NGK Achieves Certification Under Science Based Targets Initiative (SBTi) Net-Zero Standard

NGK INSULATORS, LTD. (hereinafter referred to as the “Company”) has obtained the Science Based Targets initiative (SBTi) certification *¹ in line with the Net-Zero standard*² for the purposes of reducing greenhouse gas emissions. The Company’s goals to achieve net zero CO2 emissions by 2050 have been found to be scientifically justified.

In April 2021, the NGK Group developed the NGK Group Environmental Vision and is working to reduce CO2 emissions (Scopes 1 and 2*)³) with the aim of achieving net zero emissions by 2050 at the latest. In addition, the Group has set targets for its entire value chain (Scope 3*³) in line with the SBTi Net-Zero standard, which have also been certified. The Group aims to achieve a reduction of at least 90% in Scope 3 compared to fiscal year 2022, the base year, by 2050. As a step towards achieving this goal, the Group aims to achieve a 25% reduction in Scope 3 emissions compared to the base year by 2030. These have been identified as a science-based net-zero emissions target.

For Scope 1 and 2, the company has developed a carbon neutrality strategy roadmap with four strategies and is working to reduce emissions by supporting energy-efficient operations, switching from fossil fuels to hydrogen and other fuels for firing ceramics, developing CO2 capture technologies and expanding the use of renewable energy. For Scope 3, the company is working with its business partners to calculate emissions volumes and promote actions to reduce them, thereby promoting reductions throughout the value chain.

*¹. SBTi

An international initiative that works with companies to set science-based greenhouse gas emission reduction targets that meet the levels required by the Paris Agreement to keep the global average temperature increase due to climate change to within 1.5°C above pre-industrial levels. The SBTi was jointly established in 2015 by four organizations: CDP, the UN Global Compact, the World Resources Institute (WRI) and the World Wildlife Fund (WWF).

*².Net Zero Emissions Standard

A benchmark for achieving the Paris Agreement goal of keeping the increase in global average temperatures to 1.5°C above pre-industrial levels. SBTi believes that to limit the increase in global average temperatures to 1.5°C, a 90% or more reduction in greenhouse gas emissions across the value chain is required by 2050, with the remaining 10% removed from the atmosphere through carbon capture and other measures, thereby achieving net zero emissions.

*³.

Scope 1: Direct greenhouse gas emissions by the reporting company (from industrial processes or fuel combustion)

Scope 2: Indirect greenhouse gas emissions by the reporting company resulting from the use of electricity, steam or heat purchased from other companies

Scope 3: All other indirect greenhouse gas emissions (not covered by scope 1 or 2) that occur in the reporting company’s value chain