CO2 Emissions and Reduction Measures KPI

Emissions were reduced by 48.5%, exceeding the group target (minimum of 39% relative to the fiscal 2005 level). Emissions per basic unit of net sales was 46.8%, considerably exceeding the target (74% maximum relative to the fiscal 2005 level). We will continue to improve our business operations and related facilities.

CO2 emissions (Japan)

CO2 emissions (Non-Japan)

Status of Environmental Impact Related to Transportation

The CO2 emissions per basic unit of net sales from product transportation in fiscal 2018 were 50.5% compared to fiscal year 2005. With the Group target set to 80% or less, we greatly exceeded the target. We are continuing to alleviate the environmental impact through effective transportation, such as improvement of load dimensions and the transportation method, change from individual transportation to setting routine pickup and delivery transportations, and adoption of modal shift.

CO2 emissions associated with transportation

Scope 3

To reduce the greenhouse gas (CO2) emissions from all our corporate operations, we calculated total CO2 emissions (Scope 3) throughout our supply chain.
In fiscal 2018, Scope 3 emissions totaled 2,306,839 (tons-CO2). Scope 3 emissions accounted for 99% of the total.
The ratio of CO2 emissions attributable to “use of sold products” was 80% of Scope 3 emissions.
Going forward, we intend to improve the accuracy of the calculation methods we use for the target categories, while also intensifying the development and marketing of Daifuku Eco-Products (environmentally-friendly products) with the goal of reducing CO2 emissions from “use of sold products.”

Scope 1
Greenhouse gases emitted directly from business activities (fossil fuels, etc.)
Scope 2
Greenhouse gases emitted indirectly from business activities (use of electric power and heat, etc.)
Scope 3
Greenhouse gases emitted indirectly from the supply chain of business activities (purchased products and service, use of products, etc.)
  • CO2 emissions throughout the entire supply chain (1,000 tons - CO2)

  • Scope 3 COemissions (1,000 tons -CO2)

Note: Due to rounding, the sum of individual items and the total may not always match completely.

Energy Conservation Efforts

Our CO2 reduction efforts range from large-scale operational improvements to individual employees reducing their commute and travel when on company business. Daily data on the use of electricity and heat energy, the major contributors of CO2 emissions, are constantly monitored for improvement.

A photovoltaic system installed at Hini Arata Kan demo center

Solar modules installed on the rooftop

Solar modules installed on the rooftop

In March 2010, Daifuku installed solar panels at the Hini Arata Kan material handling demo center within Shiga Works. In fiscal 2018, the system generated about 240,000 kWh of power, which reduced CO2 emissions by 103 tons.

Implementing "Cool Biz" and "Warm Biz" Campaigns

All Daifuku facilities in Japan turn off their lights during the lunch break, as well as after hours. In addition, office air conditioning is set at 28 degree Celsius in the summer and 20 degree Celsius in the winter to reduce environmental impact while still creating a comfortable environment for employees. All divisions have a no jacket and tie rule in summer and encourage employees to wear warm clothes to the office during the winter.

Introducing a system to "visualize energy" for production facilities

Display of numerical values in a graph view

Display of numerical values in a graph view

We have installed a system that can constantly monitor the energy consumed, such as electric power and gas, in our facilities at the Shiga Works. As numerical values are displayed in a graph on personal computers, it is possible to instantly assess the energy consumption status on production lines at a glance. Constant monitoring lets us easily see where we need to improve operation and facilities to save energy.

Sharing transportation resources

One truck picks up and delivers to suppliers in a given region (milk run method*).

One truck picks up and delivers to suppliers in a given region (milk run method*).

We are now building a partnership with suppliers for parts and materials and set up a pickup and delivery service in order to reduce costs and properly control delivery dates. Although suppliers had transported cargo with their own trucks, we are currently making rounds with one truck per region through concentrated management and throughput control, and are striving to consolidate and streamline trips to logistics sites. We are contributing to the prevention of global warming by reducing CO2 emissions throughout the entire supply chain as well as reducing each supplier's logistics costs.

  • *Milk run method:
    One truck makes the rounds to each supplier and picks up cargo that had previously been delivered by separate trucks. This method improves load efficiency and reduces fuel consumption and CO2 emissions.

Modal shift*

Typically trucks are used to transport products to customer sites, but Daifuku is in the process of shifting to the more environmentally-friendly railway and marine transportation methods. The aim is to improve the quality of logistics operations by controlling delivery schedules and costs, thereby reducing CO2 emissions as much as possible. In fiscal 2018, Daifuku cut CO2 emissions by 54 tons by carefully selecting modes of transportation.

  • *Modal shift:
    Choosing modes of transportation with lower environmental impact, such as railroads and ships, to transport cargo. By switching from trucks to ships and trains, it is possible to transport cargo with fewer CO2 emissions and less impact on the environment.

Carbon offsetting*

For our material handling demo center, Hini Arata Kan, we implemented a 100% carbon offset of total annual CO2 emissions (348 tons - CO2: fiscal year 2018) calculated from electric power consumption, liquefied petroleum gas (LPG), lightweight oil (biodiesel fuel) used for shuttle buses, and the 1.5 kg of CO2 generated per visitor.

  • *What is carbon offsetting?
    Carbon offsetting refers to the act of recognizing one's own greenhouse gas emissions, making efforts to reduce the emissions, and of counterbalancing, in whole or in part, the greenhouse gas emissions that cannot be reduced by purchasing credits or through other means.