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Promoting Environmental Innovation

Basic Concept for Environment

Since its founding, the CITIZEN Group has worked consistently to carry out manufacturing with consideration for people and the environment while remaining grounded in our corporate philosophy “Loved by citizens, working for citizens.” In FY 2019, we revised the CITIZEN Group Environmental Policy that serves as the basis for the Group environmental initiatives and the CITIZEN Group Environmental Vision 2050 based on that policy by clarifying our goals of decarbonization, resource recycling, and contributing to safe, comfortable living. In order to increase the effectiveness of our medium- to long-term environmental initiatives, we revised the CITIZEN Group Environmental Goals 2030, establishing five goals reflecting consideration for contributing to achievement of the SDGs. Through achieving these goals, we will promote the practice of sustainable management aiming to expand the creation of “Sustainable products" produced in “Sustainable factory”.

Progress Against the Roadmap and Outlook

Environmental Goals

The CITIZEN Group has set up a road map on efforts for environmental protection, one of materiality, based on the “CITIZEN Group Environment Vision 2050” and the “CITIZEN Group Environment Goal 2030”. Efforts for environmental protection and its goal defined in the road map are wide ranging, including reduction of CO2 emissions and hazardous chemical materials, effective use of resources that include water resources, prevention of environmental accidents, and biodiversity maintenance. In FY 2020, business activities were restricted because of the coronavirus. Under these circumstances, efforts for environmental protection were promoted, and almost all items culminated in exceeding their set goals.

Construction of Global Environment Management System

The CITIZEN Group is promoting construction of a global environment management system (EMS) at home and abroad that satisfies the criteria of the international standard ISO 14001 with an eye to reinforcement and unification of the EMS, which is shown in the road map. In Japan, CITIZEN WATCH takes the lead in laying down policies and goals of the EMS. Manufacturing bases, which account for the majority of the Group’s environmental burden, have obtained unified certification for ISO 14001, which is intended for all bases. Each overseas base is approved under ISO 14001, and creating an EMS is promoted based on the similar concept and policy as at home. FY 2020 fell on a review for re-certification under ISO 14001, and all bases satisfied the review criteria and certified again. Significant improvement from the time of the previous certification and functioning of the mechanisms of EMS were evaluated in the review. Environmental protection activities based on the same idea are thoroughly carried out at the sales bases other than manufacturing bases. These efforts of the entire Group have led to construction of a more effective EMS.

Responding to Climate Change

The CITIZEN Group aims in its environmental vision to reduce the CO2 emitted from its factories and offices essentially to zero to contribute to solving climate change, an issue of global scale. To reach that goal, the CITIZEN Group announced its approval to a proposal for the Task Force on Climate-Related Financial Disclosures (TCFD) in FY 2020. It also identified and assessed risks and opportunities related to climate change, using two scenarios of different assumptions of future temperature rises (2°C scenario and 4°C scenario) as requested by the TCFD proposal.

Climate-change-related risks and opportunities that bring financial impact on the CITIZEN Group

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For risks that have been identified, CO2 reduction and environmental consideration in products will be promoted with an eye to reducing the risk of the 4°C scenario in which temperature rise progresses and making the 2°C scenario, in which targets internationally promised are achieved, come true. To promote ecologically friendly management, which is an opportunity common to both the scenarios, a demonstration experiment was conducted at Tokyo Office in FY 2020, in addition to the ongoing energy conservation activities, to use power deriving from reusable energy 100%.
In addition, the CITIZEN Group grasped its Scope 3 emissions and underwent a third-party verification by an outside verification body with the aim of formulating Science Based Targets based on scientific grounds and obtaining certification as concrete targets of emissions reduction. The CITIZEN Group will promote its efforts to reduce emissions, as well as enrich its disclosure of climate-related information in line with the TCFD proposal.

Efforts to Reduce Hazardous Chemical Substances in order to Produce “Sustainable Products”

Toward the establishment of a “sustainable factory”, the entire CITIZEN Group is trying to reduce hazardous chemical substances that fall under the Pollutant Release and Transfer Register (PRTR) Law. Specifically, replacement of a substance that is used in a large quantity with an alternative substance is in progress. Replacement of 1-bromopropane, which is used in the largest quantity, is scheduled to be completed within a few years. Efforts to replace or cut back on other substances are made at each base, and the situations of these efforts are shared within the Group so that all the Group companies can be united.
Production of “sustainable products” is on the assumption that substances designated by the regulation on chemical substances contained in products are not contained from the design stage with a focus on the global trend of environmental regulation. In this way, the CITIZEN Group will tackle the reduction or elimination of chemical substances from the manufacturing stage to produced products.

Outlook

The goals of the road map were reached by and large in FY 2020, though some of them were affected by COVID-19. Yet, the long-term perspective for 2030 or 2050 and continuous efforts are needed to realize carbon neutrality and zero emissions of waste that the “CITIZEN Group Environment Vision 2050” targets. In the future, the entire Group will promote addressing the environment in order to maintain or further promote the same level, when society and business activities are revitalized again, based on the knowledge and points for improvement collected in the course of the response to the pandemic.