Environment Download (PDF: 2.49MB, 52Page)

Toshiba Group ESG Performance E S G

Environment

For the irreplaceable environment worldwide in which we live

Promot corporate activities that take into account the global environment at all stages of our value chain, including design, procurement, manufacturing and logistics, sales, and disposal.

CONTENTS

44 Environment

45Vision, Strategies, Structure

59Climate Change Response

72Response to the Circular Economy

77Ecosystems: A consideration

88The Basis for Environmental Management: Enhancement

Toshiba Group Sustainability Report 2021

ESG Performance: Environment

Basic Policy

Toshiba Group has developed the Basic Policy for the Environment, which outlines specific environmental strategies that can be shared by all its members.

The Basic Policy for the Environment of Toshiba Group

Toshiba Group regards environmental initiatives as a top priority in corporate management. It is guided by The Essence Toshiba. To be committed to people and the future, we will work to create enriched value and harmony with the earth. Our environmental management aims to achieve a decarbonized and resource-circulating society as well as a society in harmony and harmony with nature. We will help to realize a sustainable society and bring about the promise of a new era.

Promoting an environment-friendly business operation is key

• Toshiba Group evaluates the environmental impacts of its business activities, products and services on the environment (including biodiversity), and sets environmental impact reduction goals. It also implements environmental activities.
• Toshiba Group continually improves its environmental management by conducting audits and reviewing activity.
• Toshiba Group is compliant with all laws and regulations as well as industry guidelines that it has endorsed and its own standards for the environment.
• Toshiba Group continues to raise awareness among employees about environmental issues, and the entire company makes efforts to protect the environment.
• Toshiba Group operates worldwide and encourages environmental activities within the Group.

Reduce environmental impact through business activities and offer environmentally conscious products or services

• Toshiba Group understands that natural resources can be finite. It implements rigorous environmental measures to ensure their practical and effective use in both business and product and service activities.
• Toshiba Group creates and delivers environmentally conscious products and services that help to reduce environmental impacts throughout their lives.
• Toshiba Group implements environmental mitigation measures in all phases of its activities, including design, procurement, manufacturing and logistics.
• Toshiba Group is mindful of the social value and significance it can bring to society and works to develop sustainable technologies for the future.

Collaboration with stakeholders

• Toshiba Group is active in communicating with stakeholders such as local communities, society, and promotes activities that support the environment in collaboration with them.

Toshiba’s Essence

Toshiba Group Standards of Conduct 8. Environment

Toshiba Group Sustainability Report 2021

Environmental Future Vision 2050

“Committed To People, Committed To the Future” The Toshiba Group’s long-standing Basic Commitment is a statement that reflects our commitment to society’s development through our business. Since the inception of the Toshiba Group, Our Purpose has been to combine our expertise with the power of invention to solve increasingly complex social problems and promise a new day. This Mid-term Business Plan was created on the basis of this philosophy. We will contribute to the attainment of the Sustainable Development Goals (SDGs), and further increase our corporate value by providing unique services that can be trusted and use state-of-the art technologies to solve social issues. Toshiba Group considers environmental initiatives to be a top priority task in corporate management and will promote such initiatives closely connected to the company’s business plan.

Toshiba’s Essence

Actions for the Achievement of Sustainable Development Goals

Formation of a long-term vision for the environment 2050

In recent years, climate changes, the depletion in energy and resources, as well as other environmental issues, have increased to the point that they are threatening future generations’ safe and secure lives. Particularly in relation to climate change, the 2015 adoption by the Paris Agreement was crucial due to the devastating effects of flooding, droughts and massive typhoons across many parts of the globe.*1Each country has been able to move towards carbon neutrality. Companies must be aware of the importance of climate change and act in a proactive manner to achieve carbon neutrality.

Over the past several years, countries around the world have been working to address issues like the transition to a circular economy and marine plastics. Water resources and biodiversity conservation are also on the rise. The SDGs and ESG investments are expanding rapidly, as well as other movements that involve corporate management to improve sustainability overall.

Toshiba Group has been continually changing its business structure in response to these changes. Toshiba Group plans to improve its competitiveness and create value with a professional, agile management system. This includes the establishment of “Infrastructure Services company” that will drive intelligent infrastructure and carbon neutrality as well as “Devices Company” that will support information and social infrastructure.

We believe it is vital to continue to offer enriched value to customers, while also responding to global trends with a long-term view. This will help us contribute to the realization and growth of a sustainable society. Toshiba Group’s Environmental Future Vision 2050 was created in November 2020 as a long-term vision to address global issues such as carbon neutrality, circular economy, and other concerns. The Environmental Future Vision 2050 has the goal of “contributing towards the realization of sustainable society through environmental management that aims to create enhanced value and to assure harmony with the earth”. The same concept of “backcasting” is applied.*2This vision was included in the previous Vision in 2007. We will encourage the implementation of initiatives across three areas: “response climate change,” “response the circular economy,” “consideration ecosystems” to achieve the ideal situation by 2050. To accelerate efforts to achieve carbon neutrality across the value chain, we updated the vision “response climate change” in October 2021.*3.

*1 The Paris Agreement is an international framework adopted at the 21st session of the Conference of the Parties (COP21) that seeks to reduce the volume of greenhouse gas (GHG) emissions. It aims to restrain the increase in the global average temperatures to less than 2°C from the pre-industrial level and to pursue efforts to limit the temperature increase even further to 1.5°C. The Agreement’s objective is to reduce GHG emissions substantially by the end of the second half century.

*2 Backcasting is a method that defines a desired goal and works back through the series of actions necessary for its achievement.

*3 Vision “Response to climate change” formulated in November 2020: “Contribution through the entire value chain to achieve net zero GHG emissions in society (50% reduction across the Group’s value chain by FY2030)”

Vision “Response climate change” revised November 2021: “Achievement carbon neutrality across the entire value chain (70% reduction in GHG emissions by FY2030”)

Toshiba Group Sustainability Report 2021

Below “Response to Climate Change”We aim to achieve carbon neutrality across the entire value chain of Toshiba Group by FY2050. We are aiming to reduce GHG emissions 70% by FY2030 in comparison to FY2019. Specific initiatives include introducing energy-saving technology and investing in equipment for renewable energy. In order to carry out Toshiba Group’s business activities, we suspend the receipt of new orders to build coal-fired power plants. We also leverage our technological capabilities in order to create products that help reduce GHG emissions. Such products and services include energy technologies: renewable energy, energy aggregation* for power supply and demand adjustment, CO2Separation and capture technology, building-related products with high energy-savings properties, and social infrastructure products are all examples. We will support business that focuses on adapting to climate change. These measures are intended to ensure stable energy supply, strengthen resilience, and reduce GHG emissions from products and services purchased in cooperation with our supplier.

Below “Response the circular economy.”We will encourage efficient use of resources in business activities as well as products and services. We will also work with industry associations, government agencies, as well as other companies to adapt our business models for the circular economy. We will be focusing on the reduction of waste from business activities, and the recycling of used products and parts. Additionally, we will strive to build circular economy business models that utilize digital technologies.

Below “Consideration of ecosystems”We will promote compliance with policies and regulations in countries around the globe on chemical substance management, water resource management, and biodiversity conservation on and off-site at Toshiba sites.

* A mechanism for consolidating various energy resources, such as renewable energy and Electric Vehicle (EV), and controlling output according to power supply and demand conditions.

Toshiba Group Sustainability Report 2021

Response to Climate Change: Breakdown Greenhouse Gas Reduction Target

We have created the following breakdown of GHG emissions reduction targets to help us achieve the Environmental Future Vision 2050 and encourage related initiatives.

Approval of the SBT Initiative

Our FY2030 target*1Science Based Targets approved the application*2 initiative. Moving forward, we plan to renew our approval according to the SBT initiative’s revised standard.

(For all items below the base year is FY2019.

Reduce Scope 1*3Scope 2*4(GHG emissions resulting from the Toshiba Group’s own business activities).

By 28% by FY2030

Reduce GHG emissions from “products and services related to power supply” in the use phase*5Scope 3:*6

By FY2030, 50%

Reduce the use-phase GHG emissions from “products and Services associated with Power Consumption”*7Scope 3:

By 14% by FY2030

*1 Our FY2030 target set before the revision of the Environmental Future Vision 2050 (before November 2021)

*2 Science Based Targets are scientifically grounded GHG reduction targets set by companies on a medium- to long-term basis in order to restrain the global average temperature increase this century well below 2°C above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5°C. The SBT initiative validates science-based targets. The approved target for Toshiba Group is our FY2030 target, which was set before the revisions of the Environmental Future Vision 2050 (previous November 2021).

*3 Volume of direct emissions through fuel use at Toshiba Group

*4 Volume of indirect emissions through use of electricity and heat purchased by Toshiba Group *5 Power generation plants, etc.

*6 Volume of indirect emissions generated by Toshiba’s value chain (raw materials procurement, distribution, sales, disposal, etc.) Outside Scopes 1 & 2

*7 Social infrastructure products, building-related products (air conditioners, lighting equipment, elevators and escalators), retail and printing equipment, power devices, etc.

Scopes 1 & 2 will be reduced by measures such as increasing the use renewable energy in the Toshiba Group’s business activities and investing in energy-saving equipment.

Scope 3 will target Category 11, “Use Phase GHG emissions from sold products”, and we aim to reduce emissions.

Climate Change Response

Greenhouse Gas Emissions from the Value Chain

Toshiba Group Sustainability Report 2021