INTRODUCTION
MANAGEMENT MESSAGE
HOW WE CREATE VALUE
BUSINESS DIVISIONSUSTAINABILITYCORPORATE GOVERNANCE
FINANCIAL SECTION

Sustainability

Use

Initiatives

03

Green Transformation

From the perspective of CO 2 emissions, electricity is 85% of the energy used in Musashi's
production activities. The remaining 15% is mostly gas. While we use a lot of energy inmanufacturing, we will start with thorough measures to conserve energy and improve production

Green Operation

efficiency. We will then replace power sources with those which do not emit CO 2 or capture CO 2,through efforts such as the introduction of in-house power generation and switching to electricity
from renewable energy sources or non-fossil fuel energy sources. Building on the strength of ourglobal production system, we will implement these measures one by one by selecting the highly
competitive and effective initiatives and choosing the countries and regions where they will behighly competitive and effective. In domains where energy conversion is difficult, we will firstachieve carbon neutrality through carbon offsets. However, we aim to achieve true carbon neutrality
through continuous improvement and technological innovation.
To drive the implementation of these measures, we have begun to introduce internal carbon
pricing, including capital investment, starting with the Head Plant. We are planning to expand thissystem to the entire Group.

Create green value!
We take on challenges to contribute to a global society where the nature andpeople are able to coexist in harmony.
What isGreen Transformation?

Since Industry 1.0, the lives of humans have been enriched by technology and energy. However,
the global environment has become polluted. Now that the pollution has reached a level
where the previous environmental initiatives are far from sufficient, Musashi will implement
green strategies to contribute to increasing the harmony between our lives and Earth throughinnovation using technologies as expressed in Our Purpose.

Connect
Use
CreateIncreasing the use ofgreen energy
Use

Carbonoffsets

Green Operation
Improving energy efficiency and minimizing
consumption
Using renewable energy for all production
processes

Green Products

CO 2
CO 2

Improving energy
Creating new
efficiency
technologies and value

Making all activities carbon neutral
Commitments for local communities andsocietyP17 andWe are working to achieve GX through a combination of a shift to EVs in our core business
new businesses.
At our production sites with high electric load, the use of only privately generated power makes it
difficult to maintain the balance between power demand and supply. We also face issues that cannot besolved only through energy conversion.
Momentary load at industrial facilities is more than ten times the power generated by solar cells,
which forces us to rely on grid power. The alleviation of momentary load using FEMS with lithium-ion
P24 enables plants to shift peak loads, reduce electricity costs through demand control,
capacitors

use renewable energy, and operate for long periods of self-sustained operations during power outages,
contributing to the achievement of carbon neutrality at production sites.* We conducted a demonstration
P24experiment at our plant in 2021. Additionally, AI-based autonomous mobile robots (AMR)
improve productivity and also aid the transition from gas- or gasoline-driven carriers to electric ones. Thesetasks are faced by all manufacturers, and we are developing initiatives to deliver solutions for these tasks tomanufacturing sites around the world.

*FEMS: Factory Energy Management System
AC / DCV

Load (on machinetools)

APower grid

Solar cells

GeneLIC
ratedpower

Dedicated EMS

DC / DC
Storage battery(V2H)

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Input-output control

LIC: Lithium-Ion Capacitor

Powerdischarged
from LICs

Power discharged
from storagebatteries
Power stored instorage batteries

Power fromphotovoltaic(PV) generators

Powerstored inLICs

Green Communication%

15%

1 Conserving energy and improving

Achieving trueneutrality
Minimizing energy
consumptionenergy efficiency Eliminating waste
Reducing energy consumption

2 Shifting to renewable

Saving energy& Improving
energyefficiency

energyShifting to new types of energy
In-house
generationfrom renewableenergy sources

4

Production using
energy sources that Technologicalinnovation
do not emit CO2
Purchasing
power fromrenewableenergy sources

3 Carbonoffsets
Alternative
offsets

Efficiency
improvement,
expansion ofrenewableenergy, CO2
capture, etc.

Purchase ofcredits

Saving energy& Improving
energyefficiency

In-house
generationfrom renewableenergy sources
Purchasingpower fromrenewableenergy sources
CO 2 capture

To improve local communities' disaster resilience, we have launched a joint project with the local
government of Toyohashi, Aichi. The project was selected by the Ministry of Economy, Trade andIndustry as a project formulating a plan for the introduction of a local microgrid.* Moving forward,
we will establish an exploratory committee by inviting local business operators, experts withspecialized knowledge, and other people to be its members and consider the times, locations, andother specific details of individual demonstrations.
The power to be stored in an in-house power generation system that is planned to be installed
will be used efficiently using FEMS for production activities during normal times. When the power
supply is shut down in the event of a disaster or similar event, the stored power will be supplied tolocal communities to maintain a safe, hygienic living environment for local
people during the emergency. This initiative is the first step toward the future
we are aiming for. It contributes to the achievement of the carbon neutrality ofour production sites using FEMS and also helps increase the disaster resilienceof local communities.

In the event of an emergency, thephotovoltaic power generation systemand power storage system will be used
as a power plant to supply power to areas
around the evacuation facilities.

Improvement of
renewable energy
utilization
5.2kWhExisting system

DC / DC

Load onthe sensor

Conceptual rendering ofload control enabled by theintroduction of LICs

Connect

85

CO 2

CCUS

Green Communication

Contribution to CO 2
emissions reduction

CreateShifting to green energy

From gas

Connect

tons of CO 2

Visualizing the value of CO2emissions reduction

Creating products that contribute to thereduction of CO 2 emissions
Providing products and services with value forthe natural environment and other added value

CreateCO 2 emissions

Approx.

400,000

Fromelectricity

Conserving energy and improving
energy efficiency

Internal carbon pricing

Musashi Green Strategy
Green Products

Use of PV Use of PV
generators generators

82%
Condenser
LiC

During normal times, the system is used
to reduce electricity costs and promote
carbon neutrality through the control ofdemand within the plant and the use ofrenewable energy.
*Local microgrid: When the power grid of the electric
power company is disconnected in the event of a large
power outage following a disaster or similar event,Musashi's facilities, including their photovoltaic power
generation systems and storage batteries are used tosupply power stably within a specific grid.

See our website for more information.

www.musashi.co.jp/newsrelease/news/post_57.html

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