Mitigation of Climate Change
Sustainability Target for Mitigation of Climate Change (Global Warming Prevention)
Approach to Sustainability Target for Renewable Power Percentage
| Supervising division | CSR & Environmental Affairs Promotion Office |
|---|---|
| KPI | Renewable Power Percentage |
| Target | Make the power used within Advantest 100% renewable by promoting the use of renewable energy and Tradable Green Certificates by 2050. |
| Results achieved in fiscal 2019 | 28% |
| Material reasons | We believe that in order to maintain our business activities and contribute to the sustainable development of society it is important to reduce the greenhouse gas (GHG) emissions of the entire supply chain. To this end, we are making positive efforts to reduce GHG emissions by promoting effective energy use and the conversion of renewable energy. |
| Boundary | Advantest Group |
| Relevant policies | Advantest Group Environmental Policy |
| Relevant commitments | Energy Conservation Act |
| Responsible department/division | Environmental Management Officer |
| Management resources | |
| Relevant complaint processing policy | Corporate Ethics Helpline |
| Assessment | ✓ (Good) We have introduced renewable energy (23,072 MWh) in our bases in the United States and Germany. |
Approach to the Sustainability Target for Emissions to the Atmosphere
| Supervising division | CSR & Environmental Affairs Promotion Office |
|---|---|
| KPI | GHG emissions (Scope 1/2) |
| Target | Reduce the GHG emissions (Scope 1 + 2) of Advantest by 30%, compared to those in FY2018, by 2030 through effective energy use and conversion to renewable energy. FY2019 target: 36,400 t-CO2 |
| Results achieved in fiscal 2019 | 33,385t-CO2 (10.7% reduction from FY2018) |
| Material reasons | We believe that in order to maintain our business activities and contribute to the sustainable development of society it is important to reduce the greenhouse gas (GHG) emissions of the entire supply chain. To this end, we are making positive efforts to reduce GHG emissions by promoting effective energy use and the conversion of renewable energy. |
| Boundary | Advantest Group |
| Relevant policies | Advantest Group Environmental Policy |
| Relevant commitments | Paris Agreement, Act on Promotion of Global Warming Countermeasures |
| Responsible department/division | Environmental Management Officer |
| Management resources | |
| Relevant complaint processing policy | Corporate Ethics Helpline |
| Assessment | ✓ (Good) In addition to energy conservation efforts at each base, we have introduced renewable energy (23,072 MWh) in our bases in the United States and Germany. |
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. In addition, we are promoting medium- and long-term energy conservation measures and conversion to renewable energy in each Advantest Group base inside and outside Japan.
Support for the TCFD
In April 2020, Advantest announced its support for the recommendations of the "Task Force on Climate-related Financial Disclosures (TCFD)."*1 We analyze the risks and opportunities posed by climate change on our business from perspectives including strategy, risk management, and governance and globally deploy proactive measures. Meanwhile, we promote the enhancement of information disclosure based on the recommendations of the TCFD for sustainable growth and the enhancement of corporate value of the Advantest Group, as well as the realization of a sustainable society.
*1 "Task Force on Climate-related Financial Disclosures (TCFD)"
A task force established in December 2015 by the Financial Stability Board, an international organization. In its Final Report issued in June 2017, it recommended that companies disclose information on matters concerning climate-related risks and opportunities.
Medium- and Long-Term Targets for Climate Change Mitigation (CO2 Emission Reduction)
The Advantest Group works to promote ESG management and realization of a sustainable society, which is the foundation of "The ADVANTEST Way." As a measure to combat global warming, we set medium- and long-term climate change countermeasure targets (CO2 emission reduction) in April 2020, in view of the mitigation of climate change and the realization of a low-carbon society, as well as "RE100."*1
With a 30% reduction in CO2 emissions compared to the global CO2 emissions (Scope 1 + 2: 37,380 t-CO2) in 2018 by the end of FY2030 and achievement of RE100 in our Gunma Factory set as the new medium- and long-term targets, we are promoting the adoption of renewable energy. Moreover, we have set as our final goal the reduction of CO2 emissions by 100% and achieving RE100 on a global scale by the end of FY2050.
In the future, we will expand the adoption of renewable energy in business sites in each country, while considering procurability in each region. In addition, in order to contribute to the reduction of CO2 in the entire semiconductor supply chain, we will promote the conversion of power used for the production of Automated Test Equipment in the Gunma Factory to 100% renewable energy by 2030 and set reduction targets for Scope 3 CO2 emissions by the end of FY2020.
*1 RE100:
A collaborative initiative by corporations committed to using renewable power for 100% of energy consumed in business activities.
Medium- and long-term targets for climate change mitigation
Scope 1 + 2 CO2 emissions (market-based)
| Unit | FY2018 | FY2019 | FY2020 projection | |
Scope 1 + 2 CO2 emissions  | t-CO2 | 37,380 | 33,385 | 29,947 |
| Reduction rate (FY2018 standard) | % | ― | 10.7% | 19.9% |
* The FY2019 figure marked with the symbol is assured by KPMG AZSA Sustainability Co., Ltd.
FY2019 Scope 2 CO2 emissions and Renewable Power Percentage
| Country/Region | Scope 2 CO2 emissions (t-CO2) | Electricity consumption | Amount of electricity from renewable energy | Renewable Power Percentage | |
|---|---|---|---|---|---|
| Location-based | Market-based | MWh | % | ||
| United States | 5,155 | 1,147 | 12,413 | 9,650 | 78% |
| Germany | 5,604 | 363 | 14,351 | 13,422 | 94% |
| Japan, other countries | 27,923 | 27,403 | 55,296 | 0 | 0% |
| Total | 38,682 | 28,913 | 82,059 | 23,072 | 28% |
* In market-based accounting, CO2 emissions are counted as zero for the electricity amount corresponding to the Tradable Green Certificate purchasing amount.
* In both market-based and location-based accounting, the emission factors by country in the IEA's "Emissions Factors" (2019 edition) issued by the IEA are adopted for the CO2 emission factor.
Business Risks and Opportunities Brought about by Climate Change
Advantest considers climate change issues, including global warming issues, as global social issues. Based on the Guidance for Climate-related Financial Disclosure (TCFD Guidance), Advantest has identified environmental risks and opportunities relating to Advantest Group's business activities. Major environmental risks and opportunities are as follows. Advantest will continue to disclose mid- and long-term business strategies relating to the risks and opportunities brought about by climate change, as well as the financial impact of climate change in more details.
Major Risks Brought About by Climate Change
To reduce the risk of costs increasing as a result of taking measures against climate change and the risk of the operation environment deteriorating due to the rising temperature and increasing natural disasters, Advantest is making efforts to ensure compliance with environmental regulations and to minimize damage through the business continuity plan (BCP).
| Category | Major risks brought about by climate change |
|---|---|
| Transition risks | Increase of procurement, manufacturing, equipment, logistic, and other costs due to regulatory tightening accompanied by climate change |
| Cost increases caused by new taxes such as carbon tax and green power certificate | |
| Increase of energy cost caused by procuring renewable energy | |
| Increase of insurance cost caused by increasing natural disasters and increasing damages | |
| Decrease of product competitiveness and product demands due to changing market needs | |
| Cost increases caused by the need to calculate and disclose the environmental impact of products, such as the fact that they save energy | |
| Physical risks | Relocation of factories and business facilities as a result of global warming |
| Cost increases caused by replacing cooling media used mainly for air conditioning equipment and chillers with substitutes | |
| Inability to continue business operations due to floods, typhoons, and other natural disasters caused by climate change | |
| Discontinuation of the supply of parts and product manufacturing activities due to large-scale natural disasters |
Major Opportunities Brought About by Climate Change
Advantest is implementing its business strategies aimed at expanding the market for green products and measuring products related to the environment.
| Category | Major opportunities brought about by climate change |
|---|---|
| Opportunities | Contributing to reducing users' environmental impact through the provision of green products |
| Expanding the market for green products and measuring products related to the environment | |
| Becoming more competitive through the technical innovation of environmental performance | |
| Enhancing corporate values through the global implementation of environmental conservation activities and the disclosure of the results of these activities |
Advantest's Achievements in Relation to CO2 Emissions in FY2019 (Japan)
Advantest is working to simultaneously save energy and reduce costs 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 2019 was approximately 175 MWh lower than that of the previous year in factories due to a decrease in production activities, and approximately 191 MWh higher in development and other sites. A decrease in overtime, enhancement of operational efficiency, shortening of the periods for which air condition equipment is in use, and renewal of aging equipment including heating/cooling equipment led to an annual reduction of around 493 MWh, and the transition of lighting fixtures to LEDs led to an annual reduction of around 275 MWh.
Advantest will continue its efforts to reduce CO2 emissions from the perspective of waste elimination, aiming to simultaneously save energy and reduce costs. In addition, we started adopting renewable energy at the Gunma Factory, Gunma R&D Center, and Saitama R&D Center in FY2020.
| Important measures implemented in FY2019 |
|
|---|
Reduction of Power Consumption through the Renewal of Heating and Cooling Equipment
In our Gunma Factory, the aged gas-fired cold/hot water generators (2 units) were replaced with electric module chillers (12 units). No gas has been used at the factory since August, leading to the reduction of gas use by 37% compared to that of fiscal 2018. (108,450 m3 in FY2019)
As a result, the annual energy consumption was reduced by approximately 445 MWh.
CO2 Emissions (Scope 1) 
* FY2019 figures are assured by KPMG AZSA Sustainability Co., Ltd.
* GHG emissions due to non-energy related activities are included in the figures for FY2018 and after.
* We had been disclosing CO2 emissions from corporate vehicles individually without including them in the total Scope 1 emissions until FY2018. From FY2019, we have been disclosing them by retroactively including them in the total Scope 1 emissions.
| CO2 emissions (Scope 1) Total CO2 emissions in Japan and Overseas (t-CO2) | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|---|---|---|---|---|
| 3,880 | 3,824 | 3,811 | 4,671 | 4,471 |
* FY2019 figure is assured by KPMG AZSA Sustainability Co., Ltd.
* GHG emissions due to non-energy related activities are included in the figures for FY2018 onward.
CO2 emissions (Scope 2: Market-based)
* FY2019 figures are assured by KPMG AZSA Sustainability Co., Ltd.
| Total CO2 emissions (Scope 2) in Japan and Overseas (t-CO2) | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|---|---|---|---|---|
| 30,009 | 29,717 | 30,631 | 32,709 | 28,913 |
Guidelines referenced and CO2 emission factors and heat generation coefficient of electricity and fuel
- Ministry of the Environment: "Basic Guidelines on Accounting for Greenhouse Gas Emissions throughout the Supply Chain"
- Ministry of the Environment: "List of calculation methods and emission coefficients for calculating, reporting, and disclosure systems of Greenhouse Gas Emissions"
- CO2 emission factors for overseas power consumption: the emission factors by country in the IEA's "Emissions Factors" (2019 edition) issued by the IEA are used.
* FY2019 figure is assured by KPMG AZSA Sustainability Co., Ltd.
Calculation of GHG Emissions and Approaches in the Supply Chain (Scope 3)
We have ascertained the GHG emissions (Scope 3) indirectly discharged in our entire supply chain and calculated them.
Among Scope 3 CO2 emissions, the emissions in "Category 1: Purchased goods and services" and "Category 11: Use of sold products" account for 95% of the total emissions. Therefore, we have set our targets with these two categories as the focus points of Scope 3 and are promoting activities to reduce GHG emissions.
Calculation range (scope) for GHG emissions
- Scope 1: Direct GHG emissions by the operator (fuel combustion, industrial processes)
- Scope 2: Indirect GHG emissions from the consumption of electricity, heat, or steam supplied by other companies
- Scope 3: Indirect emissions other than Scope 1 and 2 (emissions by other companies related to the operator's activities)
| 1000 t-CO2 | Content | Emissions (1000 t) | ||
|---|---|---|---|---|
| FY2018 | FY2019 | |||
| Scope1 | Direct emissions from our company (fuel consumption) | 4.67 | 4.47 | |
| Scope2 | Indirect emissions from our company (electricity used) | Location-based | 37.49 | 38.68 |
| Market-based | 32.71 | 28.91 | ||
| Scope3 | Scope 3 total | 1,628.37 | 1,245.56 | |
| Category 1 | Purchased goods and services | 489.53 | 400.46 | |
| Category 2 | Capital goods | 15.19 | 22.73 | |
| Category 3 | Emissions for procuring fuels and energies included Scopes 1 and 2 | 3.58 | 3.71 | |
| Category 4 | Upstream transportation | 6.20 | 5.27 | |
| Category 5 | Waste generated in operations | 0.18 | 0.15 | |
| Category 6 | Business travel | 0.64 | 0.72 | |
| Category 7 | Commuting | 1.84 | 2.04 | |
| Category 8 | Upstream leased assets | 0.40 | 0.39 | |
| Category 9 | Downstream transportation | 0.55 | 0.33 | |
| Category 10 | Processing of sold products | Not applicable | Not applicable | |
| Category 11 | Use of sold products | 1,110.22 | 809.73 | |
| Category 12 | End of life treatment of sold products | 0.04 | 0.04 | |
| Category 13 | Downstream leased assets | Not applicable | Not applicable | |
| Category 14 | Franchises | Not applicable | Not applicable | |
| Category 15 | Investments | Not applicable | Not applicable | |
| Total emissions | 1,665.75 | 1,278.95 | ||
* The FY2019 figures marked with the symbol are assured by KPMG AZSA Sustainability Co., Ltd.
* For the calculation of the total emissions, Scope 2 emissions are tabulated in market-based values.
Guidelines referenced and CO2 emission factors and heat generation coefficient of electricity and fuel
- Ministry of the Environment: "Basic Guidelines on Accounting for Greenhouse Gas Emissions throughout the Supply Chain"
- Ministry of the Environment: "List of calculation methods and emission coefficients for calculating, reporting, and disclosure systems of Greenhouse Gas Emissions"
- CO2 emission factors for overseas power consumption: the emission factors by country in the IEA's "Emissions Factors" (2019 edition) issued by the IEA are used.
* <Calculation method for Category 1>
- CO2 emissions are calculated by multiplying the total purchase amount for each purchased good by the corresponding intensity of the "Embodied global-energy/emission intensity based on a consumer's price basis" issued by the National Institute for Environmental Studies.
- For goods for which the transportation cost cannot be isolated from the purchase price, the emissions arising from the transportation of the goods are included in Category 1 emissions, not Category 4: "CO2 emissions generated in transportation of products from tier 1 suppliers to the company."
* <Calculation method for Category 11>
- Among the Automated Test Equipment sold by the Advantest Group, SoC test systems and memory test systems are subject to calculation.
- CO2 emissions are calculated by multiplying the total lifelong power consumption of the products sold during the relevant fiscal year by the world emission factor in the IEA's "Emissions Factors" (2019 edition) issued by the IEA.
- The lifelong power consumption is calculated by multiplying the assumed product usage period (10 years) by the power consumption calculated for each product based on the number of units sold and product specifications of the calculation target system.
GHG Emissions due to Non-Energy Related Activities
Advantest uses dry etching of semiconductors in some of the processes at business establishments in Japan.
In FY2019, GHG emissions for PFCs and SF6 combined was 177 t-CO2e.
| Item | GHG | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|---|---|---|---|---|---|
| GHG emissions due to non-energy related activities (t-CO2e) | PFCs | 269 | 268 | 47 | 9 | 6 |
| SF6 | 816 | 671 | 292 | 146 | 171 | |
| Total | 1,085 | 939 | 339 | 156 | 177 |
* Data range for tabulation: Advantest Group (Japan) data
* Calculations have been carried out based on the GHG Emissions Calculation and Reporting Manual since FY2018.
* Prior to fiscal 2017, usage was recorded as emissions.
* FY2019 figures are assured by KPMG AZSA Sustainability Co., Ltd.
Value Engineering (VE) Proposal Program
Advantest has a VE proposal system in which Advantest recognizes activities that contribute greatly to the reduction of CO2 emissions mainly through measures such as labor reduction, lead time reduction, and energy-saving products.
In the VE proposal system, activities or proposals such as
1) labor reduction/lead time reduction,
2) reducing clients' environmental impact (energy-saving products), and
3) energy conservation/resource conservation
are converted into CO2 emission reduction amounts and are provided as guidelines that serve as a standard for awarding based on the calculated reduction amount. This system gives incentive to employees by evaluating the content or effects of their proposals each month.
Carbon Offset
Advantest does not currently engage in emission trading of GHG emissions.
Measure to Use Solar Panels for Lighting in Employee Parking Lots at Locations in Japan
LED lights that use power generated by solar panels are employed at the Gunma R&D Center for lighting at night in employee commuter parking.
Approaches to Adopt Renewable Energy in Overseas Business Locations
Aiming at 100% Utilization of Renewable Energy
Tradable Green Certificate (United States)
Advantest America, Inc. (AAI), our base in the United States, has committed to the introduction of renewable energy since 2012, for 9 years by 2020. In order to reduce the environmental impact of electricity consumption, the company purchases Tradable Green Certificates for wind power generation, and covered 70% or more of the power used in its office by renewable energy in FY2019. AAI has participated in EPA's Green Power Partnership (effort to encourage purchasing of renewable energy promoted by the EPA) since 2013, and continues to contribute to the spread of green power.
Tradable Green Certificates (Germany: Boeblingen, Munich, Amerang)
In Advantest Europe GmbH (AEG), our base in Germany, the Boeblingen Office has started purchasing Tradable Green Certificates for 11,593 MWh of electricity per year since 2019. Following that, the Amerang and Munich Offices have purchased 1,829 MWh of renewable energy through hydroelectric power generation annually since August 2019. In the three offices in Germany, more than 90% of the total electricity used is covered by renewable energy.
Amount of Tradable Green Certificate purchases
* FY2019 figure is assured by KPMG AZSA Sustainability Co., Ltd.
Introduction of air-conditioning systems in Germany
As another approach to reduce power consumption, AAI San Jose has replaced all of its lighting fixtures with LED lighting to reduce power usage. In addition, the three offices in Germany have introduced air conditioning systems so as to improve air conditioning efficiency in the offices.
Efforts to Install Charging Stations for Electric Vehicles
Charging station (United States)
In 2018, Advantest America, Inc. (AAI) has made four Electric Vehicles (EV) charging stations in San Jose, available for all employees to use free of charge. In 2019, six more stations were added. This has enabled charging of a total of 10 electric vehicles. Approximately 15% of the employees are using the charging stations. The addition of the charging stations have led to a CO2 emission reduction of 71.6 t-CO2 in FY2019, which is four times more than that in FY2018 (15 t-CO2).
Charging station (Germany)
In 2019, the Amerang Plant in Germany also installed a new charging station for two electric vehicles to support employees switching from gasoline-powered vehicles to electric vehicles.