Materiality: Initiatives for Climate Change

Basic Approach

Considering the intensified damage from natural disasters, impact on the ecosystem, food crisis due to unstable weather, negative impact on human health, etc., climate change is, in terms of its scale, scope and severity, one of the most serious problems confronting humankind now.
Internationally, the Paris Agreement in 2015 set a goal of holding the increase in the global average temperature to well below 2℃ above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5℃ above pre-industrial levels. Additionally, according to the Special Report on Global Warming of 1.5℃ issued from the Intergovernmental Panel on Climate Change (IPCC), it is necessary to reduce anthropogenic CO2 emissions to net zero by 2050.
The NGK Group has manufacturing sites globally and generates greenhouse gases at the stage of raw material procurement or when products are used in the entire value chain; therefore, we recognize our responsibility of contributing to the realization of carbon neutrality. Furthermore, as climate change and initiatives taken in response affect the NGK Group's business in the form of risks and opportunities, we recognize that stakeholders expect us to respond appropriately from a medium- and long-term viewpoint.
The NGK Group will, on the basis of the international recognition it earned and its relationship with its Group companies, aim to contribute to society and the protection of the environment, and at the same time, improve its corporate value by developing its business with the recognition that tackling climate change is a priority issue.

The Value We Bring to Society

We will tackle carbon neutrality throughout the value chain and aim for net-zero CO2 emissions in our business activities.
By accelerating the development of carbon neutrality-related products through the use of data and digital technologies, and by developing and providing products and services with our unique ceramic technologies at the core, we will contribute to the realization of a carbon-neutral society by 2050.

Related SDGs

7 Ensure access to affordable, reliable, sustainable, and modern energy for all
13 Take urgent action to combat climate change and its impacts

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Risks and Opportunities

Risks Opportunities
  • Shrinking of internal combustion engine-related markets
  • Effects of natural disasters on operations
  • Geopolitical risks
  • Increase in costs due to greenhouse gas reduction and energy conversion
  • Damage to brand reputation
  • Expansion of CN-related business opportunities
  • Reduction of costs
  • Enhancement of our brand reputation

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The NGK Group announced NGK Group Vision Road to 2050 in 2021 and formulated NGK Group Environmental Vision in April of the same year. In this vision, we have disclosed a strategic roadmap showing how we will achieve net-zero CO2 emissions within the entire Group, and have been proactively working to realize a carbon-neutral society based on the NGK’s Core Policy on the Environment. Specifically, we have formulated the Fifth 5-Year Environmental Action Plan as our environmental activity targets for FY2025, and based on this plan, we are promoting initiatives to realize a carbon-neutral society through internal and external collaboration.
Furthermore, regarding the risks and opportunities of the NGK Group related to climate change, we will continue to enhance communication with the capital market by proactively disclosing information based on the TCFD recommendations.

NGK Group Vision

NGK Group Environmental Vision

NGK’s Core Policy on the Environment

5-Year Environmental Action Plan

Information Disclosure Based on TCFD Recommendations

Endorsement and Participation in Initiatives

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Main Initiatives

The NGK Group's main initiatives related to climate change are as follows.

Initiatives Toward Carbon Neutrality

Environmental / Social Contributions Through Our Products and Services

Sustainable Finance

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Toward the Future

Toward achieving net-zero CO2 emissions by 2050, the NGK Group is advancing net-zero CO2 emissions project based on the Fifth 5-Year Environmental Action Plan within the Environment Action Subcommittee, a company-wide cross-sectoral organization. In FY2022, the second year of the plan, we achieved limiting CO2 emissions to 560,000 tons against the target of 600,000 tons. Initiatives made within the NGK Group, such as installing photovoltaic power generation systems, procuring renewable energy, and switching to carbon-neutral LNG, contributed to achieving the target.
In FY2023, along with the above initiatives, we will further promote energy-saving activities, reductions through improving processes and utilizing waste heat, and advancing other initiatives to achieve our FY2025 target of limiting emissions to 550,000 tons.

LNG that is deemed to generate no CO2 by offsetting with CO2 credits

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Management Approach for Each Materiality

The articles linked below explains about the NGK Group's basic approach to each materiality, risks and opportunities, and how we approach issues.