Murata, we are developing electronic component manufacturing equipment that has a high rate of energy efficiency. Our indicator for the energy savings realized by this manufacturing equipment is energy consumption per unit of production (per unit of net production). We are developing the new equipment with the goal of a 25% or higher reduction in energy consumption against benchmark machinery (conventional manufacturing equipment).

We have also been proceeding with energy-saving improvements to the existing manufacturing equipment in operation at our plants. In fiscal 2020, we focused on a horizontal rollout of approximately 70 energy-saving measures for manufacturing equipment that we have formulated to date.

In addition, every year we conduct energy-saving training workshops for production equipment design engineers in their second year of employment, providing them with expertise in relation to the design of production equipment in order to realize energy savings.

In fiscal 2020, Murata investigated the introduction of new energy-saving technologies and, as a new initiative, has built an energy measurement system combining sensors and wireless systems developed in-house in an effort to conserve energy and increase productivity.

Murata will proceed a further analysis on the energy consumption of the manufacturing equipment in fiscal 2021 for an even better energy saving measures development.

Murata implements energy saving measures not only in manufacturing equipment but also engages in product manufacturing which considers the environmental load across the entire product lifecycle consisting of component material purchasing, design and development, production, usage, recycling, and disposal.
We establish our own certification criteria, conduct evaluations from the development and design stages, and provide the results as environmentally-friendly products.

Link: Environmental Contribution Through Our Products

Introduction of renewable energy

As one initiative aimed at “reinforcement of climate change countermeasures,” at Murata we are striving to expand the amount of renewable energy within the power consumption resulting from business activities. As a global company, we have actively promoted the introduction of solar power generation both in Japan and other countries such as Thailand, and we have incorporated the utilization of renewable energy certificates. During fiscal 2020, electricity originating from generation via solar power generation equipment, renewable energy certificate procurement, and other forms of renewable energy reached approximately 400 million kWh, which contributed to limiting greenhouse effect gases to approximately 240 kt-CO2. We are continuing to explore the introduction of renewable energy in Japan and overseas to help reduce the environmental load.

An introduction to foreign and domestic renewable energy equipment sites

During fiscal 2019, we utilized the company parking lot with a capacity of 1,200 cars owned by Okayama Murata Manufacturing (Setouchi City, Okayama Prefecture) to introduce the largest parking lot type of mega solar system in Japan, which began generating electricity in March 2020. In January 2021, we added a parking lot type of mega solar system equivalent to 500 cars to increase the total capacity to 1,700 cars and a generation capacity of 3.7 MW. Because the system adopts not only the typical surface power generation panels but also dual sided power generation panels that can receive light on the back surface as well, it is able to generate electricity using not only direct sunlight on the surface but also reflected light received from the parked cars and the ground to increase the power generating efficiency per installation area. The power generating capability of this system is 3.87 million kWh annually, which is equivalent to more than 800 ordinary households, and we expect to be able to reduce CO2 by 2,394 tons.

Solar power generation system at Okayama Murata Manufacturing

In fiscal 2020, we installed solar panels on the roofs of six plant buildings at our production site in Thailand (Murata Electronics (Thailand), Ltd.), and in August 2020, we put into operation a 4.5 MW mega solar system, which is the largest of its kind in Murata. The Thailand plant, which has abundant sunlight, is expected to generate 6.24 million kWh of electricity and reduce our CO2 emissions by 2,949 tons per year. All of the electricity generated will be consumed within the Thailand plant, and together with the existing solar power generation system, it will supply about 8% of the power needs for the entire factory.

Solar power generation system at Murata Electronics (Thailand)

In October 2020, the roofs of factory buildings at the Singapore production site (Murata Electronics Singapore (Pte.), Ltd.) were utilized to install 2.2 MW of solar panels across 11,300 square meters. By maximizing the use of the abundant sunlight in Southeast Asia, the installation is expected to generate 2.3 million kWh annually and reduce CO2 by approximately 940 tons. Furthermore, all of the generated electricity will be consumed within the Singapore factory and any surplus electricity will be used to charge storage batteries installed within the same factory site as we strive to efficiently use electricity.

Solar power generation system at Murata Electronics Singapore

In November 2021, Kanazu Murata Manufacturing Co., Ltd. (Awara, Fukui) installed “Kanazu Murata Manufacturing Clean Energy Park,” the largest storage battery system in the Hokuriku region, in order to make use of renewable energy for 100% of its power. Kanazu Murata Manufacturing Clean Energy Park is a proprietary energy management system linked to large solar panels and storage battery units. It allows for information (including production schedules, power consumption, climate information, and power estimation) to be centrally managed and for energy usage to be optimized in real-time. During the day when it is possible to generate power, the system monitors changes in production volume and the weather, while efficiently using generated power and charging/discharging storage batteries, in order to reliably reduce the load on the grid power system. At night, the system charges storage batteries in preparation for power demand during the day to help stabilize the load on the grid power system. This will make Kanazu Murata Manufacturing CO., Ltd a 100% renewable energy plant, with an expected annual CO2 emission reduction of approximately 368 t-CO2 per year.

Solar power generation system at Kanazu Murata Manufacturing