CO2 Emissions in the Supply Chain

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Our company strives to reduce greenhouse gas (GHG) emissions related to our products throughout the entire product lifecycle, from procurement of components and production to customers’ use and disposal of the product.

CO2 emissions over time (Scope 1+2)

* The figures have been retroactively corrected by updating the emission factors, etc.
* The domestic and overseas CO2 emissions in FY2020 are assured by KPMG AZSA Sustainability Co., Ltd.
* GHG emissions due to non-energy related activities are included in the figures for FY2018 and after.
* Until FY2018, CO2 emissions from company vehicles were disclosed separately and excluded from the total emissions under Scope 1.
Since FY2019, these emissions have been retroactively included in the total emissions under Scope 1 for disclosure purposes.

Guidelines referenced and CO2 emission factors and heat conversion coefficient of electricity and fuel

  • Ministry of the Environment: "Basic Guidelines on Accounting for Greenhouse Gas Emissions throughout the Supply Chain"
  • Ministry of the Environment: "List of calculation methods and emission factors for calculating, reporting, and disclosure systems of Greenhouse Gas Emissions"
  • CO2 emission factors for overseas power consumption: Based on the emission factors announced by each electric company and government authorities of each country as well as those by country announced in IEA Emission Factors 2020, which was issued by the International Energy Agency (IEA).

Transition to green electricity

* These values are a tally of amount of renewable energy purchased and amount of tradable green certificate purchases.
* The amount of green electricity that was used in Japan and overseas in FY2020 are assured by KPMG AZSA Sustainability Co., Ltd.

Climate change initiatives at our domestic locations

Won first place in the FY2020 Chairman’s Awards of the Kanto Region Committee of Rationalization of Electricity Use

At the Gunma Factory in August 2019, we switched the heat generation equipment that generates cold and warm water (cooling water for testers, and cold and warm water for air conditioning) from gas to electricity. This transition successfully decreased annual electricity consumption by approximately 445 MWh, significantly reducing CO2 emissions. This achievement earned us first place in the FY2020 Chairman’s Awards of the Kanto Region Committee of Rationalization of Electricity Use at the Awards Ceremony for Rationalization of Electricity Use, which is sponsored by the Japan Electric Association.

The Gunma Factory switched to renewable energy sources for all electricity use in April 2021

The Gunma Factory has switched to renewable energy sources for all its electricity use. Generated by the hydroelectricity facilities on the factory premises, this CO2-emissions-free renewable energy is produced and consumed locally. The electricity fees for the environmental added value (the increase in fees) will be utilized in future creation initiatives by Gunma Prefecture. The total amount of electricity switched over at the Gunma Factory was approximately 12.8 million kWh per year, and this initiative is projected to reduce annual CO2 emissions by approximately 5,000 tons. This is equivalent to the amount of CO2 absorbed by approximately 360,000 cedar trees. (A cedar tree absorbs approximately 14 kg of CO2 according to data from the Ministry of Agriculture, Forestry, and Fisheries.)

Our company has also achieved 100% renewable energy use at our offices in San Jose (AAI) and Munich (AEG). With the transition to renewable energy at the Gunma Factory, our group’s renewable energy adoption rate is expected to increase from 28% in 2019 to over 50% in FY2021.

To realize a "decarbonized society," our company aims to increase our renewable energy adoption rate to over 60% by FY2030. For our domestic offices, we will drive the deployment of solar energy generation facilities as well as the adoption of other forms of renewable energy. For our offices elsewhere in Asia, we will promote the adoption of renewable energy based on availability in each respective region. We will also implement collaborative measures for CO2 emissions reduction with the supply chain.

Climate change initiatives at our overseas locations

Offices that utilize 100% renewable energy

Tradable Green Certificate (United States)

Advantest America, Inc. (AAI) has committed to using renewable energy since 2012, and 2021 marks a decade of this commitment. In an effort to reduce environmental impacts associated with electricity use, AAI has purchased a Green Electricity Certificate for wind power generation. In FY2020, the office sourced over 100% of its electricity from renewable energy sources. Furthermore, in 2013, AAI joined the Green Power Partnership of the United States Environmental Protection Agency (EPA), which is an initiative to purchase renewable energy promoted by the EPA, and has thus contributed to the spread of green electricity.

Tradable Green Certificate (Germany)

Advantest Europe Since 2019, Advantest Europe GmbH (AEG) has been purchasing renewable energy generated from hydroelectric power, etc. at the Böblingen Office, Amerang Office, and Munich Office. Similarly, 100% of the electricity used at these three offices in Germany comes from renewable energy sources.

Initiatives to install EV charging stations

Charging station (United States)

Advantest America, Inc. (AAI) has installed ten charging stations for electric vehicles (EVs) at the San Jose Office, and its employees enjoy complimentary access to them. Currently, approximately 15% of its employees make use of these stands, reducing CO2 emissions by approximately 72 tons per year.

Charging station (Germany)

In 2019, the Amerang Plant in Germany also installed a new charging station for two electric vehicles to support employees switching from gasoline-powered vehicles to electric vehicles.

Calculation of GHG emissions in the supply chain and relevant initiatives (Scope 3)

Our company has identified and calculated the amount of GHGs indirectly emitted from the supply chain from processes upstream to downstream (Scope 3).
As for CO2 emissions under Scope 3, emissions from category 1 (purchased products and services) and category 11 (use of sold products) account for over 95% of the total. We will set goals for these two key categories under Scope 3 and promote activities for reducing GHG emissions.

Approach toward the ESG action plan 2021 "Value Chain"

Aim Promote reusable energy at our component suppliers and manufacturing contractors
Supervising division Procurement, Product Design, and ESG Promotion Office
KPI Number of suppliers that have incorporated renewable energy
FY2021 target 10
Why it is so important Based on the Paris Agreement, which is an international agreement for measures against global warming, Advantest recognizes the importance of measures taken in the company and supply chains as well to reduce greenhouse gas emissions toward realizing a decarbonized society.
Boundary Advantest Group
Relevant policies ESG Initiatives Basic Policy
Relevant commitments Paris Agreement, RE100, SBTi
Manager Executive Vice President of the Production Group
Relevant complaint processing policy Establishment of a contact window
Aim Reduce CO2-equivalent emissions (basic unit) per test by 50% by 2030
Supervising divisions ESG Promotion Office
KPI Reduction rate in basic units (vs. FY2018)
FY2023 target 20%
FY2030 target 50%
Why it is so important Based on the Paris Agreement, which is an international agreement for measures against global warming, Advantest recognizes the importance of measures taken in the company and supply chains as well to reduce greenhouse gas emissions toward realizing a decarbonized society.
Boundary Advantest Group
Relevant policies ESG Initiatives Basic Policy
Relevant commitments Paris Agreement, RE100, SBTi
Manager Leader, ATE Business Group
Relevant complaint processing policy Establishment of a contact window

Guidelines referenced and CO2 emission factors and heat conversion coefficient of electricity and fuel

  • Ministry of the Environment: "Basic Guidelines on Accounting for Greenhouse Gas Emissions throughout the Supply Chain"
  • Ministry of the Environment: "List of calculation methods and emission factors for calculating, reporting, and disclosure systems of Greenhouse Gas Emissions"
  • CO2 emission factors for overseas power consumption: the emission factors by country in the IEA's "Emission Factors" (2020 edition) issued by the IEA are used.

* <Calculation method for Category 1>

  • CO2 emissions are calculated by multiplying the total purchase amount for each purchased good by the corresponding intensity of the "Embodied global-energy/emission intensity based on a consumer's price basis" issued by the National Institute for Environmental Studies.
  • For goods for which the transportation cost cannot be isolated from the purchase price, the emissions arising from the transportation of the goods are included in Category 1 emissions, not Category 4: "CO2 emissions generated in transportation of products from tier 1 suppliers to the company."

* <Calculation method for Category 11>

  • Among the Automated Test Equipment sold by the Advantest Group, SoC test systems and memory test systems are subject to calculation.
  • CO2 emissions are calculated by multiplying the total lifelong power consumption of the products sold during the relevant fiscal year by the world emission factor in the IEA Emission Factors 2020 issued by the IEA.
  • The lifelong power consumption is calculated by multiplying the assumed product usage period (10 years) by the power consumption calculated for each product based on the number of units sold and product specifications of the calculation target system.