Contents/Editorial Policy

Message from the President＞ Environmental Strategy

Nikon Group Profile

Nikon’s Sustainability＞ Environmental Management Promotion System

Business Activity

Environment＞ Promoting a Decarbonized Society

Society/Labor

Governance＞ Promoting Resource Circulation

Corporate Citizenship Activities＞ Preventing Pollution and Conserving Ecosystems

Materiality 3

Promoting a Decarbonized Society● Promoting a Decarbonized Society

Targets for Fiscal Year 2030

What Nikon Needs to Do

Self-evaluation ○ : Achieved △ : Measures started but not yet achieved

RelatedSDGs• Improve manufacturing facilities andproduction processes and promotedecarbonization• Reduce greenhouse gas emissions(Scope 1 and Scope 2) by 71.4%
compared to fiscal year 2013

• Promote eco-office and diverse work
styles to achieve a decarbonizedworkstyle• Achieve renewable energy adoption
rate to 30%• Accelerate renewable energy
adoption• Reduce greenhouse gas emissions(in three of 15 Scope 3 categories̶
purchased goods and services,
upstream transportation &distribution, and use of soldproducts) by 31% compared to thefiscal year 2013

• Visualize the environmental impact
in each process within productsʼ
lifecycles and implement newenvironmental initiatives harnessing
expertise• Downsize cargo, promote modal shift
and establish a transportation system
requiring minimal energy• Require procurement partners toformulate and pursue greenhousegas reduction targets

7,13

Scope

Targets for Fiscal Year 2022

Results for Fiscal Year 2022

SelfEvaluation

Nikon
Group

• Reduce Scope 1 and Scope 2 greenhouse gas emissions by
31.6% compared to fiscal year 2013

• Reduced Scope 1 and Scope 2 greenhouse gas emissions by
33.8% compared to fiscal year 2013

○

Nikon
Group

• Achieve a renewable energy adoption rate of 9% or higher
in electricity used for business activities• Renewable energy share of electricity used for businessactivities: 22.3%

○

Nikon
Group

• Reduce environmental impact by making effective use of
the LCA methodology• Create eco-friendly products• Continued to expand the range of product models subject
to LCA calculation (100% for new products)• Approximately 82% of new products certified as eco-friendly
products

○

Nikon
Group

• Reduce greenhouse gas emissions in distribution by 10%
compared to fiscal year 2019

• Reduced greenhouse gas emissions in distribution by 28%
compared to fiscal year 2019

○

Nikon
Group

• Completed understanding of CO₂ emissions for main
• Complete understanding of CO₂ emissions for main
procurement partners who account for 80% of procurement procurement partners who account for 81% of procurement
costs
costs

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Contents/Editorial Policy

Message from the President＞ Environmental Strategy

Nikon Group Profile

Nikon’s Sustainability＞ Environmental Management Promotion System

Business Activity

Environment＞ Promoting a Decarbonized Society

Society/Labor

Governance＞ Promoting Resource Circulation

Corporate Citizenship Activities＞ Preventing Pollution and Conserving Ecosystems

Reduction of Greenhouse Gas in the Supply Chain
Setting Science-Based Targets andSigning Up to the Business Ambition
for 1.5ºC Initiative
The Nikon Group has established greenhouse gas emission
reduction targets as part of our Medium-Term Environmental
Goals concerning Realizing a Decarbonized Society, which isa part of the Nikon Long-Term Environmental Vision. In recent
years, the impact of climate change has become more apparent,
and the trend toward decarbonization in society has picked up
speed. With this in mind, in February 2021 Nikon revised Scope
1 and Scope 2 greenhouse gas emissions reduction target from
26% to 71.4% (compared to fiscal year 2013). This new target
was certified in April 2021 by the Science Based Targets (SBT)
initiative*1 as conforming to the criteria for helping to keep
the average global rise in temperature within 1.5℃ . We areconsidering revisions to this target based on the requirements
set by the SBT Initiative.
In March 2021, we also expressed our support for the Business
Ambition for 1.5℃ initiative launched by the UN Global
Compact, the SBT Initiative, and We Mean Business*2. Thisinitiative encourages companies to set scientifically based
greenhouse gas reduction targets for reducing greenhousegas emissions to net zero by 2050 to keep the average global
temperature rise within 1.5ºC compared to pre-industrial levels.
Going forward, Nikon will further accelerate its initiatives tosupport decarbonization.
*1 Science Based Targets (SBT) initiative
The SBT initiative is a collaboration between CDP, an international NGO working on
environmental issues such as climate change, the United Nations Global Compact, World
Resources Institute, and the World Wide Fund for Nature. The initiative targets achieving
the Paris Agreement-mandated objective of holding the increase in the global averagetemperature to below 2ºC above pre-industrial levels. It certifies the CO₂ emission reduction
targets of companies that are in line with emissions reduction scenarios based on scientificfacts.
*2 We Mean BusinessA platform run by international organizations, think tanks, NGOs, and other organizations thatare engaged in encouraging companies and investors to adopt measures to combat global
warming.

The Nikon Groupʼs Science Based
Targets (SBT)
Target year: Fiscal year 2030●

Reduce Scope 1 and Scope 2 greenhouse gas
emissions 71.4% compared to fiscal year 2013●

Reduce Scope 3 greenhouse gas emissions(purchased products and services;transportation and delivery (upstream);and use of company products sold) by 31%
compared to fiscal year 2013

Greenhouse Gas Emissions
Across Our Supply Chain
The Nikon Group calculates greenhouse gas emissions in theentire supply chain in accordance with the Greenhouse Gas
Protocol (GHGP).
In fiscal year 2022, Scope 1 emissions were 34,668 tons- CO₂eand Scope 2 emissions were 140,199 tons- CO₂e. With theseresults, we achieved the Nikon Group target of reducing Scope
1 and Scope 2 emissions by 31.6% compared to fiscal year 2013
ultimately reducing CO₂ emissions by 33.8%. Our measurescentered on expanding renewable energy sources resulted in
reductions at a more steady pace than planned.
Our Scope 3 results were 716,958 tons-CO₂e emissions.
We reduced emissions volume year on year, mainly due tofluctuations in operations. Although current emissions arelower than targets for fiscal year 2030, the impact of COVID-19
infections and other factors are still apparent. Further, we
assume emissions could increase due to business fluctuationsin the future, so we intend to remain vigilant in our efforts to
reduce emissions.
We will continue to engage in detailed energy conservation andexpansion of renewable energy based on the Nikon MediumTerm Environmental Goals, pursuing reductions in line with thepath to limit the global temperature increase to 1.5℃ or less. In
the long term, we will reduce Scope 1, 2, and 3 GHG emissions
to 10% or less and neutralize the remaining emissions to achievecarbon neutrality by fiscal 2050.
With particular regard to Scope 1 and 2 emissions, weestablished a task force under the Environmental Subcommittee
in April 2022 to discuss ways to reduce emissions in order toachieve Nikonʼ Medium-Term Environmental Goals. In fiscal
year 2022, we assessed and incorporated the impact of GHG
emissions in our emissions reduction plan under the new
Medium-Term Management Plan.
NIKON SUSTAINABILITY REPORT 2023

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Contents/Editorial Policy

Message from the President＞ Environmental Strategy

Nikon Group Profile

Nikon’s Sustainability＞ Environmental Management Promotion System

Business Activity

Environment＞ Promoting a Decarbonized Society

Society/Labor

Governance＞ Promoting Resource Circulation

Corporate Citizenship Activities＞ Preventing Pollution and Conserving Ecosystems

Nikon Long-Term Environmental Vision and Medium-Term
Environmental Goals（➡ p.051）● Changes in Greenhouse Gas Emissions Across the Entire Supply Chain● Percentage of Greenhouse Gas Emissions Across the Supply Chain(Thousand tons-CO₂)
2,000
Base year

Scope 3 Other Categories
18%(Fiscal Year 2022)

206
1,500
Target year
164

1,000

1,314

102

96

500

162

681

554

906

193

175

76

576
264

0
FY2013
Scope 1+2

196
FY2020

Scope 3 (Categories 1, 4 and 11)

FY2021

FY2022

Scope 3 Category 11(Use of company products sold)11%
Scope 3 Category 4(Upstream transportation and delivery)
3%

Scope 1
4%
Scope 2
16%

Scope 3 Category 1(Products and services purchased)
48%

FY2030

Scope 3 (Other)

NIKON SUSTAINABILITY REPORT 2023

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Contents/Editorial Policy

Message from the President＞ Environmental Strategy

Nikon Group Profile

Nikon’s Sustainability＞ Environmental Management Promotion System

Business Activity

Environment＞ Promoting a Decarbonized Society

Society/Labor

Governance＞ Promoting Resource Circulation

Corporate Citizenship Activities＞ Preventing Pollution and Conserving Ecosystems

Initiatives to Reduce Greenhouse Gas Emissions in Products
Environmental Impact Assessment
Using the LCA Methodology

CO₂ Reduction Measures for Products

Nikon calculates CO₂ emissions in each phase of a productʼs
lifecycle by conducting evaluations of our environmental
impact using the Life Cycle Assessment (LCA) methodology.
These evaluations are carried out for a range of products,
including some of our most popular models. Results showthat there are large CO₂ emissions in the raw material
procurement phase for imaging products and in the usephase for products in FPD and semiconductor lithographysystems, as well as industrial metrology. From this, weunderstand that it is important for us to make improvements
at these phases, and we are therefore incorporating this into
new product development.

For imaging products, we have the highest amount of CO₂
emissions at the raw material procurement phase. We are
therefore focusing on making camera bodies smaller andlighter, as well as reducing their number of parts.
The NIKKORZ 17-28mm f/2.8 full-frame/FX format ultra-wideangle zoom lens is approximately 31% lighter in weight, 32%
smaller in volume, and has 46% fewer parts than the NIKKOR
Z14-24mm f/2.8 S, an equivalent ultra-wide-angle zoom lens.
As a result, we reduced CO₂ emissions over the product life
cycle per unit by approximately 46%.

● Percentage of CO₂ Emissions Throughout theProduct Lifecycle for Major Nikon Products

Promoting CO₂ Reductions
with our Procurement Partners
The Nikon Group encourages major procurement partners to
reduce CO₂ as one of the assessment categories within ourenvironmental management system.
When conducting our environmental assessment during
fiscal year 2022, we requested approximately 170 companies
to establish a system to reduce their CO₂ emissions. Whennecessary, we provided guidance on the calculation of Scope
1 and Scope 2 CO₂ emissions.
During fiscal year 2023, we intend to participate in the CDP
Supply Chain Program*1 and request our major procurement
partners to disclose information. We will reduce CO₂
emissions throughout the supply chain by understanding
Scope 1, Scope 2, and Scope 3 emissions, not only forourselves, but also for our procurement partners.
*1 CDP Supply Chain Program: An information disclosure program conducted by
CDP, an international NGO working in climate change and other environmental
fields. Member companies that disclose information on climate change, water,
forests, etc., through CDP use this platform platform to request environmental
information disclosure from their suppliers.

Digital SLR cameras

Binoculars

Promoting Green Procurement（➡ p.105）
NIKKOR Z 17-28mm f/2.8

Microscopes
Video measuringsystems
FPD lithographysystems
Semiconductor
lithography systems

020

Raw materials procurement
Use

40
Manufacturing

60

80
Distribution

100
（%）

Disposal

NIKON SUSTAINABILITY REPORT 2023

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Contents/Editorial Policy

Message from the President＞ Environmental Strategy

Nikon Group Profile

Nikon’s Sustainability

Business Activity

Environment＞ Promoting a Decarbonized Society＞ Environmental Management Promotion System

Society/Labor

Governance＞ Promoting Resource Circulation

Corporate Citizenship Activities＞ Preventing Pollution and Conserving Ecosystems

Initiatives to Reduce Greenhouse Gas Emissions at Business Facilities
Changes in CO₂ Emissions fromEnergy Consumption andChanges in Energy Consumption
By striving to improve product development andproduction processes and make production equipment
more efficient, the Nikon Group is making a serious effort to
reduce CO₂ emissions derived from energy consumption.
We are also implementing energy-saving measures andadopting renewable energy. CO₂ emissions from theenergy consumption of the Nikon Group in Japan andGroup manufacturing companies outside Japan for fiscal
year 2022 amounted to 156,594t-CO₂, down 10.7% year
on year. Emissions per unit of sales improved significantly
due to higher sales resulting from a recovery in businessperformance. Going forward, we will take further measures toreduce CO₂ and cut our emissions.

● Changes in CO₂ Emissions from Energy● Changes in Energy Consumption

Consumption(thousand tons-CO₂)
300
240
180

0.30

0.32

0.40

0.33

0.25◆
66

59

56

57

120
60
0

(tons-CO₂/million yen)
0.40

148

FY2018132

FY2019124

FY2020119

FY2021

55◆
102◆
FY2022

0.30
0.20

（TJ）

6,000
6.04
4,000

0

■ Nikon Group in Japan ■ Group manufacturing companies outside Japan● Emissions intensity per unit of sales*1 The following values were used for CO₂ conversion factors.
[Electricity]
Japan: CO₂ emission factors without adjustment for each electric power utility noted in the"List of Basic Emissions Factors by Electric Power Utility" specified in the Act on Promotion of
Global Warming Countermeasures
UK: Residual mix
USA: NERC regional residual mix
Other countries: International Energy Agency (IEA) factors for the respective country[City gas]
Japan: Gas company-specific factors under the guidance document for Periodic Reportpursuant to the Act on the Rational Use of Energy (Energy Conservation Act), were multipliedby the values given in Appended Table 2 of the "List of Calculation Methods and Emissions
Factors for Calculation, Reporting and Announcement Systems" specified in the Act on
Promotion of Global Warming Countermeasures and 44/12
UK: Factors from the Report on Greenhouse Gas
Other countries: Equivalent values to a typical Japanese gas company[Heat and other fuels]
Factors noted in the "List of Calculation Methods and Emissions Factors for Calculation,
Reporting and Announcement Systems" specified in the Act on Promotion of Global WarmingCountermeasures*2 The above factors were also used for the calculation of CO₂ emissions according to marketbased criteria for Scope 1 and Scope 2 in p.064.
*3 Emissions have been calculated using the Basic Emission Factors, subtracting the renewableenergy portion from total energy consumption.
◆：Values in Data Index assured by third party(GJ/million yen)
8.0

8.51

6.34◆
7.20
6.0

1,277

1,178

1,098

1,195

1,226◆

3,006

2,880

2,744

2,690

2,753◆FY2018FY2019FY2020

FY2021

FY2022

4.0

2,000

0.10
0

6.87

0

■ Nikon Group in Japan ■ Group manufacturing companies outside Japan● Emissions intensity per unit of sales* The following values were used for calorific-value conversion factors.
[Electric power] Factors given in the guidance document for the Periodic Report pursuant to
the Act on the Rational Use of Energy (Energy Conservation Act)
[City gas]
Japan: Gas company-specific factors under the guidance document for the Periodic Reportpursuant to the Act on the Rational Use of Energy (Energy Conservation Act)
UK: Values calculated from the factors for the Report on Greenhouse Gas
Other countries: Equivalent values to a typical Japanese gas company[Heat and other fuels] Factors given in the guidance document for the Periodic Report pursuant
to the Act on the Rational Use of Energy (Energy Conservation Act)◆：Values in Data Index assured by third party

NIKON SUSTAINABILITY REPORT 2023

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Contents/Editorial Policy

Message from the President＞ Environmental Strategy

Nikon Group Profile

Nikon’s Sustainability＞ Environmental Management Promotion System

Business Activity

Environment＞ Promoting a Decarbonized Society

Joining RE100

The Nikon Group pursues renewable energy as an effort to
reduce greenhouse gas emissions from business facilities.
Our goal is to increase the ratio of renewable energy toelectricity consumption to at least 30% by fiscal year 2030
through in-house power generation, electricity plans,
renewable energy certificates, and other means. As a resultof our efforts, we achieved 22.3% in fiscal year 2022, meeting
both our fiscal year target and the target for fiscal year 2025.
We are currently reviewing our targets as we aim to expand
and accelerate the use of renewable energy further. We
will continue our efforts as we consider renewable energy
additionality*1 and sustainability to contribute to the wider
adoption of renewable energy in society.

Nikon joined RE100*, an international initiative seeking
to have companies source 100% renewable energy forelectricity used in business activities. We aim to switch to100% renewable energy-derived electricity used in theGroupʼs business activities by fiscal year 2050, and we plan towork actively alongside other RE100 member companies tofoster the development of the renewable energy market andto encourage governments in this area.
* RE100
Run as a partnership by the Carbon Disclosure Project (CDP) and The Climate Group (an NPO
focused on activities in response to climate change), RE100 is an international initiative withparticipation from companies all over the world.

*1 Requirement that the impact encourages new renewable energy installations● Renewable Energy as a Share of
（MWh）

（%）

21,325350,000

084,6486.0

25
20294,749105FY2019Renewable energy usage
Renewable energy share

FY2020● The Nikon Group's Roadmap for Adoption of

Renewable Energy

February
2021

15
7.8

0.04
FY2018

35
30

22.3

341,462404,358
5.6

50,00028,60330.0

338,162

362,912250,000
150,000

21,778FY2021

Corporate Citizenship Activities＞ Preventing Pollution and Conserving Ecosystems

CO₂ Emissions from
Non-Energy Consumption
and Other Greenhouse Gas Emissions
For fiscal year 2022, CO₂ emissions from non-energy sources*1
and other greenhouse gas*2 totaled 12,358t-CO₂e, accounting
for 7.3% of the greenhouse gas emitted by Nikon and Group
manufacturing companies. Of these gas, HFCs contained indetergents used in the manufacturing process constituted
the largest category at 7.1%.
The Nikon Group is working to establish alternativetechnologies while implementing chemical substancemanagement thoroughly in accordance with theHazardous Chemical Substance Guideline in order toreduce CO₂ emissions from non-energy sources and othergreenhouse gas.
*1 CO₂ generated by fire extinguishers, sprays, waste incineration, etc.
*2 Other greenhouse gas: CH4 , N2O, HFCs, PFCs, SF6, NF3

Electric Power Consumption
175

Governance＞ Promoting Resource Circulation

Utilizing Renewable Energy

450,000

Society/Labor

FY2022

Non-renewable energy usage

FY2030JoinedRE100

FY2025

FY2030FY2050

Achieved
renewableenergyrate of 18%

Achieve
renewableenergyrate of 30%

Achieve
renewableenergy rateof 100%Realizing a
DecarbonizedSociety0●

Switch to renewable energy for electricity in business facilities●

Purchase Green Power Certificates, etc.

● Breakdown of Greenhouse Gas Emissions

from Nikon and Group Manufacturing Companies ◆Other:
7.31%(breakdown below)
・CO₂ emissions from non-energy
consumption: 0.02%
・CH4：0.08%
・N2O：0.04%
・HFCs: 7.11%.
・PFCs: 0.00%.
・SF6：0.08%
・NF3: No emissions

CO₂ emissions fromenergy sources:
92.69%◆：Values in Data Index assured by third party

NIKON SUSTAINABILITY REPORT 2023

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Contents/Editorial Policy

Message from the President＞ Environmental Strategy

Nikon Group Profile＞ Environmental Management Promotion System● Breakdown of CO₂ Emissions from Non-Energy

Consumption and Other Greenhouse Gas Emissions ◆Other:
2.86%(breakdown below)
・CO₂ emissions from
non-energy
consumption: 0.24%
・CH₄ : 1.05%
・N₂O: 0.51%
・PFCs: 0.01%.
・SF₆ : 1.04%
・NF₃ : No emissions◆：Values in Data Index assured by third party

Nikon’s Sustainability

HFCs:
97.14%

Business Activity

Environment＞ Promoting a Decarbonized Society

Society/Labor

Governance＞ Promoting Resource Circulation

Greenhouse Gas Reduction Measures
at Business Facilities
Reducing Greenhouse Gas Emissions ThroughMore Efficient Product Development
By continuing to strive for further improvement and evolution
in the core technologies that underpin our manufacturing
operations, the Nikon Group is able to enhance the efficiency
of development and production operations and raise quality
standards. In turn, we also reduce our environmental impact
by achieving reductions in energy consumption and thegeneration of waste.
Optical technologies, one of the core technologies of
the Nikon Group, is supported by optical glass with highperformance and quality. The development and manufacturing
processes for optical glass use high temperatures from melting
furnaces and require repeated experiments, which leads tohigh energy consumption and a large amount of waste. The
Nikon Group has therefore focused attention on how weapproach quality engineering. In order to achieve significant
efficiency gains in the development and manufacturing
processes for optical glass, Nikon has worked to improve
evaluation methods, use simulations to reduce the numberof experiments, shorten lead times, and improve theaccuracy of our stamping (metalworking).
As a result, the Nikon Group has achieved significant
reductions in energy consumption, greenhouse gas
emissions, and waste emissions, leading to a greatly reduced
impact on the environment. The simulations and technicaldata established in these measures have been applied andextended to the development and manufacturing processesof other lens materials, thereby helping to further reduce
environmental impact.

Corporate Citizenship Activities＞ Preventing Pollution and Conserving Ecosystems

Conserving Energy at Business Facilities
When planning new equipment installation at all Nikon
Group business facilities, one important process is energy
saving checks, and determining whether or not to install
the equipment based on these checks. After the equipment
has been installed, its energy use is monitored, and its
performance is managed compared to the forecast.
Furthermore, a range of energy saving initiatives are ongoingat each business facility, including switching over to energy
saving lights, using motion sensor-equipped lighting, andworking to make air conditioning equipment and officemachinery more efficient.

Initiatives for Commuting andCompany Vehicles
All Nikon Group business facilities are making efforts to adopt
fuel-efficient, environmentally-friendly vehicles such as hybridcars as company vehicles. In December 2021, Nanjing Nikon
Jiangnan Optical Instrument Co., Ltd. (China) switched two
employee shuttle buses from gasoline-powered to electricvehicles. In November 2022, Nikon began using a fuel cellvehicle for use as a company car. Many business facilities arealso working to mitigate environmental impact from theiremployeesʼ commute, through means like encouraging
employees to utilize car sharing, cycle to work, and actively
use public transport.

NIKON SUSTAINABILITY REPORT 2023

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Contents/Editorial Policy

Message from the President＞ Environmental Strategy

Nikon Group Profile

Nikon’s Sustainability＞ Environmental Management Promotion System

Business Activity

Environment＞ Promoting a Decarbonized Society

Society/Labor

Governance＞ Promoting Resource Circulation

Corporate Citizenship Activities＞ Preventing Pollution and Conserving Ecosystems● Main Energy-Saving Initiatives at Business Facilities
Energy-Saving Initiative

Initiative Content

Adjusting design anddevelopment

Reducing experiments and prototyping through eﬀective use of AI, CAE, and external technicalinformation

Conserving energy in production
equipment

Integrating and replacing production equipment, and making existing equipment more energyefficient

Enhancing productivity

Improving conformity rates through IE analysis, optimizing work flow lines and production
spaces, and automating production

Upgrading transformer
equipment

Switching over to highly efficient receiving and transformer equipment

Adjusting utilization of transformer Integrating transformers, reducing electricity consumption from equipment on standby, andequipment
switching equipment oﬀ when not in use
Upgrading air conditioning
equipment

Improving cooling efficiency and streamlining equipment footprint through replacement ofcooling and refrigeration equipment, reducing power consumption by replacing motors

Adjusting air conditioning usage

Optimizing temperature and humidity settings and scheduling usage periods

Reducing heat dissipation andheat absorption loss

Insulating piping and exterior walls, optimizing heat exchangers, integrating piping and bypasses

Adjusting building facilities

Upgrading to insulating window glass and energy-saving elevators

Conserving energy in lighting

Switching over to LED lights, adjusting the spacing of lights, and adjusting brightness

Conserving energy in vacuums
and compressed air equipment

Switching over to highly efficient pumps, adopting bypassing for piping, optimizing pressure,and optimizing pump operation controls

Adjusting water usage

Improving the efficiency of water pumps installed in receiving tanks and optimizing piping

Upgrading company vehicles

Purchase environmentally friendly vehicles (electric vehicles, fuel cell vehicles, etc.)

Improving driving practices forcompany vehicles

Achieving energy-efficient driving through training to optimize driving styles and making use ofdriving recorder analysis

NIKON SUSTAINABILITY REPORT 2023

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Contents/Editorial Policy

Message from the President＞ Environmental Strategy

Nikon Group Profile

Nikon’s Sustainability＞ Environmental Management Promotion System

Business Activity

Environment＞ Promoting a Decarbonized Society

Society/Labor

Governance＞ Promoting Resource Circulation

Corporate Citizenship Activities＞ Preventing Pollution and Conserving Ecosystems

Initiatives to Reduce Greenhouse Gas Emissions in Distribution
Understanding Greenhouse Gas
Emissions in Distribution

Initiatives to Reduce Greenhouse Gas
Emissions in Distribution

Nikon Group products are manufactured in facilities locatedmainly in Asia and sold worldwide. We use this information tounderstand the distribution routes, transportation volumes,
and greenhouse gas emissions involved, working to reduce
emissions during distribution.
In fiscal year 2022, greenhouse gas emissions in distribution
amounted to 837.1t-CO₂ in Japan and 24,574.1t-CO₂ forinternational shipments and logistics outside Japan. The
Nikon Group outperformed our target of reducing emissions
by 10% compared to fiscal year 2019, ultimately reducing
greenhouse gas emissions by 53%.
● Greenhouse Gas Emissions from Distribution in Japan,

International Shipment and Distribution Outside Japan(thousand tons-CO₂)
200
0.50

（tons-CO₂/ton-kilometer)

0.55

0.54

0.60

0.42

0.45
0.30

100
53

50
0

FY2018The Nikon Group promotes modal shifts* in order to reduce
environmental impact, shifting the main mode of delivery
from air to marine transport.
In fiscal year 2022, the Healthcare Business Unit continued
modal shift of import cargo from Nanjing Nikon Jiangnan
Optical Instruments Co., Ltd. The Imaging Business Unit andNikon Vision Co., Ltd. switched the transportation of certain
products to ocean freight.
In addition, the Imaging Business Unit reduced greenhousegas emissions by transporting repair parts stored in Japan toThailand by ocean freight.
* Modal shift
This term is normally used to refer to a shift to a different method of transport in order to reducethe impact on the environment.

0.48

150

59

Promotion of Modal Shifts

Industrial Metrology Business Unit improved packaging
functionality while limiting package sizes. And the Healthcare
Business Unit is conducting drop tests and other measures
toward downsizing boxes for certain accessories.
We implement appropriate load size management for truck
transport in Japan to reduce the number of trucks on the road.

FY201929

28

25

FY2020

FY2021

FY2022

Greenhouse gas emissions from logistics
Greenhouse gas emissions per ton-kilometer

0.15
0Environmentally-Friendly Transportation
As well as gradually shifting over to the use ofenvironmentally-friendly vehicles with low fuel consumption
for delivery trucks, etc., the Nikon Group is also working topromote eco-driving (fuel-efficient driving) by holding regularseminars for drivers.
We also recognize the importance in taking measures in the
upstream stages of the product lifecycle in order to achieve
more efficient transportation. Planning departments in eachbusiness unit have lent their expertise to help incorporate
considerations from product design stages to transportloading. The Imaging Business Unit modified cushioning
materials and made packaging boxes more compact. Nikon
Vision Co., Ltd. now provides operation manuals online. The

NIKON SUSTAINABILITY REPORT 2023

070

Contents/Editorial Policy

Message from the President＞ Environmental Strategy

Nikon Group Profile

Nikon’s Sustainability＞ Environmental Management Promotion System

Business Activity

Environment＞ Promoting a Decarbonized Society

Society/Labor

Governance＞ Promoting Resource Circulation

Corporate Citizenship Activities＞ Preventing Pollution and Conserving Ecosystems

Disclosures in Accord with the TCFD Recommendations
Climate Change-related Disclosuresin Accord with the TCFD
Recommendations
In 2017, the Task Force on Climate-related Financial
Disclosures (TCFD), established by the Financial Stability
Board (FSB), released a final report titled Recommendations of
the Task Force on Climate-related Financial Disclosures .
Nikon announced support for the TCFD Recommendationsin November 2018 and is promoting information disclosure
based on these.

Governance− Organizational governance of climate-relatedrisks and opportunities −Strategy− Actual potential impact of climate-relatedrisks and opportunities on business, strategy,
and financial planning −Set Promoting a Decarbonized Society as a materiality
Conduct climate change scenario analyses to identify risks andopportunities (see p.072)● Incorporate sustainability initiatives, including measures addressing
climate change, in the Medium-Term Management Plan
● Incorporate evaluations considering sustainability initiatives, including
climate change initiatives, in officer remuneration

Risk Management− Integrated risk management of the processes
used to identify, assess, and manage climaterelated risks −●Initiatives

Considered the adoption of renewable energy to achieve the Nikon
Medium-Term Environmental Goals
Analyze risks and opportunities related to climate change● Verify the impact of business growth on GHG emissions over the period
covered by our Medium-Term Management Plan

Initiatives●

Fiscal Year 2022
Progress●

Nikon Long-Term Environmental Vision and Medium-Term
Environmental Goals（➡ p.050）

The Risk Management Committee manages our risks on a Group-widebasis, while the Sustainability Committee uses its expertise to identify
and assess environmental risks, including those from climate change,
discussing how to respond● Matters discussed and approved by each committee are reported to theBoard of Directors● Identified and established awareness of potential impact value for
identified risks, alongside other potential factors, in a financial simulationof the medium-term management plan●●

Conducted a risk identification survey and compiled a risk map presenting
results by scale of impact and probability of occurrence.
These were provided as feedback to relevant departments in order toshare recognition of risks facing the entire company.
● Reflected identified risks in the Environmental Action Plan, etc., rollingthese out throughout the Group●

Fiscal Year 2022
Progress

Environment-Related Risk Management System（➡ p.058）

The Sustainability Committee, chaired by the representative director
and president, identifies risks and opportunities, and discusses
strategies, indicators, targets, and performance. After these discussions,the committee decides whether to make decarbonization-related
investments.
● The Environmental Subcommittee under the Sustainability Committee
examines risks and opportunities related to climate change, drafts
strategies and indicators/targets, and manages progress.
● The Corporate Sustainability Department implements Group-wide
climate-related responses based on decisions of the Sustainability
Committee.
● Reports are made on the Sustainability Committeeʼs activities to the Boardof Directors at least once a year.
The Board of Directors manages and supervises the adequacy,
eﬀectiveness, and related risks in connection with climate change andother environmental activities●

Initiatives

Fiscal Year 2022
Progress●

The Sustainability Committee met four times, and the Environmental
Subcommittee met two times, deliberating and deciding matters related
to climate change response

Environmental Governance（➡ p.055）

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Contents/Editorial Policy

Message from the President＞ Environmental Strategy

Nikon Group Profile

Greenhouse gas emissions (Scopes 1, 2, and 3) and renewableenergy usage for electricity for fiscal year 2022 were as
follows. We will continue to strive for the achievement ofcarbon neutrality by fiscal year 2050, in line with the Nikon
Medium-Term Environmental Goals.
In order to monitor the actual status of our suppliers, wewill participate in the CDP supply chain program and begin
collecting information on Scope 3 emissions in fiscal year 2023.

Scope 1, 2 reduction rate(compared to fiscal year 2013)

Targets

Business Activity

Environment＞ Promoting a Decarbonized Society＞ Environmental Management Promotion System

Metrics and Targets− Metrics and targets used to assess and manage
climate-related risks and opportunities −Metrics

Nikon’s Sustainability● Scope 1+2 Emissions

210

196

193

FY2020

FY2021

175

71.4% Reduction
Compared to
Fiscal Year 2013

FY2022

FY2030100

0FY2018FY2019● Scope 3 Emissions (Three Categories: Purchased

Products and Services, Transportation and Delivery(Upstream), and Use of Company Products Sold)（thousand tons-CO₂）

1,200

1,077
964

Fiscal Year 2030: 71.4%

554

31% Reduction
Compared to
Fiscal Year 2013

FY2022

FY2030900

Fiscal Year 2023: 36.5%

576

600

681

Fiscal Year 2030: 31%
Reduction in three Scope 3 categories
Fiscal Year 2023:(purchased products and services;• Reduce environmental impact
transportation and delivery (upstream);by making eﬀective use of theand use of company products sold)
LCA methodology(compared to fiscal year 2013)• Create at least 50% eco-friendly
products
Fiscal Year 2030: 30%300
0FY2018FY2019FY2020

Corporate Citizenship Activities＞ Preventing Pollution and Conserving Ecosystems

Climate Change Scenario Analysis

300

200

Governance＞ Promoting Resource Circulation（thousand tons-CO₂）

233

Society/Labor

FY2021● Renewable Energy as a Share of Electric Power Consumption（%）

30

Renewable energy adoption rate

The Nikon Group conducts analysis of climate-related risks
and opportunities by comprehensively considering a numberof factors, such as, the characteristics of business, the location
conditions of production sites and business facilities, therecent degree and frequency of natural disasters due toclimate change, industry trends, trends in related laws andregulations, representative concentration pathway (RCP)
scenarios used in the IPCC climate change forecasts, as well as
survey results and scenarios carried out by external research
institutes. As such, we identify and evaluate risks under the
2ºC and 4ºC scenarios.
The Nikon Group recognizes that under the 2ºC scenario
there would be a tightening of, for example, greenhousegas emission regulations and greater market demands
accompanying these regulations. Under the 4ºC scenario
there would be an increase in natural disasters, such as
floods, and a rise in temperatures. But under any scenario
we recognize that there will be changes in energy
technology and costs with a wider transition to renewableenergies. The Nikon Group is therefore taking measures
to adapt to climate change as a business strategy inconsideration of the financial impact these scenarios will
have. The Nikon Group will continue to carry out andimprove its scenario analysis going forward.

22.3

Fiscal Year 2023: 25%

Targeting 30%

20

10

5.5

6.0

7.8

0.04
0

FY2018FY2019FY2020

FY2021

FY2022

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Contents/Editorial Policy

Message from the President＞ Environmental Strategy

Nikon Group Profile

Nikon’s Sustainability＞ Environmental Management Promotion System

Business Activity

Environment＞ Promoting a Decarbonized Society

Society/Labor

Governance＞ Promoting Resource Circulation

Corporate Citizenship Activities＞ Preventing Pollution and Conserving Ecosystems

Climate Change Risks Faced by the Nikon Group[Financial impact] High: 10 billion yen or more, Medium: 1 to 10 billion yen, Low: 1 billion yen or less
[Urgency] High: Within 3 years, Medium: 3 to 10 years, Low: Later than 10 years
Risks Faced by the Nikon Group

Physical risks(acute andchronic)

Transition
risks

Financial Impact

Urgency

Response

An increase in typhoons, floods, and other weather-related disasters could disrupt supply/operations or reduce asset values due todamage to major production sites (Japan, Thailand, etc.) and supplier sites, disruption of logistics networks, and other factors.
In addition, a rise in sea levels may increase the probability of these risks.

High

Medium

A rise in average temperatures could lead to increased electricity costs due to increased load on cooling and other air conditioning
equipment.
In particular, strict temperature controls required in manufacturing and transporting precision equipment may become
unreasonably difficult, or management costs may increase.

Small

Low

• Promoting aggressive energy-saving activities

Long-term changes in precipitation patterns, as well as droughts, could constrain the use of water resources and adversely aﬀect
operations.

MediumLow• Reducing water withdrawal• Promoting water resource recycling• Promoting Total Supply Chain Management activities• Promoting Business Continuity Management (BCM)

Policies andregulations• Introduction or expansion of carbon pricing policies, such as carbon taxes, could increase Nikonʼs operating
costs if applied to us.
In addition, purchase prices may increase if these are applied to suppliers.
• Changes in national energy policies where we have business sites could lead to higher electricity prices, which
would increase operating costs and purchasing costs.

High*

MediumTechnologies• Failure to reduce emissions during product use and shift to low-carbon manufacturing methods and materials
could result in reduced sales opportunities.

High

Low

• Reducing greenhouse gas emissions through promotion of energy
conservation and adoption of renewable energy• Improving energy-saving performance for products• Creating new materials and manufacturing methods

Markets/
Reputation• Failure to adequately meet customers ʼ decarbonization requirements could result in reduced sales
opportunities.
• Inadequate response to decarbonization could damage our evaluations/reputation and aﬀect stock price andsales.

MediumLow• Reducing greenhouse gas emissions through promotion of energy
conservation and adoption of renewable energy• Promoting proactive information disclosure• Reducing greenhouse gas emissions through promotion of energy
conservation and adoption of renewable energy• Reducing greenhouse gas emissions through modal shifts and improved
distribution routes• Requiring suppliers to reduce greenhouse gas emissions* Specific example: Carbon tax system in the Netherlands
In 2021, the Netherlands began levying a carbon tax equivalent to 30 Euros per ton of greenhouse gas emissions, targeting manufacturing firms and other firms in the industrial sector.
This carbon tax is set to increase by 10 Euros every year, and by 2030 it is expected to have risen to 125 Euros per ton of emissions.
A similar trend toward the introduction of carbon taxes can be seen in other countries in Europe.
While the Nikon Groupʼs business areas do not currently fall within the scope of such carbon taxes, there is a possibility that the scope of applicability may be extended in the future.
For instance, the Nikon Groupʼs manufacturing companies in Europe had total annual greenhouse gas emissions of around 1,300 tons in fiscal year 2020. If these companies were to become subject to carbon taxes and no measures were taken to reduce emissions, the Group could face an annual carbon tax bill ofaround 162,500 Euros.

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Contents/Editorial Policy

Message from the President＞ Environmental Strategy

Nikon Group Profile

Nikon’s Sustainability＞ Environmental Management Promotion System

Business Activity

Environment＞ Promoting a Decarbonized Society

Society/Labor

Governance＞ Promoting Resource Circulation

Corporate Citizenship Activities＞ Preventing Pollution and Conserving Ecosystems

Climate Change Opportunities for the Nikon Group[Applicable period] Short-term: Within 3 years, Medium-term:
3-10 years, Long-term: Later than 10 years
Opportunities for the Nikon Group

Applicable Period• Rising evaluation of Nikon by consumers, institutional
investors, and others for our technologies and businessactivities (as follows) contributing to a decarbonized society
could lead to increased sales and higher stock prices.
- Increase energy efficiency in society with additive
manufacturing and fine processing using optics- Additive processing contributing to longer productlifespans through repair of existing parts, etc.
- Robots with sophisticated hands and eyes and device
manufacturing processes, that enhance manufacturing
efficiency- Longer lasting light sources and more durability in our
products, that contribute to a healthy global environment- Image production technologies that contribute to a society
where people connect transcending time and space andreal and virtual.

Short- to longterm

Achieving efficiency in production processes and distribution,
as well as carrying out energy-saving activities, could reduce
future carbon taxes and energy costs.

Short- to longterm

Total Supply Chain Management, a practice designed toprepare for physical risks, and improvements in our BCM could
make our business structure more robust.

Short-term

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