Overview

Within Nippon Paint Group, Dunn-Edwards is targeting net zero Scope 1 and 2 greenhouse gas emissions by 2045, the Japan Group and DuluxGroup by 2050, and NIPSEA Group by 2060. All of our PCGs are actively advancing initiatives such as improving energy efficiency, purchasing renewable electricity, installing solar power systems, and transitioning fleets to electric and hybrid vehicles. Below, we showcase how the climate action initiatives undertaken by DuluxGroup contribute to sustainable business growth for our Group.

Expanded Use of Renewable Energy at DuluxGroup

In 2024, DuluxGroup installed an additional 1,400 kW of rooftop solar capacity, bringing the total on-site solar generation to 3,700 kW across production and warehouse sites. This project supports its carbon target commitments, while optimizing costs by installing solar where it is more cost-effective than purchasing renewable power from the grid. This initiative has reduced electricity purchases from external suppliers, lowering operational energy costs.

The reduction in energy expenses, and improved operating margins, directly contribute to stronger Earnings Per Share (EPS). The solar investment also reduces exposure to future electricity price increases, supporting cost stability over the medium term. Reporting of increased renewable energy usage enhances environmental metrics, meeting customer and regulatory expectations regarding carbon footprint reductions.

Lower operating costs and improved environmental compliance reduce business risks and support overall financial resilience. These outcomes contribute to maintaining and potentially improving the Price-to-Earnings Ratio (PER), by delivering more stable earnings and demonstrating prudent resource management to investors.

The rooftop solar expansion shows how targeted capital projects, focused on operational efficiency and energy transition, can deliver measurable financial benefits while strengthening long-term competitiveness.