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Tackling Climate Change

 The Fifth Assessment Report by the Intergovernmental Panel on Climate Change (IPCC), states that the “warming of the climate system is unequivocal,” and that it is extremely likely that human influence has been the dominant cause of the observed warming since the mid-20th century. With the Paris Agreement, an international framework to tackle climate change, taking effect in November 2016, the world’s movement toward the reduction of greenhouse gases has been accelerating.
 The Kubota Group sees tackling climate change as one of its materiality, and has been advancing initiatives toward the “mitigation” of climate change to reduce greenhouse gas emissions associated with its business activities and “adaptation” to be prepared for the impact of climate change.

Activities towards achieving SDGs

Related SDGs and targets
Major Activity Content
  • Promotion of manufacturing which can lead to the mitigation of climate changes, adaptation to them, and reduction of their impacts
  • Improvement of energy usage efficiency, such as through energy saving and conservation
  • Promotion of measures to reduce energy waste and losses, focusing on JIT and automation
  • Expansion of the use of renewable energy, etc.
2030/2020 Activity Targets (KPIs)
  • Long-Term Environmental Conservation Targets 2030:
     - CO2 emissions from the Kubota Group in Japan: 30% reduction compared to the base year 2014
  • Medium-Term Environmental Conservation Targets 2020:
     - CO2 emission intensity at global production sites: 14% improvement compared to the base year 2014
     - Energy usage intensity at global production sites: 10% improvement compared to the base year 2014

Long-Term Environmental Conservation Targets 2030 and the Results for RY2018

Goal Reduce CO2 emissions from the Kubota Group in Japan* by 30% compared to the base year 2014
Result In 2018, CO2 emissions of the Kubota Group in Japan* were reduced by 17.1% compared to the base year 2014

Medium-Term Environmental Conservation Targets 2020 and the Results for RY2018

Actions items Management Indicators*2 Scope Base RY Targets for RY 2020 Results of RY 2018 Achievement Status
Reduce CO2*1 CO2 emissions per unit of production Global production sites 2014 -14% -14.3% We are promoting the energysaving for production equipment, lighting, air conditioning; fuel conversion; the introduction of renewable energies; and the measures for heat insulation of buildings.
Save energy Energy consumption per unit of production Global production sites 2014 -10% -11.8%
  • CO2 emissions include greenhouse gases from non-energy sources. We use the emissions coefficient for electric power of the base year in our calculation of CO2 emissions from energy sources.
  • The figures per unit of production represent the intensity of the environmental load per unit of money amount of production. The exchange rate of the base year is used when translating the money amount of production of overseas sites into Japanese yen.

Mitigation of Climate Change

1. CO2 Emissions (Scope 1 and Scope 2)

 In RY2018, CO2 emissions were 647 kilotons CO2e, about the same level as the previous reporting year. Meanwhile, CO2 emissions per unit of sales improved by 5.1% compared to the previous reporting year. The improvement in CO2 emissions per unit of sales is mainly due to improvements in the CO2 emission coefficients for each electricity utility, as well as the promotion of CO2 reduction measures, such as eliminating loss in energy consumption and expanding the use of LED lighting.

Trends in CO2 Emissions and Emissions Per Unit of Sales
  • CO2 emissions for RY1990 are the emissions from energy sources at Kubota production sites in Japan.
  • CO2 emissions (647 kilotons CO2e) include portions of CO2 that were not released into the atmosphere but absorbed as carbon into products such as iron pipe (20 kilotons CO2e).
  • CO2 emissions include greenhouse gases from non-energy sources.
  • CO2 emissions per unit of consolidated net sales. The Kubota Group adopted International Financial Reporting Standards (IFRS) instead of accounting principles generally accepted in the United States of America from RY2018.

CO2 Emissions by Region CO2 Emissions by Business 
CO2 Emissions by Emission Source
Japan Overseas

Trends in Energy Use at Business Sites
  • PJ=1015J、TJ=1012J
  • Energy use per unit of consolidated net sales. The Kubota Group adopted International Financial Reporting Standards (IFRS) instead of accounting principles generally accepted in the United States of America from RY2018.

2. CO2 Emissions during Distribution

 In RY2018, CO2 emissions during distribution were 44 kilotons CO2e, the same level as in the previous reporting year. Meanwhile, CO2 emissions during distribution per unit of sales improved by 2.7% compared to the previous reporting year.
 The Kubota Group continuously promotes various initiatives, including such as improving loading efficiency and realizing a modal shift through the use of ships.

Trends in CO2 Emissions during Distribution and Emissions per Unit of Sales (Japan)

Trends in Freight Traffic (Japan)

3. CO2 Emissions throughout the Value Chain

 The Kubota Group makes concerted efforts to figure out CO2 emissions throughout the value chain in addition to its business sites. Following guidelines*, we calculate CO2 emissions based on Scope 3, and continue to expand the categories in the Scope of its calculation of CO2 emissions.

CO2 Emissions in Each Stage of Value Chain (RY2018 results)

Example Activities of Each Scope

4. Measures to Reduce CO2 Emissions

 The Kubota Group has established its Medium- and Long-Term Environmental Conservation Targets and is devoting efforts to reducing CO2 emissions and energy use associated with its business activities.
 We have also established medium-term reduction measure implementation plans, which are reviewed every year by each production site. When the plans are reviewed, Internal Carbon Pricing* is introduced to calculate their effect on reducing CO2 emissions and energy consumption, as well as the investment cost for the amount of CO2 reduced, in the capital expenditure plans. The effectiveness and economical rationality of each project are identified from an environmental standpoint and used as resources for making investment decisions.
 Some of the specific reduction measures that have been implemented include eliminating loss in energy consumption through a switch to equipment with higher energy efficiency and proper operation management, and promoting the visualization of power consumption in each process. At the same time, all global sites have been expanding their use of LED lighting. The initiatives implemented during RY2018 include improving the method of temperature control in the melting process, which emits a large amount of CO2, and raising the efficiency of production equipment for processing lines.
 The introduction of renewable energies has also been accelerating. SIAM Kubota Corporation Co., Ltd. (Thailand), Kubota Baumaschinen GmbH (Germany), and others also introduced new solar power generation systems, which went into full-scale operation in RY2018. The amount of electricity generated during this period from these systems was 630 MWh, which is an equivalent reduction in CO2 emissions of 299 tons. This brings the renewable energy consumption of the entire Group to 2,486 MWh, an increase of 29% compared to RY2017.
 As a result of the efforts toward achieving the Medium-Term Environmental Conservation Targets 2020 for CO2 reduction, global production sites achieved a reduction of 36.5 kilotons CO2e in RY2018 compared with the case where countermeasures were not implemented from the base year (RY2014). The economic effects of these measures reached 0.90 billion yen compared to RY2014. CO2 emissions per unit of production in RY2018 improved by 14.3% compared to RY2014.
 We will continue to implement measures to save energy on production equipment and air-conditioning/lighting, as well as promote measures to reduce waste and loss in the use of energy based on the concept of the Kubota Production System (KPS) and expand the use of renewable energy.

Introducing cogeneration systems   Installation of solar power generation system
Sakai Plant: Utilizing the waste heat generated at the time of in-house power generation and reducing the consumption of steam boiler fuel   Kubota Baumaschinen GmbH (Germany):Install solar panels on the roof

Adaptation to Climate Change

Measures to Adapt to Climate Change

 Ongoing climate change raises a number of concerns, including in regard to an increase in the number of heat stroke cases, changes to the areas in which crops are planted, and the frequency of climate-related disasters. The response to climate change needs to include measures to reduce greenhouse gas emissions, as well as to avoid or reduce damage brought on by climate change.
 As part of its strategy to adapt to climate change, the Kubota Group is implementing a number of initiatives at its business sites and in its products and services.

Initiatives on Products and Services

Category Major initiatives
  • Provision of tractors that are capable of deep plowing necessary for growing rice in abnormally high temperatures without lowering the quality/yield, and the provision of information useful for soil cultivation, such as the proper distribution of fertilizers appropriate for high-temperature conditions
  • Provision of the Kubota Smart Agri System (KSAS) which uses ICT and robot technology, and high-performance machinery that lightens the workload in fields such as agriculture, where workers often labor in scorching heat
  • Provision of information for farmers on changes in temperature, precipitation, and the amount of solar radiation, as well as the impact thereof on crops
Water Flooding             
  • As a measure for floods or other disasters caused by abnormal climate, provision of disaster-relief pumper vehicles, ultra-light, emergency sump pump units, rainwater storage and filtration products, and piping systems for manhole toilets, and so on
  • Provision of ductile iron pipes with tough tube body and excellent joint performance, which is highly effective during disasters such as typhoons and torrential rainfall
  • To address water shortage, the provision of management systems using IoT, which contribute to the efficient operation of water supply and sewage treatment systems and treatment plants
  • Provision of tank-submerged-type ceramic membrane filtering equipment and submerged membranes that purify wastewater for reuse
Management systems             
  • Provision of the Kubota Smart Infrastructure System (KSIS) that leverages IoT technology to manage a variety of facilities, from dams to drainage locations, using weather information in collaboration with the NTT Group
  • Provision of the WATARAS farm water management system that allows accurate water management for remote rice paddies
Living environment             
  • Provision of highly efficient air-conditioning equipment that creates a clean and comfortable indoor environment, even amid abnormal weather conditions

 With all the equipment necessary for effective drainage, including a drainage hose, a control panel, and a generator, as well as a lightweight specialized submersible pump that a person can easily carry, the equipment can be dispatched immediately to sites where flooding is in progress due to torrential rains and rapidly drain water from the location.
Drainage Pump with Vehicle for Disaster Recovery  

Initiatives taken at Business Sites
 Efforts at our business sites include the formulation of BCPs and disaster response manuals. To be prepared for high tides and torrential rain, the sites have also installed sump pumps, hold emergency drills, and are equipped with water tanks for use during water shortages.

 To reduce the risk of damage from falling trees during violent storms, plants around the propane gas tanks were removed.
Before and after the removal of plants
Kubota Manufacturing of America Corporation (US)

Related Information

Kubota's research and development values thorough hands-on approach. As an agricultural and water expert, we challenge and attain the future of food, water, and the environment, realizing our customer's needs.

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