Azbil Receives Net-Zero Target Certification from the SBTi: On Course to Achieve Net-Zero GHG Emissions Throughout the Value Chain by 2050

TOKYO, November 28, 2024: Azbil Corporation (Tokyo Stock Exchange code:6845) announces that it has received net-zero certification from the Science Based Targets initiative (SBTi)*1,*2 for our net-zero target for achieving substantially zero greenhouse gas (GHG) emissions across the entire value chain by 2050.

Since 2020, we have been working toward realizing carbon neutrality, as laid out in our 2050 Long-Term Vision for Reducing GHG Emissions; this aims to reduce GHG emissions from our business activities (scopes 1+2)*3 to substantially zero by 2050. As our new long-term vision, we have set a target of achieving net zero by reducing emissions by more than 90% (compared to FY2017 levels) throughout the value chain (scopes 1+2+3) and neutralizing residual emissions*4. In line with this, the FY2030 target for reducing indirect GHG emissions (scope 3) throughout the value chain (excluding scopes 1+2) has been raised from 20% to 33% (compared to FY2017 levels). This new long-term vision satisfies the SBTi criteria and has received net-zero certification.

To achieve our SBT Net-Zero Target by 2050, we are developed a decarbonization transition plan and we will advance specific reduction initiatives, such as promoting the azbil Groups unique sustainable design for all new products, collaborating with our business partners, applying to our own businesses the energy-saving technologies we have developed at our customers' sites, and harnessing renewable energy.

Group decarbonization targets

Net-Zero Target: by 2050 (net-zero certification)*5,*6

Achieve net-zero GHG emissions throughout the value chain (scopes 1+2+3)

Reduce emissions throughout the value chain by at least 90% (compared to FY2017 levels) and neutralize residual emissions

Medium-Term Target: by FY2030

Reduce GHG emissions (scopes 1+2) from business activities by 55% (compared to FY2017 levels)*5

Reduce indirect GHG emissions (scope 3) throughout the value chain (excluding scopes 1+2) by 33% (compared to FY2017 levels)*6

By providing customers with products, services and solutions based on measurement and control technologies, the azbil Group has been supporting social and industrial development while also contributing to reducing environmental impact. In keeping with the azbil Group philosophy of human-centered automation, we will continue our sincere efforts to find solutions to the issues facing humanity, such as global warming and climate change, and to realize a sustainable, carbon-neutral society.

*1SBTs: science-based targets for reducing GHG emissions that aim to keep the increase in global-average temperature to well below 2°C above pre-industrial levels, and to limit it to 1.5°C above pre-industrial levels by the end of the century.

*2SBTi: An international collaborative organization that aims to achieve the GHG reduction targets (SBTs). It was jointly established in 2015 by the Carbon Disclosure Project (CDP; an organization of institutional investors that promotes the disclosure of information on climate-change measures), the World Resources Institute (WRI), the World Wide Fund for Nature (WWF), and the UN Global Compact. As of October 2024, approximately 1,300 companies in Japan had obtained SBT certification, and Japanese companies are currently expanding SBT initiatives at an even faster pace compared to the global average.

*3Scope 1: Direct GHG emissions from the business itself (fuel combustion, industrial processes)

Scope 2: Indirect emissions related to the use of electricity, heat and steam supplied by other companies

Scope 3: Emissions from other companies associated with the businesss activities (indirect emissions other than those covered by scopes 1 and 2)

*4 Residual emissions: GHG emissions within the azbil Group value chain that cannot be fully eliminated.

*5Targets for scopes 1+2 apply to Azbil Corporation, its domestic consolidated subsidiaries and major overseas production bases (accounting for more than 95% of the Groups total GHG emissions)

*6Targets for scope 3 apply to Azbil Corporation and its consolidated subsidiaries.

* Posted information is accurate as of the date of announcement.