Global Warming Prevention Global Warming Prevention

Materiality of Global Warming Prevention

• Approach to Materiality in Energy
• Approach to Materiality in Emissions to the Atmosphere

Approach to Materiality in Energy

Advantest consumes a large amount of energy both inside and outside of the company while promoting its business activities. The company considers efficient energy use an important CSR activity for the global environment.

Supervising division	CSR & Environmental Affairs Promotion Office
KPI	Rate of improvement in unit energy consumption
FY2018 target	To promote efficient use of energy to achieve an average 1% annual reduction for the rate of improvement in per-unit energy consumption at business locations in Japan (6% reduction compared to fiscal 2012)
FY2016 result	-9.5%
Boundary (scope)	Advantest Corporation (non-consolidated) in Japan
Relevant policies	Advantest Group Environmental Policy
Relevant commitments	Energy Conservation Act
Responsible department/division	CSR & Environmental Affairs Promotion Center/Environmental Management Officer
Relevant complaint processing policy	(Corporate Ethics Helpline)
Assessment	Good

Approach to Materiality in Emissions to the Atmosphere

Advantest considers efforts to reduce the amount of emissions through more efficient energy as vital because efforts to reduce greenhouse gases that should be conducted worldwide are indispensable in global business activities.

Supervising division	CSR & Environmental Affairs Promotion Office
KPI	GHG emissions (Scope 1/2)
FY2018 target	To target 18,000t-CO2 or less by striving to promote efficient use of energy and reduce the greenhouse gas emissions at business locations in Japan.
FY2016 result	18,225 t-CO2
Boundary (scope)	Advantest Corporation (non-consolidated) in Japan
Relevant policies	Advantest Group Environmental Policy
Relevant commitments	Law Concerning the Promotion of the Measures to Cope with Global Warming
Responsible department/division	CSR & Environmental Affairs Promotion Center/Environmental Management Officer
Relevant complaint processing policy	(Corporate Ethics Helpline)
Assessment	Good

Basic Policy

The Advantest Group regards the prevention of global warming as an important corporate mission, and makes efforts to reduce greenhouse gas emission by providing green products and reforming its business processes. We are also promoting medium- to long-term energy-saving measures corresponding to the Act on the Rational Use of Energy (Energy Conservation Law) and related regulations.

Advantest's Achievements in Relation to Carbon Dioxide Emissions in fiscal 2016

Advantest is working to simultaneously achieve both energy-savings and cost reduction through more efficient production and elimination of waste. In our buildings, we are optimizing air-conditioning and other systems and replacing superannuated equipment with more efficient models, as well as implementing appropriate lighting levels and switching to LED illumination.
Advantest’s total annual electric power consumption in fiscal 2016 was approximately 560 MWh higher than in the previous year. The main factors behind this decrease were as follows: Mergers and closures of business bases led to an annual decrease of around 800 MWh; increases in production activities led to an annual increase of around 640 MWh at its factories and there was an annual increase of around 720MWh at development and other sites. A decrease in overtime, increasing efficiency of operations, shortening of the periods for which air condition equipment is in use, and updates to aging equipment led to an annual reduction of around 260MWh and the transition of lighting fixtures to LED lead to an annual reduction of around 40MWh.
As a result, the rate of improvement in unit energy consumption* was approximately -9.5% (compared to fiscal 2012).

Advantest will continue its efforts to reduce carbon dioxide emissions by adopting a waste-elimination approach and aiming to achieve both energy-savings and cost reductions.

Fiscal 2016 Important measures implemented	Transition of lighting fixtures to LED (approximate total of 1,400 lights at all business locations) Optimization of operation hours of air conditioning equipment (all business locations) Update to high-efficiency compressors (Gunma Factory)

* Rate of improvement in per-unit energy consumption：Introducing energy saving equipment and promoting the efficient utilization of energy, and realizing an annual average improvement of 1% in per-unit energy consumption at Advantest business bases in Japan (Compared to the reference year fiscal 2012, 5% or more reduction in fiscal 2017, 7.73% or more by fiscal 2020)

Carbon Dioxide Emissions Attributable to Product Delivery (Scope 3-1)

When delivering its products, Advantest makes use of product packaging and mode of transport that take into account the needs of handling and shock-resistance. Total carbon dioxide emissions deriving from product delivery in fiscal 2016 came to 178 t-CO₂. The increase in CO₂ emission volume was mainly attributable to changes in final destinations for delivery, with increased delivery distance. In the future, Advantest will continue to monitor the data relating to product delivery, and will calculate the related CO₂ emissions and strive for improvement in this area.

Important measures implemented

Due to the fact that Advantest's products are precision machinery that cannot be transported in ordinary cargo containers and cannot be transported together with other products, Advantest is implementing the following measures: Optimizing of product packaging (cost reduction and packaging size reduction) Providing training in safe driving and energy-saving driving Strict enforcement of the requirement that delivery drivers must not allow their engines to idle unnecessarily when stopped for more than a few seconds Shifting over to the use of hybrid vehicles and vehicles with low fuel consumption

Carbon Dioxide Emissions Attributable to Product Delivery (Scope 3-2)

Of the approximately 2,500 Advantest employees (including employees of affiliate companies) in Japan, 85% commute to work using their own vehicles. In fiscal 2016, the total annual carbon dioxide emissions deriving from employees' commuting was 3,495 t-CO₂.
Advantest will continue to implement measures to discourage drivers from allowing the engine to idle unnecessarily while stopped, through the use of driving safety classes etc.

* Calculations use the "Emissions Unit Database (Ver. 2.1) for the Calculation of Greenhouse Gas Emissions etc. by Organizations Through the Supply Chain" compiled by the Ministry of the Environment (MOE) and the Ministry of Economy, Trade and Industry (METI).

Carbon Dioxide Emissions Attributed to Corporate Vehicles (Scope 3-3)

Advantest and its affiliates use around 100 corporate vehicles in operations in Japan.
The annual carbon dioxide emissions deriving from operations in fiscal 2016 was 165 t-CO₂.
In addition, the volume of carbon dioxide emissions increased because all corporate vehicles were consolidated, including corporate vehicles that had not been subject to measurement, in fiscal 2016.

Measure to Use Solar Panels for Lighting in Employee Parking at Locations in Japan

LED lights that use power generated by solar panels are employed at the Gunma R&D Center for the lighting at night in employee commuter parking.

Measuring Relating to the Use of "Green" Power at Overseas Business Locations

Purchasing "Green" Electric Power Generated Using Wind Power

Advantest America, Inc. (AAI) has made a serious commitment to the utilization of renewable energy. To reduce the impact that AAI's use of electric power has on the environment, wind power generation is used to provide electric power equivalent to 100% of that used by AAI's facilities.

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Approach for Reducing Energy Consumption

Advantest America, Inc. (AAI) received a certificate of appreciation from San Jose and the local Pacific Gas and Electric Company (PG&E) for its reductions in energy consumption. AAI participated in the "Step Up and Power Down" energy consumption reduction program launched by San Jose and PG&E in an effort to reduce electricity consumption in the community, and was highly praised for the example it set as a company that promotes energy savings.

Installation of Large-Scale Photovoltaic Panels

Advantest Korea Co., Ltd. (ATK) is promoting a wide range of environmental activities.
At ATK's Cheonan factory, photovoltaic panels have been installed on the roof, with an annual generating capacity of approximately 1,325 MWh; these solar panels contribute to a reduction in carbon dioxide emissions. ATK is also implementing various other measures, including careful sorting of waste and a "No Food Left on Plates Activity" aimed at reducing the amount of food waste generated by ATK’s employee cafeterias, by encouraging employees not to leave any leftovers food on their plates.

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Photovoltaic panels