FCL Components Group

Environmental Report
FY20241FCL Components Group FY2024 Environmental Report

The FCL Components Group recognizes environmental management as one of its most important roles andcontributes to building a sustainable society. It participates in global environmental conservation efforts by
striving to reduce the harmful environmental impact generated by the products or services offered throughout
its business activities.
1. Greeting
We, FCL Components Group, have been implementing activities to reduce environmental
impact based on the philosophy of "caring for the environment and conducting better corporate
activities" since 1998.
In 2023, various parts of the world experienced disasters that appear to be caused by climatechange, such as floods and droughts, highlighting the global environmental problems we are
currently facing. Environmental issues have become urgent and essential elements in all
business and social activities.
Digital transformation (DX) is a key approach to addressing environmental challenges.
Advances in digital technology have enhanced our ability to collect and analyze environmental
data, facilitating the development of more effective environmental management strategies.
FCL Components is contributing to large-scale real-time environmental monitoring andimplementing sustainable business practices through the provision of IoT network devices
equipped with environmental sensors.
Furthermore, to promote the greening of the market through scientific and technologicalinnovation, we are actively focusing on product development for green applications such as
renewable energy and electric vehicles (EVs), as well as enhancing the energy and resource
efficiency of our products.
Simultaneously, we have been working to reduce greenhouse gas emissions, electricity
consumption, water usage, and industrial waste during manufacturing processes. Together
with our business partners, we continuously promote activities aimed at reducing
environmental impact throughout the entire life cycle of our products.

Masahiro Kinoshita
Representative CorporateOfficer, President and CEO

In fiscal year 2024, the FCL Components Group declared our commitment to carbon neutrality.
In addition to traditional energy-saving efforts, we have incorporated plans to introduce
renewable energy sources and utilize non-fossil energy certificates (designated asrenewables). These steps mark our progression towards achieving carbon neutrality by 2050,
a significant milestone we aim to accomplish with the active collaboration of our management
team, employees, customers, business partners, government, and local authorities.
*1 FCL Components Group Declaration of Carbon Neutrality
https://www.fcl-components.com/downloads/MICRO/fcai/carbon-neutrality-2024en.pdf

2. Group Profile
Head Office address

FCL COMPONENTS LIMITED
Shinagawa Seaside Park Tower, 12-4, Higashi-shinagawa 4-chome, Shinagawa-ku, Tokyo
140-0002, Japan

1/8RepresentativeCorporate Officer

Masahiro Kinoshita, Representative Corporate Officer, President and CEO

Founded

October 1, 2001

Main Business

Manufacturing and sales of relays, keyboards, touch panels, thermal printers, wireless modules,
KVM solutions, cross technology products (unit products)

Capital90 million yen

Capital surplus

12,810 million yen (as of March 30, 2024)

Financial Year End

March 31

Employees

2,100 (consolidated as of March 31, 2024)

Group Composition

The Group is composed of a total 10 companies: 3 Japanese companies including 1 sales
company, and 7 overseas companies including 5 sales companies

FCL Components Group FY2024 Environmental Report

3. Environmental Policy & Environmental Protection Program FCL Components Group Environmental Policy
Principle
The FCL Components Group recognizes the value and importance of protecting the global environment as one of its
foremost priorities. Our environmental philosophy is: We are committed to conducting exemplary corporate activities while
enhancing our coexistence with the environment. As a company engaged in the development, design, manufacturing, andsale of electrical components, we advocate for the implementation of an Environmental Management System (EMS) per
ISO 14001, aiming to contribute to the achievement of a prosperous society aligned with the Sustainable DevelopmentGoals (SDGs).
Action Guidelines••••••

We recognize the global environment as one of the most important issues and continuously improve ourenvironmental management system through our activities, products, and services.
We strive to achieve a sustainable society through environmental initiatives for future generations.
We offer products that contribute to both business growth and environmental protection.
We comply with all relevant environmental laws as they apply to our activities, products, and services.
We strictly prohibit hazardous substances in our products and refrain from discharging any hazardous substances into
the environment, as stipulated by the FCL Components Group.
Every employee is committed to improving the environment, including the use of sustainable resources, promoting
carbon neutrality for climate control, conserving biodiversity both at work and at home, and extending these efforts tosociety.

Priority Items
We prioritize the following items related to the environmental aspects of our products and services:
1. Improvement of environmental impact throughout the product lifecycle
2. Promotion of social contribution activities
3. Reduction of energy consumption per unit
4. Reduction of waste emissions per unitSupplement
1. This policy is communicated to our employees, group members, and all relevant stakeholders.
2. Our Analytical Engineering Department is responsible for the Environmental Policy.
April 1, 2024
FCL Components Group EMS Management

4. Organization for Environmental Activities
FCL Components
Management Committee
Senior Representative Group EMS
Internal Audit Committee forGroup EMS
Representative Group EMS
Contact

2 offshore factories
FCL COMPONENTS(MALAYSIA) SDN.BHD.
FCL COMPONENTS(CHANGZHOU) CO.,LTD.

3 sites in Japan:
 FCL COMPONENTS LIMITED NAGANO FCL COMPONENTS LIMITED
Head office, Osaka/Nagoya sales office,  MIYAZAKI FCL COMPONENTS LIMITEDTEC CO., LTD./Engineering & Development Center/Nagano Development Center

3/8

FCL Components Group FY2024 Environmental Report

５. The 9th Stage Group Environmental Protection Program (FY2022 to FY2024)
The FCL Components Group has launched the 9th Stage of its Environmental Protection Program and has commenced activities
accordingly. All targets were achieved in FY2023. Specifically, regarding environmentally friendly products, we exceeded the goalby one.
Item

FY2023The 9th Stage Group Environmental Protection Program Goals

TargetResultSocial contribution activities

Improvement of environmental value throughout production life cycle
10 or more products which satisfy one of below to be developed by end of FY2024.
(1) Product to lead in energy-efficiency(*1)(2) Product’s resource efficiency(*2) is increased by 1% or more

3 products 4 products

Done

23
activities

Done(3) Development of new technology leading to improvement of energy or resourceefficiency(4) Product’s energy or resources efficiency is increased by improving manufacturing
processes
Promotion of social contribution activities
Promote activities to solve social and environmental issues.

24
activities

Own businessactivities

Improvement of energy efficiency
Based on the Energy Conservation Act, we will improve specific energy consumption
unit in facilities by an average of 1% per year from the average of the last 5 years
results(*3).
Control on waste emission
We will reduce specific waste unit to less than the average for the last five years.(*4)

See table-1

Done

See table-2

Done

Table-1 Specific energy consumption unit FY2023 targets and results
Site nameCalculation formula

FY2023 target (Note 5)

FY2023 result

FCL COMPONENTS

Energy consumption (t-CO2)
Sales amount (million yen)

0.996

0.763

Done

NAGANO FCL COMPONENTS

Energy consumption (t-CO2)
Sales amount (10 million yen)

2.520

1.800

Done

MIYAZAKI FCL COMPONENTS

Energy consumption (t-CO2)
Production quantity (thousand pcs)

0.01770.0165

UndoneTable-2 Specific waste unit FY2023 targets and results
Site nameCalculation formula

FY2023 target (Note 5)

FY2023 result

FCL COMPONENTSWaste amount (kg)
Sales amount (million yen)

82.7

76.7

Done

NAGANO FCL COMPONENTS

Waste amount (kg)
Sales amount (million yen)

20.0

15.4

Done

MIYAZAKI FCL COMPONENTS

Waste amount (kg)
Production quantity (million pcs)

365.9

294.1

Done

*1: The products meet the criteria which is ranked at the top level in the market, including leading products (world-first, industry-first, world-best, industry –best) inenergy efficiency.
*2: Improvement of product’s resources (smaller, lighter, thinner, reducing number of parts) or resource circulation (reducing waste amount, recycle capability).
*3: Specific energy consumption unit = energy consumption amount (Kl crude oil equivalent) / production amount (industrial output amount or quantity). CO2
conversion factor shall be the latest one published under the Energy Conservation Act.
*4: Specific waste unit = waste emission amount (t) / production amount (industrial output amount or quantity)*5: Target was calculated based on the average of the last five years.
*6: Planned values were reviewed during the period.

4/8

FCL Components Group FY2024 Environmental Report

6. Environmental Activities
 Development of Eco-friendly Products
We are dedicated to developing and offering eco-friendly products that enhance both environmental
and commercial aspects.
 Highlights of new Developments

Relay

Improvement
Energyefficiency
Resource
efficiency

Wireless Module

Products

Touch Panel

Details of improvement

Improvement ratio(compared to ourconventional products)

Relay

Power savings through renewal of driving mechanism(FBR53-LE relay)

26% reduction inpower consumption

Wirelessmodule

Resource conservation through reducing the height of theproduct (FWM8BLZ14)

48% reduction

Touch panelReduction of protective sheets by developing an ITO film withantibacterial/antiviral functions

5％ reduction

 Status of Social Contribution Activities
Each group company engages in social contribution activities to foster harmony with local
communities and preserve biodiversity, including the eradication of invasive plant species.
■ Major Activities

5/8

Head office (Shinagawa, Tokyo)
Donation of contact lens caseEngineering & Development Center (Suzaka, Nagano)
Cleaning up around the factory

Nagano FCL Components (Iiyam, Nagano)
Eradication of invasive plant species

Miyazaki FCL Components (Nichinan, Miyazaki)
Cleaning up around the factory

FCL Components Group FY2024 Environmental Report Global Warming Prevention Activities (Reduction of Energy Origin CO2, Improvement of Energy Efficiency)
The FCL Components Group has set a goal to achieve carbon neutrality by FY2050.
In addition to traditional efforts to reduce fossil fuel consumption (such as electricity,heavy oil, and LPG), we are exploring the adoption of non-fossil energy sources (suchas solar power) and the utilization of Renewable Energy Certificates and Non-fossil
Certificates.
Furthermore, we continue our efforts to reduce water consumption, including
groundwater use.
■ Transition of CO2 emission■ Transition of total energy consumption amount

25,00040,00032,42030,00030,45629,12720,00028,587
24,261

20,00016,437

14,767

15,441

15,00014,494

12,30010,00010,000

5,000

00
2019

2020

2021

2022

2023

287
2019

301

260

2020

2021

Scope 1 (t-CO2)

Energy consumption (MWh)

121

210
2022

Scope 1 (t-CO2)2

2023
(注1)

Scope 1: Direct emissions by own company emissions
Scope 2: Indirect emissions associated with the use of electricity, heatand steam supplied by external companies■ Transition of water usage
200,000
150,000

144,714
127,311

129,518

129,077

Carbon Neutrality

92,474

100,000

FCL Components Group
Declaration of Carbon Neutrality
https://www.fclcomponents.com/downloads/MICRO/
fcai/carbon-neutrality-2024en.pdf

50,000
0
2019

2020

2021

2022

2023

Water usage (m3)TopicsEnhancing Energy Efficiency: Reducing CO2 Emissions through Optimized Air
Conditioning Operations Integrated with Factory Processes

We have established an Energy Conservation Promotion Working Group, comprising representatives from three domestic
sites, and have actively engaged in activities aimed at improving energy usage efficiency to reduce CO2 emissions.
This initiative builds upon measures implemented since FY2022, focusing on the reduction of heavy oil consumption.
(FCL Components Limited Engineering & Development Center)

Annual total usage of heavy oil (L)FY2021 89,839L
FY2022 70,220L
FY2023 61,083L
Reduction amount in 2 years
・Heavy oil 28,756L
・CO₂
21.3t-CO₂

6/8

FY2021 total
FY2022 total
FY2023 total

FCL Components Group FY2024 Environmental Report Managing Industrial Waste Reduction and Promoting Circular Economy Initiatives
This initiative centers on implementing the principles of the 3Rs (Reuse, Reduce, and Recycle),
waste separation, and promoting recycling and reuse practices among all employees. By minimizing
waste and encouraging its recycling or reuse, our goal is to reduce environmental impact.
Additionally, our Nagano FCL Components Repair Center offers repair services for keyboards,
thermal printers, and KVM solutions, supporting a circular economy by extending the lifecycle ofproducts.
■ Long-term use of products through repair service
0.0150700

Waste generations (t)6000.0117

0.01170.0121500

0.0107400
300

0.01001.3 (*1)

647

577

647

0.0067529

200

0.0050356

100
00.000020192020

Industrial waste
産業廃棄物

2021

2022

Specially controlled2023

特別管理産業廃棄物
industrial waste

Waste generation per sales amount(t/million yen)

■ Transition of industrial waste reduction

Waste emission
原単位
per unit*1: Specially controlled industrial waste that is explosive, toxic, infectious, or has other properties
that may cause damage to human health or the living environment is distinguished fromordinary waste. (From FY2023)

7. Chemical Substances Contained in Products
 Management of Chemical Substances Contained in Products
All materials are purchased under the Common Environmental Purchasing Specifications, and FCLComponents Group specified banned materials are checked by certification of compliance andchemSHERPA (*1) . Phthalic acid ester, which was added under the revised European RoHS
directive, is analyzed by Gas Chromatograph Mass Spectrometry and other methods inside ourcompany. In addition, we have established a management system for pollution control inproduction sites and suppliers and check products’ compliance.
*1: A scheme that facilitates sharing information on chemical substances in products conducted byMinistry of Economy, Trade and Industry. (Abbreviation of Chemical Information Sharing andExchange under Reporting Partnership in supply chain).

 Green Procurement
We ask all supply partners to build an environmental management system as well as prevention ofglobal warming and biodiversity program to further the reduction of the environmental impact
throughout the supply chain.

7/8

FCL Components Group FY2024 Environmental Report

8. Actions to High-Risk Minerals
The FCL Components Group promotes the investigation of the High Risk Minerals (Note 1) in line with OECDDue Diligence Guidance. We use the ‘Responsible Materials Initiative (RMI) for conflict minerals and cobalt’reporting template for these investigations. We will continue the activities to smelting manufacturers and toimprove transparency of supply chain to provide reliable information for the customers.
(Note 1) Investigate and identify tantalum, tin, gold, tungsten, cobalt and mica.

9. Third-Party Evaluations
 ISO14001:2015
FCL Components Group obtained ISO14001:2015 in FY2016 and has sincemaintained efforts to reduce our environmental footprint.

 EcoVadis Sustainability Evaluation
We are proud to have achieved a Silver rating in the EcoVadis assessment(Headquarters: France).
Our environmental initiatives received particularly high scores.

 Contact
Engineering & Development Center
Business Planning Section, Business Promotion Division
Address: 1174 Suzaka, Suzaka-shi, Nagano-ken, 382-0076 Japan
E-mail: fcl-contact@cs.fcl-components.com

FCL COMPONENTS LIMITED
Shinagawa Seaside Park Tower
12-4 Higashi-shinagawa 4-chome,
Shinagawa-ku, Tokyo 140-0002
8/8

Published by:
Edited by:
Published on
Period of report

Business Planning Section, Business Promotion DivisionMarketing Section, Sales Division
August 6, 2024
April 1, 2023 to March 31, 20234 (including FY2024 plans)
Copyright 2024 FCL COMPONENTS LIMITED