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Decarbonization Initiatives

Global warming is a worldwide challenge. Members of the azbil Group are working together proactively to take measures to save electricity and conserve energy in their business activities, while bearing in mind the importance of their role in helping customers and society to significantly reduce CO2 emissions.

Also, the azbil Group also supports policies based on various agreements to take measures to prevent global warming, including the Paris Agreement.

We support the Japanese government’s course change toward carbon neutrality, and we comply with the Act on Rationalizing Energy Use and the Act on Promotion of Global Warming Countermeasures, which are national laws on climate change. In accordance with these laws, we report to the government once a year on our energy consumption, our progress on energy conservation targets, our energy reduction plans, and the amount of our greenhouse gas emissions.

Regarding our initiatives for decarbonization as a company, based on our 2050 Long-Term Vision for Reducing Greenhouse Gas Emissions we have formulated policies and plans and are working to implement them. Under the direction of the azbil Group's executive officer in charge of environmental management, we have appointed officers in charge of each large-scale business site and are working together with management. In the environmental management system, which is centered on the azbil Group Environmental Committee and cuts across business divisions and major regional overseas production sites, we have set a common GHG reduction target which is an SBT-certified 1.5 °C target. To meet this goal and check progress, we share specific targets for energy reduction and utilization of renewable energy and hold regular meetings. Additionally, there are regular meetings between the Environment Promotion Department, which is a coordinating department, and the person in charge of environment at each Group company to follow up on progress. In addition, Azbil Corporation holds an Environmental Managers' Meeting six times a year as an energy management organization. It is headed by an Azbil executive officer and includes the director of each business site. There, we create CO2 reduction targets and achievement plans, check progress, and provide feedback to the workplace to promote proactive efforts.

We have introduced our own energy management solutions, such as EneSCOPE™ or Cloud System for Buildings EM, at our main locations. By visualizing power usage and other energy usage, we are working to effectively optimize the use of energy in production and office environments, which will lead to energy conservation that is linked with our business lines.

We utilize the knowledge gained through these efforts to contribute to the reduction of GHG emissions from our customers and society.

Our Long-Term Vision for Decarbonization

In addition to reducing the environmental impact of our own business activities and of our supply chain, and drawing upon the technologies and know-how obtained by doing so, the azbil Group will make use of its measurement and control technology to find solutions to the environment-related problems faced by our customers. In doing so, we will help to preserve the environment through our core businesses.

We set our environmental agenda and advance our environmental initiatives with an awareness of related global developments, including the U.N.’s adoption of Sustainable Development Goals (SDGs) and the entry into force of the Paris Agreement. In particular, we view response to the global warming crisis as a most important issue, and we aim for a low-carbon society.

Since 2020, Azbil has been working toward realizing carbon neutrality under its 2050 Long-Term Vision for Reducing GHG Emissions, which aims to reduce GHG emissions from its business activities (scope^*1 1+2) to substantially zero by 2050.

In 2026, Azbil has reviewed and strengthened its FY2030 near-term target for its business activities (scope 1+2), raising the reduction target from 55% (compared to theFY2017 levels) to 60%. In addition, Azbil has expanded the target boundary to cover Azbil Corporation and its consolidated subsidiaries. This updated target satisfies the Science Based Targets initiative (SBTi)^*2 criteria and has received validation as an “update of near-term science-based targets.”

This update reflects that our initiatives are progressing ahead of plan, taking into account that we achieved our previous FY2030 target of a 55% reduction ahead of schedule in FY2024. Going forward, under our decarbonization transition plan, we will further strengthen efforts to reduce GHG emissions from our business activities by leveraging the energy-saving technologies we have developed through our business, and by proactively using and harnessing renewable energy.

Guided by the 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.

< Group decarbonization targets >
Net-Zero Target: by 2050 (SBTi-validated net-zero target)
Achieve net-zero GHG emissions throughout the value chain (scope 1, 2, and 3)
Reduce emissions throughout the value chain by at least 90% (compared to FY2017 levels) and neutralize residual emissions^*3
Near-Term Target: by FY2030
Reduce GHG emissions from business activities (scope 1+2) by 60% (compared to FY2017 levels)
Reduce indirect GHG emissions (scope 3) throughout the value chain (excluding scope 1+2) by 33% (compared to FY2017 levels)

^*1
Scope 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 business’s activities (indirect emissions other than those covered by scopes 1 and 2)

^*2 SBTi (Science Based Targets initiative):
An international collaborative organization jointly established in 2015 by 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 (UNGC). The SBTi framework aims to achieve science-based targets (SBTs) for reducing GHG emissions aligned with limiting the increase in global-average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit it to 1.5°C.

^*3 Residual emissions: GHG emissions within the azbil Group value chain that cannot be fully eliminated.

Decarbonization transition plan

To contribute to achieving carbon neutrality across society, the azbil Group has set targets for two areas: the effective reduction of CO2 at customers’ sites through the automation business and the reduction of greenhouse gas (GHG) emissions from our business activities and across the entire supply chain (Scope 1, 2, and 3).

Furthermore, the 2050 net-zero target covering all GHG emissions (Scope 1, 2, and 3) was certified by the Science Based Targets initiative (SBTi ) as a net-zero target in October 2024.

Regarding Scope 1 and 2 emissions, we achieved our FY2030 reduction target of 55% ahead of schedule in FY2024. Accordingly, we increased the FY2030 target to 60%, and the revised target was certified by the SBTi in April 2026.

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For Scope 1 and 2 emissions, we are actively implementing energy visualization systems across the entire Group, and we are focusing our energy conservation efforts from two perspectives: improving operations and upgrading facilities. In collaboration with our business lines, we are accelerating initiatives that leverage the energy-saving expertise we have developed over many years. We are actively incorporating renewable energy sources and will further reduce emissions, with a view to transitioning all electricity consumed to renewable electricity by 2050.

As for Scope 3 emissions, to reduce CO2 emissions from purchased products and services and from the use of products sold, we will continue and expand our efforts in resourcesaving and energy-saving design. We also support our business partners' decarbonization efforts by conducting surveys and engaging in detailed discussions on decarbonization initiatives. Looking toward 2050, we take into account scenarios based on global trends and Japanese policy initiatives, as well as projected FY2017 FY2025 2050 decarbonization across society.

External evaluations

The azbil Group's response to CDP^*1 regarding efforts to address climate change is as follows. Received an A rating in CDP 2025.

*1. A program to disclose corporate climate change risk, created by the international nonprofit organization CDP. It investigates the status of climate change initiatives carried out by participating corporations every year and officially publishes the aggregated results. It also gives each corporation an individual rating for the status of its initiatives in an eight-step evaluation with A as the highest rating.

Results for the Fiscal Year 2025

CO2 emissions from our own business activities (Scope 1 and 2) in FY2025 were approximately 10 thousand metric tons (a 63% reduction from FY2017). Solar power generation equipment is in operation at Azbil Kyoto Co., Ltd., A zbil Control Instruments (Dalian) Co., Ltd., and Azbil Production (Thailand) Co., Ltd. As a result, renewable energy sources accounted for 66% of the Group’s total electricity consumption in FY2025. We will continue to strengthen energy conservation efforts and expand the use of renewable energy to further reduce Scope 1 and 2 emissions.

CO2 emissions across the entire supply chain (Scope 3) in FY2025 were 795 thousand metric tons (a 28% reduction from FY2017). To reduce CO2 emissions from the use of products sold and products and services purchased, which account for 90% of total emissions, we are promoting resource- and energy-saving design and collaborating with business partners.