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 than to CO2 emissions reductions in areas we are responsible for.” Konica Minolta’s goal is to ensure that the Group contributes to emission reductions for customers and the broader society greater than the emissions directly related to its own products and operations (including Scope 1, 2, and 3 emissions). Konica Minolta hopes to accelerate the effects of decarbonization, broaden its ties with stakeholders, and grow its business together, by not only fulfilling its social responsibilities but also helping stakeholders fulfill theirs.
Progress toward achieving Carbon Minus
(For more information on targets and results, please refer to Sustainability Targets and Results)
For detailed data, please refer to ,the Environmental Data (Excel) on the ESG Data page.
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 and opportunities 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 long term, the Group aims to reduce CO2 emissions across the product lifecycle by 80% by 2050 compared to fiscal 2005 levels.
In the medium term, Konica Minolta aims to reduce CO2 emissions by 60% by 2030 (certified by the SBT Initiative as a Science-Based Target), and in the short term, to cut emissions by 53% by 2022. Konica Minolta reduced emissions by about 790 thousand tons in fiscal 2021, achieving a 61% reduction compared with fiscal 2005. Scope 1 emissions were 159 thousand tons; Scope 2 emissions were 164 thousand tons; and Scope 3 emissions were 467 thousand 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, as one of its major efforts to carry out its transition plan to meet the needs of a low carbon society, the Group joined the RE100 international leader initiative, which promotes the use of 100% renewable energy-derived electricity in business. Konica Minolta has set a target of procuring 100% renewable energy for use in its business operations by 2050. In the medium term, the Group has set a target of increasing the ratio of electricity derived from renewable energy to 30% by 2030, and in the short term, it has set a target of increasing it to 10% or more by 2022, the target year of its Medium-term Sustainability Plan. In fiscal 2021, the rate reached 8.3%.
In the Business Technologies Business, which accounts for about 72% 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 2021, Konica Minolta completed its introduction of renewable energy-derived electricity, which accounts for 25% of the total power consumption of the Business Technologies Business. In fiscal 2022, the Group will bring renewable energy use up to 38%, and it has set a target of 100% use of renewable energy-derived electricity for its office equipment production plants and toner filling plants in Europe and the United States. Konica Minolta will continue to conduct annual risk reviews and consider introducing renewable energy-derived electricity in projects with potential risks.
Renewable energy-derived electricity utilization rate
- 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 72% of the Konica Minolta Group’s total sales. The Business Technologies Business, the Group’s core business, delivers products to approximately two million 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.
To prepare for such a disaster risk, the Group is working to ensure a highly resilient supply chain structure that produces and supplies 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 Office Printing Business and Professional Print Business, as well as printing toner. The Konica Minolta Group is working to secure a highly resilient supply chain structure.
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 sustainable solutions that help address climate change, and the percentage of total group sales they represent.
In fiscal 2021, actual sales of sustainable solutions that help address climate change came to 527.3 billion yen, compared to a target of 685.4 billion yen. This represented 57% of the Konica Minolta Group's total sales.
In fiscal 2022, Konica Minolta set a target of increasing sales of sustainable solutions that help address climate change to 619 billion yen, or 63% of total sales.
In fiscal 2021, CO2 emissions reduction during product usage was 11 thousand tons, against a target of 13 thousand tons. The contribution to CO2 reductions was 599 thousand tons, against a target of 700 thousand tons.
In fiscal 2022, the Group has set targets of reducing CO2 emissions during product usage by 25 thousand tons and contributing to CO2 reductions amounting to at least three-quarters of CO2 emissions (Scopes 1, 2, and 3) over the product lifecycle.
5. Capital deployment
Konica Minolta is transforming its business portfolio to “as a Service” products and business DX with the aim of helping to build a low carbon society and is investing capital in anticipation of future needs. R&D expenses for projects that help address climate change (contribute to CO2 reduction) totaled 29.6 billion yen in fiscal 2021, accounting for about 47% of the Konica Minolta Group’s total R&D expenses.
- Click here for more information on Sustainable Solutions (Sustainability > Environmental Activities > Sustainable Solutions (product initiatives):Konica Minolta's Approach)
- Click here for more information on Sustainable Factory (Sustainability > Environmental Activities > Sustainable Factory (procurement and production initiatives):Konica Minolta's Approach)
- Click here for more information on Sustainable Marketing (Sustainability > Environmental Activities > Sustainable Marketing: Konica Minolta's Approach)