CO2 Emissions and Reduction Measures KPI

We achieved a 57.4% reduction in emissions against the Group target (40% or more reduction compared to fiscal 2005). Also, emissions per unit of sales was 31.9%, which largely exceeded the target (73% or less compared to fiscal 2005). We will continue to make improvements to our business operations and related equipment and facilities.

CO2 emissions (Japan)

CO2 emissions (Non-Japan)

Status of Environmental Impact Related to Transportation

The CO2 emissions per unit sales from product logistics in fiscal 2019 was 56.2%, which greatly exceeded the Group target (79% or less compared to fiscal 2005). We are continuing to lessen the environmental impact through effective transportation, such as improving load dimensions and transportation methods, switching from individual transportation to routine pickups and deliveries, and using modal shifts.

CO2 emissions associated with transportation

Scope 3

In order to reduce the greenhouse gases (CO2) emitted from all of our corporate activities, we are calculating the total CO2 emissions throughout our supply chain (Scope 3).
Scope 3 emissions in fiscal 2019 totaled 2,912,030 (tons-CO2), which accounted for 99% of our total CO2 emissions.
CO2 emissions attributable to the “use of products for sale” accounted for 82% of Scope 3 emissions.
We will continue to work on achieving more accurate calculation methods for the target categories, while focusing on developing and selling environment-friendly Daifuku Eco-Products with the aim of reducing CO2 emissions from the “use of products for sale.”

Scope 1
Greenhouse gases emitted directly from business activities (fossil fuels, etc.)
Scope 2
Greenhouse gases emitted indirectly from business activities (use of electric power and heat, etc.)
Scope 3
Greenhouse gases emitted indirectly from the supply chain of business activities (purchased products and service, use of products, etc.)
  • CO2 emissions throughout the entire supply chain (1,000 tons - CO2)

  • Scope 3 COemissions (1,000 tons -CO2)

Crown SportsNote: Due to rounding, the sum of individual items and the total may not always match completely.

Energy Conservation Efforts

Our CO2 reduction efforts range from large-scale operational improvements to individual employees reducing their commute and travel when on company business. Daily data on the use of electricity and heat energy, the major contributors of CO2Crown Sports emissions, are constantly monitored for improvement.

A photovoltaic system installed at Hini Arata Kan demo center

Solar modules installed on the rooftop

Crown SportsSolar modules installed on the rooftop

In March 2010, Daifuku installed solar panels at the Hini Arata Kan material handling and logistics exhibition center located in the Shiga Works site. In fiscal 2019, the system generated about 240,000 kWh of power, which reduced CO2 emissions by 84 tons.

Daifuku Shiga Mega Solar

52,000 square meters of solar panels

52,000 square meters of solar panels

In November 2013, we installed the photovoltaic system Daifuku Shiga Mega Solar at the Shiga Works site. Comprising 17,752 panels, the system has a maximum power generation capacity of 4,438 kW (largest in Shiga Prefecture) and an annual output (power sold to electric power providers) of approx. 4,300,000 kWh (equivalent to the annual power consumption of 1,000 general households).

Implementing "Cool Biz" and "Warm Biz" Campaigns

All Daifuku facilities in Japan turn off their lights during the lunch break, as well as after hours. In addition, office air conditioning is set at 28 degree Celsius in the summer and 20 degree Celsius in the winter to reduce environmental impact while still creating a comfortable environment for employees. All divisions have a no jacket and tie rule in summer and encourage employees to wear warm clothes to the office during the winter.

Introducing a system to "visualize energy" for production facilities

Display of numerical values in a graph view

Display of numerical values in a graph view

We have installed a system that can constantly monitor the energy consumed, such as electric power and gas, in our facilities at the Shiga Works. As numerical values are displayed in a graph on personal computers, it is possible to instantly assess the energy consumption status on production lines at a glance. Constant monitoring lets us easily see where we need to improve operation and facilities to save energy.

Sharing transportation resources

One truck picks up and delivers to suppliers in a given region (milk run method*).

Crown SportsOne truck picks up and delivers to suppliers in a given region (milk run method*).

We are now building a partnership with suppliers for parts and materials and set up a pickup and delivery service in order to reduce costs and properly control delivery dates. Although suppliers had transported cargo with their own trucks, we are currently making rounds with one truck per region through concentrated management and throughput control, and are striving to consolidate and streamline trips to logistics sites. We are contributing to the prevention of global warming by reducing CO2Crown Sports emissions throughout the entire supply chain as well as reducing each supplier's logistics costs.

  • *Milk run method:
    One truck makes the rounds to each supplier and picks up cargo that had previously been delivered by separate trucks. This method improves load efficiency and reduces fuel consumption and CO2 emissions.

Modal shift*

Daifuku typically uses trucks to transport products to customer sites, but we are in the process of shifting to more environmentally-friendly methods of railway and marine transportation. Our aim is to improve the quality of logistics operations by coordinating delivery schedules and managing costs, thereby reducing CO2 emissions as much as possible. In fiscal 2019, we were able to cut CO2 emissions by 766 tons through the modal shift of transportation methods.

  • *Modal shift:
    Choosing modes of transportation with lower environmental impact, such as railroads and ships, to transport cargo. By switching from trucks to ships and trains, it is possible to transport cargo with fewer CO2 emissions and less impact on the environment.

Carbon offsetting*

For our material handling and logistics exhibition center, Hini Arata Kan, we implemented a 100% carbon offset of total annual CO2 emissions (328 tons - CO2: fiscal 2019) calculated from the electric power and liquefied petroleum gas (LPG) used in running the center, and the lightweight oil (biodiesel fuel) used for shuttle buses, as well as 1.5kg CO2Crown Sports per visitor.

  • *What is carbon offsetting?
    Carbon offsetting refers to the act of recognizing one's own greenhouse gas emissions, making efforts to reduce the emissions, and of counterbalancing, in whole or in part, the greenhouse gas emissions that cannot be reduced by purchasing credits or through other means.