OMRON Declares its Commitment to Doubling Energy Productivity by 2040 to Achieve Carbon Neutrality

OMRON Corporation (Headquarters: Shimogyo-ku, Kyoto; President and CEO: Yoshihito Yamada) became a member of The Climate Group's EP100^*1 initiative. OMRON is the first Japanese company in the manufacturing industry and the fourth Japanese company in general to join the EP100^*1 initiative, which brings together over 120 energy smart businesses committed to measuring and reporting on energy efficiency improvements.

With the Industrial Automation and Healthcare businesses joining the initiative, OMRON commits to doubling its energy productivity^*2. The goal is to double the amount of sales per Gigawatt Hour (Gwh)compared to 2016 levels by 2040. ‘Energy productivity’ refers to the absolute amount of energy consumption in the denominator and the amount of sales and value added in the numerator for Scope 1 and Scope 2. It is an indicator that aims to achieve reduction in energy consumption and simultaneously boost economic growth.

Carbon Zero in 2050

In its long-term vision Shaping the Future 2030, launched in April 2022, OMRON expressed its commitment to solving social issues through its business. By transforming our organization in the years to come, we aim to contribute to social needs such as achieving carbon neutrality. We are committed to reducing greenhouse gas emissions, and bringing about a decarbonized society through energy conservation and cleaner power consumption.

To achieve ‘Carbon Zero in 2050’, as we committed to in 2018, we set a target of reducing greenhouse gas emissions (Scope 1 and 2) from our own operations by 53% in fiscal year 2024 and 65% in fiscal year 2030, compared to fiscal year 2016. To achieve these targets, OMRON is expanding its energy conservation and creation efforts while working to achieve zero carbon emissions at 76 sites in Japan by fiscal year 2024; as outlined by its mid-term management plan ‘Shaping the Future Phase 1’.

Unique energy productivity initiatives

To achieve both zero carbon and business growth, OMRON is developing unique initiatives to reduce absolute energy consumption and improve productivity – with the end goal of realizing double energy productivity. For more than a decade, our Industrial Automation Business has been working to balance quality and productivity improvements with global environmental conservation at its Ayabe Plant (Ayabe City, Kyoto Prefecture) and other in-house factories. Providing the technologies and know-how cultivated through these efforts allows us to lead the manufacturing industry in energy productivity improvement. These products and services are not only used at our own production sites but also the manufacturing sites of our customers.

Starting now, our Industrial Automation Business will visualize production volume, quality, and energy consumption as well as evaluate the potential for energy reduction at the respective production bases of our Healthcare Business. Through the Industrial Automation Business' energy control technology, we will build a system in which improving productivity will directly lead to energy reduction. In addition, the Industrial Automation Business will proactively deploy the technologies and know-how acquired through these initiatives to its customers and partners to help manufacturers around the world not only reduce greenhouse gas emissions but also realize resilient manufacturing.

Mr. Toby Morgan, Senior Manager of Built Environment at Climate Group, gave this welcome to the affiliation.

“We are delighted that OMRON has signed up to EP100, joining over 120 other members who are committed to doing more with less. By committing to improving their energy efficiency, OMRON is showing ambition and leadership in Japan, demonstrating how other corporates in this region can lower emissions, reduce costs and accelerate the transition to a climate-resilient economy.”

Yoshihito Yamada, President and CEO, OMRON Corporation, also commented on joining the EP100.

“In OMRON’s long term vision for the next 10 years, ‘Shaping the Future 2030’, we identified ‘contributing to achievement of carbon neutrality’ as one of the social issues to be addressed through our business activities. OMRON is serious about its commitment to the social issue of climate change, and joining the EP100 is another important step to realize our ambition of carbon neutrality. We want to promote carbon neutrality throughout our entire value-chain, by empowering our customers to curb their emissions using our initiatives and solutions. Climate consciousness is not only a part of our responsibility to our planet, but also a key differentiator to ensure we run a future proof business. OMRON is committed to fulfill its corporate social responsibility to the earth and society, while transforming carbon neutrality into a competitive advantage for the company and further increasing the added value of its value chain to enhance its corporate value.”

Innovation for a sustainable future

In light of the urgency for agreement at the United Nations Framework Convention on Climate Change Conference of the Parties (COP27), OMRON is determined to provide the industry leadership needed to accelerate climate action and work to create more resilient and sustainable automation together with its customers and partners across the value chain.

*1 Ratio of economic productivity to energy consumption. It is an indicator for Scope 1 and 2 of the company's business locations, with absolute energy consumption in the denominator and sales and value-added in the numerator, aiming to achieve both energy consumption reduction and economic growth.

*2 An international corporate initiative in which companies with the goal of doubling the energy productivity of their operations (e.g., improving energy efficiency by 50%) participate. Abbreviation of "100% Energy Productivity," meaning doubling the energy efficiency (Energy Productivity) of a business.

[Long-term vision Shaping the Future 2030]

OMRON announces long term vision “Shaping the Future 2030” | OMRON Global

[Sustainability initiatives]

Sustainability | About OMRON | OMRON Global

About OMRON Corporation

OMRON Corporation is a leading automation company with its core competencies in Sensing & Control + Think technology, and is engaged in a wide range of businesses including control equipment, electronic components, social systems, healthcare, and the environment. The company employs approximately 30,000 people worldwide and provides products and services in about 120 countries and regions. For more information, please visit https://www.omron.com/global/en/

About EP100

EP100 is a global initiative by international non-profit Climate Group, bringing together a growing group of energy-smart companies committed to doing more with less to improve their energy productivity. Members are driving tech innovation and reducing emissions while making substantial cost savings and improving competitiveness – inspiring others to follow their lead. #EP100

About Climate Group

Climate Group drives climate action. Fast. Our goal is a world of net zero carbon emissions by 2050, with greater prosperity for all. We focus on systems with the highest emissions and where our networks have the greatest opportunity to drive change. We do this by building large and influential networks and holding organisations accountable, turning their commitments into action. We share what we achieve together to show more organisations what they could do. We are an international non-profit organisation, founded in 2004, with offices in London, New Delhi and New York. We are proud to be part of the We Mean Business coalition. Follow us on Twitter @ClimateGroup.

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