Initiatives to Address Supply Chain Emissions

Efforts by individual companies alone to address climate change will have only a limited effect, which prompts us to engage in initiatives involving the entire supply chain and industry associations. The Advantest Group will proactively work to reduce our environmental footprint over the medium to long term through our supply chain in order to achieve our CO₂ emissions reduction targets.

Task Force to Promote Supply Chain Emissions Reduction Activities

In our entire supply chain, Scope 3 "Category 1: Purchased goods/services" and "Category 11: Usage of products" account for a large portion of our total CO₂ emissions. In addition to the reduction of CO₂ emissions in Scope 1+2, we have identified the reduction of CO₂ emissions in Category 1 and 11 as priority items in our ESG Action Plan 2021-2023. To achieve the SBTi certification targets for Scope 1+2 and 3, we are accelerating CO₂ reduction activities throughout our supply chain. As a priority measure, we have established task forces to promote these CO₂ reduction activities from FY2021, and are accelerating such activities throughout the supply chain to achieve the SBTi certification targets for Scope 1+2 and 3.

(1) Task Force 1: CO₂ Emissions Reduction in Product Development (Scope3 Category11)

ESG Action Plan 2021-2023

Task Force 1 will promote the reduction of CO₂ emissions through the development of next-generation products with low power consumption and high efficiency in collaboration with our global R&D departments worldwide. Specifically, we aim to reduce CO₂ emissions per test (basic unit) in the use phase of our main products by 50% by FY2030. Our Scope 3 "Category 11: Usage of products" has the largest amount of CO₂ emissions, accounting for 65% of the entire value chain. Lowering this CO₂ emission is crucial in reducing CO₂ emissions throughout our value chain. CO₂ emissions from the use of products sold are significantly affected by market fluctuations such as product sales. For this reason, we will set targets for reducing emissions per unit of production in conjunction with our mid- to long-term business plan, and review them annually so as to contribute to CO₂ emissions reduction through our products.

(2) Task Force 2: CO₂ Emissions Reduction Through Cooperation with Business Partners (Scope 3 Category 1)

ESG Action Plan 2021-2023

Task Force 2 will work with the procurement department to support the reduction of CO₂ emissions by promoting the use of renewable energy among our suppliers. Specifically, we aim to increase the number of our suppliers who have adopted renewable energy to 40 by FY2023. We conduct an annual "Supply Chain CSR Survey" among our major suppliers, to which we have added questions on the implementation status of renewable energy and greenhouse gas emissions since FY2021, thereby enhancing the questionnaire on our suppliers' climate change initiatives. Through this questionnaire, we have ascertained the status of our suppliers' implementation of renewable energy, provided individual feedback based on analysis and evaluation of the questionnaire results, and offered basic seminars on climate change. By means of these activities, we will promote suppliers' use of renewable energy and contribute to the reduction of CO₂ emissions throughout the supply chain by gaining an understanding of the necessity and importance of reducing greenhouse gas emissions.

(3) Task Force 3: CO₂ Emissions Reduction Through Collaboration with Our Customers

Task Force 3 will work together with the sales department to promote the reduction of CO₂ emissions through collaboration with our customers. We conducted a survey of our major customers to explain our desires and expectations to suppliers, as well as their policies and goals regarding climate change. While considering our desires and expectations for their suppliers, we will distill and incorporate them into the roles we ought to play and the issues we ought to tackle through our strategies, and will reflect them in our ESG activities. We will also aim to understand our customers' climate change policies and targets, and contribute to CO₂ reduction through collaboration with our customers as a member of the supply chain.

(4) Task Force 4: Reduction of Greenhouse Gas Emissions in Business Activities (Scope1+2)

ESG Action Plan 2021-2023

Task Force 4 aims to reduce CO₂ emissions from the Advantest Group's business activities by 60% by FY2030 (compared to FY2018) through the introduction of energy-saving equipment and renewable energy, and to achieve a renewable energy ratio of 70% by FY2030. In FY2022, we newly installed renewable energy at our sites in China and Taiwan, as well as at our headquarters, Sendai Laboratories (ATL), and Advantest Components in Japan. We will continue to contribute to the reduction of CO₂ emissions generated by our operations by reducing greenhouse gas emissions from our business activities and promoting the introduction of renewable energy.

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

Offices that utilize 100% renewable energy