Contributing to a Decarbonized Society

Reducing CO₂ Emissions
Products and Technologies
Development Policy and Framework
Future Roadmap

Last updated: September 2026

Basic Approach

The transition to a decarbonized society represents both a business risk and a significant growth opportunity for the Group. Nifco believes that reducing CO₂ emissions from our business activities, together with developing and supplying products that contribute to a decarbonized society through innovation, is both our contribution to a sustainable society and our growth strategy. Growing needs for vehicle weight reduction aimed at reducing CO₂ emissions, the spread of electrified vehicles (xEVs), and rising demand for energy saving and thermal management at data centers and elsewhere are expanding the areas in which we can leverage the resin molding technologies and functional parts development capabilities we have cultivated over many years.

Reducing CO₂ Emissions from Business Activities

Own emissions (Scope 1 and Scope 2)

We currently disclose emissions for Scope 1 and Scope 2 at the Company and its Group companies in Japan. Understanding and disclosing this information enables us to identify areas and processes with significant impacts and to take proactive measures in response to rising business costs resulting from tighter CO₂ emissions regulations and the introduction of carbon taxes, as well as increasing expectations from customers and business partners regarding decarbonization. In addition, we can maintain our competitive advantage through the adoption of renewable energy and efficient capital investment and technology development. We therefore recognize that proactive data disclosure, even within the limited scope of Japan, will help us gain the trust of customers and investors who place importance on consideration for the environment, lead to the expansion of business opportunities, and contribute to future deployment across all consolidated companies.
At present, we do not officially disclose data from overseas sites due to concerns regarding data accuracy. However, with a view to improving data accuracy on a global basis and establishing a management framework robust enough to obtain third-party assurance, we began implementing an environmental data management system in FY2025. We will increase the number of sites where this system is installed in stages, and aim for centralized data management at all sites globally in the future.

Supply Chain Emissions (Scope 3)

With regard to emissions in the supply chain (Scope 3), it is difficult at present to capture and calculate emissions in a uniform manner across the entire Group due to differences in the availability of activity data and management methods across the supply chain. For this reason, this disclosure covers CO₂ emissions of the Company (on a non-consolidated basis in Japan), and emissions in FY2025 amounted to 257,544.04 t-CO₂.
The calculation is performed in accordance with the GHG Protocol using a “spend-based” method, in which emission factors are applied primarily to order amounts as activity data. Due to the nature of the spend-based calculation method, fluctuations in exchange rates, material costs, transportation costs and the like affect the calculation results, which may result in variances from actual CO₂ emissions. In the future, we will strengthen coordination with important affiliated companies and consider the preparation and disclosure of Scope 3 data in stages.

Activities toward achieving carbon neutrality

As part of our efforts to achieve carbon neutrality, Nifco launched cross-plant, cross-site “carbon neutrality activities” in FY2025. Under the concept of “CO₂ = cost,” these activities involve analyzing electricity use at manufacturing sites and reviewing equipment operation in order to reduce energy loss. We are gaining a clear picture of actual electricity use, which had not been sufficiently understood before, and identifying improvement themes such as standby operation of equipment, operating hours and equipment settings. For the themes identified, we continuously implement countermeasures and verify their effects.
In FY2025, we reviewed equipment operation during long holiday periods and carried out energy conservation activities centered on compressors. We also rolled out these activities to other sites, working to establish continuous improvement activities.

Promoting the Use of Renewable Energy | Introduction of Photovoltaic Power Generation Facilities

Nifco is promoting the expanded adoption of renewable energy in order to achieve carbon neutrality. In FY2025, the volume of renewable energy introduced increased approximately fourfold from FY2024, and the ratio of renewable energy at the Company on a non-consolidated basis and its subsidiaries in Japan rose by 4.4 percentage points to 6.1%. These results were achieved through the use of existing renewable energy facilities as well as the start of self-wheeling* and the adoption of a CO₂-free electricity plan at the Nagoya Plant, and the additional installation of photovoltaic power generation facilities at Nifco Kitakanto.
At the Nagoya Plant, the installation of photovoltaic power generation facilities under an onsite PPA has also been completed, and operation began in April 2026. Through this, we will further expand our use of renewable energy. Nifco will continue to install photovoltaic power generation facilities and use renewable energy, thereby reducing greenhouse gas emissions from its business activities and contributing to the realization of a sustainable society.

*
Self-wheeling: A scheme for transmitting electricity generated at a company’s own power generation facilities to its own sites via the power transmission and distribution grid

For Nifco's initiatives on self-wheeling photovoltaic power plants, please click here.

Use of FIT non-fossil certificates

For Scope 2, we have continuously procured FIT non-fossil certificates since FY2021. FIT non-fossil certificates certify the environmental value of electricity derived from renewable energy sources covered by the feed-in tariff (FIT) scheme. By procuring certificates and applying their environmental value to the electricity we use, that electricity can effectively be treated as electricity derived from renewable energy. In FY2025, of Scope 2 emissions of 19,147.75 t-CO₂, we applied FIT non-fossil certificates to electricity use equivalent to 1,063 t-CO₂.

Products and Technologies Contributing to a Decarbonized Society

Another sub-issue under the Group’s materiality of “Responding to climate change” is “Product development to improve environmental performance.” Building on our origins in industrial fasteners, the Group develops and manufactures automotive interior and exterior parts, ADAS-related parts and powertrain-related parts for electrified vehicles (xEVs) and others globally, using engineering plastics. These products are lightweight, rustproof and easy to handle, and have contributed to reducing vehicle weight and improving workability in manufacturing processes. In recent years, weight reduction technologies themselves and technologies that reduce aerodynamic resistance have gained greater value as environmental technologies directly linked to improved vehicle fuel efficiency and lower CO₂ emissions. In our medium-term management plan “NIFCO GROUP GLOCAL STRATEGY,” we set out our target state for 2035 as a clean-tech development and manufacturing company that achieves “environmental value × functional value × economic efficiency.” Beyond reducing our own environmental impact, we aim to contribute to decarbonization across society through products that help improve environmental performance, and to capture the resulting growth in demand as an opportunity for business growth.
The Company concentrates its development resources on universal value products themed on the “environment,” “safety” and “comfort,” which are always required regardless of vehicle type. We are pursuing design, development and sales activities with the goal of raising the ratio of universal value products in the value of Nifco products installed per vehicle to 27% in FY2028 and 40% in FY2034.

■ Main Areas of Contribution

Vehicle weight reduction and aerodynamics: Weight reduction parts and aerodynamics-related parts that contribute to improved fuel efficiency and lower CO₂ emissions
Response to electrification: Functional parts such as powertrain-related parts installed in electrified vehicles (xEVs)
Energy saving and thermal management: Thermal management products that help improve power efficiency, such as water-cooling resin manifolds for data centers

■ Representative Products

Product	Area of Contribution to Decarbonization	Main Environmental Benefits
ABS Actuator Bracket	Vehicle weight reduction and aerodynamics	By replacing the metal bracket of the ABS actuator with resin, we achieved a weight reduction of approximately 60% while maintaining heat resistance and vibration durability. Through vehicle weight reduction, it contributes to improved fuel efficiency and lower CO₂ emissions.
Front Spats	Vehicle weight reduction and aerodynamics	These guide the airflow from the front of the vehicle toward the underbody and tires, reducing air resistance. By improving aerodynamic performance while driving, they contribute to improved fuel efficiency and lower CO₂ emissions.
Duct Air	Vehicle weight reduction and aerodynamics	By taking in air from the front of the vehicle, it reduces aerodynamic resistance on the bumper, and by releasing the intake air from the wheel arch, it suppresses vortices and improves aerodynamic performance, contributing to improved fuel efficiency and lower CO₂ emissions.
Parts for FCVs (fuel cell vehicles)	Response to vehicle electrification	These are used in coolant channels for fuel cell stacks and elsewhere as powertrain components of FCVs, which are capable of zero-emission driving over long distances. Through the spread of FCVs, they contribute to the prevention of air pollution and to lower CO₂ emissions.
Pressure Relief Valve	Response to vehicle electrification	An emergency venting valve that releases internal pressure from a lithium-ion battery pack. By limiting the spread of fire in the battery pack and helping prevent vehicle fires, it contributes to improved safety and wider adoption of xEVs.
Cooling Pipes	Response to vehicle electrification	By making coolant channels for battery packs, charging ports and the like from resin, they reduce vehicle weight. Optimizing the shape of the flow channels reduces pressure loss, contributing to lower CO₂ emissions through reduced pump output and more compact pumps.
Water-cooling Resin Manifold (for Data Centers)	Energy saving and thermal management	A resin part that supplies and distributes coolant for servers, which generate increasing amounts of heat. In addition to being lighter than metal products, our proprietary one-touch fastening structure provides greater installation flexibility according to rack size. We aim to launch it during FY2026 as a thermal management product that helps improve the power efficiency of data centers.

The Company regards structural changes in the automotive market, such as electrification, and the expansion of new markets such as data centers that require thermal management, as growth opportunities, and will strengthen its systems for developing and supplying parts for next-generation vehicles and energy saving and thermal management products that help reduce CO₂ emissions.

Development Policy and Structure for Products and Technologies Contributing to Decarbonization

The Group is increasing the resources it invests in research and development in order to continuously create products that help improve environmental performance. Total research and development expenses for the 74th fiscal year (fiscal year ended March 31, 2026) amounted to 4,419 million yen, most of which was allocated to our core Industrial plastic parts & components business, with a focus on strengthening product development related to weight reduction and aerodynamics, electrification, and energy saving and thermal management.
In terms of our development structure, we have established a framework that enables logical and efficient development through collaboration between the product development divisions responsible for the automotive interior, exterior, ADAS-related and platform domains and the fundamental technology division responsible for simulation, evaluation, analytical testing and core technology development. Furthermore, we are applying core technologies cultivated in our automotive business, such as fluid control and cooling-related fastening, to new areas that help improve power efficiency, such as water-cooling resin manifolds for data centers.

Future Roadmap

To realize our long-term vision “NIFCO GROUP VISION 2035,” the Group is advancing its medium-term management plans in stages, divided into three phases. In Phase 1 (FY2026 to FY2028), we plan net sales of 400.0 billion yen in FY2028, and we aim to achieve net sales of 500.0 billion yen in 2035. Amid this growth, we will advance both the “reduction of fossil-derived CO₂ emissions” and “product development to improve environmental performance,” aiming to achieve both carbon neutrality by 2050 and sustainable business growth.

■ Reduction of Fossil-derived CO₂ Emissions (Own Emissions)

Target Year	Targets
FY2028	• Raise the renewable energy ratio to 10% or more • Reduce CO₂ emissions by 20% from the FY2020 level
FY2030	• Achieve 100% renewable electricity for the production of products for specific customers at in-house plants • Reduce CO₂ emissions by 33% from the FY2020 level
FY2034	• Reduce CO₂ emissions by 50% from the FY2020 level
FY2050	• Achieve carbon neutrality (Scope 1 and Scope 2)

■ Product Development to Improve Environmental Performance (Contribution Through Products)

Target Year	Targets
FY2028	Increase the installation ratio of product groups that contribute to decarbonization and strengthen supply and development systems. Aim to raise the average installation value ratio of universal value products to 27%, and then build on this to raise the ratio further.
FY2035 (the target year of the long-term vision “NIFCO GROUP VISION 2035”)	By building on our product and technology development in the areas of weight reduction, electrification, and energy saving and thermal management, we aim to achieve both a contribution to a decarbonized society and business growth.