Mitigating and Adapting to Climate Change

The Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) states that “it is unequivocal that human influence has warmed the atmosphere, ocean and land.” In 2023, parts of the world experienced heatwaves, leading to the highest average summer temperatures ever recorded globally, a phenomenon that was described as “The era of global boiling has arrived.” With countries declaring their intentions to achieve net-zero CO₂ emissions and carbon neutrality, the movement driving society’s transition to a decarbonized society is gaining momentum, which certainly indicates that the initiatives of individual companies to reduce greenhouse gases are growing increasingly important.
The Kubota Group sees “Mitigating and Adapting to Climate Change” as one of its materiality and is committed to the challenge of achieving carbon neutrality by 2050. It has been advancing initiatives toward the “mitigation” of climate change by reducing greenhouse gas emissions mainly through energy-saving activities and the introduction of renewable energy sources 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.
2030/2040 Activity Targets (KPIs)	Long-Term Environmental Conservation Targets 2030： CO₂ emissions from the Kubota Group: 50% reduction compared to the base year 2014 Long-Term Environmental Conservation Targets 2040： CO₂ emissions from the Kubota Group: 75% reduction compared to the base year 2014 Medium-Term Environmental Conservation Targets 2030： CO₂ emissions per unit of production at global production sites: 60% improvement compared to the base year 2014 Ratio of renewable energy usage at global production sites: 60% or more Energy consumption per unit of production at global production sites 45% improvement compared to the base year 2014

Related SDGs and targets

13.CLIMATE ACTION,13.1,13.3,7.AFFORDABLE AND CLEAN ENERGY,7.2,7.3,7.a,9.INDUSTRY, INNOVATION AND INFRASTRUCTURE,9.4,9.5,2.ZERO HUNGER,2.4,11.SUSTAINABLE CITIES AND COMMUNITIES,11.b,

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.

2030/2040 Activity Targets (KPIs)

Long-Term Environmental Conservation Targets 2030：
- CO₂ emissions from the Kubota Group: 50% reduction compared to the base year 2014

Long-Term Environmental Conservation Targets 2040：
- CO₂ emissions from the Kubota Group: 75% reduction compared to the base year 2014

Medium-Term Environmental Conservation Targets 2030：
- CO₂ emissions per unit of production at global production sites: 60% improvement compared to the base year 2014
- Ratio of renewable energy usage at global production sites: 60% or more
- Energy consumption per unit of production at global production sites 45% improvement compared to the base year 2014

Measures to Reduce CO₂ Emissions

The Kubota Group has established the Medium- and Long-Term Environmental Conservation Targets (p.46-48) 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 reviewing the plans, we use Internal Carbon Pricing* to convert the CO₂ emissions of each business unit into a monetary amount, ascertain future carbon tax risk, and report this to executive management in order to promote emissions reduction. In addition, we calculate the energy consumption and investment cost for the amount of CO₂ reduced in our capital expenditure plans. The effectiveness and economical rationality of each project are identified from an environmental standpoint and used as information for making investment decisions.

Kubota's Policies for Curbing Greenhouse Gas Emissions
- Increase energy usage efficiency and reduce waste and loss
- Promote electrification and fuel conversion
- Expand use of renewable energy

Future projections for population increase and economic development represent a significant opportunity for our business. However, if the world continues with the same kinds of economic activities as now, they could place a burden on the Earth that exceeds its capability for selfpurification and its carrying capacity. This is a risk for the continuity of business activities. We will contribute to the realization of a sustainable society through our business activities and the provision of products and service solutions.

Refers to the placing of an internal monetary value on carbon by an organization

Solar panels capable of generating 1,566 kW of power were installed at the Kubota Global Institute of Technology (Japan), a facility that opened in September 2022.

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.

Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain issued by the Japanese Ministry of the Environment and Ministry of Economy, Trade and Industry

**CO₂ Emissions in Each Stage of Value Chain**
Classification				Scope of calculation	CO2 emissions (kilotons CO2e)^*2
Classification				Scope of calculation	2023	2024	2025
Emissions of the Kubota Group’s business sites	Direct emissions (Scope 1)^*1			Use of fossil fuels	277	237	252
				Non-energy-derived greenhouse gas emissions	7	6	5
				Total of Scope 1	284	243	257
	Indirect emissions (Scope 2)^*1			Purchased electricity and heat use	276	289	253
Upstream and Downstream emissions	Other indirect emissions (Scope 3)	Category	1	Resource extraction, manufacturing and transportation related to purchased goods/services	4,191	3,891	3,754
			2	Manufacturing and transportation of capital goods such as purchased equipment	492	721	602
			3	Resource extraction, manufacturing and transportation related to purchased fuels/energy	108	98	101
			4	Upstream transportation and distribution	246	197	202
			5	Disposal of wastes discharged from business sites	28	27	28
			6	Employee business travels	28	29	28
			7	Employee commuting	17	18	18
			8	Operation of assets leased to the Kubota Group	0^*3	0^*3	0^*3
			9	Downstream transportation and distribution	0	0	0
			10	Processing of intermediate products	338	289	277
			11	Use of sold products	36,787	35,083	33,727
			12	End-of-life treatment of sold products	69	65	63
			13	Operation of assets leased to other entities	0^*3	0^*3	0^*3
			14	Operation of franchises	0^*3	0^*3	0^*3
			15	Investments	0^*3	0^*3	0^*3
		Total of Scope 3			42,306	40,419	38,799
Total of Scopes 1, 2, and 3					42,866	40,950	39,310

Scrollable

*1. CO₂ emissions refers to emissions from all Kubota Group sites (100%).
*2. Totals shown may differ from the simple sum of values shown due to rounding.
*3. CO₂ emissions are indicated as zero (0) because there are no applicable activities or the impact is extremely low.

Adaptation to Climate Change

1. Measures to Adapt to Climate Change

It is likely that the progression of climate change will have a negative impact on our lives. For example, the frequent occurrence of weather disasters, changes in agricultural practices, and an increase in the number of heat stroke cases. Our response to climate change needs to include ongoing measures aimed at reducing greenhouse gas emissions, as well as policies for avoiding or reducing 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
Food		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 are highly effective during disasters such as typhoons and torrential rainfall
	Drought	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 such as drainage locations using weather information Provision of the WATARAS farm water management system that allows accurate water management for remote rice paddies
Living environment		Provision of diesel engines for use as generators for emergency power supply during disasters and power outages Provision of construction machinery to contribute to disaster prevention, as well as recovery and reconstruction Provision of highly efficient air-conditioning equipment that creates a clean and comfortable indoor environment, even amid abnormal weather conditions

Provision of Farm Water Management System WATARAS

WATARAS is a farm water management system that allows users to remotely and automatically control water flowing in and out of rice paddies while monitoring water levels on a smartphone or PC.
So-called “smart rice paddy dam” demonstrations are underway in which rice paddies are temporarily made to fill up with rainwater by remotely raising the drainage level setting when rivers are at risk of flooding during heavy rainfall. These “rice paddy dams” have the potential to help prevent flooding.

1 agriculture.kubota.co.jp/product/kanren/wataras/(only in Japanese)

Overview of WATARAS-managed “smart rice paddy dam”

■ Initiatives taken at Business Sites

Typhoons and pouring rain can affect production equipment and distribution. We have formulated BCP measures and disaster response manuals and we continue to take steps to prevent any holdups or delays in business activity even during weather disasters. Alongside seismic retrofitting, our BCP measures include steps taken to minimize the impact of torrential downpours on buildings and the protection of power supply equipment from flooding. 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.