Environment Initiatives in Energy Conservation and Global Warming Mitigation

Status of Greenhouse Gas Emissions and CO2 Emissions Reduction Target Achievement

Climate change, including global warming, is an environmental problem that leads to climate change and will have a significant influence on the continued existence of life, including human beings. As a measure to fight climate change initiative, the Group has positioned "energy conservation and global warming mitigation" as its most important environmental theme.
In fiscal 2018, the Group's greenhouse gas emissions were 80,000 tons-CO2eq (down 7.0% year on year) in Japan and 16,000 tons-CO2eq (unchanged year on year) overseas, for a worldwide total of 96,000 tons-CO2eq (down 5.9% year on year). Meanwhile, the global unit conversion value (greenhouse gas emissions divided by sales revenue) has also steadily declined and in fiscal 2018 the value dropped 3.0% year on year.

Greenhouse gas emissions (worksite energy, company-owned vehicle energy, and leaked fluorocarbon)
Unit value of greenhouse gas emissions (worksite energy, company-owned vehicle energy, and leaked fluorocarbon)

In the Medium-Term Environmental Action Plan, we are working to reduce CO2 emissions by promoting energy saving with the goal of reducing energy-related CO2 emissions used in production and research bases and offices in fiscal 2020 by 40% or more in Japan and by 35% or more worldwide compared to fiscal 2010.
The Group's CO2 emissions in fiscal 2018 were 75,000 tons-CO2eq in Japan, 16,000 tons-CO2eq overseas, for a total of 91,000 tons-CO2eq worldwide. This represents a 40% reduction in Japan and a 32% reduction worldwide compared to fiscal 2010.
In October 2018, the Group participated in the Ministry of the Environment's "Carbon Deforestation Promotion Network." Moving forward, the Group will address Science Based Targets (SBT) and plans to set reduction targets for 2030 and 2050 consistent with the Paris Accord.

CO2 Emissions (worksite energy)

Worksite Energy Management

To reduce energy consumption, the Group has created a system to promote energy management Groupwide and regularly holds liaison committee meetings with environment-related departments and the people in charge at each worksite. At the liaison committee meeting, we check worksite energy usage and CO2 emissions, and also work to save energy across the entire Group by discussing and taking energy and electricity saving measures.
Energy consumption of Group worksites in fiscal 2018 was, in terms of thermal equivalent, 1,365 thousand GJ in Japan (down 1.8% year on year), 323 thousand GJ overseas (up 5.2% year on year), 1,688 thousand GJ globally (down 1.5% year on year).
The decline in Japan is thought to be due not only to our unceasing efforts to save energy, but also the effects or worksite consolidation, On the other hand, the increase overseas is due to the addition of new offices.

Energy used (Worksites energy)

Using Renewable Energy

The Group promotes the use of renewable energy. Solar power panels have been installed at the Kashima site and Tokyo head office and the amount of power generated in fiscal 2018 was 165 MWh at the Kashima Site and 2 MWh at the Tokyo Head Office.

Solar panels on the roof of the Kashima Site

Company-Owned Vehicle Operation

The Group has pursued environmentally friendly initiatives for company-owned vehicles.
As of the end of fiscal 2018, of the 1,831 company-owned vehicles (down 7.1% year on year) that travel outside worksites in Japan, 1,288 were hybrid vehicles. On the other hand, CO2 emissions from company-owned fuel in fiscal 2018 were 4,725 tons-CO2 (down 9.3% year on year)
The Group will aggressively introduce hybrid vehicles in its sales vehicle fleet, promote eco-driving, and continue to implement tangible and intangible initiatives.

Greenhouse Gas Emissions in the Supply Chain

In fiscal 2018, we expanded the scope of our counting of greenhouse gas (GHG) emissions. Overseas Group worksites (offices) have been added to all domestic Group worksites and overseas Group worksites (production and research bases), thereby expanding the amount of our data disclosure.
Greenhouse gas emissions from business activities in the supply chain of a business comprise scope 1, scope 2, and scope 3 emissions.

  • Scope 1: Direct emissions of greenhouse gases from the business itself (fuel combustion, industrial processes)
  • Scope 2: Indirect emissions from the consumption of electricity, heat, and steam supplied by other parties.
  • Scope 3: Indirect emissions other than those covered in scope 2 (emissions by other parties involved with the activities of the business).

Scope 1

Scope of calculation
  • Domestic: Group worksites (production and research bases, Head Office/Tokyo Head Office, branches, sales offices, etc.)
  • Overseas: Group worksites (production and research bases)
Calculation of greenhouse gas emissions Greenhouse gas emissions (tons-CO2eq)
FY2017 FY2018
Domestic Use of fuel at worksites 24,451 23,814
Use of gasoline in vehicles used in sales activities, etc 5,210 4,724
Leakage of fluorocarbon gas at worksites* 759 349
(Domestic total) 30,420 28,888
Overseas Use of fuel at worksites 5,357 4,527
Global 35,777 33,416

*Excluding Head Office, Tokyo Head Office, branches, and sales offices

Scope 2

Scope of calculation
  • Domestic: Group worksites (production and research bases, Head Office/Tokyo Head Office, branches, sales offices, etc.)
  • Overseas: Group worksites (production and research bases)
Calculation of greenhouse gas emissions Greenhouse gas emissions (tons-CO2eq)
FY2017 FY2018
Domestic Use of electricity at worksites 55,089 51,363
Overseas Use of electricity at worksites 10,245 11,080
Global 65,343 62,443

Scope 3

Scope of calculation
Supply chain greenhouse gas emissions, principally related to domestic Group worksites
Category Greenhouse gas emissions (tons-CO2eq) Calculation method
1 Purchased goods and services 495,566 Calculated from purchase prices of raw materials and products in Japan, which are multiplied by emissions unit values from Ministry of the Environment database*1
2 Capital goods 24,425 Calculated from acquisition amounts of property, plant and equipment, not only for domestic companies but also for overseas companies in the scope of consolidation, which are multiplied by emissions unit values from Ministry of the Environment database*1
3 Fuel- and energy-related activities not included in Scope 1 or 2 10,063 Calculated from amount of energy used at domestic Group worksites, which is multiplied by emissions unit values from Ministry of the Environment database1 or emissions unit values from Carbon Footprint database*2
4 Transport and delivery (upstream) 2,560 Calculated from transportation ton-kilometers for shipments from plants to distribution centers, shipments from distribution centers to wholesalers, and shipments from sales-promotion item warehouses to branches, sales offices, etc., using the ton-kilometer method in the greenhouse gas emission calculation and reporting manual from Japan's Ministry of the Environment and Ministry of Economy, Trade and Industry.
Calculated from electricity used for storage management at distribution centers, multiplied by the actual emissions factor indicated in the emissions factors for electric power enterprises announced by the Ministry of the Environment and the Ministry of Economy, Trade and Industry on December 27, 2018.
5 Waste generated in operations 2,503 Calculated from the amounts of waste, by type, from domestic Group worksites (production and research bases, Head Office/Tokyo Head Office, distribution centers), which are multiplied by emissions unit values from Ministry of the Environment database*1
6 Business travel 939 Calculated from number of employees, which is multiplied by emissions unit values from Ministry of the Environment database*1
7 Employee commuting 983 Calculated from amounts of transportation costs paid by transportation district, which are multiplied by emissions unit values from Ministry of the Environment database*1
12 End-of-life treatment of sold products 406 Calculated from amount of recycling obligation based on the Containers and Packaging Recycling Law, which is multiplied by emissions unit values from Ministry of the Environment database*1
  • *1Ministry of the Environment database: database on emissions unit values for calculating greenhouse gas emissions, etc., by organizations throughout the supply chain (Ver. 2.6)
  • *2The CFP Communication Program, basic database, Ver. 1.01

Controlling Fluorocarbons Emissions

The Group is working to prevent leaks of fluorocarbons, which show the effects of ozone layer depletion and global warming.
We comply with installation standards and conduct regular inspections of equipment containing fluorocarbons installed in domestic worksites. In addition, when disposing of equipment containing fluorocarbons, we are working to implement steady recovery/destruction of fluorocarbons.
In fiscal 2018, at the Group's domestic production and research bases, the volume of fluorocarbons recovered and destroyed was 417 kg, and the leakage volume was 118 kg (350 tons-CO2: calculated using GWP coefficients). The leakage volumes for Group companies were all below the threshold for reporting to the national government.

Energy-Saving Initiatives at Worksites

The Group is implementing energy-saving activities while giving consideration to the balance between safety and operational efficiency. In addition, we are working in cooperation with the KAITEKI activities promoted by the Mitsubishi Chemical Holdings Group.
In Japan, the entire Group continues to implement energy-saving campaigns in the summer and winter, when energy use increases, as well as the Ministry of the Environment's lights down campaign on the day of the summer solstice and on July 7. In energy-saving campaigns, we are promoting such measures as setting appropriate air conditioning temperatures, turning off unnecessary lighting, and endorsing the Cool Biz and Warm Biz campaigns. We are also recommending eco-driving measures that leverage the characteristics of hybrid vehicles and calling for water-saving initiatives that lead to indirect reductions in the amount of electricity used at water purification and sewage treatment plants to reduce water usage throughout the supply chain. In addition, we are distributing an original poster to help enable the worksites to take the lead in the implementation of energy-saving activities. These activities have been effective, and the Cool Biz and Warm Biz campaigns have become established practices at each worksite.
At the Kashima Site, which has been certified and registered as a Ministry of Land, Infrastructure, Transport and Tourism Excellent Ecological Commuter Office, rather than using their own cars or motorcycles, employees are commuting by means of transportation with low environmental burdens, such by trains, buses, or other public transportation; bicycles; or walking. The objectives of this initiative are to contribute to the prevention of global warming by limiting CO2 emissions from commuting and to also contribute to promoting the health of employees.
In addition, multiple Group worksites have been registered or recognized as worksites that take an independent, active approach to environmentally friendly activities. The Head Office and the Kashima Site are registered under the Kansai Eco Office Declaration movement, and the Tokai Branch (Nagoya City) has been certified as an Eco Office by Nagoya City.

Campaign posters:
Summer Energy Conservation Campaign
Winter Energy Conservation Campaign
Turn Down the Lights Campaign

Road-Watering Event

Together with neighboring companies and people in the community, the Tokyo Head Office has held a road-watering event each year since 2012 to counter the urban heat island effect, and as an activity to raise awareness of environmental issues, such as the fight against global warming, and to revitalize the local community.
The event was held on August 3, 2018. Amid day after day of extreme heat, we gathered in front of the office building and scooped water from the bucket in our hands, and on signal, we sprinkled the water on the road in unison. While experiencing traditional Japanese culture, we raised people's awareness of environmental issues. (The water used was reclaimed water obtained from the Bureau of Sewage Tokyo Metropolitan Government.)

Road-Watering Event
Receipt of Award at Yokohama Global Warming Countermeasures Awards
In June 2018, the Yokohama Site received the Yokohama Global Warming Countermeasures Award for the second consecutive year.
The Yokohama Global Warming Countermeasures Award is a system for commending excellent companies in Yokohama City's global warming countermeasures plan system based on rules set by Yokohama City.
The Yokohama Site aggressively works to save energy, and to efficiently operate air conditioning equipment, it collects and analyzes energy consumption data of air conditioners and heat source equipment, and promotes optimization of operation patterns. Specifically, we prevented hunting of heat source equipment during nighttime operation and changed AHU control specifications.
We were commended for achieving a total of about 710 tons-CO2 for fiscal 2011 to 2016, roughly a 12% CO2 emission reduction due to our steady effort to implement priority measures required by the global warming countermeasures system.
Receipt of Award at Yokohama Global Warming Countermeasures Awards
Receipt of Award at Yokohama Global Warming Countermeasures Awards