Matsumoto Precision Co., Ltd. is pioneering smart and sustainable machine parts manufacturing in Japan through data-driven carbon tracking. The company specializes in pneumatic control parts for robots and internal combustion engine components for automobiles. In 2022, it launched The Sustainable Factory, a fully renewable-energy-powered facility that marked a major step in its commitment to sustainability.[LB1]
Since 1948, Matsumoto Precision has focused on operational efficiency and supply chain transparency to better serve customers worldwide. In recent years, the Fukushima-based B2B manufacturer faced growing pressure to increase profitability, strengthen sustainability, and remain competitive. To address these challenges, the company began calculating product-level carbon footprint (PCF) data to provide customers greater visibility into emissions and environmental impact.
At the same time, inefficiencies in cost tracking limited the company’s ability to accurately assess profitability. Fragmented systems and outdated processes slowed productivity and made strategic planning difficult. Without real-time insights, employees lacked the information needed to improve operations and drive engagement.
By offering customers carbon footprint data at the product level, Matsumoto Precision aimed to provide credible “proof of sustainability” that could influence purchasing decisions and help customers share emissions information confidently within their own value chains.
A modern ERP system and a solution to link green manufacturing to brand value
To modernize operations, the company implemented a cloud-based ERP system designed to boost efficiency, enhance cost visibility, standardize processes, and improve decision-making. In 2021, Matsumoto Precision deployed SAP S/4HANA, integrating its existing systems to create consistent operational data flows across procurement, logistics, and manufacturing.
SAP S/4HANA also provides the real-time business transaction data required for accurate PCF calculations.
In 2022, the company launched The Sustainable Factory to directly connect green manufacturing with long-term brand value. The initiative provides carbon footprint visibility to B2B customers and transitions operations to 100% renewable energy—helping reduce fossil-fuel dependency and mitigate rising energy costs.
As carbon accountability becomes increasingly important in manufacturing, Matsumoto Precision recognized the need for accurate and trustworthy emissions data. The ERP foundation enabled the calculation of product-level carbon emissions and the sharing of sustainability insights with customers and partners.
To advance its goals, Matsumoto Precision implemented the SAP Sustainability Footprint Management solution in 2023. The solution uses the manufacturing performance data already available in SAP S/4HANA to calculate and visualize product-level CO₂ emissions. These capabilities directly support The Sustainable Factory’s objectives by ensuring the emissions data shared with stakeholders is transparent and reliable.
Visualizing product carbon footprints across the entire value chain
By integrating digital and green transformation, Matsumoto Precision can now visualize emissions across the full B2B supply chain—from raw materials to final delivery.
“We are a company that continues to be chosen by the world,” says Toshitada Matsumoto, CEO, Matsumoto Precision Co., Ltd. “With SAP S/4HANA and SAP Sustainability Footprint Management, we make smarter, greener decisions while tracking and visualizing CO₂ emissions at the product level. And with this clarity, we can enhance our brand value.”
Matsumoto Precision partnered with Accenture to become the first industrial manufacturer to adopt the Connected Manufacturing Enterprises (CMEs) platform, built on SAP S/4HANA. CMEs is a cloud-based regional ERP platform jointly developed by Accenture and SAP, designed to standardize business systems for small and medium-sized manufacturers and enable collaboration across the B2B community. This strong foundation made it possible for Matsumoto Precision to implement the SAP Sustainability Footprint Management (SFM) solution, delivering accurate, product-level emissions data that supports the goals of The Sustainable Factory initiative.
“By visualizing carbon footprints, companies and consumers can choose low-carbon products and contribute to a decarbonized society,” says Joichi Ebihara, Sustainability Lead, Japan and Accenture Innovation Center Fukushima Center Co-Lead, Japan. Achieving this ambition, he adds, “requires collaboration across the enterprise.”
Matsumoto Precision’s transformation now serves as a model for manufacturing communities worldwide.
Productivity up 30% with a 400-ton reduction in annual CO₂ emissions
Through digital and green transformation, Matsumoto Precision has strengthened its leadership in sustainable manufacturing and supply chain decarbonization. The company now has visibility into costs and product-level carbon emissions, enabling informed decision-making and enhanced transparency.
Real-time data access enables employees to work more efficiently, leading to increased job satisfaction. Following the modernization effort, Matsumoto Precision increased employees’ wages by 4% annually, enhancing financial security and engagement.
Its optimized manufacturing practices now run entirely on renewable energy through The Sustainable Factory initiative. The company reduced its carbon dioxide (CO₂) emissions by 400 tons annually, and the new ERP system has increased productivity by 30%. Additionally, operating profit margin is up 3% through improved cost tracking and standardization.
Matsumoto Precision Company Limited is a 2025 SAP Innovation Award winner in the Sustainability Hero category for industrial manufacturing. Explore the company’s pitch deck to see how its digital transformation enables accurate, product-level visualization of carbon emissions across the value chain. Watch the video to see The Sustainable Factory in action.
