Environment

CO₂ Reduction Initiatives

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GHG Emission and Reduction Targets

SMC is promoting various initiatives to reduce GHG emissions through own activities.
We have completed the compilation of data on Scope 1, 2 and 3*1 emissions covering the entire group*2 based on the GHG Protocol,
international standard, and after anticipating increases in future sales and the scale of manufacturing, we have compiled concrete measures to formulate medium- to long-term targets*3 to reduce absolute amount of GHG emissions.
For the accuracy and reliability of the compiled data, a third-party verification is received from LRQA Limited. In addition, the GHG
reduction target for the medium-term (by 2030) has been validated by the international organization, SBTi (Science Based Target initiative).

• *1　Scope 1: CO₂ emissions produced by the Company's own fuel consumption.
  　　Scope 2: CO₂ emissions produced through the consumption of energy supplied by other companies.
  　　Scope 3: Indirect CO₂ emissions from business activities, such as raw material purchases, product deliveries, and energy consumption when customers use our products.
• *2　The 34 locations, which include sales locations, mass production locations, and major distribution centers, make up more than. 95% of consolidated external net sales.
• *3　Reduction targets to meet the demand of SBTi's 1.5℃ scenario with FY2021 as the base year.