Understanding Carbon Neutrality

SDGs, decarbonization, and related initiatives have gained frequent attention in the news. While some may assume these efforts are exclusive to large corporations, they are actually affecting all of us and businesses as well. Conversely, taking action now may offer a substantial competitive advantage in the future. Here is why we need to decarbonize and how we can do it.

In recent years, the social expectations for companies to fulfill their environmental responsibilities, particularly in decarbonization and CO₂ reduction, have grown significantly. Many companies are actively addressing environmental issues, and some are even incorporating decarbonization as a key objective in their business strategies.

Global discussions on coordinated CO₂ reduction efforts have been ongoing, with a significant shift following China's announcement of its decarbonization target for 2060 at the UN General Assembly in 2020. This, along with earlier commitments from Europe, marked a substantial change in the global trajectory.

While the United States, Europe, and Japan have set decarbonization targets for 2050, China's announcement unifies efforts among these major contributors, representing around 60% of global CO₂ emissions. This alignment toward a decarbonized society holds significant potential to drive innovation and demand.

Governments worldwide are increasingly committing to decarbonization, reshaping expectations for companies to achieve this goal by 2050. Moving forward, decarbonization efforts will not be exclusive to major or advanced companies but will become a standard expectation for all businesses.

At manufacturing sites, the use of fuel and electricity for equipment and air conditioning results in CO₂ emissions. Companies are increasingly requiring suppliers to minimize CO₂ emissions from their processes. SBT*, a leading global certification program, demands reductions not only in a company's direct emissions but also in the overall emissions linked to its business activities.

*SBT (Science Based Targets):
Greenhouse gas emission reduction targets set by companies for the upcoming 5 to 15 years. Aligned with the Paris Agreement, the targets aim to restrict the global temperature increase to well below 2°C (Well Below 2°C/WB2°C), representing the maximum 2°C below the pre-industrial age, and further aspire to limit it to 1.5°C.

Some SBT-certified companies request that their suppliers, from whom they procure raw materials and parts, set targets.

The global participation in the SBT initiative is steadily increasing each year, and we expect to see more and more companies requesting such decarbonization targets from their suppliers in the future.

In the future, failing to embrace decarbonization could result in business risks, such as not being selected as a procurement partner. On the other hand, a firm commitment to decarbonization emphasizes our stance as an environmentally conscious business.

The whole DMG MORI Group has been a pioneer in efforts to achieve a sustainable society, with the key focus on reducing CO₂ emissions. Since 2021, we contributed to a significant reduction of CO₂ emissions throughout our entire supply chain, from the manufacturing of raw materials upstream to product shipment, covering Scope 1, Scope 2, and Scope 3.

*For more information on our initiatives, please visit our Sustainability website.

Below are some strategies that we implemented to minimize CO₂ emissions.

Process integration and automation

Machine tools are a major source of CO₂ emissions in production due to their electricity consumption. Reducing the number of machines and minimizing idle time through process integration and automation can significantly cut CO₂ emissions while enhancing delivery times and overall production efficiency. In our flywheel machining experiments, we compared traditional methods with streamlined approaches involving process integration and automation. The results were impressive — a 34% reduction in production time with process integration (using mill-turn machines) and an outstanding 39% reduction with added automation. Process integration and automation not only minimize CO₂ emissions but also ensure a cleaner and more environmentally friendly production process.

Replacement of outdated machines

Upgrading to the latest machine tools presents a double advantage. With enhanced performance and reduced power consumption compared to older models, new machines enable more efficient processing in less time. This not only improves operation efficiency but also significantly contributes to CO₂ reduction. Moreover, our latest machines come equipped with GREENMODE functions, offering additional potential for minimizing CO₂ emissions.

GREEN Monitoring

Visualization of power consumption and CO₂ emissions

GREEN device

Bright LED illumination

Hydraulic pumps equipped with inverter

GREEN idle reduction

Power to parts such as the servo motor, main drive, and
coolant pump is stopped when the machine is stopped

Turns off operation panel screen
when there is no operation for a certain period of time.

GREEN control

Quicker standard M code

Coolant discharge controlled using inverter

A comparison of our previous and new machine models indicates a 28% reduction in CO₂ emissions with new machines.

Decarbonization will play a crucial role in the future. We need to promote initiatives to reduce CO₂ emissions not only to fulfill our social responsibilities, but also to maintain our business competitiveness. Please visit us at our Iga Campus if you are interested to learn more about our sustainability initiatives and expertise.

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