Japanese Electrical and Electronics Industries

Long-Term Strategy on Climate Change[Updated in November 2022]

Liaison Group of Japanese Electrical and Electronics Industries for Global Warming Prevention

1 Challenge of Carbon Neutrality
As a response to climate change, the movement toward carbon neutrality is accelerating in countries around theworld under international frameworks such as the Paris Agreement. In Japan, the government has declared that it
aims to achieve carbon neutrality by 2050 as well. As an ambitious goal consistent with carbon neutrality by 2050, thegovernment has announced the aim to reduce its greenhouse gas (GHG) emissions by 46% in FY2030 from its FY2013
levels, and will continue to take on the challenge of achieving the 50% target.
Keidanren has also changed the name of its voluntary industrial reduction activities to the Keidanren Carbon
Neutrality Action Plan in order to promote public-private cooperation to achieve the government’s ambitious targets.
These government goals and Keidanren’s action plan focus on contributing to the reduction of GHG emissions inJapan, and are centered on reducing emissions in domestic business activities. In response to this, electrical andelectronics industries have also formulated the following Phase II targets for domestic business sites under the
Carbon Neutrality Action Plan.
Japanese Electrical and Electronics Industries “Carbon Neutrality Action Plan,” Phase II
Production processes at domestic business sites (Scope 1 and 2) [FY2030 target]●Energy conservation and energy efficiency improvement (commitment): Improve energy intensity by an average of

1% per year (9.56% improvement compared to FY2020)●Energy-derived CO2 emissions reduction (challenge): 46% reduction compared to FY2013

To achieve the targets, continue with steady energy-saving and efficiency measures and promote the voluntary use of renewable energy

In addition, the movement to promote the decarbonization of the entire value chains related to corporate activities is
expanding on a global scale. Since the electrical and electronics (EE) industries provide products and services in all
fields—from industry, business, households, and transportation to energy conversion (power generation) both in Japanand overseas—we have established the following basic policy for the entire global value chain in which we are involved.

Our current initiatives for an energy efficient and low/zero-carbon society

AI
Solutions to realize low/zero-carbon emissions and adaptation toclimate change

Energy efficient and low/zero-carbon systems
Power generation

Manufacturing

Office buildings

Housing

Provide energy-saving devices and equipment

1

Transportation

2 Basic Policy
This Long-term Strategy is formulated as a “Vision for the Future” and “activities to be tackled (challenged)” in the EE
industries, and as a “guidepost” for companies in the industries in their planning of long-term goals.
We aim to achieve carbon neutrality in terms of GHG emissions in the entire value chain of the EE industries by
2050 on a global scale. Specifically, we will implement the following initiatives:(1) Reduce emissions of Scope 1+2* to the maximum extent possible by saving energy
and using renewable energy(2) For Scope 3*, strive to reduce emissions as much as possible through co-creation with stakeholders in thevalue chain and technological development/innovation(3) Use various methods, including carbon removal, to offset residual emissions(4) In addition to the above, we will contribute significantly to the decarbonization of all sectors of society* Scope 1: Direct GHG emissions occur from sources that are owned or controlled by the company, for example, emissions from combustion in owned or controlled
boilers, furnaces, vehicles, etc.; emissions from chemical production in owned or controlled process equipment.
Scope 2: Scope 2 accounts for GHG emissions from the generation of purchased electricity, steam, or heating/cooling (referred to here collectively as “electricity”)
consumed by the company. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organizational boundary of thecompany. Scope 2 emissions physically occur at the facility where electricity is generated.
Scope 3: Scope 3 is an optional reporting category that allows for the treatment of all other indirect emissions. Scope 3 emissions are a consequence of theactivities of the company, but occur from sources not owned or controlled by the company. Some examples of Scope 3 activities are extraction andproduction of purchased materials; transportation of purchased fuels; and use of sold products and services.
Category 1: purchased goods and services; Category 11: use of sold products, etc.
Source: The Greenhouse Gas Protocol (A Corporate Accounting and Reporting Standard)Present

GHG
Emissions①②(Scope1+2+3)

2050

Reducing value chain GHG emissions

CN
③

④

Significant contribution to thedecarbonization of various sectors of society(Avoided emissions)

3 Characteristics of the EE Industries and the Path to the Vision for the Future
Looking at GHGs across the industries’ value chain, Scope 3 accounts for most of the emissions with the proportion ofemissions from the use of products and services being particularly large. For this reason, as part of our efforts we will
focus on reducing GHG emissions from the use of products and services, in addition to lowering carbon emissions
from production processes that fall under Scope 1 and 2. Furthermore, we will expand our value chain and makesignificant contributions to reducing GHG emissions in each sector of society.

2Specifically, we will focus on the following initiatives:
As purchased electricity (Scope 2) accounts for more than 80% of the total emissions of Scope 1 and 2 combined,●

we will make great efforts to reduce power consumption (energy conservation) and then expand the voluntary
use of renewable energy through in-house power generation, the use of PPAs, and the purchase of certificates. In
addition, we will strive to convert energy used in processes requiring heat from non-electricity energy toelectricity as much as possible.
For Category 11 of Scope 3 (use of sold products and services), we will continue to work for thorough energy●

efficiency, create products and services that lead to energy conservation, and promote their use by customers.
For Category 1 of Scope 3 (upstream of the product and service supply chain), we will promote low/zero-carbon●

initiatives in cooperation with the supply chain and work on collaborative measures, such as the development
and use of low-emission parts and materials.
For the emissions remaining in 2050, we will strive to remove an equivalent amount of CO2 through forest●

absorption, various technologies for CO2 collection, storage, and removal, and the use of credit schemes.
We will promote the development of innovative technologies and the creation of innovative ideas, provide the●market with a variety of environmentally conscious products (components), services and solutions that
contribute to the mitigation of GHG emissions and climate change adaptation. In this way, we will make asignificant contribution to achieving low/zero-carbon society in each sector of society (avoided emissions).

Business activities and global GHG emissions (CO2e) of the EE industries

Estimated emissions in 2020: Approx. 1.16 billion t-CO2e
Major companies and groups participating in the EE industries’ Carbon
Neutrality Action Plan [40 groups and companies](Aggregated based on public data for CDP Climate Change 2021 Scope 1, 2 and 3.)

Note: In addition to APS, which sets the temperature rise to 2.1°C
in 2100, the IEA also published SDS and NZE scenarios thatare expected to significantly reduce CO2 emissions by 2050
by backcasting from less than 2°C and 1.5°C, respectively.

(Assuming power configuration is the same as 2020)
1,500

Category 1

500

Category 11

1,000

Scope 3[million t-CO2e]

Other categories

Projection of emissions
transition using the IEA[APS Scenario]
Approx.
60% reduction

83%

Reduction throughfurther use of renewableenergy, innovativetechnologies and other
innovations

Emission reduction
goals of EE industries
0

Scope 1,2

2020

2030

2040

2050

IEA APS (IEA’s Announced Pledges Scenario): Reflects ambitious targets declared by like-minded countries (2.1°C temperature rise in 2100)
Source: International Energy Agency (IEA): World Energy Outlook 2021 (WEO 2021)

To work further towards carbon neutrality, in addition to the above-mentioned emission reductions, we willoffset residual emissions and make a significant contribution to reduce emissions in each sector of society(avoided emissions) while transitioning.

3of each country and corporate efforts
based on these policies

Reduction through ambitious policies

Emissions Outlook due to Economic Growth
Total power generated is synchronized with IEA [APS scenario](transitioning to non-fossil fuel energy,
electrification and energy conservation)

Approx. 1.7 times

2,000

4 Sector-Specific Initiatives and Technologies
The following presents ongoing development and reviews in the fields of energy and power infrastructure systems,
equipment and devices, and solutions to achieve our Vision for the Future.
Energy and Power Infrastructure Systems
Vision for the Future
Decarbonize power generation while securing S+3E* and improving resilience
Enable advanced and stable operation, and the mass introduction ofrenewable energy using next-gen storage cell technologies●●*A basic concept in Japan’s energy policy is achieving energy security and economic efficiency
with safety a top priority, while also making maximum efforts toward environment suitability.

Bulk power systems (BPSs)

Home and industry users

StorageTechnologies
Decarbonize power grids and improve system flexibility
E
VPP
Demand control
Storage
Co-generation storage battery system
Virtual Power Plant▶Technologies for renewable-energy power generation (solar, wind,battery system(negawatt market)
geothermal, small and medium-sized hydropower, etc.)
Group control of▶Distributed energy resources (DERs) + next-gen storage batteries
Use of IoT
distributed resources▶Smart grids and virtual power plants (VPP)
Renewables▶Superconductivity and HVDC transmission technologies
Carbon sequestration and storage technologies
Wind
Solar
▶CCUS (CCS, BECCS, etc.)
Carbon-free hydrogen technologies
Virtual Power Plant (VPP)▶Hydrogen production using electrolysis and pure hydrogen fuel cell generators

EV

Equipment and Devices
Vision for the Future
Achieve ultimate energy conservation of the entire systems
Source electricity from renewables wherever possible and promote higher
efficiency manufacturing processes

●

EV

●

Technologies
Next-gen communication systems and related technologies▶5G/Beyond 5G, M2M modules, LPWA chips, etc.
Sensing/monitoring traceability▶Sensors and image processing systems
Next-gen mobility systems▶Power semiconductors▶Next-gen charging systems(Quick charging, xEV wireless feeding systems and modules)

V1G

V2G

V2H/B

（Unidirectional（Vehicle-to-grid） （Vehicle-to-home/managed charging）
building）

Efficient operation and grid stabilization
for charging, storage, and discharging
V2X charging technology

Solutions
Vision for the Future
Roll out solutions for reducing GHG emissions in society fully utilizing
technology such as IoT, AI, and cloud computing●Dramatically improve adaptability to climate-related disasters

Forecasting using
simulations●

Knowledge from AI and
big data analysis
Connected

Technologies
IoT/AI and digital twin
▶AR/VR,CAE simulation
Mobility revolution▶Autonomous driving systems▶Car sharing, on-demand transportation systems
Advanced supply chains using DX▶Smart factories using visualization and connectivity▶On-demand manufacturing and logistics systems
Adaptation to climate change▶Accurate weather observation and flood forecast simulation technologies

4AI

Support advanced decision making
Accurate weather observation simulation

The following presents the many technologies and initiatives of our industries helping to solve social issues.
Technologies that contribute to GHG emissions control and reduction
Technologies to reduce GHG emissions

Enhancement and stabilizationof power transmission anddistribution systems

Consumer

Energy efficient heavy
electrical andindustrial equipment
Product automation;high efficiency andoptimization of manufacturing
Comfortable andefficient living
ZEB office buildings

Businesses
New work styles

Transportation/
logistics(mobility)

Decarbonization oftransportation methods

Optimal control of traffic flow

Sustainable society andcommunity development[resilience and adaptation]

Distribution/wide-areaconnection; remote control

Energyconversion High efficiency power generation facilities(decarbonization of thermal
power facilities, etc.)

Sector- and area-specific

Smart grids;
advanced EMS for grid power;
technology for interconnecting
DERs with grids; VPP

Efficient technologies,
facilities, and equipment

Supporting devices

Renewables; distributed zero-emissions
power generation facilities; nuclear/hydrogen power generation;use ofMagnets for wind power;
carbon-free hydrogen; pure hydrogen
reactors for power conditioners;
fuel cell generators
power semiconductors;(Hydrogen-ammonia co-firing)
electricity storage batteries;
Supercritical thermal power generation large capacitance capacitors
facilities + CCS/CCUS(converters/inverters);
MV/LVDC
Superconductive and HVDC
transmission technologies

Demand controller; M2M
Automatic/optimal control and authentication, sensing/monitoring

Decarbonized
power generation

Industry(supply
chains)Sophisticating power demand

IoT/AI solutions
Cross-sectoraltechnologies

IoT/AI; digital twin (AR/VR, CAE simulation); 5G/Beyond-5G network systems

Green power supply

Sector in society

Social issues related
to the EE industries

FEMS (energy demand
forecasting system)

High efficiency motors, converters, heatpumps, etc.; Solid State Luminaires (SSL);
pure hydrogen fuel cell generators;
stationary storage batteries; industrial
robots; high-efficiency cooling (liquid
immersion server, water-cooled 5G);
innovative optical and wireless network(IOWN); DC conversion

HEMS

Smart home appliances; SSL lighting(Connected Smart Lighting [CSL]);
home storage battery systems

BEMS; service solutions(VR/teleworking systems,
Standard Operating Procedures (SOP)/
Master Production Schedule (MPS))

Perovskite solar cells; high efficiency
heat pumps/air conditioning; SSL
lighting (CSL); pure hydrogen fuelcell generators; communication/
office equipment for next-gen network

Power semiconductors;
inverters; sensors;communication/camera
modules;
RF-ID;
non-contact power supply units

Power semiconductors;
onboard chargers;
converters/inverters;
high-capacity batteries/next-gen
storage batteries;
Smart logistics; on-demand
distribution systems; accurate Security systems for connected cars advanced EV motors;
sensors;
satellite positioning systems
communication/camera modules
Smart mobility (Automatic Vehicle
EVs; fuel cell vehicles (batteries);
Monitoring System (AVM) /automatic V2X; logistics efficiency
dispatch/route instruction systems)(eco-driving support)

Accurate weather observation;
Robots for infrastructure inspection
flood forecast simulationand disaster relief; UPS/emergency
technologies; smart city;
i-Construction (IoT implementation power generatorsin the community)

Large capacity batteries;
advanced storage batteries;
sensors;
communications/camera modules

5 ClosingIn order to realize the global carbon neutrality goals of the international community, the electrical and electronics
industries, which are involved in producing and using electricity and have connections with various businesses andcustomers, will promote the following initiatives with the aim of greening the value chain.
●From the three perspectives of Technology, Co-creation, and Resilience, we will solve social issues related to climate change and energy

constraints through the diverse business fields of member companies.

Technology●Develop and provide efficient technologies for reducing GHG emissions throughout the lifecycle of goods and services●Help reduce GHG emissions of each sector using various technologies developed by EE industries
Co-creation●Establish comfortable, high efficiency next-gen mobility systems with the auto, public transit, and logistics industries●Integrate distributed energy resources and BPS with power producers and users
Resilience●Build resilient and economical social infrastructure systems for transportation, communications, and power globally●Contribute to the international community’s adaptation by providing weather forecasting systems for disaster risk reduction

5

●In response to the policy expectations regarding the supply and demand of green electricity, we will collaborate and cooperate withthe government and the electric power industry, and undertake early development of innovative technologies. In this way, we will
provide solutions, using digital transformation (DX) to redesign the optimization of “connections” between people and goods and theinnovation of “sustainability.”●Through dialogue with investment institutions and other stakeholders, we will respond to their trust and collaborate and cooperate toaccelerate sustainable businesses and expand investment in the development of products and solutions.

Innovation for the realization of a sustainable society and green value chain (GX/DX)
Building a green value chain
Green electricity/distributed energy resources (DER)IN
Sharing
economySocialimplementation

3E+S
Economic
security

GX

Power generation Manufacturing Office buildings

Housing

Transportation

Clean(Non-fossil, renewables/hydrogen)●Sustainable●

DX
Visible, connected●EV

IoT (optimization)●

Transformation/
value creation

Transformation/
value creation

Greening social infrastructure systems
CirculareconomyPartnershipengagement

3R+RenewableOut
Dialogue with stakeholders
Fostering investment
opportunities

Decarbonization, lower CO2 emissions

Decarbonized/carbon-neutral society realized

Dialogue with stakeholders
Fostering investment
opportunities

ESG investment

Furthermore, as we face issues in addition to climate change, such as new infectious diseases and resource
constraints, the businesses and technologies of EE industries will contribute to transition to a “circular economy”
society through co-creation with each business partner. At the same time, we will strive to build a robust andsustainable supply chain and achieve both environmental and economic growth.
In addition to addressing environmental issues, we will also promote initiatives to achieve the 17 goals of theUnited Nations Sustainable Development Goals (SDGs) to solve various social issues.

6

Liaison Group of Japanese Electrical and Electronics Industries for Global Warming Prevention
The Liaison Group of Japanese Electrical and Electronics Industries for Global Warming Prevention
is supporting industry-wide initiatives to prevent global warming,
including the formulation of the Carbon Neutrality Action Plan.
Detailed activities are available on our websites.
https://www.denki-denshi.jp/

Japan Electrical Manufacturers’ Association
https://www.jema-net.or.jp/English/

Association forElectric Home Appliances

Japan Electronics andInformation Technology Industries Association
https://www.jeita.or.jp/english/

Japan Photovoltaic Energy
Association

Communications andInformation Network Association of Japan
https://www.ciaj.or.jp/en/

Battery Association of Japan

Japan Business Machine andInformation System Industries Association
https://www.jbmia.or.jp/english/index.php

Japan Refrigeration and
Air Conditioning Industry Association

Japan Lighting Manufacturers Association
https://www.jlma.or.jp/en/index.html

Please Recycle.
Published November 2022