Environment

Disclosure of information related to climate change response

Governance

For details, please refer to the Sustainability Promotion Structure.

Strategy

Given the impact of climate change on Aisin’s business activities and medium-to-long-term corporate value, the company positions carbon neutrality as a central goal. Deploying measures in both the production and product domains, Aisin aims to achieve carbon-neutral in-house manufacturing by FY2036 and carbon neutrality by FY2051. On the production side, we will reduce energy consumption through thorough energy-saving activities and the development of innovative production technologies, and introduce and transition to renewable energy and other forms of clean energy.
On the product side, we will further advance products for electrified vehicles and promote the widespread adoption of energy and resource circulation systems, aiming to create new value through the integration of mobility and energy technologies. At the same time, by incorporating circular-economy concepts, such as the effective resource use and waste reduction, we are strengthening our efforts to reduce our environmental impact. In addition, we analyze the transition and physical risks and opportunities associated with climate change once a year based on the scope, scenarios, and definitions below, and regularly determine our responses.

(i) Scope of analysis
Locations: all Aisin Group locations
Businesses: all

(ii) Scenarios
Viewed from short-, medium-, and long-term perspectives, transition and physical risks and opportunities became plainly obvious and impose a substantial impact on the business. Consequently, we have selected and analyzed the following two scenarios:

1.5℃ Scenario 4℃ Scenario
Societal outlook

[Policy]

Bold policies to reduce GHG emissions, such as
carbon taxes and renewable energy promotion,
are implemented

[Technological innovation]

Accelerated development and societal
implementation of technologies for achieving
energy efficiency and carbon capture, utilization,
and storage (CCUS)

[Market shifts]

With the rapid shift toward electrification in the
mobility market; products and services
contributing to GHG reduction are enjoying
market expansion

[Global environment]

Temperature rise exceeds 4℃, with
significant negative effects on business
operations caused by extreme weather events
Reference
  • IEA World Energy Outlook (NZE)
  • Automotive industry scenarios
  • IPCC AR6 SSP5-8.5
Related risks
  • Transition risks
  • Physical risks

(iii) Definition of time horizons
long: through FY2051, medium: through FY2031, short: through FY2027

(iv) Definition of financial impact
Large: ¥10 billion or more; medium: ¥1 billion or more but less than ¥10 billion; small: less than ¥1 billion

Climate-related risks and opportunities and Aisin's responses

Category Risk/
opportunity type		 Impact
stage		 Impact on Aisin Time horizon:
(short/
medium/
long)		 Financial impact:
(small/
medium/
large)		 Future actions
Transition risks Market Product demand Progress with electrification increases
demand for electric vehicle components while
reducing demand for ICE vehicle parts		 Medium Large
  • Strengthening the expanded sales of
    products that promote carbon neutrality by
    electrifying mobility and energy solutions through
    the use of a wide range of products such as electric
    drive units, cooperative regenerative braking
    systems, thermal management systems, and
    aerodynamic devices
  • Leveraging our full lineup of drive units as a strength
    to promote market share gains by capturing
    gasoline-vehicle demand
Procure
ment		 Increased demand for low-carbon raw materials
and rising procurement costs due to surging
prices of essential materials		 Medium Large
  • Reduction of raw material usage through weight
    reduction and material substitution during
    product design
  • Reduction of raw material purchases through
    promotion of the circular economy
Policy and regulation Direct operation Increased costs from carbon taxes and other
policies as well as the adoption of renewable
energy		 Medium Large
  • Promotion of energy-saving measures to
    minimize energy usage
  • Introduction of renewable energy suited to regional
    characteristics
Physical risks Acute Direct operation Temporary production stoppages accompanying
supply chain disruptions during disasters caused
by the increasing frequency and severity of
weather-related disasters (heavy rain,
typhoons, floods, etc.)		 Short Medium
  • Establishment of standards for action and
    rules that apply during extreme weather events
  • Enhancement of BCP for purchasing logistics
  • Identification and regular monitoring of exposed
    locations
  • Formulation and promulgation of flood
    countermeasure plans
Opportunity Products and services Product demand Increased demand for electric vehicle products
driven by electrification progress		 Medium Large
  • Leveraging the strength of our full drive unit
    lineup to tap into growing PHEV and HEV demand
  • Promoting, through higher efficiency and
    miniaturization, expanded sales of eAxle units with
    improved energy efficiency
  • Promoting expanded sales driven by improved energy
    efficiency and driving feel through the evolution of
    cooperative regenerative braking systems
  • Expanded production capacity for related
    products
New business creation driven by growing
demand for CO2-reducing products and services		 Medium Medium
  • Market launch and share capture for perovskite
    solar cells
  • Sales of bio-briquette coke (Bio-M-Coke®)
    derived from coconut shells
  • Development and commercialization of CO2
    fixation technology
Expansion of demand for energy-saving,
low-carbon-emission products		 Medium Medium
  • Contribution to stable, high-efficiency energy
    supply and to enhanced resilience through
    independent power generation during
    outages, by raising the efficiency and expanding
    the sales of our Ene-Farm home-use fuel cell
    cogeneration system
  • Collaboration with local governments to promote
    decarbonization initiatives and contribute
    to urban development
Resource efficiency Direct operation Reduced procurement costs through more
efficient use of energy		 Medium Large
  • Energy savings achieved through thorough
    implementation of power sources,
    heat sources, and waste reduction
  • Development of innovative production
    technologies
  • Transition to clean energy through CO2 capture and
    utilization and the development and
    introduction of bio-briquette coal, etc.

Risk management

Under our companywide risk management process, the Environmental Committee and other bodies discuss and determine responses to the risks and opportunities identified in the strategy and regularly follow up on progress. In addition, when examining countermeasures, we duly consider the laws and regulations of each country, stakeholder opinion, customer trends, and other factors.

Indicators and targets

The following targets have been established for all Aisin Group sites.

＜FY2051 Targets＞

Scope 1, 2 and 3: Carbon neutrality

＜FY2036 targets＞

Production CO2 emissions (Scope 1, 2 at production sites): Carbon neutrality

＜FY2031 targets＞

Scope 1, 2: 46.2% cut vs. FY2020 (certified by Science Based Targets initiative [SBTi])

Scope 3: 27.5% reduction vs. FY2020 (certified by SBTi for Categories 1 and 11 only)

＜FY2025 actuals＞

Scope 1, 2 and 3: 24.09 Mt-CO2e (7.4% reduction vs. FY2020)

Scope 1, 2: 1.74 Mt- CO2e (37.4% reduction vs. FY2020)

Scope 1: 0.51 Mt- CO2e

Scope 2: 1.23 Mt- CO2

Scope 3: 22.35 Mt- CO2e (3.8% reduction vs. FY2020)

Production CO2 emissions (Scope 1, 2 at production sites): 1.69 Mt- CO2 (38.9% reduction vs. FY2014)