Environmental Management

Basic Approach

The Daifuku Group recognizes growing global environmental problems as a significant challenge in the business environment surrounding the Group. In 2011, we established the Daifuku Environmental Vision 2020 and have been focused on three themes: promoting environmentally friendly activities in business operations, expanding environmentally friendly products and services, and strengthening our environmental management platform. Also in 2021, to address these increasingly serious issues, the Group outlined our ideal vision for 2050 in the Daifuku Environmental Vision 2050. Subsequently, in order to meet the demands of society at a higher standard, we revised this Vision in 2023 and set a goal to realize a world where material handling systems operate with zero environmental impact by 2050. We have designated addressing climate change, promoting resource recycling, and coexisting with nature as our three crucial issue areas, and we have set targets for each. We will contribute to the development of a sustainable society through group-wide initiatives under the leadership of the management.

Group Code of Conduct (extract)

6-1. Environment

  • We will contribute to the preservation of the global environment through our business operations.
  • We will develop environmentally friendly products and services, and offer them widely to society.
  • Each and every one of us will conduct business with a high environmental awareness.

Daifuku Environmental Vision 2050

The Group’s automated technology, with material handling at its core, contributes extensively to factory automation in general industries, semiconductors, FPDs, and automobiles, as well as to labor saving in logistics centers and more efficient airport operations. As part of the supply chains in a variety of industries around the world, the Group recognizes that, in order to realize a sustainable society, it is essential to understand the positive and negative environmental impacts of our business activities, products, and services, as well as work toward improving the value we provide and minimizing our burden on the environment. In addition, in order to further enhance our corporate value, we must develop and implement mid- to long-term strategies while taking into consideration the opportunities and risks that global environmental changes which have already manifested may present to the Group.
Given these circumstances, in addition to fulfilling our responsibilities as a corporation, the Daifuku Group believes that it is necessary to take more concrete actions at a higher standard to realize the future society we aim to create. As such, in May 2023, we revised the Daifuku Environmental Vision 2050 that was announced in 2021, expanding our crucial issue areas and raising our environmental targets for 2030. The Sustainability Committee, chaired by the CEO, manages the progress of our initiatives and reports important matters to the Board of Directors.
The Group aims to realize this Vision by addressing environmental issues throughout the entire supply chain while engaging in dialogue with customers, suppliers, investors, and other stakeholders.

Daifuku Environmental Vision 2050 (revised; announced May 2023) (PDF: 740KB)

Daifuku Environmental Vision 2050 (pre-revision; announced February 2021) (PDF: 335KB)

Daifuku Environmental Vision 2050
  • *Clicking on an image brings up a new window
  • *Natural capital refers to the natural stock of resources (plants, animals, air, water, soil, minerals, etc.) that combine to yield benefits to people. Businesses and society are expected to use this capital in a sustainable manner. Although these resources are being eroded by climate change, improving their sustainability will lead to the absorption of greenhouse gases and the mitigation of natural disasters.

Three crucial issue areas

Ensuring a healthy global environment is an essential prerequisite to creating a world where all people can lead fulfilling lives. Thus, under our management philosophy “Automation that Inspires,” addressing climate change and other environmental challenges is a crucial management issue. The Daifuku Group will fulfill its responsibilities as a corporate partner throughout the entire supply chain, and will strive to realize this Vision with a view to the future society we wish to create.

Addressing Climate Change

Goal: Cutting net CO2 emissions to zero in the supply chain

We will reduce net CO2 emissions from our business operations throughout our supply chain to zero by developing and providing products and services that contribute to the creation of a decarbonized society, using energy efficiently and introducing renewable energy at our Group sites and suppliers.

Promoting Resource Recycling

Goal: Achieving a recycling-based society

We will endeavor to reduce the amount of water and other resources we use. We will also contribute to the formation of a recycling-based society by extending the service life of our products, minimizing the amount of waste generated at our production sites, and expanding the recycling of used products and parts.

Coexisting with Nature

Goal: Zero negative impact on natural capital

We will strive to sustainably use ecosystem services and conserve biodiversity based on an understanding of the impact of our business activities on the global environment. We will minimize negative impacts on natural capital such as air, water, and soil, and, together with our stakeholders, coexist in harmony with nature.

Environmental goals for 2030

In revising this Vision, we also reviewed our targets for 2030, setting a new CO2 emission reduction target to help achieve the 1.5°C global warming limit required by the Paris Agreement,* and setting new targets for water resources, biodiversity conservation, and awareness-raising activities. In order to respond to constantly changing social trends and the business environment, we will periodically review our targets and adjust them as necessary. The results for fiscal 2022 will be disclosed based on the KPIs from prior to revision. From fiscal 2023 onward, targets will be managed using the KPIs below.

  • *In working toward reaching the goals of the Paris Agreement, we have submitted our targets to the Science Based Targets initiative (SBTi), which requires companies to set science-based greenhouse gas emission reduction goals. We aim to receive approval from the SBTi by the end of fiscal 2023.
Crucial Issue Areas Key Performance Indicators Targets
Addressing Climate Change Daifuku CO2 emissions (Scopes 1 + 2) 50.4% reduction
(compared to FY2018)
CO2 emissions from purchased goods and services
(Scope 3 Category 1)		 30% reduction*1
(compared to FY2018)
CO2 emissions from the use of sold products
(Scope 3 Category 11)
Promoting Resource Recycling Landfill disposal rate Less than 1%
Water use intensity*2 30% reduction
(compared to FY2018)
Coexisting with Nature Rate of implementation of biodiversity conservation activities at major sites*3 100%
Sustainability Action*4 total annual number of participants 30,000 people
  • *1Scope 3 Category 1 and Category 11 combined target
  • *2Water consumption (1,000 m3) divided by net sales (100 million yen)
  • *3Sites with 100 or more employees
  • *4Daifuku's unique program for sustainability awareness and training

Promotion System

We have the Group-wide Sustainability Committee, which is chaired by the CEO and comprises the Global Business Heads of each business unit as members. As well as the Environmental Management Subcommittee*, which has been established under the auspices of the Sustainability Committee. The Subcommittee is focused on the Sustainability Action Plan theme: Contributing to the Environment through Our Business. We have set targets for Keeping Business Operations Environmentally Friendly, and Expanding Environmentally Friendly Products and Services, and we continue to advance initiatives for these materiality aspects and monitor their progress. Beginning in fiscal 2022, we launched the Environmental Impact Reduction Project to promote energy and resource conservation and the adoption of renewable energy in our business operations. We also launched the Product Evaluation Project to discuss Daifuku Eco-Products certification, public relations, and a review of the certification standards.

  • *This Subcommittee is a merger of the Eco-Products Subcommittee and the Environmentally Friendly Operations Subcommittee, which had existed until fiscal 2021.

Contribute to the Environment Through Our Business

FY2022 promotion system

Environmental Management Subcommittee

Members Business units (manufacturing, sales, and design departments), Human Resources and General Affairs Department, Assets Administration Department, Sustainability Promotion Department
Main agenda
  • Adoption of renewable energy
  • Implementation of energy and resource saving
  • Product sustainability assessment, and more

Environmental management system certification

We promote ISO 14001 international standards for environmental management systems certification at all production sites and primary locations in Japan, as well as all main production sites outside Japan. All four of our Japan production locations as well as 14 of our non-Japan production locations have been ISO certified. 67% of our production facilities have obtained certification.

Certification standards Production sites（consolidated） Number of certified locations Proportion of certified locations
ISO 14001 27 18 67%

ISO Certified Locations

Daifuku Japan Environmental Action Plan

Daifuku Co., Ltd. has developed an Environmental Action Plan for Japan. The plan is for non-KPI issues defined in our Sustainability Action Plan.

Reducing total amount of waste

【Main efforts】
  • Reduce the chance of manufacturing products with defects
  • Reduce packaging materials
Management indicator Target Results
FY2021 FY2022 FY2023 FY2021
Total amount of waste per net sales (% compared to FY2018) 94.0 92.0 90.0 80.6

Improve recycling rate of waste

【Main efforts】
  • Thoroughly sort waste
Management indicator Target Results
FY2021 FY2022 FY2023 FY2021
Waste recycling rate (%) 95.0 96.0 97.0 99.4

Reduce water use at production sites

【Main efforts】
  • Water conservation efforts at production sites and offices
Management indicator Target Results
FY2021 FY2022 FY2023 FY2021
Total amount of water use per net sales (% compared to FY2018) 90.0 85.0 80.0 59.1

Revitalizing Daifuku Eco-Action

【Main efforts】
  • Expanding scope of efforts from environmental actions to CSR actions
  • Planning and holding new events and training sessions
Management indicator Target Results
FY2021 FY2022 FY2023 FY2021
Number of employees that participated (non-unique) 7,100 7,400 7,700 11,608

Advancing conservation of biodiversity

【Main efforts】
  • Studying, monitoring, and conserving local ecological conditions of Shiga Works
  • Advancing conservation of biodiversity through outside partnerships
Management indicator Target Results
FY2021 FY2022 FY2023 FY2021
Implementing biodiversity conservation efforts Yui no Mori forest
maintenance		 Yui no Mori
starting reforestation		 Yui no Mori
planting and caring for trees		 Laying wood chips along roadside in Yui no Mori

Material Balance (FY2021)

Monitoring the environmental impact of its business operations, Daifuku strives to minimize its environmental burden. Shown below are the energy and resource inputs and environmentally-impactful outputs generated through the operations of Daifuku Co., Ltd.

Environmental Accounting

Daifuku Co., Ltd. conducts environmental accounting by quantitatively monitoring costs and the effectiveness of its environmental conservation activities.

Costs of environmental conservation activities (classified by business activity)

(Thousand yen)

Category Investment Cost
FY2020 FY2021 FY2020 FY2021
Incurred in business areas Pollution prevention 1. Preventing air pollution - - 52,160 42,600
2. Preventing water pollution 33,228 9,350 73,924 119,379
3. Preventing soil contamination - - 0 0
4. Preventing vibration and noise - - 0 0
Environmental conservation 5. Saving energy 93,444 229,259 206,037 225,946
6. Controlling chemical substances - - 1,226 1,224
Resource recycling 7. Effectively utilizing resources - - 1,007 1,007
8. Processing industrial and general waste 4,200 0 28,744 34,730
Upstream/downstream 9. Difference between costs of regular and green purchasing - - 1,920 1,920
Management activities 10. Environmental management system operation - - 42,631 44,172
11. Environmental information disclosure and advertisement - - 4,195 4,214
12. Environmental impact monitoring 2,720 0 6,956 9,668
13. Environmental education for employees 0 0 9,298 16,962
R&D 14. Environmental conservation out of R&D - - 183,300 214,700
Social activities 15. Nature protection, greening and beautification 21,202 0 53,051 57,597
16. Donation to and support for nature conservation groups - - 5,080 4,520
Environmental damage response 17. Covering environmental damage - - 0 0
Total 154,794 238,609 669,530 778,638

Economic effects of environmental conservation measures

(Thousand yen)

Effects FY2020 FY2021
Sales of valuable resources 56,200 141,130
Energy cost saving 69,592 ▲ 70,347
Waste disposal cost saving 2,985 3,725
Total 128,777 74,507

Effects of environmental conservation

Item FY2021 Reduction relative to the previous year
(▲ Increase)		 Amount generated per net sales relative to the previous year(%)
Energy cost (Thousand GJ) 297.7 ▲ 28.7 99.3
CO2 emissions (t-CO2) 11,826.8 ▲ 1,320.8 101.0
Total waste generated (t) 5,751.0 ▲ 1,196.0 113.3
Final disposal (t) 38.0 3.0 83.2
Total drainage (Thousand m3) 104.1 0.1 89.7

Responding to Water Risks

The Daifuku Group has used Aqueduct, an assessment tool developed by the World Resources Institute (WRI), to assess water risks in the countries and regions where we have major operations (Japan, China, Taiwan, India, Thailand, Korea, the United States, and the United Kingdom). The results indicated that all areas surveyed were not at a risk level higher than Medium-High. We will continue to assess risk on a regular basis.

In addition, while painting processes use a particularly large amount of water in production, we do not believe that there is currently a high risk concern at any of our production sites. We will continue to monitor water consumption at our production sites, reduce the total amount of water used, and take appropriate measures regarding water risk.

The results of the water risk assessment (Overall water risk*) for our main sites is as follows.

Water risk level No. of sites
Low (0-1) 0
Low-Medium (1-2) 7
Medium-High (2-3) 14
High (3-4) 0
Extremely-High (4-5) 0
  • *A comprehensive water-related risk assessment, as defined by Aqueduct, based on all factors including physical water quantity, water quality, regulatory and reputational risk.