CO2 Reduction Measures
Basic Approach
The Sumitomo Heavy Industries Group recognizes that addressing climate change is a key environmental management challenge. Among our initiatives to reduce environmental impact throughout the product lifecycle and across all business activities, we place the highest priority on reducing CO2 emissions.
Each month, the Environmental Management Department reviews the results of initiatives undertaken by each business division and provides feedback to the relevant personnel.The results are also reported to management three times a year at Executive & Operating Officers Committee meetings.
Across our group, we engage all employees in initiatives to address climate change. We visualize the progress of these initiatives and use the results to improve our processes and promote the efficient use of energy.
Scope 1, 2
CO2 Emissions Reduction During Product Manufacturing
In FY2025, our group’s CO2 emissions during product manufacturing in Japan decreased by approximately 1.3%, exceeding our target of reducing emissions by an amount equivalent to 1% of FY2019 CO2 emissions.*
Although lower production volumes contributed to the reduction, initiatives tailored to each business also delivered results. These included developing and implementing CO2 emissions reduction plans focused on shortening lead times and promoting electrification.
Going forward, we will continue to actively reduce CO2 emissions by upgrading to energy-efficient equipment, optimizing facilities, and reviewing reduction measures in collaboration with our engineering divisions. We will also promote comparable initiatives throughout our global operations.
*Baseline: FY2024 CO2 emissions minus an amount equivalent to 1% of FY2019 CO2 emissions.
Improving Energy Productivity
In addition to monitoring CO2 emissions, we set and manage energy productivity indicators, calculated as sales divided by CO2 emissions, to improve production efficiency and reduce CO2 emissions.
In FY2025, we targeted a 2% improvement in energy productivity compared with FY2023. Energy productivity in Japan improved by 3.3%, exceeding the target. Overseas, however, the improvement was limited to 1.1%, mainly due to factors such as lower demand in China.
Going forward, we will seek to further improve energy productivity by promoting operational energy-saving measures, including company-wide shutdown days and reductions in standby power consumption, while proactively investing in and upgrading to high-efficiency equipment.
Adoption of Renewable Energy
We promote the adoption of renewable energy throughout our group. Since 2020, we have actively installed solar power generation systems, primarily at newly constructed factory buildings. In FY2025, additional systems equivalent to approximately 2,340 MWh commenced operation, bringing the cumulative global total to approximately 14,500 MWh.
We will continue to actively install renewable energy systems in Japan and overseas to achieve our interim target of reducing CO2 emissions from product manufacturing by 50% by FY2030 compared with FY2019.
We also purchase renewable energy in a planned manner. In FY2025, we purchased approximately 105,000 MWh of renewable energy globally. We determine the scale of these purchases by considering the expected annual reduction in CO2 emissions of 1% through various energy-saving measures and the installation of solar power generation systems, primarily at newly constructed buildings. Through these initiatives, we will continue to reduce CO2 emissions toward achieving carbon neutrality by 2050.
Scope 3
Promotion of Green Logistics
We work to reduce CO2 emissions from product transportation by eliminating inefficiencies and improving transportation efficiency.
In FY2025, transportation intensity in Japan decreased by 7.7% compared with the average for FY2020–FY2023, achieving our target of maintaining transportation intensity at or below the FY2020–FY2023 average.
Going forward, we will continue to improve and optimize vehicle load factors, promote modal shifts, and make effective use of consolidated freight services.
CO2 Emissions Across the Entire Product Lifecycle
In FY2025, CO2 emissions across the entire product lifecycle of our group totaled 116.03 million tonnes. Of this amount, emissions from the use of sold products totaled 113.004 million tonnes, accounting for approximately 98% of our Scope 1, 2, and 3 emissions.
We recognize that expanding and providing more resource- and energy-efficient products, designated as Sustainability Plus Products, is an important business priority in addressing climate change and reducing CO2 emissions across the entire product lifecycle. We will continue to advance product improvements and technology development to provide more products with outstanding resource- and energy-saving performance.
In addition, we will work to expand the coverage of data on CO2 emissions associated with the procurement of raw materials and strengthen collaboration with our suppliers. Within Scope 3, emissions associated with raw material procurement represent the second-largest source of emissions after emissions from the use of sold products.
Carbon Footprint and Avoided Emissions
Carbon Footprint
We calculate the carbon footprints of injection molding machines, cryopumps, and hydraulic excavators, which are standalone finished products within our main product portfolio.
Going forward, we plan to expand the range of products covered by our carbon footprint calculations and refine our calculations for key models.
Avoided Emissions
Since 2014, the our group has been working to realize a low-carbon society by reducing CO2 emissions during product use. In addition to continuing discussions about avoided emissions* during deliberation on development issues, we also established the CO2 Reduction Award as a new category of the Presidentʼs Award in FY2026 and began inviting submissions from across the group for products that help avoid emissions and initiatives that reduce emissions from manufacturing processes.
We will leverage the technologies developed over many years to enhance product competitiveness while working toward achieving our Scope 3 target.
*Avoided emissions calculated using the flow method
| SBU | Descriptions | FY2025 | Calculated |
|---|---|---|---|
| Drive Technologies | Shift to highefficiency motors and other technologies | 2,556,000 t-CO2 |
Avoided emissions during the use of applicable products sold in FY2025 through the adoption of high-efficiency motors |
| Energy & Environment | Fuel conversion through major boiler retrofits | 2,532,000 t-CO2 |
Avoided emissions from boiler retrofit projects recognized as revenue in FY2025, based on continued coal-fired operation over the boilersʼ remaining useful lives |
| Process Plant | Avoided emissions through energy-saving products | 84,000 t-CO2 |
Avoided emissions during the use of applicable products sold in FY2025, calculated in comparison with the corresponding baseline products |
| Total | 5,172,000 t-CO2 |
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Initiatives
Japan Climate Initiative
We have endorsed the Japan Climate Initiative (JCI) message, “Now is the time to accelerate renewable energy deployment: Calling for stronger climate action amid the energy crisis.”
To become a global leader in efforts to achieve the 1.5°C target, we will accelerate improvements in energy efficiency and the use of renewable energy in our own operations. We will also strengthen collaboration with non-state actors in Japan and overseas and promote initiatives that contribute to achieving net-zero CO2 emissions by 2050.
GX Future League
The GX Future League (GXFL), established in April 2026, is a platform dedicated to achieving sustainable growth and a decarbonized society. It brings together businesses, government bodies, and academic institutions to advance green transformation (GX). Open to organizations regardless of industry or emissions volume, the GXFL aims to create demand for GX, develop rules, share information, and promote the widespread adoption of those rules.
We joined the GXFL in June 2026.