Climate Change

Metrics and targets

Reduce Scope 1 and 2 CO₂ emissions to 50% of 2018 levels (2018 emissions: 106,514 tons, 2030 target: 53,257 tons)

Results

Scope 1 and 2 CO₂ emissions: 66,078 tons (38% reduction)

Countermeasures against Climate Change

2025 Results

The THK Group has established medium to long-term goals for the reduction of greenhouse gas (GHG) emissions as a countermeasure against climate change.
Through our Carbon Neutrality Promotion Project, our production facilities take the lead in implementing carbon-neutral initiatives, and successful endeavors are expanded to other locations. In December, the heads of this project at each factory gathered at the Yamagata plant to conduct a walkthrough and consider policies.
In addition, we have expanded our implementation of renewable energy by purchasing more green energy and adopting solar power generation.
As a result, THK Japan and Group companies in Japan saw CO₂ emissions drop to 66,078 tons, which was a 38% reduction from the baseline year of 2018.

GHG Emissions Reduction Goals

Metric	Medium-term target (by 2030)	Long-term target (by 2050)
Scope1 Scope2	Reduce to 50% of 2018 levels Scope: THK Japan and Group companies in Japan	Net-zero Scope: Entire THK Group

Decarbonization Roadmap

After a detailed investigation into implementing energy-saving measures and renewable energy at our Japanese locations, we formulated a comprehensive and unified decarbonization roadmap. The goal of this roadmap is to reduce our CO₂ emissions down to around 50,000 tons by 2030, which represents an over 50% reduction from our 2018 levels. To achieve this medium-term goal, we will further expand our current implementation of energy-saving measures and solar power generation systems in collaboration with the Carbon Neutrality Promotion Project, and as new initiatives, we will actively promote greater use of renewable energy, the purchase of environmental credits, and the adoption of off-site PPAs (power purchase agreements).
The year 2030 serves as a major milestone in terms of our environmental strategy, but our vision goes beyond that. Throughout the THK Group, we are strengthening our efforts to achieve our long-term goal of going carbon-neutral by 2050.
Currently, we are looking into establishing a global decarbonization roadmap that includes all of our facilities outside Japan, and we are formulating specific plans of action that consider the circumstances of each country and region. Through these efforts, we will build a unified decarbonization strategy for the entire Group and accelerate our efforts to achieve a sustainable society.
In addition, we proactively capitalize on technological revolutions and digital technology to reduce the greenhouse gas emissions of our entire supply chain in an effort to achieve carbon neutrality in 2050. With the cooperation of our stakeholders, we will also accelerate the widespread adoption of renewable energy and strengthen collaboration with local communities as part of a holistic approach to addressing environmental challenges.
As we monitor trends in environmental regulations both in and outside of Japan, we will continue to promote decarbonization with a global lens and contribute to the creation of a sustainable future.

External Verification

ISO 14064 Third-Party Verification

The calculations for Scope 1 and Scope 2 emissions generated by energy consumption at THK Japan and Japanese Group company production facilities in the 2025 fiscal year (January 1 to December 31, 2025) received third-party verification (limited level of assurance) based on ISO 14064-3 by the Japan Quality Assurance Organization.

TCFD Strategy

Following TCFD recommendations, THK performs scenario analyses based on the 1.5°C and 4°C climate change scenarios proposed by the IEA (International Energy Agency) and the IPCC (International Panel on Climate Change) with respect to long-term impacts out to 2050 in order to discuss strategies meant to address the risks and opportunities presented by climate change as well as the resilience of those strategies.

Primary Climate Change Risks/Opportunities and Responses

Scenario	Cause	Change	Risk/Opportunity	Level	Impact on THK	THK’s Response
1.5℃	Introduction of carbon taxes	Increased procurement costs	Risk	Major	The introduction of carbon taxes will cause raw material price increases to be passed on to THK, and procurement costs will rise.	Reduce raw material input Switch to raw materials with low carbon taxes
	Introduction of carbon taxes	Increased operating costs	Risk	Major	The introduction of carbon taxes will cause carbon tax payments to increase based on Japanese Scope 1 and Scope 2 emissions.	Develop energy-saving production technology Transition to low-carbon, non-fossil fuel energy
	Change to renewable energy	Increased energy procurement costs	Risk	Minor	The change to renewable energy will increase energy procurement costs.	Procure renewable energy internally by installing solar power generation systems
	Increased need for energy savings	Increased demand for environmentally friendly technology solutions	Opportunity	Major	There will be more equipment designs, fabrications, modifications, and product demand for automation and efficiency improvements for the purpose of boosting energy efficiency.	Strengthen provision of THK products that contribute to energy savings (LM Guide, electric actuators, unit products, etc.)
		Increased business opportunities in semiconductors	Opportunity	Major	Business opportunities will increase for the manufacture of semiconductor manufacturing equipment components, particularly involving power semiconductors, which form the core of energy savings.	Establish a development, production, and sales structure that can respond promptly and flexibly
		Increased demand for failure diagnosis/ predictive failure detection service	Opportunity	Minor	Demand will increase for a failure diagnosis/predictive failure detection service that utilizes the IoT and helps boost productivity and reduces energy loss.	Expand IoT services that boost productivity and strengthen sales activities and solutions that utilize such services
	Expansion of environmental business	Increased ESG investment	Opportunity	Minor	Expanding THK’s business in environmental fields will capture the attention of investors and make them evaluate THK more favorably, and ESG investment will increase.	Establish a development, production, and sales structure that can respond promptly and flexibly Actively disclose information and strengthen communication with stakeholders
4℃	Serious damage from weather-related disasters	Supply chain interruptions	Risk	Minor	Supply of raw materials will be disrupted if the supplier suffers a disaster.	Decentralize raw material suppliers Secure alternative suppliers
4℃	Serious damage from weather-related disasters	Increased costs from global warming	Risk	Minor	Rising temperatures will cause air conditioning costs to increase for factories, distribution centers, and offices.	Improve heat insulation performance of buildings