Reducing carbon dioxide emissions is essential to tackling global warming and contributing to a sustainable world. We understand that we are responsible for the environment, and work to monitor the carbon footprint of our business activities and promote tangible initiatives to stop global warming.
We have set medium- to long-term targets with the aim of halving groupwide carbon dioxide emissions from FY 2016 levels by FY 2030.
Medium- to long-term targets and their progress
SATO's targets and progress for carbon dioxide emission reduction
(Metric tons of CO2)
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| Area | Key indicators | FY 2016 results |
FY 2021 results |
FY 2022 results |
FY 2023 results |
FY 2030 targets |
|---|---|---|---|---|---|---|
| Groupwide | Scope 1 and 2 CO2 emissions |
11,931 | 10,252 | 8,709 | 12,188 | 5,965 |
| Relative to FY 2016 |
- | Down 14.1％ | Down 27.0％ | Up 2.2% |
Cut by 50％ | |
| Japan | Scope 3 CO2 emissions |
299,300 | 332,652 | 314,271 | 318,269 | 232,856 |
| Relative to FY 2021 |
- | - | Down 5.5% | Down 4.3% | Cut by 30% |
- *Scope 1 covers direct emissions from company-owned sources (e.g., emissions associated with fuel combustion or industrial processes).
- *Scope 2 covers indirect emissions from the consumption of purchased energy including electricity, heat and steam.
- *Scope 3 refers to emissions indirectly linked to the company through its value chain; it includes all sources not within Scope 1 or 2.
- *Overseas data excluded Scope 1 emissions prior to FY 2023.
FY 2023 recap
Our groupwide Scope 1 and 2 emissions increased 2.2 percent from FY 2016 because calculations now include overseas Scope 1 emissions data, which was not available previously. Under the same conditions used before, however, our FY 2023 Scope 1 and 2 emissions would be 11,202 t-CO2 or 6.1 percent lower than FY 2016.
Another reason for the increase is that we relied more on conventional energy sources following the closure of the renewable power provider used by our factory in Iwate, Japan.
Action plans
We have worked to increase the solar energy capacity of overseas subsidiaries in FY 2023 and will continue to expand use of renewable energy and promote energy efficiency/conservation to reduce Scope 1 and 2 emissions.
We plan to find a new renewable power provider for the Japan factory and make other efforts to improve our internal value chain.
Data shows that emissions associated with purchased goods and services (Category 1), use of sold products (Category 11) and end-of-life treatment of sold products (Category 12) account for the bulk of our Scope 3 emissions. We will take various actions such as using the carbon footprint data of our key products to identify areas for improvement, expanding our product take-back program across printers, and promoting the recycling of used ink ribbons and discarded label liners.
Energy self-sufficiency via solar panels
In 2018, SATO joined Japan Climate Leaders' Partnership (JCLP) as a supporting member to help tackle climate change by reducing CO2 emissions. JCLP is a group of Japanese companies sharing the common understanding that the industrial sector should take actions to realize a sustainable, decarbonized society with a sense of urgency. Through JCLP, we were able to link up with a photovoltaic system provider (also a supporting member) to install solar panels at our Japan factory. Beginning operation in September 2020, this solar power system is expected to generate about 220,000 kWh of electricity per year to reduce emissions by about 115 metric tons annually.
Eco-friendly products
SATO linerless labels not only cut the use of wood pulp, but also shorten production time and reduce waste (liner), conserving energy used. A roll of linerless labels can hold 40 percent more labels than common labels with release liner.
SATO linerless labels
A linered label
Green procurement
The SATO Group now sees procurement from environmental perspectives as, in 2007, it set up its own SATO Green Factory (SGF) certification based on the ISO 14001 environmental management standard. We ask business partners who have yet to acquire ISO 14001 certification to comply with SGF standards, while we provide support on accreditation and regular audits. SGF assesses partners on whether or not they (1) have an environment policy, (2) monitor environmental impact (power usage, waste emissions), (3) promote environmental activities, and (4) comply with related laws.
Renewable energy sources
In October 2020, we contracted a renewable power provider for the Japan factory where we develop and manufacture specialty barcode printers and manufacture labels and stickers. This helps the factory further cut its CO₂ emissions by about 1,214 metric tons annually and achieve 100 percent renewable energy (net-zero emissions after carbon credits and other adjustments are taken into account). Our next step is to get other SATO sites to switch to renewable energy sources as well.
LED lighting for logistics centers
In 2019 we began installing energy efficient LEDs at our two logistics centers in Japan (Saitama and Nara) which was completed in February 2021. This translates to an emissions reduction of about 86 metric tons annually.
