Climate-related Financial Information Disclosure（TCFD）
Metrics and Targets
Metrics and Targets Used to Assess and Manage Climate-related Risks and Opportunities
Konica Minolta seeks to achieve Carbon Minus status by actively helping to reduce global CO2 emissions in cooperation with its stakeholders, especially suppliers and customers. The Group defines Carbon Minus status as contributing more to CO2 emissions in areas outside of our responsibility (reduction of other than Scope 1, 2 and 3) than to CO2 emissions reductions in areas we are responsible for (Scope 1, 2, and 3 emission). Based on recent social demands, we have decided to target “net zero” CO2 emissions in areas we are responsible for. Konica Minolta hopes to accelerate the effects of decarbonization, broaden its ties with stakeholders, and grow its business together, by not only helping stakeholders fulfill their social responsibilities but also fulfilling ours.
Carbon Minus and Net Zero Targets
1. Greenhouse Gas Emissions (Scope 1, 2, and 3 Emissions)
Konica Minolta has established the goals of reducing CO2 emissions over the product lifecycle, as its metric for managing the risks posed by climate change. Product life cycle CO2 emissions include all Scope 1 and 2 emissions (CO2 emissions generated during the production stage and the sales and service stage) and the main components of Scope 3 emissions (CO2 emissions at the procurement stage, distribution stage, and product use stage).
In the medium term, Konica Minolta has set a target of a 70% reduction compared to 2005 CO2 emission levels by 2030, and in the short term, a 61% reduction by 2025. In fiscal 2022, the reduction was 850,000 tons (Scope 1 and Scope 2 were 150,000 tons each, and the primary Scope 3 was 550,000 tons).
CO2 Emissions in the Product Llifecycle (Scopes 1, 2, and 3)
(Unit: thousand tons-CO2)
- Note: Figures may not add up due to rounding.
2. Transition Risk
Konica Minolta believes that conducting business with a focus on quickly conforming to the needs of renewable energy-based society that is not reliant on fossil fuels, which are a major cause of man-made CO2 emissions, is a necessary condition for any company to grow sustainably. Based on this belief, Konica Minolta has adopted the “ratio of electricity derived from renewable energy” as a management indicator for transition risk and set a target of procuring 100% renewable energy for use in its business operations by 2050. In the medium term, we have set a target of increasing the ratio to more than 50% by 2030. In fiscal 2022, the ratio reached 12.3%, exceeding the target of 10% or more.
In the Business Technologies Business, which accounts for about 75% of the Konica Minolta Group’s total sales, it is becoming increasingly clear that stakeholders are demanding that the Group introduce renewable energy procurement, so it is prioritizing transition risk as a priority action item. In fiscal 2022, Konica Minolta installed solar power generation equipment and used renewable energy certificates to achieve 100% renewable energy at its main production base for office equipment in Malaysia. As a result, it has achieved 100% renewable energy at all MFP production sites and has converted 33% of the total electricity consumption of its Business Technologies Business to renewable energy. In fiscal 2023, the Group will bring renewable energy use up to 37%, and will continue to conduct annual risk reviews and consider introducing renewable energy-derived electricity in projects with potential risks.
Ratio of electricity derived from renewable energy
- Ratio of renewable energy-derived electricity to the Konica Minolta Group’s overall energy use (not including co-generated power) in fiscal 2019
- Ratio of renewable energy-derived electricity to the Konica Minolta Group’s overall energy use beginning after fiscal 2020.
3. Physical Risk
The Business Technologies Business accounts for about 75% of the Konica Minolta Group’s total sales. The Business Technologies Business, the Group’s core business, delivers products to customers in 150 countries around the world. Therefore, a large-scale climate disaster in any part of the world could affect the Group’s production and supply capacity. To strengthen the Group’s cost competitiveness and supply products to the market quickly, the Konica Minolta Group will continue to employ overseas production and maintain a policy of procuring parts and materials from multiple suppliers around the world.
In addition, to prepare for such a disaster risk, the Group is working to ensure a highly resilient supply chain structure that can supply products at the place of consumption by developing multiple Konica Minolta sites in Japan, Europe, and North America to produce and supply parts for consumables in the Professional Print Business and the Office Business, as well as printing toner.
In addition, the Group is transforming its business portfolio from a traditional MFP-centered business model that relied on physical goods to the Digital Workplace Business that provides new digital solutions.
4. Climate-related Opportunity
Konica Minolta believes that as society transforms in the direction of decarbonization, the solving of climate change issues will provide business opportunities and lead to sustainable corporate growth. By actively introducing innovative technologies and combining them with Konica Minolta’s strengths in imaging-IoT technology and digital input and output, the Group seeks to both solve environmental issues and expand business by creating solutions that help solve social issues, including climate change.
The Group has also established metrics for both the economic and environmental value it creates by providing products and solutions to stakeholders. the economic value metrics are: the volume of sales of green products that help address climate change, and the percentage of total group sales they represent.
In fiscal 2022, actual sales of green products that help address climate change came to 7,766 billion yen, compared to a target of 6,955 billion yen. This represented 66% of the Konica Minolta Group's total sales.
In fiscal 2025, Konica Minolta has redefined the criteria for green product sales that help address climate change and has set a target of 61% of total sales.
In fiscal 2022, CO2 emissions reduction during product usage was 28 thousand tons, against a target of 25 thousand tons. The contribution to CO2 reductions was 624 thousand tons, against a target of 644 thousand tons.
In fiscal 2025, the Group has set targets of reducing CO2 emissions during product usage by 23 thousand tons and contributing to CO2 reductions by 800 thousand tons, which is more than the amount of CO2 emissions in the lifecycle of its products.
5. Capital deployment
Konica Minolta is transforming has identified “addressing climate change” as one of the five material issues to be addressed in its long-term management vision. The Company is investing capital in business activities that contribute to improving corporate value and achieving a low carbon society over the medium to long term. R&D expenses for projects that help address climate change (contribute to CO2 reduction) totaled 27.8 billion yen in fiscal 2022, accounting for about 43% of the Konica Minolta Group’s total R&D expenses.
In order to increase incentives to achieve the goals of the Medium-term Business Plan and to promote the ownership of the Company's shares, Konica Minolta has introduced the CO2 emission reduction rate as one of its non-financial indicators for evaluation that comprise the performance-linked medium-term stock remunerationn.
Executive remuneration for the President and CEO and other Executive Officers will be determined in the range of 0% to 200% after the completion of the Medium-term Business Plan, depending on the degree of achievement of the targets, and will be delivered in the form of Company stock. It is selected as an evaluation indicator in order to address climate change while linking environmental value to business growth.
For more information on remuneration, please see Annual Securities Report Year Ended March 31, 2023.