Azbil Recognized by CDP as a Supplier Engagement Leader, the Highest Supplier Engagement Rating, for the Third Consecutive Year

TOKYO, Mar. 28, 2024: Azbil Corporation (Tokyo Stock Exchange code: 6845) announced that it has been named by the nonprofit environmental organization CDP as a Supplier Engagement Leader, the highest CDP Supplier Engagement Rating, for the third consecutive year.

The Supplier Engagement Rating employs the CDP climate change questionnaire to assess the extent to which companies effectively cooperate with suppliers in addressing climate change issues. Scoring is determined by a company's responses to particularly relevant questions in four categories: governance, targets, greenhouse gas (GHG) emissions (scope 3^*1), and value chain engagement.

The azbil Group strives to reduce GHG emissions at customers' sites through our business. We are also actively engaged in reduction efforts focused on our own corporate activities; for example, we set a reduction target for GHG emissions across the entire supply chain (scope 3) as one of the Essential Goals of the azbil Group for the SDGs. These efforts have been highly evaluated.

How the azbil Group is tackling climate change

As regards the reduction of GHG emissions at our own sites, based on our 2050 Long-term Vision for Reducing GHG Emissions, we have announced policies and plans to achieve substantially zero GHG emissions from our own business activities (scopes^*1 1+2) by 2050. In FY2023, we further advanced this goal: aiming to achieve net zero for all GHG emissions (scopes 1+2+3) in 2050, we have submitted a letter of commitment to the Science Based Targets initiative (SBTi)^*2stating that within two years we intend to formally set this target and submit the requisite application.
In FY2022, GHG emissions from our own business activities (scopes 1+2) were down 36% from FY2017 (FY2030 target: 55% reduction from 2017 base year). GHG emissions across the entire supply chain (scope 3) were down by 8% compared to FY2017 (FY2030 target: 20% reduction from 2017 base year). Going forward, we will be promoting group-wide initiatives to achieve further improvement and intensify joint efforts with our suppliers.

In other initiatives to address climate change, based on the concept of Integrated Environmental Corporate Management^*3, the azbil Group is implementing a variety of measures, such as promoting energy conservation through the use of our systems and equipment. In addition, the Group discloses information in line with the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD), including quantitative disclosure of business opportunities and risks. Furthermore, as an initiative unique to the azbil Group, we are engaged in reducing CO2emissions at customers' sites^*4 by offering products, services, and solutions, with the aim of achieving an annual CO2reduction of 3.4 million metric tons by FY2030.

Guided by the philosophy of "human-centered automation," the azbil Group aims to ensure, through its business activities, its medium to long-term development and the continuing enhancement of enterprise value by making contributions that lead "in series" to a sustainable society.

^*1Scopes
Scope 1: Direct GHG emissions from a business (from fuel burning, industrial processes, etc.)
Scope 2: Indirect GHG emissions from using electricity, heat or steam provided by another business
Scope 3: Indirect GHG emissions related to business activities (indirect emissions not included in scopes 1 and 2)

^*2Science Based Targets initiative (SBTi)
The SBTi is a collaboration between CDP, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF), and United Nations Global Compact. It helps corporations achieve science-based targets (SBT) for reducing CO2emissions.

^*3Integrated Environmental Corporate Management
Management that integrates into the business a wide range of environmental activities, such as decarbonization, resource recycling, and biodiversity conservation.

^*4CO2reduction at customers' sites
The azbil Group has established four Essential Goals of the azbil Group for SDGs: I. Environment and Energy; II. New Automation; III. Supply Chain and Social Responsibility; and IV. Health and Well-being Management, and An Organization That Never Stops Learning. We have set specific indicators and targets, which we are steadily working to attain, while continuously reevaluating them and raising standards. The indicators/targets for reducing GHG emissions, including CO2emissions at customer sites, are as follows.
Targets for Essential Goal I: Environment and Energy (for FY2030)
• Effective reduction of CO2at customers' sites: 3.4 million metric tons of CO2/year
• Reduction in GHG emissions from business activities (scopes 1+2): 55% (from a 2017 base year) ;
(reapproved in August 2021 by the SBTi to match their target of 1.5 degrees Celsius)
• Reduction in GHG emissions across the entire supply chain (scope 3): 20% (from a 2017 base year)

About CDP

CDP is a global nonprofit organization that operates a worldwide environmental disclosure system for companies, cities, states, and regions. Founded in 2000 and working with more than 740 investors with over $136 trillion in assets, CDP pioneered the use of capital markets and corporate procurement to motivate companies to disclose their environmental impact, reduce GHG emissions, safeguard water resources, and protect forests.https://www.cdp.net/en

* Posted information is accurate as of the date of announcement.

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