Introduced an Internal Carbon Pricing System
Apr. 1, 2022
Mabuchi Motor Co., Ltd. (HQ: Matsudo City, Chiba Prefecture, Representative Director, President & COO: Shinichi TANIGUCHI) has introduced an Internal Carbon Pricing ("ICP") System for capital investment throughout the group.
An ICP is a system of setting an internal charge on the amount of CO2 emissions for creating economic incentives to reduce the emissions and promote climate change response.
In capital investment plans that involve an increase or decrease in CO2 emissions, we will apply the internal carbon price and convert it into a hypothetical cost, which will be used as one of the factors in investment decisions.
The Mabuchi Motor's ICP system
- Internal carbon price : \8,000 / t-CO2
* Internal carbon price will be calculated using internal exchange rates for overseas facilities
* We will review the internal carbon price from time to time, taking into account fluctuations in the price of emissions credits and other factors. - Scope : Capital investment entailing an increase/decrease in CO2 emissions
- Method of application : The costs of emissions derived from the capital investment will be calculated using the internal carbon price. The calculated cost will be one of the factors for investment under consideration.
We have set a mid-term target of reducing CO2 emissions by 30% by 2030 compared to 2018.
By introducing the ICP system, we will recognize the impact of capital investment plans on CO2 emissions and use this information to make investment decisions. We also aim to raise our employees' awareness about CO2 emissions reduction by ICP and promote initiatives to achieve our goals.