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Medium- and Long-Term Environmental Conservation Targets and Results

As extreme weather events and other impacts of climate change continue to materialize, the global movement aimed at reducing greenhouse gases is growing increasingly active. Global environmental issues pose a significant threat to “ensuring food security,” as well as “ensuring a safe and secure water supply.”
In order to promote environmental management in light of various recent social developments, such as SDGs and the Paris Agreement, as a sustainable company, the Kubota Group has challenged itself to achieve zero environmental impact in its Environmental Vision for 2050. Moreover, to promote systematic reduction of environmental impacts, we have been promoting environmental activities by formulating our medium- and long-term targets for environmental conservation. We formulated the Long-Term Environmental Conservation Targets 2030 in 2016, and Medium-Term Environmental Conservation Targets 2025 in 2020. Now, we have revised the Long-Term Environmental Conservation Targets 2030, expanding the boundary of our initiatives and increasing the target values. Toward achieving these targets, the Group is advancing systematic initiatives in both the production and product development stages.

Long-Term Environmental Conservation Targets 2030 and Results

1. Mitigating and Adapting to Climate Change13.CLIMATE ACTION

The shift to a decarbonized society has been accelerated, with each country declaring substantially zero emissions of CO2 and carbon neutrality. In its Environmental Vision, the Kubota Group announced its commitment to take up the challenge of achieving carbon neutrality by 2050. Based on these global trends and the image for the company expected by society in the future, in our Long-Term Environmental Conservation Targets 2030, we have expanded the scope of our CO2 reduction targets from the Kubota Group in Japan to a global scope, and revised our targets. We will continue energy-saving activities to reduce energy consumption at our sites, reduce CO2 emissions through fuel conversion by adopting electric furnaces and so forth, and by expanding our use of renewable energies, we will promote initiatives to achieve carbon neutrality.

2030Targets Reduce CO2 emissions from the Kubota Group* by 50% compared to the base year FY2014.
Result In FY2021, CO2 emissions of the Kubota Group* were reduced by 16.5% compared to the base year FY2014.
  • CO2 emissions refer to Scope 1 and 2 emissions from all Kubota Group sites (100%) and include greenhouse gases from non-energy sources

  • Trends in CO2 Emissions of the Kubota Group in Japan

  • CO2 emissions of companies that have been acquired or sold have been adjusted retroactively to before the acquisition or sale. CO2 emissions that have not been adjusted are 714 kilotons CO2e in 2014, 674 kilotons CO2e in 2015, and 647 kilotons CO2e in 2016, 645 kilotons CO2e in 2017.

  • Revision of Targets (2022)

　 Before revision After revision
Target sites Group sites in Japan Global group sites
Target value 30% reduction 50% reduction
Base FY 2014 2014
Target CO2 emissions volume Scopes 1, 2
534 kilotons CO2e		 Scopes 1, 2
734 kilotons CO2e
Coverage ratio 72.8% 100%

2. Efforts to Develop Environment-friendly Products12.RESPONSIBLE CONSUMPTION & PRODUCTION

Goal Increase the sales ratio of Eco-Products* to 80% by 2030.
Aim to put all new products which are certified as Eco-Products in the market in 2030 and later.
Result The sales ratio of Eco-Products* was 68.0% in FY2021.
  • The sales ratio of products that have fulfilled the internal requirements in our own Eco-Products Certification System
    Sales ratio of Eco-Products (%) = Sales of Eco-Products / Sales of products (excluding construction work, services, software, parts and accessories) × 100

  • Trends in Sales Ratio of Eco-Products

Medium-Term Environmental Conservation Targets 2025 and Results

Since FY2021, the Group has been working to achieve the Medium-Term Environmental Conservation Targets 2025. In addition to the indicators set out in our Medium-Term Environmental Conservation Targets 2020, we have added the target of increasing the renewable energy usage ratio towards realizing a carbon-free society. Furthermore, in view of the growing global issue of ocean pollution by disposable plastics, we have added a qualitative target of improving resource efficiency. We have also set a qualitative target for systematically advancing efforts on wastewater management and conserving biodiversity. In the product segment, we set a new target relating to displaying the materials of new parts with a view to promoting recycling, along with new targets for responding to regulations on vehicle exhaust gas emissions aimed at complying with exhaust gas regulations. Our results for FY2021 are shown in the following table.

Reporting
Boundary		 Issue Action item Management indicator*3 Base FY Target for
FY2025*9		 Result of
FY2021
Global
Production
Sites		 Mitigating and
Adapting to Climate
Change		 Reduce CO2*1 CO2 emissions per unit of
production (Scopes 1, 2)		 2014 ▲25% ▲30.0%
Ratio of renewable energy usage*4 — 1% or more 1.5%
Save energy Energy consumption per unit of
production		 2014 ▲18% ▲27.2%
Working towards a
Recycling-based
Society		 Reduce waste Waste discharge per unit of
production		 2014 ▲33% ▲32.6%
Hazardous waste discharge per
unit of production*5		 2019 ▲3% ▲8.5%
Recycling ratio (Japan)*6 — Maintain 99.5%
or more		 99.6%
Recycling ratio (Overseas)*6 — Maintain 90.0%
or more		 91.6%
Conserving Water
Resources		 Conserve water
resources		 Water consumption per unit of
production		 2014 ▲23% ▲31.2%
Controlling
Chemical
Substances		 Reduce VOCs*2 VOC emissions per unit of
production		 2014 ▲42% ▲41.8%
Products Improving Products'
Environmental
Performance		 Expand Eco-Products Sales ratio of Eco-Products*7 — 70% or more 68.0%
Promote recycling Usage ratio of recycled materials*8 — Maintain 70%
or more		 71.0%

2. Targets for Products

Reporting
Boundary		 Issue Action item Management indicator Reference
Kubota Group
ESG Report 2022
Global
Production
Sites		 Working towards a
Recycling-based
Society		 Improve resource
efficiency		 • Reduce disposable plastics at business sites See p.51
• Work with suppliers to conserve packaging materials and make them returnable
• Implement paperless operation
Conserving Water
Resources		 Control wastewater • Manage wastewater appropriately in accordance with the standards of the water discharge by operating wastewater treatment facilities and water recycling facilities, etc. See p.53
Conserving
Biodiversity		 Conserve biodiversity at
business sites		 • Promote the protection of the natural environment by greening our establishments and creating biotopes See p.60
Promote social contribution activities • Promote conservation of the local natural environment and biodiversity as social contribution activities See p.61
Products Improving Products'
Environmental
Performance		 Promote recycling • Display the material of new parts and provide material information*10 Currently in
progress*12
Develop vehicles
compliant with exhaust
gas regulations		 • Development of industrial diesel engines that comply with the latest emissions regulations (Stage V), and launch onto the market of products with such engines*11
• Launch the vehicles that comply with the latest emissions regulations onto the market		 See p.32
  1. *1.CO2 emissions indicate 90.3% of base-year Scope 1 and 2 emissions and 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.
  2. *2.VOCs (volatile organic compounds) comprise the six substances that are most prevalent in emissions from the Kubota Group: xylene, toluene, ethylbenzene, styrene, 1, 2, 4-trimethylbenzene, and 1, 3, 5-trimethylbenzene.
  3. *3.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.
  4. *4.The applicable boundary is global sites.
  5. *5.In Japan, specially controlled industrial waste as defined in the Waste Management and Public Cleaning Law; Overseas, waste that is defined as hazardous in each country or region.
  6. *6.Recycling ratio (%) = (Sales amount of valuable resources + External recycling amount) / (Sales amount of valuable resources + External recycling amount + Landfill disposal) × 100. Heat recovery is included in the external recycling amount.
  7. *7.The sales ratio of products that have fulfilled the internal requirements in our own Eco-Products Certification System Sales ratio of Eco-Products (%) = Sales of Eco-Products / Sales of products (excluding construction work, services, software, parts and accessories) × 100
  8. *8.Usage ratio of recycled materials (%) in the cast metal products and parts manufactured by the Kubota Group (ductile iron pipes, fittings, machine cast products (engine crankcase, etc.))
  9. *9.▲ indicates a negative figure.
  10. *10.In accordance with internal standards, we provide information on materials through material labeling and specification sheets for plastic components.
  11. *11.Targeting tractors and combine harvesters (output range: 56 kW ≤ P < 560 kW) equipped with engines compliant with the European emissions regulations (Europe Stages IV and V) level, shipped to Europe, North America, Japan, and Korea
  12. *12.Some internal standards regarding the method of providing material information are still being developed due to the reorganization or new establishment of businesses.

■ The Results for Medium-Term Environmental Conservation Targets 2025 for Global Production Sites

  • Trends in Reduction Ratio of CO2 Emissions per Unit of Production*1

  • Trends in Reduction Ratio of Energy Use per Unit of Production*1

  • Trends in Reduction Ratio of Waste Discharge per Unit of Production*1

  • Trends in Waste Recycling Ratio*1

  • Trends in Reduction Ratio of Water Consumption per Unit of Production*1

  • Trends in Reduction Ratio of VOC Emissions per Unit of Production*1

  1. *1.The environmental loads and production amount of the acquired company are added retroactively to the base year (FY2014), and the same data of the sold company is deducted retroactively to FY2014.
  2. *2.The values for FY2018 and FY2019 were corrected to improve accuracy.

■ Results for Medium-Term Environmental Conservation Targets 2025 in the Product Sector

Target for FY2025 • Development of industrial diesel engines that comply with the latest emissions regulations (Stage V), and launch onto the market of products with such engines
• Launch the vehicles that comply with the latest emissions regulations onto the market
Result Kubota launched the following products equipped with the engines that comply with the emissions regulations.
Examples of Products Launched onto Markets in 2021
Agri Robo Combine Harvester WRH1200A2
• Conforming to Japan Regulations on Emissions from Non-Road Special Motor Vehicles (75 kW and above, lower than 130 kW, Regulation 2014)
Tractor M6002 series M6-142 (Europe)
• Conforming to European Union Regulations (56 kW and above, lower than 130 kW, Stage V)

  • Agri Robo Combine Harvester WRH1200A2

  • Tractor M6002 series M6-142 (Europe)